If you run a small business and are in need of larger premises to keep up with growing demand, it's important to consider how business finance could provide you with the working capital you need for expansion. Whether you're staying put and adapting your current space to meet growing demand, or moving to new premises altogether, we cover the main considerations to bear in mind below:
Business loans for premises expansion
If you want to stay in the premises your business already occupies, you could upgrade and adapt the space so that it caters for your growth plans. This could be by building an extension or having construction work completed within the building to make better use of the existing space. If you're leasing, be sure to carefully check the covenants in your contract before beginning works, even if it's a simple face lift, such as updating the interior of a high street shop or café.
If you're making significant changes, such as to a family-owned farm or hotel, refurbishments can often take months, and should generally be completed during low season. Naturally, this can have an impact on your profits, so it's important to plan ahead to cater for a potential loss of income during the works.
Luckily, there are several alternative finance options available to you if you're looking into expanding your premises. This can come in the form of either unsecured or secured business loans, which will not only give you a boost of working capital to pay for the works, but can also provide you with a safety net of finance to keep things ticking over in case you have to turn away custom whilst works are underway. This means your cash flow can be protected in the short term whilst your business undergoes the necessary expansion works.
Business loans for a premises move
It's important to bear the length of your lease in mind when moving to new premises, as the space should provide you with room to grow into. You should ensure you have enough space to take on new hires, store products and stock, and have a dedicated space where you can hold client meetings, if necessary.
Even if you do take these precautions and find a space you love, small businesses can quickly outgrow their premises, and finding the funds to facilitate a move can, at times, prove tricky. If you're looking for ways to fund the relocation of your business to a larger space, consider how a small business loan could provide you with the working capital you need to pay for the initial deposit on the new premises, plus costs associated with moving.
Olivia Crighton, Founder of Hackney-based Glasshouse Salon, was in a position to grow her business but was struggling to find a finance provider who would lend her the funds to assist with a premises move for her hair salon. After her broker introduced her to Fleximize, Olivia was able to move to larger premises, take on double the amount of staff, and enjoy better facilities. Listen to her experience in her own words below.
Olivia Crighton used a Fleximize business loan to move her hair salon to larger premises
The biggest challenges for me were raising capital and finding the right space for us.
Premises expansion loans with Fleximize
Whether you're carrying out works to refurbish your current business premises, or are moving to a new space altogether, Fleximize can provide you with the vital working capital you need to facilitate premises expansion. What's more, due to the flexible nature of our funding, and the fact that we offer top-ups, you could use part of your loan for relocation and some for carrying out improvements to the space to adapt it according to your needs. Here are some of the key features of a Fleximize business loan:
- Business loans of £5,000 – £500,000
- Unsecured and secured borrowing options
- Flexible repayment terms of 3 – 48 months
- Speedy application with minimal paperwork
- Approval and deposit in as little as 24 hours
- No hidden fees or early-repayment penalties
- Interest charged on a reducing balance, not the total loan amount
- Repayment holidays and top-ups available with all loans
- Exclusive discounts on industry-leading business services
Apply for a premises expansion loan
If you're considering a premises move or expanding your current business space, give one of our relationship managers a call on 020 7100 0110. They'll be able to talk you through the funding options available to you. Or, if you're ready to apply for a Fleximize business loan, you can start the online application process by clicking the button below.