Business Financing Options

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

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

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.

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

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

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