There is not a great deal that January is good for. It is dark, normally a bit chilly and wet, nothing much on telly and you need to file your self assessment return. Great…
But January is good for one thing. Raising business finance.
Why January For Raising Business Finance
The rationale is fairly simple and is built around these two events;
- Most UK lenders work on a calender year basis, therefore they are looking to start the year positively and lend money, big tick for raising business finance
- The financial year end is April. Investors, shareholders, directors, they are all looking to report a positive pipeline of business. That means getting deals agreed in January, another big tick for raising business finance
There are of course a number of factors that may mean January is not the best time for you. For many people it is a lower period of trading and the financials can look a little weaker, however this doesn’t have to be a negative.
The Positives Around January Business Finance
Take these as positives as to why you should consider finance in January.
- You don’t have to drawdown now. Once you get an approval, even one in principle it is easier to change the terms and move forward later on
- An outline agreement or consent to taking things forward is better than starting from scratch at a later date
- This may be your lowest trading period, fear not. Get the discussion going now as your lender will be listening, then if need be progress things once trading is great
Underneath all of this there is one line to remember, don’t wait until you want finance to apply for it. Applying for business finance when you need it is the worst time.
Chose the right time for you, but also chose the right time for your lender. The right time for most business lenders is January – March. Just make the most of the opportunity when it comes round.
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