The mainstream business finance lenders are well known and wholly accessible. Highstreet lenders, with the odd exception, have not returned from pre-credit crisis levels of funding availability.
Whilst they are the first and best choice for many, the process, conditions, level of application depth and post loan agreement monitoring can be difficult.
Business loans and business finance should always start with your companies’ main bankers – they know you well and have all your trading history at their fingertips. Expect full application processes, to invest time and energy and usually a basket of securities.
There has, however, been an explosion in other sources of fast, flexible and cheap business finance options.
Below are some of our favourites. Our team will help you access the correct funding for your business no matter your circumstances.
Peer to Peer Business Funding
- Up to £350k unsecured loans
- Rates from 1.9% PER YEAR, 6 months – 5 year term
- Personal Guarantee required
- 3.5% arrangement fee, decision within 24 hrs, funds in as little as 5 days
- 2 years minimum trading, no adverse credit, UK based beneficial owners
- Loan use – Cash flow/working capital, Expansion, Refurb of business premises, Asset/stock purchasing, Tax payments, Purchase of property/lease/deposit, share buy back (max £150k)
- Typically lend between 60% of turnover and 5x NET profit
Revolving facility
A revolving credit facility that lets businesses unlock cash tied up in unpaid invoices, stock and/or work in progress (WIP). It works very much like an overdraft; once the lender has given the business a limit, they can draw down funds and make repayments as often as they like in a given month. Businesses only pay for what they use; if their balance stays at £0 throughout a month, that period won’t cost a thing.
- Lending amounts between £25,000 – £2,000,000 against up to 85% unpaid invoices, 35% stock & 35% WIP
- Mainly used for managing cash flow, improving terms of trade and/or margins, investing in stock & to boost hiring capacity
- Interest rates from 0.6% per month and only payable on outstanding balance
- No non utilisation fees will be payable
Small Business Loan
An unsecured business loan is designed to help small businesses fund their growth plans. This allows businesses to expand their workforce, fund new projects or spread the cost of new equipment.
- Loans from £5,000 – £250,000 with terms up to 5 years
- Rates from 8.5% per annum and approval can be achieved between 1-2 days
- Lending on ltd companies with 2+ years trading, min turnover of £150k, no active CCJs and can operate in any sector
Business Cash Advance
- Advances based on a client’s average card sales
- £5,000-£500,000 with no fixed term or monthly repayments
- Collection is made via a fixed % of future card sales (Lender works directly with all card terminal acquirers)
- Ideal solution for businesses with high seasonality and fluctuating cash flow
- Client can get up to 100% of their monthly card turnover as an upfront advance
- Interest rate is pre-agreed and fixed throughout
For more information on these products, or to discuss your property finance requirements, contact us on +44 (0)203 758 9393 or email [email protected].
