In the bustling world of small businesses, where innovation can be hampered by financial hiccups, Branta stands as a beacon of hope. Our recent collaboration with The Homemade Brownie Company, a UK-based artisanal brownie maker, illustrates a scenario where determination meets opportunity head-on, resulting in sweet success.

If you own a small or medium-sized business and have ever applied for a loan or credit facility, you may have come across the term "personal guarantee." Simply put, it's a legal contract between the lender and the borrower that states that one or more individuals will act as a guarantor for the loan, should the business be unable to repay it. In this blog post, we'll explore what personal guarantees are, why lenders require them, and how you can deal with them to protect yourself and your business.

It's an open secret that the construction industry is currently going through a challenging period. This predicament has resulted from a confluence of factors, including the COVID-19 pandemic, escalating materials costs, labour supply issues, main contractors failing to meet payment expectations, and banks reducing their support for the sector. With increasing cash pressures and banks reducing the availability of borrowing facilities, the traditional avenues for financial support are becoming less accessible. But what options does a construction business owner have during these difficult times? Thankfully, there are alternative financing structures available. At Branta, we're dedicated to helping you navigate these financial waters and move your business forward. The Current Financial Landscape in the Construction Industry The global COVID-19 pandemic has wreaked havoc across all sectors, and the UK construction industry hasn't been spared. The pandemic has disrupted supply chains, leading to increased costs for materials. The problem has been compounded by labour shortages due to Brexit-driven immigration policies and self-isolation requirements. Moreover, main contractors are not meeting payment expectations, exacerbating cash flow issues for many businesses. Banks, traditionally a reliable source of funding, are reducing their support for the sector, leaving many companies in the lurch. And finance directors are increasingly anxious as cash always seems to arrive too late. Late payments can wreak havoc with a company’s reputation, which in turn hampers their ability to procure labour and materials. Which may then affect their hard-earned commercial advantage when tendering for new work. Issuing a notice to suspend work - a last-ditch effort to remedy non-payment - is proving to be a futile exercise rather than a solution. These mounting pressures have left many construction firms in a precarious financial position, struggling to see a long-term future for their company. What Does This Mean for Construction Business Owners? In these challenging times, construction business owners may feel like they're in a financial squeeze, with dwindling resources and limited avenues for financial assistance. This could lead to a slowdown in operations, layoffs, or worse, business closure. However, it doesn't have to be this way. There are still viable financial solutions available, and that's where alternative financing comes into play. Managing cash flow is a universal challenge for businesses, with 61% of small business owners regularly struggling with cash flow issues. Poor cash flow management can lead to serious problems, even when a busine ss appears profitable. The struggle to maintain cash levels often stems from a variety of factors. Low profit margins, holding too much stock, giving customers too much credit, and unnecessary spending are all common causes of cash flow shortfalls.  Moreover, small and medium-sized businesses are particularly prone to irregular cash flows and limited liquidity. This makes it crucial for these businesses to pay close attention to their working capital and cash flow management. Introducing Alternative Financing In the face of these challenges, where should a company turn if it needs additional financial support? Traditional UK banks may not be the most reliable source of aid in these trying times. Thankfully alternative financing options exist that construction businesses can explore. These include solutions from various non-traditional sources, but companies should be assured that alternatives to traditional banks do exist. Alternative financing refers to financial channels, processes, and instruments that have emerged outside the traditional finance system such as regulated banks and capital markets. These may include peer-to-peer lending platforms, crowd funding, invoice trading, supply chain and trade finance, among others. These financing options can offer more flexibility, shorter approval times, and potentially lower interest rates compared to traditional banking facilities. How Can Branta Help? At Branta, we understand the financial challenges faced by businesses in the construction sector. That's why we're committed to guiding you toward the most suitable financing options that will support your business's needs. Our team of dedicated professionals will work closely with you to understand your business's unique challenges and goals, allowing us to recommend the most appropriate financing options. Whether it's identifying suitable alternative financing structures, helping you understand the risks and benefits, or assisting with the application process, we're here to help every step of the way. Take the Next Step Don't let financial constraints hold your construction business back. There are alternative financing options out there that could provide the financial support you need to keep your business thriving even in these challenging times. Contact us at Branta today to learn more about how we can help you navigate these alternative financing options and keep your business on the path to success. Conclusion Navigating the current financial landscape in the construction industry can be daunting, but it's not a journey you have to take alone. With the right guidance and access to alternative financing options, your construction business can weather the storm and emerge stronger. Reach out to us at Branta today and let's explore how we can build a stronger financial future for your construction business together.

