Emergency business finance options

When a business is struggling to keep trading, there are plenty of options to get the necessary capital to keep afloat, from alternative finance to cash flow products like invoice finance and merchant cash advances.

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Emergency business finance options

In an ideal world, every business owner could plan the year ahead, and everything from cash flow to financial planning would go smoothly without any unforeseen events. The reality of the situation is that customer payments get delayed, machinery breaks, stock gets damaged, which might mean that you will need the support of a short-term business loan to see you through.

Emergency business finance options

While you might not be able to plan for an unexpected incident that negatively affects your business, you can familiarise yourself with the emergency business loans on the market from alternative finance to cash flow products like invoice finance and merchant cash advances. Cash flow problems are the bane of small businesses with many stating that their cash reserves would run out after just three months. 

Lending for short-term purposes can inject a much-needed shot of cash into a business’s working capital. The three main types of working capital loans are:

For longer-term funding, the most relevant forms of finance are:

Seasonal trading businesses

There might be times throughout the year when your business has off-season trading, placing a strain on cash flow. In cases where your business needs a leg up, it might be worth talking to a credit broker or a lending platform to see what business loans are available to you, this includes asset-backed finance for businesses that need a boost to working capital and term loans that use accounts receivable, inventory, plant and machinery or real estate as collateral. It is basically any type of business finance that is secured by company assets.

My business is operating at a loss

Growing debt is a serious issue, especially if there is no clear path back out of the red. However, there are specialist lenders who take a holistic look at a business and will work out a tailored plan for getting you out of debt, while also providing you with the necessary funding to keep your business afloat. Most often, in the case of a business with significant debt, a lender will only offer a secured business loan with a personal guarantee and assets as collateral. The interest rates for unsecured business loans tend to be much higher than for secured business loans.

Are you running out of options?

Have you tried everything and still feel like your business situation is hopeless? At this point, you need to make an extremely challenging decision about whether to keep trading or close the business. If you are confident that you can turn the ship around you might want to consider going for a company voluntary arrangement (CVA) to address your outstanding liabilities. If your limited company is insolvent, it can use a CVA to pay creditors over an agreed timeframe. If your creditors agree to the terms and conditions, your company can continue trading.

How to get a business loan fast?

In an emergency situation, for example, your biggest customer just went out of business, and payroll is only around the corner. If you need emergency cash for your business there are lenders who will facilitate you. You’ll have a much better chance if you have your ducks in a row with regards to the following:

Keep your accounts up to date

If your business is a limited company, keeping your filed accounts up to date is really beneficial when it comes to applying for a quick business loan. Up to date accounts show how your business is doing right now, rather than where it was in the past, and give a good overview for lenders looking at your application.

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Get your bank statements ready

Almost every lender will want to see the last 3-6 months of bank statements, so it makes sense to get these ready as soon as possible. Ideally you'll have them as PDF files downloaded from your bank — most of the high street banks offer this feature.

If you're a sole trader, keeping separate bank accounts for your business and personal expenses makes it that much easier for a lender to sift through your statements.

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Let us help you find the best financial product in the market. We will guide you through the whole process and make sure you get the best deal.

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It pays to be prepared

One of the biggest factors in how long it takes to get finance is you — if you have your banks statements ready, along with any recently filed accounts and other financials like profit and loss, our team can get your application moving within minutes.

And when we say quick business loan, we mean quick — we recently helped a customer get approved for a loan in just 11 minutes, and regularly get firms the right loan in less than an hour from initial enquiry to money in the bank.

Looking for finance?

Let us help you find the best financial product in the market. We will guide you through the whole process and make sure you get the best deal.

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How can I use an emergency business loan?

An emergency business loan can be used when your business has been negatively affected by an unforeseen event. Lenders will provide a loan for the following reasons — if they can be convinced that you will adhere to the agreed repayment timeline.

  • Short-term marketing or advertising costs

  • To support operating expenses (staff wages, bills, rent)

  • To help seasonal businesses, you could use an emergency business loan to fill gaps caused by cyclical trading periods

  • To cover unexpected expenses from legal obligations to insurance payouts  

Understand your options

Many business owners don't realise that within 24 hours, despite a complex financial situation, you can get a loan even if you've got bad credit, a CCJ or other signs of trading problems in the past. If your business is in an urgent situation, the best thing you can do is to talk to a lending expert, who knows the market and the range of products, as in most cases, you won’t be eligible for an off-the-shelf loan from a high street bank, but there are specialised lenders who in return for higher interest rates will provide emergency loans to struggling companies in the UK. They will even help you with the application process and will advise on any loan schemes that are still in operation. 

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Business Loans For An Emergency

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