Guest blog by Chris McLoughlin from Bathgate Business Finance.
“Before the pandemic, providing business finance advice to legal businesses was always something of a reactive business. A partner buyout, a sizable tax bill or invoice finance to assist with cash flow requirements, finance advice and solutions were sought when needed.
The reactive approach continued into the pandemic, as the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) provided a much needed lifeline for many firms, as cases – along with cashflow – ground to a halt. But as we have begun to emerge into some semblance of normality, we’ve seen some appetite for a different, more proactive approach to financial planning.
While there is of course significant interest in the government’s new Recovery Loan Scheme (RLS), which launched earlier this month and about which details are still emerging, firms are also keen to understand what other finance options are available to them.
This may be because we don’t yet have all the details about the RLS and, with firms still feeling some financial pressure in the wake of tumultuous 12 months, it’s prudent to explore all the options available. Or maybe it’s a more fundamental shift, with more forward planning around finance to ensure navigating unexpected challenges is a smoother, stress-free experience?
It’s not just legal business owners who are taking a new approach eithers, it’s lenders too.
Business As Usual
Despite terms not being favourable as CBILS and BBLS, the RLS will still be worth exploring. It will be suitable for managing cash flow, investment and growth and has been designed to appeal to businesses that can afford to take out additional debt finance for such purposes, such as conveyancing firms buoyed by a post-covid property boom.
But even if the RLS doesn’t fit your needs, there are other options out there – even ones that may not have previously been available to you in the past. Eligibility criteria have changed, products have changed and applications processes have changed – we have all had to think more outside the box in terms of running our businesses and lenders are no exception.
As we start to see ‘business as usual’ return, it is worth considering if your approach to financial planning before was really the best it could be, or if it’s time to do things differently and consider solutions you might not have previously.
Bathgate Business Finance has three decades’ experience in providing finance support to law firms at all stages of their developments. As well as being an approved intermediary for the UK’s leading independent CBILS funders during the scheme’s lifetime, placing some £28m CBILS funding, Bathgate also provides other solutions, such as own-book lending and alternative finance routes
For further information about the Recovery Loan Scheme or other finance options, please contact Chris McLoughlin on 0151 625 7323 or email email@example.com