Corporate finance is one of the best tools available to businesses. Rather than exclusively being a way to solve financial problems and challenges within a business, corporate finance is a tool companies use to help them grow, manage cash flow, and strengthen their balance sheets.
Corporate finance products are especially useful for small and medium enterprises (SMEs), business owners and high-net-worth individuals whose wealth is linked to a business and therefore spans both personal and professional spheres.
If you are an adviser or work with business owners or entrepreneurs, understanding how to use the various financing products available on the market is helpful as you guide your client towards financing solutions.
Enness works with professional services firms and individuals that advise SMEs, business owners and entrepreneurs, brokering corporate financing products that will be most advantageous to your clients and will fuel their company’s growth, solve challenges and unlock opportunities.
Corporation Tax Loans
Corporation tax loans are available to UK businesses of all sizes. This financing product allows a company to take out a loan to cover the cost of the Corporation Tax due. Here, lenders usually pay your client’s Corporation Tax liability directly to HMRC, and your client’s company will repay the lender monthly. Loan terms are generally between 3-12 months.
Key benefits for your clients:
- Manage company cash flow by spreading out Corporation Tax repayments over several months
- Keep liquidity available within the company for other projects rather than paying Corporation Tax as a lump-sum
- Avoid late payment and interest fees if your client’s business can’t make their HMRC payment deadline
- We can broker Corporation Tax loans very quickly, which is helpful if your client is coming up to their payment deadline with HMRC. We can arrange these loans in 1-2 days
Working Capital Loans
Despite reservations about the global economy, your client may be a company or own a business undergoing significant growth or have the capability to scale. Working capital loans are ideal ways to support growth. Your client can also use working capital loans if they need capital to see their business through a dip in revenue or as a way to access liquidity until they generate more income that is forthcoming in the short to medium term.
Working capital loans are ideal in all these circumstances because they are used to cover operating expenses in your client’s business, either to fuel growth or to support your client’s company during a low revenue spell. Both secured and unsecured working capital loans are available, although unsecured loans will only be available for the most robust of businesses. Unsecured working capital loans will typically cost more, but loans may be more advantageous to your client because they don’t require additional security. Unsecured loans are usually used to fuel company growth rather than to cover a low revenue period.
Key benefits for your clients:
- Support your client to grow their business by hiring new staff, renting larger premises, buying more stock to react to higher than anticipated demand, and so on
- Help your clients manage short-term cash flow
- An ideal solution if your client needs to fund operations while they ride out non-critical dips in revenue
- Quick to arrange and large loans available
- Lenders are open to financing various products and services, including if your client operates in niche or unusual industries, or has a small but lucrative client base
- Unsecured and secured working capital loans are available
Income tax loans
Income tax loans are not always considered a corporate finance tool, but they benefit individuals with a significant UK income tax liability. This is often the case if your client is a business owner who has generated substantial income in a fiscal year due to selling investments at a profit, disposing of assets, and created large pools of personal capital from various projects and interests, and so on.
Enness can help you arrange income tax loans for your clients to help them cover their income tax liabilities. This product tends to be used as a cash management tool and to retain liquidity, rather than because they can’t settle their income tax bill, although income tax loans can be used in this scenario, too.
Rather than paying their income tax as a lump sum, your client can use a loan to finance their income tax liability. The lender will usually pay HMRC directly, settling the bill, and your client will repay the lender in monthly instalments.
Key benefits for your clients:
- Large loans to cover significant income tax liabilities available
- Enness can broker income tax loans in 1-2 days
- Avoid late payment and interest fees if your client’s business can’t make their income tax payment deadline
- Your client will repay the loan on a monthly basis as a fixed amount, supporting better cash flow management
- Removes the burden of your client having to settle their income tax as a lump sum
- Your client will retain liquidity for other projects or investments
- Enness can help you raise income tax finance for your client on a reimbursement basis. Here, we can apply for a loan up to 28 days after your client has paid their income tax bill
Contact Enness
Enness works with advisers, accountants, law firms, corporate service providers and professional services firms to broker corporate finance and related products for entrepreneurs, business owners and corporates of all sizes.
Get in touch if we can help raise corporate finance for a client’s business or broker debt for a business owner, corporate or SME you work with. We will talk you through the options for your client, the available products, and how you can implement them on your client’s behalf.
