Finance FAQs


Here we’re sharing some business finance FAQs we get asked here at ACF Direct.

How easy is it to find business finance?

This is perhaps one of the commonest business finance FAQs.

Unfortunately, it’s also one of the hardest to answer! That’s because we just can’t say until the exact nature of your requirement and situation have been understood.

What we can say, in general terms, is that;

  • if you have a good solid business position and;
  • you’re past financial conduct has been within reasonable standards, then;
  • we may well be able to help.

Do please contact us for a further discussion.

What does “solid business position” mean?

It’s something of a crude generalisation but businesses typically look to find additional financing for one of two reasons:

  • they’re doing well and need to expand or open up new activity areas;
  • they’re struggling financially in one respect or another and are looking for a lifeline.

As you might imagine, if all other things are equal, it’s typically easier to find business finance for the first scenario than for the second.

However, finance can be available for companies that are struggling, providing their difficulties are seen to be short-term and solvable via something such as debt restructuring, cash flow management, factoring and so on. It may be much more difficult if your company is essentially just not viable.

Can I borrow money to help me start a business?

Yes.

However, the process and funding sources are often different to those used further along the lifecycle of a business. That’s because start-ups are usually seen as higher risk and although Business Angels may well be interested in assisting bright ideas, they might also require a stake in your company.

Once a company is well established with a track record of success, that’s less commonly the case if, for example, you’re looking for vehicle fleet finance. The sources there would, typically, be different.

Why do I see business finance providers asking to see accounts?

What we call “accounts” have evolved over many centuries.

They are a factual and objective way that potential investors (or finance providers) can check the overall financial health of your company both today and over the recent past. They will wish to do so (or are obliged to do so in some cases) in order to protect their shareholder / stakeholder interests.

Can I get business financing if I have a bad credit history?

Again, this is a very regular subject in business finance FAQs.

The answer is – very possibly yes.

A lot depends upon how you go about things, who you speak to and just how bad your past problems might have been. Understandably, all finance providers will reserve the right to refuse your application.

The two most important things are:

  • don’t assume you’re going to fail and so give up;
  • avoid making lots of random loan applications. If they’re refused, you may damage your credit score further. Speak to us first instead.

Is business finance available for any purpose?

Finance, in qualifying background circumstances, is available for almost any legitimate business purpose. It’s a positive and dynamic marketplace at the moment.

There may, inevitably, be some exceptions though. Finance providers typically prefer medium to longer term engagements and those that offer a manageable degree of risk with a tangible asset and / or reasonably predictable outcome.

For example, finding business finance for purchasing an additional HGV might not be a problem. By contrast, finding business finance to help fund a pay increase for your personnel, in the hope this will increase productivity, might be a more difficult proposition.