What to do When Your Business is Financially Unstable

When you’ve worked hard day and night in an attempt to make your business a roaring success, it can be painful to admit, or even fully recognise, when things haven’t gone to plan.

If your business is in financial hardship, it can be difficult to know what the right thing to do is. 

It can be tempting to react emotionally and desperately do anything you can think of, after all, you’ve likely poured everything into your business. However, it’s important to consider your options; we’ll discuss some directions you can take to try and get back on track.

Look To Improve Efficiency

We know. It’s easy for us to essentially advise you to try and save money by improving efficiency, and it may feel like you’ve tried everything.

But did you know even the smallest changes can often have the biggest impact on efficiency?

For example:

• Cut out unnecessary calls and emails

• Ensure machines are running only when in use

• Consider if you need to have every light on all of the time

• Maintain machines regularly to avoid costly repairs down the line

It’s surprising how much money you can save for your business through seemingly pointless changes.

Consider Short-Term Funding

If you’ve exhausted your options when it comes to improving efficiency, it may be a good idea to consider short-term funding such as a commercial bridging loan.

Put simply, commercial bridging finance does exactly what it sounds like; it bridges the gap for situations in which you need funds quickly.
There are a variety of benefits to taking out a bridging loan, including the quick process from start to finish, which is ideal for when you need funds urgently.

Ensure Your Financial Records Are Accurate

According to Regpack, having a written record of all earnings and expenditures is essential to spot inconsistencies or habits you can change to maximize your earnings or lower your spending.

This can also benefit your business when applying for short-term funding.

Recognise The Cause

A key element of recovering from financial instability is recognising the cause of the downturn.

By doing this you’re ensuring you’re fully aware of the problem, meaning you’re in a much better place to tackle it.
At ASG Finance, we offer flexible finance solutions to UK businesses and are experts in our field. If you’d like to find out more about how we can help, please don’t hesitate to get in touch today.

Mistakes to Avoid When Taking Out a Bridging Loan

There are so many benefits of taking out a bridging loan; from a surprising amount of flexibility to a quick and relatively straightforward process. However, as with any loan, the decision to take out a commercial bridging loan is not one that should be taken lightly. There are many elements that can cause the downfall of your application (or even your business!) if you’re not careful before, during, and after the whole process.

It can be daunting knowing there are so many things to consider when taking out a bridging loan, so we’re going to discuss some key mistakes to avoid to ensure you have the best chance possible of a positive experience!

Not Being 100% Honest

Before you say it - yes, not being 100% honest during your bridging loan application can land you in some serious hot water, not to mention you may well be breaking the law!

While you may be ashamed of your credit history if you’ve had some rocky times in the past, commercial bridging finance is always secured against assets, so the property circumstances and exit strategy are more important than your individual credit history.

Not Managing Your Expectations

We get it, when that lump sum enters your bank it can be easy to get carried away with all the work you can do with it. It may sound obvious but it’s crucial to remember that:

1. Your bridging loan is not unlimited, spend it all and it’ll run out - simple!

2. You’ll need to pay back your loan: don’t always borrow the maximum amount just because you can!

Managing your expectations of how much things actually cost as well as how far you will realistically be able to make the loan stretch will go a long way in ensuring everything goes smoothly!

You’re Not Clear On Its Purpose

When deciding to take out a commercial bridging loan, it’s imperative you’re clear on exactly what it’ll be used for.

This could be a business purchase, landlord or small property development project but it is the circumstance that is more important than the buyer.

You Assume You’re Eligible

Automatically assuming you’re eligible for a bridging loan is arguably the quickest route to disappointment!

In fact, there are general criteria you must meet in order to be considered:

• Individual, partnership or limited company

• Over 18 years of age

• Has a UK address

• Has assets that the loan can be secured again

• Purchasing or refurbishing commercial property

• Has a clear exit plan - either plans to sell the property or refinance

It’s important to note, however, that every lender may require something slightly different.

At ASG Finance, we’re experts in commercial bridging finance. If you’d like to find out more about what we do, or if you have questions about taking out a bridging loan, contact us today to speak with our friendly team.

