With the first quarter coming to an end, many businesses are taking stock and assessing their cash position. Typically, the December to January period can be quieter for certain businesses and that means you could be running low on cash reserves. Fortunately, there are two solutions that businesses can explore to boost their reserves.

Asset refinance
One strategy to consider is an asset refinance, particularly for recent outright purchases of equipment or
vehicles made in the last six months. With the value of hindsight, businesses may question whether it would have been more advantageous to finance these acquisitions upfront. By opting for a simple purchase and hire-back arrangement, coupled with competitive financing terms, businesses can replenish their cash without compromising their operations.

Asset refinance works by leveraging existing assets, such as machinery or vehicles, to unlock cash that is tied up in these assets. Instead of outright ownership, businesses can opt for a financing arrangement that allows them to retain the use of the assets while freeing up cash for immediate needs.

This approach not only injects much-needed liquidity into the business, but also spreads the cost of asset
acquisition over time. At the same time, asset refinancing offers the added benefit of preserving working
capital for other essential expenses or investment opportunities as they arise.

Low doc working capital
Another option worth considering is tapping into low-documentation capital facilities, which can provide a cash boost, or an ongoing overdraft-like solution tailored to the business’ needs. Unlike traditional loan applications, low doc working capital facilities require minimal documentation, streamlining the approval process and enabling businesses to access funds quickly.

These facilities offer flexible repayment terms and access to funds on demand, allowing businesses to manage their cash flow effectively. Whether facing unexpected expenses, capitalising on growth opportunities, or bridging temporary cash shortfalls, low doc working capital options can provide a versatile financial lifeline for a range of businesses.

Low doc working capital facilities are also designed to adapt to the evolving needs of businesses, offering
scalability and customisation. Businesses can adjust the amount of credit they require based on their own
changing cash flow requirements, meaning that the funds are available when they need them.