Building a business case – where does finance fit in?

You’ll no doubt have plans and goals for your business. You might have the means to fund them yourself, but sometimes external finance is the only way to put them into action. However, we often hear from business owners that applying at other finance providers is too time consuming, and you need to present business plans and invest time in prep work that makes it not worth the effort. 

That’s not the approach we take at Funding Circle. Instead of asking for plans, we can provide a quick, no-obligation quote to help you assess your options, so you can add it to a business case for your own use and see if it’s viable. Here’s how we can help.

Write a business case

When you’re planning a new project, whether that’s an update to existing systems and processes, opening a new store or sourcing some extra working capital, a business case can help you create a clear plan and convince your stakeholders. It helps you identify your project’s benefits and costs, so you can accurately plan how much you’ll need to implement it.

What’s the business problem you’re trying to solve?

Start by identifying this and address how the project can solve the issue. Be sure to make a note of any costs or risks associated with the problem to help justify the need for the project. 

What are the possible solutions?

You’ll want to quantify the benefits and forecast the costs of these solutions, as well as how feasible they are. Rank these solutions and focus on the best one to solve the problem.

How are you going to implement your chosen solution?

This section is where you’ll want to forecast the costs needed to bring your project to fruition. Break down your overall costs into individual component costs — for instance, if you’re opening a new store, you’ll need to outline the cost of the space, any insurance, shop fittings and fixtures, stock and equipment, to name but a few.

Business case templates

You can find business case templates on gov.uk, and there are even examples to give you a jumping off point.

Assess your finance needs

Now you’ve planned your business case, you should have a good estimate of the finance you’ll need to implement your project. Also look at how much you can afford to repay each month. These two figures will set the parameters of what you need, then you can start to look at different options.

Apply for finance

There’s a wide variety of finance products available and what’s right for you will depend on the nature of the project in your business case. It could be short or long term, and you might start gaining extra revenue straightaway or have a cash flow gap to bridge. 

Term loans

• Terms from 6 months to 6 years
• Borrow from £10,000 to £500,000
• Rates from 7.9% per year
• No fees to settle early

FlexiPay

• Repay over 3 monthly instalments
• Credit limit from £2,000 to £250,000
• No interest — just a flat 3% fee on each business cost
• No annual or set up fees

Both options take just 10 minutes to apply and you’ll get a decision in as little as 1 hour.

Even if you’re not ready to take out finance just yet, if you’re a limited company or LLP, there’s no downside to getting a decision from us. There’s no impact to your credit score, which means you can assess your options with complete peace of mind and make the right decision for your business.

If you want more guidance on your business loan, our UK-based Account Managers are here to help as well, and can assist you with figuring out how your offer fits in with your plan. Equally, if we’re unable to offer the finance you need, we might also be able to help you find funding with one of our lending partners, whether that’s through asset finance, a business credit card or a business loan.

Assess your options and make a decision

Now you’ve got your options confirmed, you can assess what’s right for you. At Funding Circle all our offers come with no obligation to proceed, but if you want to accept, you’ll get your funds quickly, so you can start putting your plans into action.

12/12/22: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.