SME Working Capital Loans UK: £18.8m Expansion
UK SMEs get £18.8m boost from Equipal, while Festina Finance secures £25m for expansion. Founders must adapt to new funding options. AskBiz helps track working capital and cash flow to make informed decisions.
- £18.8m Injection: Equipal Expands SME Lending
- Impact on £200k-£2m Revenue Businesses
- Three Moves for Smart Operators
- AskBiz: Your Working Capital Watchdog
- Warning Signs to Watch
£18.8m Injection: Equipal Expands SME Lending#
According to BeBeez International, Equipal, a British asset finance platform, secured £18.8m to grow its team and lending capacity. This development highlights the growing interest in SME-focused financial platforms. Eamonn McMahon, founder of Equipal, stated that the structure of this deal allows for additional scale with senior funding in the years ahead and provides operating flexibility. Festina Finance, a Danish firm, also landed £25m to fuel its UK expansion, as reported by FinTech Futures.
Impact on £200k-£2m Revenue Businesses#
For a Leicester-based Shopify seller doing £40k/month, this shift in funding options can significantly impact working capital. With more lenders entering the market, founders can access better loan terms and expand their operations. A £40k/month business can now explore more affordable lending options, potentially saving £1,000-£2,000 per month in interest payments.
Three Moves for Smart Operators#
To take advantage of the new funding landscape, smart operators are: 1) reviewing their current loan agreements to ensure they are still competitive, 2) exploring alternative lenders like Equipal and Festina Finance, and 3) using tools like AskBiz to track their working capital and cash flow in real-time. By doing so, they can make informed decisions about their business and stay ahead of the competition.
AskBiz: Your Working Capital Watchdog#
A founder can type 'What is my working capital cycle?' into AskBiz and receive a detailed analysis based on their connected Xero data. AskBiz surfaces a cash flow warning: 11 days of runway left, enabling the founder to take corrective action and avoid a cash flow crisis. With AskBiz, founders can track their working capital and make data-driven decisions to drive growth.
Warning Signs to Watch#
Founders should watch for signs of decreasing working capital, such as: 1) a decrease in cash reserves, 2) an increase in overdue invoices, and 3) a rise in loan interest payments. By monitoring these signals, founders can identify potential issues before they become major problems and take proactive steps to address them.
Action Plan for This Week#
This week, founders should: 1) review their current loan agreements, 2) set up a working capital tracking system using AskBiz, and 3) monitor their cash flow daily. By taking these steps, founders can ensure they have a clear understanding of their working capital and can make informed decisions to drive growth and avoid potential pitfalls.
People also ask
How to improve working capital for small businesses
Review loan agreements, explore alternative lenders, and use tools like AskBiz to track working capital and cash flow. Best operators also monitor their cash flow daily.
What is working capital cycle?
The working capital cycle refers to the time it takes for a business to sell its inventory, collect accounts receivable, and pay its accounts payable. AskBiz can help track this cycle and provide insights for improvement.
How does AskBiz help with working capital management?
AskBiz provides a working capital tracking system, enabling founders to monitor their cash flow and make data-driven decisions. It also surfaces cash flow warnings, allowing founders to take corrective action and avoid potential issues.
What are the benefits of using alternative lenders?
Alternative lenders like Equipal and Festina Finance can offer more competitive loan terms, lower interest rates, and faster access to funding, helping founders expand their operations and drive growth.
How to reduce loan interest payments?
Review current loan agreements, explore alternative lenders, and negotiate better terms. Founders can also use tools like AskBiz to track their cash flow and identify areas for improvement, potentially saving £1,000-£2,000 per month in interest payments.
Alice Watson is AskBiz's Head of Market Intelligence, tracking regulatory shifts, pricing trends, and growth signals across global SME markets to provide actionable insights for founders.
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