Money is an essential part of any business. No business can run without money. And dearth of it can hamper your business a lot. Regardless of the size of the business, it is vital for you to have a sufficient amount of funds to perform day to day business operations such as payment to suppliers, payroll services, etc. These are the essential expenses that you cannot avoid.
For big businesses, it is very easy to get funding but small businesses usually struggle to obtain funds to run their business. On top of that if they have any outstanding payment and due to that a CCJ has been issued against them, then it becomes almost impossible to get financial help.
Many believe that it is not possible to get a loan business that has CCJ against them. To some extent it stands true but it is not impossible to secure funding despite having a CCJ. The only thing which you need to consider is to look for the right lender.
If you are planning to take a loan from a traditional lender or credit union then it is very likely that they will refuse your application. The reason is that they are less capable of taking the risk. Hence, they don’t show the willingness to lend you money when needed.
What is your option now?
Not to worry! Not all doors have been closed for you. Today’s lending market is flooded with lenders who provide loans despite having a CCJ. You can take loans for CCJ and bad credit from direct lenders in the UK. The current UK market is full of such types of lenders and you will not have much difficulty in securing a loan. One thing to keep in mind here is that you will be charged a higher rate of interest as compared to regular loans. Lenders are taking a risk here by offering you loans despite having a CCJ, hence they charge high-interest rate just to compensate their loss in case of non-payment.
Businesses need funds for various reasons- to open a new office, to purchase new equipment, to expand their presence, for marketing and advertisement, etc.
Here in this article, we will go through various options of getting financing to accomplish your business-related aims.
Whenever stuck in a financial burden, the first avenue people go-to is a bank or credit union. Taking a loan can help you in overcoming any issue which your business might be facing due to paucity of money. We have already discussed getting a loan from direct lenders in case you fail to obtain a loan from banks or traditional financial institutions. Also, for direct lenders, CCJ is not a big issue as long as you are able to convince them that you will be able to repay the amount on time without much delay.
This is one of the famous ways of getting financial help nowadays. Usually, this option is used by large business houses but recently even small business owners are taking this root to gather fund.
As the name indicates, in this type of funding a business owner asks the public to invest in its firm. People can invest as per their capacity and in turn, you have to provide them either share in your business or share from the profits which you will make.
Hence, you can arrange funds for your business need through this method and in turn, make those people your business partner.
These types of investors are someone who can invest in your company a large amount of sum.
To get help from these investors, you have to approach them and show them your detailed business plan. Generally, these investors put their money into only those businesses that have the capability to make profits and become successful in coming time.
Hence, you have to convince them with a detailed business plan with profits and future scenario. Once you become successful in convincing them in your business then you can gather as much money as you want from them.
But there is a saying ‘nothing comes free in this world’. So, these investors would like to get something in turn. They will either seek partnership in your business or would like to have their say in management related decision. Now the decision is yours which option you would like to offer them.
Hence, we can say that there are various ways of getting fund for businesses when needed. Also, CCJ is not a big hurdle when seeking a loan because various online lenders are available to provide these types of loan. The only thing which you need to keep in mind is timely repayment to avoid further damage to your credit.