Business Financing Options

Asset Finance is currently the fastest growing finance option for UK companies. Finding the finance that you need in order to grow your business is easy with Mulberry Asset Finance. Every day, we help companies across the UK obtain the precise asset finance funding for their requirements, by arranging customised finance packages via our extensive panel of the premium Asset Finance funders.

We offer a full range of finance solutions to our customers, and by using our industry expertise we can review your business’ requirements and help you select the product that best suits your needs. To get an idea of the different types of finance solutions that we offer to businesses, here’s a brief overview of our main products.

HIRE PURCHASE

An accessible form of finance that does exactly what it says on the tin. It allows you to spread the cost of an asset over a fixed period in line with your business cashflow, keeping your working capital intact. Once your normal monthly repayments are complete, and you have paid a minimal “option to purchase fee”, you own the item outright. You select the asset and the supplier, and a suitable deposit and repayment term is agreed with the funder.

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Best fit:

Hire purchase can be used across all industries. Most commonly used for businesses purchasing plant, equipment and vehicles.

Top tip: 

Hire Purchase allows you to claim capital allowances and offset interest payments against your taxable profits, as well as reclaiming VAT on the purchase price. Subject to credit, a VAT deferral can be obtained, whereby you only pay the VAT to the finance company after you have already reclaimed it back from HMRC!

Benefits: 

  • New and second-hand items
  • Seasonal payments
  • Only minimal deposit needed, subject to credit
  • Increase working capital
  • Spread the cost
  • Manageable monthly payments
  • Balloon payments often available

REFINANCE

Asset refinancing is the process by which a business can use their existing assets to raise additional capital for several purposes.

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Best Fit:

Whether you are looking for funds for expansion, to consolidate debts, or improve your company’s cashflow position, using asset refinance can unlock capital from your assets including machinery, equipment or vehicles.   

Top Tip:

Arranging this type of finance with your bank can be an extremely tiresome process, often involving solicitors. It needn’t be like this! This form of refinance funding can normally be arranged quickly where funds are in your bank within 7-10 days.

Benefits:

  • Pay off debts such as VAT, overdrafts, tax, etc.
  • Improve business cash flow
  • Fund expansion
  • Business acquisition and shareholder buy-outs or buy-ins
  • Deposit finance for new asset purchase
  • Rescheduling of existing asset finance agreements to reduce monthly payments

LEASE

Allows you to select and use an asset by paying fixed monthly rentals over the term of the agreement, without the ties of ownership.

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Best Fit:

If you regularly upgrade such items as computer hardware and software, or if you are in the hospitality sector and regularly refurbish your kitchen equipment or fixtures and fittings, this type of facility allows you to regularly upgrade.

Top Tip:

The tax benefit of a lease is the ability to offset the rental cost against your taxable profits. Your cashflow is eased as VAT is payable on the rentals each month, rather than on the purchase cost of the asset, resulting in a lower upfront cost. At the end of the lease period, you can choose either to sell the asset and receive the bulk of the sale proceeds, or enter into a secondary rental period at a peppercorn rental, normally 1% of the capital cost per annum.

Benefits:

  • Generally lower deposits needed
  • Upgrading to new equipment is easier
  • Manageable fixed monthly payments
  • VAT is payable monthly.

INVOICE DISCOUNTING

An alternative type of business finance which gives you instant access to those much-needed funds tied up in outstanding invoices. Rather than waiting up to 90 days for a client to pay, an Invoice Discounting provider can provide most of the funds on day 1 - usually up to 90% - solving multiple cash flow problems. Invoice Discounting is more flexible than an overdraft or a fixed bank loan, mainly because the amount can increase with your company’s growth. It is a similar working capital solution as Invoice Factoring, but with an Invoice Discounting solution you maintain full credit control. This means that your company can keep the responsibility for chasing and collecting from clients.

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Best fit:

Commonly used by businesses in a growth phase, but can also be used effectively when customer or supplier terms alter, thus requiring further investment in the working capital cycle. Also ideal for businesses that require upfront costs to provide a service or product (e.g. haulage, manufacturers, and engineers).

Top tip:

Invoice Discounting supports increasing trade with your existing customers (as more attractive terms can mean increased orders), or for when your company is entering a growth phase, by lessening the impact of new customer credit terms.

Benefits:

  • Bridge the gap between raising an invoice and receiving payment
  • Funds raised normally within 24 hours of invoicing
  • Short and long-term solutions available
  • Can be used to take advantage of improved supplier terms, e.g. discounts for paying early
  • Use released cash to fund deposits, business acquisition or buy-outs
  • Avoids re-negotiating with a bank or risking your personal or business assets
  • Doesn’t rely on fixed assets or owner’s assets – lets the business stand on its own two feet
  • Minimises the impact of late or delayed payments from customers

COMMERCIAL AND INVESTMENT MORTGAGES

Can be used for a variety of purposes, including purchasing additional business premises, expanding your business, debt consolidation, cash flow, and property development. Our broker partner operates a competitive tender system for mortgage applications, ultimately securing competitive rates and terms for clients, as well as providing access to exclusive products which are often not available directly from high-street banks or specialist lenders.