Benefits of Taking Out a Commercial Bridging Loan

If you’re a business owner looking at different finance options, bridging loans are great for short term funding where permanent options aren't available.

A bridge loan is designed to ‘bridge the gap’ when you need to raise funds quickly such as for commercial property purchasing when permanent financing options are not available.

Whether you’re looking to invest in a new commercial property, a refurbishment project, or a new leisure facility, bridging loans are a great solution. But what exactly are the benefits of commercial bridging finance? We’ll take a look into why it’s key for many business owners.

Quick Process

While we’ve just briefly touched on this, one of the main benefits to taking out a bridging loan is how quick the process is. 

While many traditional finance messages can take weeks or even months to come through, bridging loans can be surprisingly quick - granting business owners access to their loan often in a matter of days.

Flexibility With Repayments

Another key benefit of commercial bridging loans is the range of flexibility that usually come as standard.

In general, you as a borrower have more control over repayment options and plans which is ideal for businesses who need a little wiggle room to ensure everything runs as it should.

Even More Flexibility

When you think of applying for a traditional commercial loan, you may be concerned about lengthy checks, invasive questions, and credit score enquiries. 

However, with a commercial bridging loan, you don’t need to worry about anywhere near as many checks as bridging loans are a type of asset-backed lending.

Early Payment Is Possible

Unlike other loans, with regards to commercial bridging loans, business owners won’t be charged for repaying their loan early.

In fact, repaying your bridging loan early has the benefit of costing less in interest the earlier you pay it.

At ASG Finance, we’re a privately owned commercial finance provider, set up to provide flexible finance solutions to UK businesses. If you’d like to find out more about how we can help your business successfully apply for a commercial business loan, contact us today to speak with our friendly team who will be happy to answer any questions you might have.

Drew Haymes Joins ASG Team

ASG Finance are delighted to welcome Drew Haymes to support our brokers and clients with Bridging Finance facilities from £300k to £7M.

Drew Haymes joins us after a 20 year banking career across RBS, HSBC & Santander including working in Europe for the Spanish Group and covering specialist sectors.

Drew has delivered lending facilities across the north of England from grass roots SME’s to household names and landmark buildings in Yorkshire.

His entrepreneurial approach and level of experience coupled with his professional qualifications ensures ASG Finance with have the right approach when tailoring bridging products for our clients.

Drew Haymes spoke of his excitement working with ASG Finance, adding, “As a bespoke lender, we have an wonderful advantage in being able to create a bridging facility designed around the clients particular needs. Each facility can be as unique as each client and each opportunity to provide support is based on the overall merits presented. Flexibility and Speed will be our ethos whilst we work with our brokers and design each lend around the client’.

Reach out to Drew on 07950 344770 to catch up or discuss bridging rates from 0% for up to 3 months.  

ASGF Construction Wins Excellence in Construction Award

ASGF Construction Limited is delighted to announce their Chapel Waters Development in Worksop has won an Excellence in Construction Award for Best Development.

The award recognises contractors who have exceptional performance in the construction industry and is part of the Checkmate Recognition Award Scheme.

The Chapel Waters Development was monitored and considered on various qualifying criteria including Quality and Workmanship, Health and Safety, Site Welfare, Cleanliness, Waste management, and other Checkmate adherence procedures and came out on top against other principal contractors.

Speaking about the award, Contracts Manager Liam Housley said: “It is credit to everyone at ASGF Construction that our Chapel Waters Development has been recognised for the Best Development award. We work as hard as we can to operate to the highest standards and this award is testament to the team and their professionalism at all times.”

Phase II of the Chapel Waters development comprises of 2, 3 or 4 bedroom detached and semi-detached houses and 2 or 3 bedroom detached bungalows. This development situated in Rhodesia, Worksop, will be built over 4 phases with a total of 102 properties. ASGF Construction is also committed to reducing it’s impact on the environment and will be planting trees locally as part of a sustainability in construction scheme.

If you would like to know more about ASGF Construction or other developments where they are principal contractors, visit their website at https://www.asgfconstruction.co.uk/