Successfully Funding Thousands Of UK Limited Companies Since 1989
Require Immediate Support? Helpline 0800 056 0410
Business financing and funding options have expanded greatly in recent years and you’re no longer restricted to loans from the major banks. The alternative finance market offers funding solutions that you may not have considered before, and that are typically quick to obtain.
Initially, you’ll need to consider your specific business’s needs in terms of funding – why you need the finance, roughly how much is required, and how you’ll repay it. You may need regular support for your cash flow each month, for example, or a cash lump for investment purposes.
A secured loan may be appropriate if your business owns one or more assets of value. By using an asset as collateral, the lender can repossess it if you don’t keep up with the repayments, which makes it a low risk option for them.
Benefits of secured business loans
Unsecured business loans don’t require you to put forward any assets as collateral and can be fast to access, although you may be asked to sign a personal guarantee. Unsecured loans of up to £200,000 are typically available, and these can be used for any business purpose.
Benefits of an unsecured business loan
Invoice finance is a type of alternative funding that might be suitable for your business if it has a strong sales ledger. Factoring is one form of invoice finance that releases around 90% of the value of your unpaid invoices, usually within 48 hours.
Benefits of invoice finance
Hire purchase offers you a way to purchase expensive assets without using up your business capital. A hire purchase agreement involves making fixed monthly repayments over a specified period. It also incorporates a ‘completion payment’ that transfers ownership of the asset to your business at the end of the agreement.
Benefits of hire purchase
Equipment or asset-based refinancing allows you to sell a high-value asset to a lender, and then rent it back from them. You make fixed monthly repayments and take back ownership when the contract is completed.
Benefits of asset-based refinancing
UK Business Finance can help you to find the most appropriate form of funding for your needs. Our services are free-of-charge and we can make the funding application on your behalf. Please get in touch to find out more – we operate a nationwide network of offices.
We work across a wide range of sectors throughout the UK, providing specialist advice to each sector.
What can company finance be used for?
Business finance can be used for a multitude of purposes within a company, from boosting general cash flow to funding development projects and buying stock. Its flexibility and adaptability to an individual business’s needs make it ideal whatever stage of business you’re at.
Management buy-in financing options
If you’re considering being part of a management buy-in (MBI) or you’ve decided to sell your own business to an incoming management team, there are several ways in which the transaction can be financed.
Can I get business finance if my company is insolvent?
If your company is insolvent, it’s vital to stop trading straight away and obtain assistance from a licensed insolvency practitioner. The insolvency practitioner’s role at this point is to assess your company’s financial situation so that they can provide guidance on whether additional finance is appropriate.
Can’t pay company bridging loan – what are my options?
A bridging loan is a form of short-term finance that lasts for up to 12 months. It provides vital funding between transactions when a company purchases one property before the sale of another has been completed.