Business Finance

A secured loan or secured debt is when the borrower has committed to give the lender lien over certain assets, such as a real estate property or a car, if the client fails to make payments.

The lender has the right to seize control of the asset and sell it to recoup the money left outstanding.

This can help reduce the interest rate payable on loans as the lender mitigates their risk through the provided security. Lenders quite often ask for some form of security if profit margins are tight, or if the business is showing a pattern of going into a slight decline.

Giving the lender peace of mind and potentially making the funds cheaper for the client.

Typical LTV is up to 75% on residential property and up to 65% on commercial property.

An unsecured loan is a loan that is issued and supported only by the borrower’s creditworthiness, and affordability rather than by any type of collateral.

An unsecured loan is one that is obtained without the use of property as collateral for the loan.

Unsecured loans are typically underwritten based on a business’ ability to repay the debt as opposed to net profit margin or solvency position.

Homeowner ideally but tenants are accepted. For loans longer than 12 months companies need to have filed two sets of financial accounts with companies house. Most lenders will require a PG (Personal Guarantee).

* Loan Term Subject to Time Trading, credit score and in some cases if profitable.

A bridging loan is a short-term loan facility that is secured on property and can be used to provide large sums of money.

Bridging loans can be put in place quickly and used to provide finance when funds are only required for the short term, i.e. from just 1 day to 18 months.

Whether it is to purchase stock to fulfil a large order, or to cover upfront costs for a new business contract won, we have several lenders who offer this type of finance.

Asset finance is a flexible approach to funding that gives your business access to the equipment, vehicles, plant and machinery it needs, without affecting cash flow.

If you’re unable to make your repayments this could possibly result in a loss of assets and nothing more (check your contract with your lender).

These commercial finance options can be used for both new and second-hand assets.

They include everything from heavy equipment financing to second-hand equipment financing options.

Most cases we have dealt with have been for construction or warehousing, but asset finance can be used against any physical asset your business owns or needs to purchase.

Invoice factoring involves a third party paying you a percentage of your invoices immediately, with the third party then running your credit control to recover the sums in total from your clients.

The balance will be paid to you once it is recovered. In our experience this is a great cashflow solution for companies issuing large value invoices which have terms of 30days or longer.

With a percentage of the invoice value being paid on the date it is raised, it would cover your cost of delivering the product/service to your customer.

Invoice discounting has some similarities, but it involves you borrowing money from a third party against the value of the invoices you have raised.

That will be done in advance of your client paying the invoice and the intermediary’s services will therefore typically be invisible to your customers.

Revenue Based Finance isn’t technically a loan, but rather a cash advance based upon the credit/debit card sales of a business.

A small business can apply for revenue based finance and have an advance deposited into its account quickly.

No 2 Yes Finance sourced a £75k revenue based finance loan for a car garage which only took two days from application to deposit, when the funds were desperately required by the client.

A revolving credit facility is a line of credit that is arranged between a lender and a business.

It has an established maximum amount, where the business has access to the funds at any time when needed.

This type of credit is mostly useful for operating purposes, especially for any business experiencing sharp fluctuations in their cash flow, (CF) is the increase or decrease in the amount of money a business, institution, or the individual has.

The facility amount is based upon the company’s receivables or turnover. For receivables based RCF min of £500k turnover. For turnover based RCF min £100k turnover, must be a homeowner and min facility of £10k.

Property development finance is a short-term loan for residential property developments, such as construction projects, and is usually advanced as a loan towards land purchase.

It can also be used as a loan in stage payments for development costs in converting a property into flats or HMO’s.

Most lenders will go up to 75% LTV of the property.

Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions.

A trade transaction requires a seller of goods and services as well as a buyer.

Lenders on our panel are willing to facilitate these transactions against letters of credit provided by the supplier of goods.

If you have gone to your bank or looked at other high-street banks for assistance and have been declined or you haven’t been offered a preferable rate.

We have competitor/alternative banks on our panel offering these services.

With a different set of criteria to banks, you may find that you find a product better suited to your needs.

Embedded finance allows non-finance companies to manage and sell financial services to their customers through a seamless integration provided by banks, FinTech’s or other regulated entities.

If your customers’ needs finance to purchase your product this can be the perfect solution for you and your buyers.

If your company already has borrowing within it and you have kept up to date with payments in accordance with your loan schedule, there is an opportunity to refinance the debt.

The goal being to secure a lower rate, and in some occasions obtain some additional cashflow.

This is great for companies that took out finance at a high rate when they needed it most.

Now with a good payment history, we can look to take a new loan to pay off the old and reduce the monthly repayment for your business.

If you are looking for a new loan when you already have borrowing, in most cases it would be worth looking at refinancing the old debt to help keep the repayments manageable.

Our credit repair service partner Lightbulb Credit provides whole of market credit rating review, repair, and monitoring services for businesses.

They help companies understand their ratings and work directly with the agencies to get them re-evaluated.

They can help you improve your company credit rating in as little as 2 days so you can enjoy benefits like these:

• Better supplier terms
• Improved funding and finance rates
• Increased working capital
• Meeting criteria for tender bids

Lightbulb offer a completely free company credit insight report showing your company ratings now and over the last 12 months with all 5 of the main ratings agencies.

Click apply and select Credit Repair Service to receive your free report and be connected to Lightbulb to take advantage of their services.

Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

Ecommerce is often used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet.

Whereas e-business refers to all aspects of operating an online business, ecommerce refers specifically to the transaction of goods and services.

If you sell and take payment via Shopify, Paypal, Stripe, Amazon, Ebay etc., or any other type of platform or payment merchant (subject to lender approval) our lenders want to lend to you. 

So basically if you sell 100% online and take a minimum of £10,000 in sales per month we can help you source funds for stock, website development, new staff, advertising etc.

Applying for a business finance facility is simple, with approval and funding to your bank account in as fast as 1 hour. Let us take the work off your shoulders so you can concentrate on what you do best, your business.