Business Credit Problems - Sell and Rent Back Is the Simple Option
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Business credit is one of those critical cogs that are essential to the smooth day to day running of your business. Whilst it is quietly whirring away in the background, you can almost forget it is there. But when it stops spinning, you can suddenly find all of your other operations grinding to shuddering halt. Quite simply, the business credit extended to you to cover your cash flow fluctuations is a prerequisite for a successful and profitable company.
For most small and medium sized enterprises (SMEs) this business line of credit is provided by the business arms of the big retail banks, as part of their package of business services. This could be as simple as an overdraft facility on a business bank account, or cash flow management tools such as invoice discounting for larger corporations.
But mention the words "business credit" to your bank's business manager over the last two years, and you may have found a swift change in the topic of conversation. Since the advent of the credit crisis of 2008, all of the banks have been slow to unwind their exceptionally tight stance on offering business credit - even those whose majority shareholders are now the UK taxpayer, via massive injections of public capital from the government.
The Bank of England has recognised this in its latest assessment of the provision of credit (Credit Conditions Survey - 2010 Q1) to SMEs. There, it states that although credit supply, and interest rates spreads, has improved slightly for larger corporations, for small enterprises the "price terms on new lending to small businesses were reported to have tightened somewhat, consistent with unchanged availability and higher-than-expected demand..." for business credit.
So what to do if you are facing a cash shortfall and your bank is persisting in its short term outlook. What other avenues are there for raising that working cash space that your business needs? One often over looked approach to business credit is the realising of the cash value of your assets, and particularly your property. If you own your premises, it may be quite feasible to sell some, or all, of the property, and then rent it back from the purchaser.
This is where SellMyCommercialProperty can help you with your business credit needs. We are experts in the assessing, valuing and rapid sale of commercial property. Our professional team operates countrywide to help our clients realise the value of their fixed assets. We have undertaken many sell and rent back arrangements, and can get our team out to you within 48 hours to make an initial assessment.
Once an agreement on price and terms has been reached, we can ensure you receive funds fast. You will get to remain in your premises as long term lease holders, and your business credit problems will be resolved, without recourse to lengthy negotiations with your bank, or onerous interest rate payments. Simply fill out your contact details online, and one of the team at SellMyCommercialProperty will get back to promptly- in no time you can get back to your core business, with all those gears turning smoothly once again.
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