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Best Fit

Specialist finance for commercial properties and property development projects, including: housing developments from single units to large sites, apartments and flats; part-completed developments; holiday accommodation schemes; conversions (residential and commercial); commercial developments; and retail units and offices. 

Top Tip

There are so many different Government funding schemes and incentives out there; make sure you check out what financial assistance could be available to you and your business! Our broker partner can advise you on your eligibility and, if eligible, will assist you in accessing Government funding as part of a finance arrangement. 

Benefits

  • Repayment and interest-only payment types
  • Short and long-term repayment programmes
  • Fixed and variable rates
  • Arrangement fees added to the loan
  • Up to 80% funding available on an individual property, and up to 100% funding with additional security provided
  • Short term VAT loans available to avoid you having to fund the VAT on a property purchase from your business cash flow
  • Re-mortgage options for owned property that release funds

UNSECURED LOANS

Unsecured Business Loans are an increasingly popular choice due to their flexibility and the fact that they can be used for absolutely any purpose. These loans are not secured by any asset or property, but a Directors Guarantee must be provided.

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Best Fit:

If you are looking for simple and flexible commercial finance, then this could be the right option for you. The beauty of these loans is that they can be used for any purpose, e.g. property purchases, expansion, relocation, recruitment, stock purchase, equipment purchase, partner buy out, or just to boost business cash flow.

 Top Tip:

Unsecured loans present businesses with a flexible way to boost business cash-flow, without risking other owned investments.

Benefits:

  • Finance from 6 months to 5 years
  • No fees for full early repayment
  • Interest rates from 1.9% per annum
  • No upfront fees or costs
  • Unsecured loans from £10k to £350k*
  • Pre-approval service leaves no footprint on your credit file
  • Decision typically within 24hrs

*Personal guarantee required

“Mulberry Asset Finance have looked after my business loan and finance requirements for quite a few years now - and I trust them implicitly to find me the best deal they can, in the shortest time and with the least amount of hassle to myself. We've financed whole pub refurbishments through to small kitchen equipment and many things in between. There has never been a hitch or a delay and everything is conducted with the utmost professionalism and with a genuine interest in my business. I really can't recommend Mulberry Asset Finance highly enough... ”

Paul Spencer, MD, The Plough Inn at Lupton

“As a company we have been dealing with Mulberry Asset Finance for the past 10 years. We have found them to be so easy to deal with, they make things so simple and effortless, leaving us to concentrate on the day to day running of our business. Their help and advice have been instrumental in our growth and development of the business. Long may it continue!”

Mike Cooke, Managing Director, Breed Clean Ltd

“A & H CARLISLE LTD have used Mulberry Asset Finance since 2012 and I can’t speak highly enough of Mike and his team, they have helped our business grow and their knowledge of a customer needs is impressive. They are always competitive and quick to react to our needs. I wish Mulberry Asset Finance continued success and hope to do business together for many years to come.”

Alan Falder, Managing Director, A & H Carlisle Ltd

“The first person I call when I need to buy new plant is Mulberry Asset Finance. I have been working with them throughout the development of Hawkshead Brewery and have learned that they are the only call I need to make because Mulberry always delivers, with the best rates and the minimum of fuss.”

Alex Brodie - Managing Director Hawkshead Brewery Ltd

“We have been dealing with Mulberry Asset Finance for over 10 years and have always found them to be efficient, courteous, professional and above all very pleasant to deal with. On top of that, they have always enabled us to obtain the type of finance deal that we have been seeking whether it be for capital investment or vehicle purchase.”

Mark Whitehead MBE, Hawkshead Relish Company Ltd

“I had a coffee coaster with Mulberry Asset Finance on and decided to get a quote from them along with two others. They responded immediately with a quote. They gave a personal touch, whilst remaining competitive and efficient. I have now used them twice and found them a delight to deal with.”

Dale Benbow, Benbows Bros. Timber

“Mike and his team are like having your own finance department. I've called out of hours on occasions for advice, very helpful when you're on the move. Always keen on rates and made to fit in with the business. Thanks again Mike and his team.”

Dave Greenbank, Managing Director, Greenbank Crane Services

“I have used Mulberry Asset Finance several times for the Hire Purchase of coaches. I have always found their speed of operation and personal attention very satisfactory and I would not hesitate to use them again in the future.”

Barry Pickthall (JB Pickthall Coach Operator)

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