Commercial finance is another term for business finance or business funding — it’s lending designed for commercial enterprises rather than individuals. Commercial finance is often talked about in contrast to personal finance.
There are many types of commercial finance. In the past, commercial finance would have come from mainstream lenders like high street banks, but there is now a variety of alternative finance available too, including options like Invoice Finance and Asset Finance. We will work with you to best understand your business and which options are most suitable.
The simplest form of commercial finance is a commercial loan. You agree an amount, a repayment period and the cost of finance (for example, the interest rate and fees).
Commercial loans can be secured or unsecured. Secured loans are usually cheaper, because the lender is taking a lower risk, but you need to have assets to use as security. Unsecured loans are useful for companies that don’t have enough assets to get a secured loan.
Commercial loans can come from a variety of sources. They are offered by the mainstream banks, challenger banks, and specialist independent lenders, as well as peer-to-peer lending platforms.
Whether buying new property or refinancing outstanding debt, we can help clients at every step. Our bespoke service ensures we fully understand both the business and the funding requirements in detail, delivering not just any deal but the right deal
Commercial mortgages are available to all applicant types; individuals, partnerships, limited companies, trusts, pension schemes, complicated and layered company structures, including situations where the property is owned by or to be purchased in the name of the directors and rented to their business.
The most competitive terms are available for established businesses with strong trading accounts, however we can also arrange finance for start-up or newly formed businesses where a robust plan is in place.
Do you sell goods and services to other businesses? Having made a sale do you then have to wait for up to 90 days for payment?
Invoice Finance can release up to 95% of funds tied up in invoices, with money released to you within 24 hours.
At a time when many banks won’t provide funding, Invoice Finance can provide a much needed cashflow injection. This is usually by way of a permanent facility with an agreed credit limit, however raising funds against a single invoice with no requirement for a long term contract is becoming increasingly popular.
Cash is usually the most vital resource for businesses so effective cashflow management is essential. Invoice Finance, often known as Factoring or Invoice Discounting, provides access to your cash now.
Most businesses need some form of equipment to carry out their day to day activities, whether that is Vehicles, Computers and other IT equipment, Plant, Machinery or many other item types.
Finance packages are available to not only to purchase assets but also to raise capital against assets you already own, thereby releasing cashflow into your business. The funder essentially buys the asset from you for cash then sells it back to you under a finance agreement, so you continue to have use of it in your business.
The sheer range of options and finance packages available can be bewildering so the best option is always to speak to an experienced specialist in this type of funding. 100% of the purchase price of an asset is available in many instances.