Navigating the Complex Landscape of Pre-Packed Administrations: A Dive into the Advantages, Disadvantages, and Essential Role of Independent Evaluator Reports

Discover how Piota Apps, a mobile app development company struggling to commercialise, turned things around quickly and started generating £2m ARR with the help of Branta. This success story is a testament to the power of networking, expert advice, and customised strategies. Learn how seeking expert advice and guidance can change the course of a business and help you achieve your goals. Read on to find out more about Piota's turnaround and the role played by Branta in this inspiring journey.

Our client, a leading operator in the property and facilities management sector, is seeking to expand their portfolio in the property maintenance industry by acquiring companies in London. With a focus on property maintenance, including but not limited to maintenance, cleaning, block management, and facilities management, our acquisition criteria includes London-based companies. We are also open to distressed businesses. Enterprise value up to £2m will be considered. Our client has a strong track record of successful acquisitions and integrations. They have the resources and expertise to support the growth and development of the businesses they acquire, while maintaining the high standards of service and quality that customers expect. Our client is also very happy for the existing management team or owners to stay on in the business post-acquisition. If you know of any potential targets or would like to learn more about this opportunity, please do not hesitate to contact us. Our team is happy to answer any questions you may have and provide further information about the acquisition strategy. At Branta, we understand that selling your business can be a complex and emotional process. That's why we work closely with our clients to develop a tailored strategy that meets their unique needs and helps them achieve their goals. If you are a business owner considering selling your business, or even worried about financial distress, please contact us today. We believe that every business has the potential to succeed, and we are committed to helping our clients unlock that potential. Let us help you achieve your business objectives today.

Branta is pleased to announce its role in helping the shareholders of Allteks Limited sell their distressed business to Soda IT Support . Allteks is a UK-based technology company that provided IT support and consulting services to businesses. When Allteks began to experience financial distress, the shareholders knew they needed professional assistance to help them navigate the complex process of selling a distressed business. They turned to Branta for help. Branta worked closely with the shareholders to understand their objectives and develop a strategy for selling the business. The team conducted a thorough analysis of the business and identified potential buyers who would be interested in acquiring Allteks despite its financial difficulties. Soda emerged as a potential buyer, and Branta worked to negotiate a favourable deal on behalf of the shareholders. The team structured a transaction that not only allowed the shareholders to exit the business, but also ensured that the employees and customers of Allteks would be taken care of under Soda's ownership. "We are thrilled to have helped the shareholders of Allteks sell their distressed business to Soda IT Support," said Antony Fanshawe of Branta. "This was a complex transaction, and we are proud of the work our team did to ensure a successful outcome for all parties involved." The sale of Allteks to Soda allowed an exit route for the shareholders. The employees of Allteks were also able to retain their jobs, and the customers of the business continued to receive the high-quality IT support and consulting services they had come to expect. "At Branta, we understand that selling a distressed business can be a challenging and emotional process," said Antony Fanshawe. "That's why we work closely with our clients to develop a strategy that meets their unique needs and helps them achieve their goals." Branta is a leading corporate finance boutique that provides tailored financing and M&A solutions to companies in a wide range of industries. Our team of experts has the experience and expertise to structure customised solutions that help our clients achieve their business objectives. If you're a business owner facing financial distress or considering selling your business, contact Branta today here . We can provide the guidance and support you need to navigate these complex challenges and achieve a successful outcome.

Corporate finance is a scary place. Prices are dropping, volumes are shrinking, and it feels like everyone's getting ready to sell.

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