Working Capital

Whether operating within a growing or mature market, access to growth working capital is essential to maintain market position and take advantage of growth opportunities as they arise. The problem is that fast access to the funds needed to achieve this can be challenging.

Directors and shareholders might choose to take advantage of new technologies in a growing market, or to use funding to acquire smaller competitors.

On the other hand, operating within a mature market offers challenges such as finding ways to compete, other than on price alone. Not having to compete on a price-only basis means that businesses can expand and offer innovative solutions to their customers.

Working capital for growth is vital in both markets, not just to maintain equilibrium, but to step ahead of competitors and make the most of market opportunities. For example,

• The purchase of specific assets - often a catalyst for growth
• Restructuring the balance sheet - redresses the balance for an overly-leveraged company

Growth funding allows flexibility in day-to-day operations. This type of funding can help businesses decide whether or not to change existing practices, or adopt new ones such as:

• Ceasing production of less profitable lines and investing in the development of new products
• Building up associated companies within smaller, potentially more profitable market segments
• The acquisition of up-and-coming competitors
• Developing marketing strategies and implementing campaigns to attract new customers
• Investing in sustainable practices that aid long-term growth

For companies that are just starting up, a lack of working capital can also be a barrier to growth — without it, you can't invest in your business and look to the future. Many small business owners choose to get a working capital loan to cover their daily operational costs, so they can focus on growth and give their company the best chance of success.

For all working capital enquiries, contact our dedicated team at BTG Advisory. Our team of experts can scan the market to find the best lender for your situation.