A Guide to Making Business Finance Work for You

Managing your business finances is key to success and growth.

Whether you're launching a new business or looking to expand, knowing how to handle your finances can really make a difference. The right financial choices can help you boost profits, reduce risks, and ensure business stability in the long run.

In this guide, we’ll look at how making smart financial decisions can set you on the path to success.

Starting a business

Starting a business comes with its share of financial challenges. You’ll need to secure initial funding, cover day-to-day costs, and plan for unexpected expenses. One of the biggest hurdles for many new businesses is getting the capital to get started.

Getting the right funding is crucial. You’ll need enough to cover things like inventory, equipment, marketing, and employee salaries. Fleximize’s startup loans are designed to help new businesses access the funds they need quickly and easily, giving them the support to focus on building and growing their business.

Securing the right funding

There are many ways to fund your business, but choosing the right option is key. Types include loans, grants, crowdfunding, and private investment. Each has its own benefits, depending on your business needs.

Business loans are a popular choice because they give you quick access to cash and often have flexible repayment options. When you're looking for funding, it's important to choose a loan that fits your business goals. Fleximize offers business loans tailored to your business’ needs, from working capital loans to cash flow finance.

By finding the right funding, you can support your business growth without stretching your finances too thin.

Work out how much you need to borrow

When thinking about how much funding to apply for, it’s important to match the amount to your current and future business needs. Whether you’re planning to seize a new opportunity, invest in infrastructure, purchase equipment, or hire more staff, the right amount of capital can make all the difference.

At Fleximize, we consider a wide range of factors including monthly revenue, credit history, and trading time.

Once you’ve got a rough figure in mind, you can use our business loan calculator to see what your monthly repayments might look like based on the amount and term. This can help you plan your budget and check affordability before applying. You can also take a look at our loan amounts page to see how much we could lend your business.

Creating a solid financial plan

A solid financial plan is the foundation of any successful business. It helps you set clear goals, manage resources, and track your performance. Your plan should include a budget, cash flow forecasts, and a forecast for future revenue and expenses.

To make your plan, start by setting your business goals and figuring out how much money you’ll need to achieve them. Then, allocate funds for things like day-to-day costs, marketing, and research. Make sure to regularly review and update your plan to stay on track.

A good financial plan acts like a roadmap, helping you make informed decisions for the stability and growth of your business.

Protecting cash flow and working capital

Cash flow is the lifeblood of any business. It’s important to keep your business’s income and expenses in balance. Without enough cash coming in, even a profitable business can struggle to stay afloat.

Monitoring cash flow means keeping track of money coming in and going out. It’s important to stay on top of receivables (the money customers owe you) and payables (the money you owe others). You should also plan for seasonal fluctuations in income and expenses, so you’re never caught off guard.

Fleximize’s cash flow finance options can help SMEs manage cash flow gaps by providing short-term loans to cover operating expenses, so you always have the funds you need to keep things running smoothly.

Debt consolidation

If your business has multiple debts with varying interest rates and repayment schedules, consolidating your debt could be a smart choice. Debt consolidation lets you combine all your debts into one loan, making it easier to manage payments.

The benefits of debt consolidation include:

• Lower interest rates
• Simplified payments
• Improved cash flow

Fleximize offers debt consolidation loans that can help you streamline your business finances and free up cash for other areas of growth.

Purchasing a major asset

Buying a major asset, like equipment, vehicles, or property, is a big financial decision. Depending on the cost, you might want to explore financing options.

There are a few ways to finance an asset purchase, like taking out a loan or leasing. A business loan can help you spread the cost over time, so you can preserve your working capital.

Scaling and growing a business

Scaling a business takes careful financial planning. When you expand, you'll need to consider factors like hiring new staff, increasing production capacity, and marketing your business to a wider audience.

A business loan can help you scale efficiently. You can use it for things like buying new equipment, hiring extra staff, or running marketing campaigns. The right funding can help take your business to the next level and reach your goals faster.

Understanding business finance

To make smart financial decisions, it’s important to have a basic understanding of business finance. These include:

• Revenue (the income your business generates)
• Expenses (the costs associated with running your business)
• Profit (the difference between revenue and expenses)
• Cash flow (the movement of money in and out of your business).

Understanding these concepts will help you assess the financial health of your business and make informed decisions. It also helps you spot any problems early, so you can take action before things get out of hand

Cost control and reduction strategies

One of the keys to running a successful business is keeping costs under control. Cutting unnecessary expenses can increase your profitability and improve your cash flow.

Look for areas where you can reduce costs without sacrificing quality. For example, renegotiating supplier contracts, cutting down on waste, and improving how things are done can lead to big savings. By managing your costs, you can reinvest those savings back into growing your business.

Utilising financial tools and technology

There are plenty of financial tools and technologies out there to make it easier to manage your business finances. From accounting software to financial analytics tools, these resources can help you keep track of your finances, monitor performance, and make data-driven decisions.

Using the right tools can keep you organised and help you make decisions that benefit your business. Many businesses find that using financial tech saves time and reduces mistakes, helping them stay on top of their finances.

Planning for growth and expansion

As your business grows, it’s important to have a financial plan in place to manage that growth.

Whether you’re expanding your product line, entering new markets, or increasing production, you’ll need funding to support these efforts.

Common financial mistakes to avoid

Many businesses make common financial mistakes that can slow their growth. Some of these mistakes include:

• Taking on too much debt
• Poor cash flow management
• Not planning for taxes
• Failing to track business performance

Avoiding these mistakes will help keep your finances healthy and make sure your business stays on the path to success.

Mastering business finance is crucial for the long-term success of your business. Whether you're just starting out, expanding, or looking to optimise cash flow, having a solid financial plan and understanding your options is key. Fleximize offers a range of financial products to help businesses manage their finances and achieve their goals.

Explore our business loans and find out how we can support your business growth.

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Your common questions answered

How does business finance work?

Business finance involves managing the money needed to run and grow a business. This includes getting funding, managing cash flow, budgeting, and making smart financial decisions.

How does a business loan work?

A business loan provides capital to a business that needs funding. In return, the business agrees to repay the loan over a set period with interest.

Business loans can be used for a variety of purposes, such as working capital, asset purchases, or expansion.

Can I be rejected for a business loan?

Yes, it's possible to be rejected for a business loan – especially by traditional banks, which often have strict requirements around credit history, trading time, and paperwork. Many SMEs find these barriers frustrating, especially when they need funding quickly to keep growing.

That’s where alternative business finance comes in. Providers like Fleximize take a more flexible and supportive approach. Instead of relying solely on credit scores, we look at the bigger picture – including your business performance and future plans.

Even if a bank has said no, an alternative lender might say yes. That’s why more UK SMEs are turning to alternative finance: faster decisions, tailored loans, and fewer hoops to jump through.

What is the best way to manage cash flow?

The best way to manage cash flow is to regularly monitor your income and expenses, keep track of receivables and payables, and plan for seasonal fluctuations. Using business finance options can help fill any gaps in your cash flow.

What is the importance of understanding company accounts?

Understanding financial statements helps business owners track performance, make informed decisions, and plan for growth.

Do you have a question that you can't see? Check out our FAQ page.