Small business finance

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Small business finance
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• CAN A FINANCE BROKER SAVE ME AND MY BUSINESS TIME
  AND MONEY?
• YES
• A good broker will be a highly trained
  finance expert
• You want to buy a business or expand one but
  do you understand the lending market and the
  myriad of products that are available?
• You need new premises and equipment, or
  maybe more working capital. You know business
  finance is what you need so you hit the internet
  ...there is an awful lot of information out there
  about business finance...confusing, frustrating,
  and more than likely a waste of one of your most
  precious
• resources TIME.
• You may just decide to remain with your
  existing lender but the market is much more
  competitive and there are many lenders who would
  like to bid for your business.
• SYNECTIC FINANCIAL will allow you choose the
  right business funding at a more competitive rate

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• STARTING IN SMALL BUSINESS
• Four out of five people never put their idea for
  a small business into action
• If you have a great business idea, develop a
  business plan then talk to Synectic Financial
  about your small business finance options
• HOW MUCH MONEY DOES YOUR BUSINESS NEED?
• A lot of small businesses fail because they
  run out of cash, not because they offer a poor
  product or service. How much money do you need
  for your business? You need set-up costs and your
  living costs covered until you get established.
  Dont even consider going into business until you
  have developed a detailed business plan and cash
  flow projection.
• Your Small Business or Commercial Finance options
  include

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• BUSINESS FINANCE or COMMERCIAL FINANCE?
• Both Business Finance and Commercial Finance
  are usually secured by either commercial or
  residential property. However Business Finance is
  probably more associated with small business.
  Commercial Finance relates more to financing a
  commercial property
• BUSINESS LOANS
• Business loans are where the finance is for
  business purposes and the interest costs
  surrounding the loan are tax deductible against
  the profit of the business. Small business
  operators provide security by way of either
  residential or commercial property.
• COMMERCIAL LOANS
• A commercial loan is when the finance for
  the purchase of a commercial property, commercial
  property development or business purchase
• Larger corporate borrowers usually rely only
  on the assets of the company as loan security, eg
  trade debtors

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• LINES OF CREDIT
• A line of credit entails your being given a
  borrowing limit by the lender and you draw down
  money- up to that limit- as you require it.
• The advantage of a line of credit is that
  you only pay interest as you draw down money.
• The disadvantage is that the interest may be
  higher
• A line of credit should be fully
  fluctuating that is , it should only be used as
  a short term financing option, rather than for
  the purchase of
• major commercial plant or equipment
• HOME EQUITY LOAN
• Many have limited cash reserves but have
  built equity in their property.
• That is the property is worth more than what
  is owing on the mortgage borrowed
• You can access this equity to finance your
  business or investment

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• START-UPS vs EXISTING BUSINESSES
• If you are considering running your own
  business, you should be aware that it is usually
  easier to obtain business finance for an existing
  business rather than a start- up
• Lenders tend to consider start-ups as risky,
  whereas an existing business has a financial
  record they can review.
• SYNECTIC FINANCIAL have business finance
  options for start-ups
• VENTURE CAPITAL
• Venture Capital is here the lender provides
  funds in exchange for a stake in your business
• The further your idea is from fruition, the
  less likely the venture capitalists will be to
  provide funding and they will usually require
  greater equity holding in return