During July Musgrave Retail NI announced a £16 million investment in their stores across Ireland – including a £3m investment in a new Centra store and petrol station in Co Antrim.
Johnston Financial Solutions was delighted to work with our client, Oran McCloskey, to help make the expansion and opening of a new store possible. We explore further how Johnston Financial Solution can help secure finance for business expansion.
Here’s some of the steps you’ll need to take in advance of securing finance for your business expansion:
1. Assess Your Expansion Needs
Before seeking finance, it’s crucial to have a clear understanding of your expansion needs. This involves:
• Identifying Goals: Define what you aim to achieve with the expansion, whether it’s opening new locations, launching new products, or increasing production capacity.
• Cost Estimation: Calculate the total costs involved, including equipment, real estate, hiring, marketing, and other operational expenses.
• Return on Investment (ROI): Estimate the potential ROI to demonstrate the financial benefits of the expansion to potential lenders.
2. Explore Financing Options
Understanding the various finance options available will help you choose the best fit for your business. Some common options include:
• Business Loans: These are loans provided to businesses for purposes such as working capital, expansion, equipment purchases, or real estate acquisition.
• Asset-Based Lending: This involves obtaining finance secured by the company’s assets such as accounts receivable, inventory, or equipment. The amount of financing available is typically based on the value of these assets.
• Commercial Mortgages: Businesses can secure finance to purchase or refinance commercial properties such as manufacturing units, office buildings, or retail spaces.
• Hire Purchase finance: This type of finance allows businesses to acquire equipment or machinery through leasing or financing arrangements, spreading the cost over time, with the business owning the equipment after the final payment has been made.
3. Prepare Necessary Documentation
Lenders will require various documents to process your loan application. Commonly requested documents include:
• Certified Accounts: Last three years’ certified accounts. It would help if you had up to date management accounts, including your Profit & Loss, and Balance Sheet.
• Financial Statements: Three to twelve months bank statements
We’ve put together a short guide on Making Business Finance Simple – check it out for more information around necessary documentation and preparing a solid business proposal.
4. Partner with an Experienced Finance Broker
Navigating the finance landscape can be challenging. Partnering with an experienced finance broker like Johnston Financial Solutions can simplify the process. We offer:
• Expert guidance
• Access to alternative lenders
• Application support and assistance
Conclusion
Securing finance for business expansion requires careful planning, thorough preparation, and a clear understanding of your financial options. At Johnston Financial Solutions, we are committed to helping businesses in Northern Ireland achieve their growth ambitions. With our extensive experience, we can guide you through the process, ensuring you obtain the right funding to fuel your expansion.
Ready to take the next step? Contact Johnston Financial Solutions today to explore your finance options and start your journey towards business growth.
