5 Ways to Access Working Capital during COVID 2020

2020 has seen the financial market experience changes which previously have never been seen. As lockdown was announced in March, lenders responded by restricting LTVs, or pulling certain products altogether. At the time of writing, (09/07/20) some lenders have still not returned to the market, showing a general level of uncertainty amongst financers.

The team at AWC have decided to compile a list of ways to access working capital for businesses in 2020.

1. Business loan.

This is a very simple product. The business receives a cash injection and agrees to pay back the balance plus interest over an allotted time period. These are a fantastic option which can be utilised to bridge a ‘cashflow gap’. We regularly work with SMEs that require initial working capital to buy additional stock, equipment or machinery etc to help grow the business. A lot of high street banks offer business loans, but their criteria is difficult to meet. Our lenders are happy to look at ways to work with your business.

2. Overdraft facility.

This is very similar to a traditional overdraft facility with a high street bank. A lender will allocate funds to your business for a period of time, during which you can use and repay the funds as and when you require. There is no obligation to use any % of the facility at any stage, you are free to use as much or as little as you wish. Also, you are only charged for the amount you use, at the time you use the money.

3. Invoice finance.

If your payment terms with your customers are causing a cashflow headache, invoice finance may be the solution. In short, you can receive up to 90% of the value of the invoice immediately rather than waiting 60+ days to be paid from the customer. Again, another great option if you are constantly chasing invoices to meet other financial obligations.

4. Sale and leaseback on commercial premises.

If you are looking to raise substantial working capital to grow your business, one way to do this would be to sell and simultaneously lease back your trading premises. The equity in your property is released as working capital for your business to utilise on a day to day basis. This service raises more capital than any other debt product on the market and can be completed in an incredibly efficient manner. You retain complete operational control over the premises. Our provider has a very flexible approach with buy back options too.

5. R&D tax credits

Research and Development (R&D) tax relief is available to businesses that invest in innovation. This innovation can be in the form or developing new systems, processes, products, materials, devices, or any changes to the way your business works. Any business which is forward thinking and reinvests back into R&D could be due a substantial tax rebate. Some of the amounts which we have uncovered for clients are staggering.

The team at AWC can help your business to locate the right funding to get you where you want to be. Whatever your situation, please get in touch today to see how we can help.


0800 656 9668

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