A Fin24 user is ready to expand his business, but needs to buy more stock. He writes:
I am trying to build my new business. It is expanding, but I need funds to buy a good amount of stock to start showing profits, expand and take it to a new level.
Jeremy Lang, regional general manager of Business Partners, responds:
Thank you for your enquiry. The challenge you experience is one that many entrepreneurs all around the world experience.
With little knowledge about your business, there are a few financing options detailed below that you may wish to explore:
Suppliers or creditors
Using creditors' terms to finance a portion of your working capital cycle.
Debtor finance
This is the ability of the business to raise funds using your debtors book as collateral.
Trade finance
This is the ability of the business to raise funds either to finance the purchase of stock, where the stock serves as collateral, or against a specific order or contract you have secured.
Overdraft or similar revolving facility
This is a service you can obtain from your bank.
The willingness of a financier to finance your growth will depend on your track record and overall risk assessment.
We invite you to visit your nearest Business Partners Limited office - a list is available here - for an interview with one of our consultants, who will guide you through the decision making process.
You can also call our Entrepreneurs Growth Centre at 0861 SME FIN (763 346) for business advice from our experienced mentors.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.