Building, directing and financing a fledgling company requires great care and dedication. After all, while every start-up is founded with the utmost energy and enthusiasm, more than half of all British SMEs cease business within the first five years.

But as Rick Flay of Blue Bull Finance points out, understanding just a few key financing realities can certainly help redress the balance…

1. ‘Business’ and ‘Personal’ are best kept apart

Messy accounting can cause a major headache when tax returns are due, so try to avoid mixing your business finances with personal funds, maintain clear separation of expenses and stick to predetermined budgets.

2. It pays to pay your bills

Late payment fees on your bills can build up major costs; and late payment on taxes can incur even more serious penalties. Protect your profit margins by staying on top of it.

3. Working capital can be put to work

Taking an objective look at where an SME’s money is unproductively tied up can enable a Director to unleash a major source of funding to external finance, for example consider borrowing against assets

4. You need more finance than you think

Raising more funds than a business immediately appears to need can often enable an SME to stay flexible, to cover unexpected costs, to plan further ahead and to unshackle itself from prohibitive growth constraints.

5. Knowing the numbers matters

Business is fast, dynamic and interpersonal – so to make good decisions, every SME Director needs to have a firm grasp of margins, profits, sales and cash flow.

6. Accounting knowledge counts

A simple online course in basic accounting can help you work more effectively with your accountant, understand more about how cash moves and make more effective money management choices.

7. Frugality is a useful default

Making the obvious buying decision can be bad for business. Whether it’s office equipment, utilities or advertising, shop around and take time to explore the non-traditional options.

8. Specialists are needed for specialist work

Nobody can know everything, so it’s important to make finance available for investment in true specialist disciplines like law, marketing, web design and insurance.

9. Web-based expense management systems can help

Modern web-based expense management solutions can clarify your accounting, free up your time and streamline your payment processes for a very modest outlay.

10. Finding the right finance requires care

There’s no doubt that financing can be difficult and with some banks less personal and increasingly digital, but building a relationship with a trusted expert, such as Blue Bull Finance, who can tailor an SME’s funding options to its unique circumstances is vital to long-term success.

If you would like to chat or need more information please let us know. Phone 07774 652344 or email