Finance Equation are professional chartered certified accountants and business finance brokers specialising in finance for businesses. It’s easy to get overwhelmed with all the different finance options. Commercial finance itself is just another term for business finance and business funding.
It is a form of lending designed for enterprises and businesses rather than individuals, who are covered by personal finance. It is usually used to support the growth of a company and can be used for many reasons such as property or asset finance.
Business finance comes in all shapes and sizes. Here are some of the most basic financing options for businesses:
The most basic kind of commercial finance is the loan. You agree to get an amount of money and repay it within a set period of time. They are available as either secured loans or unsecured loans. Secured loans come with a lower risk for lenders so they can be cheaper, but they do come with a higher risk for you. You’ll have to put up an asset for security, with the asset going to the lender if you fail to meet the terms of repayment.
The loan market is largely unregulated because these loans are designed for large businesses. There are small business loans available though, and these are a great choice for small-to-medium-sized businesses that need some financial help.
Asset finance refers to funding used to acquire new assets and funding secured by existing assets. The idea of “asset finance” is varied because of this. It could be plant machinery finance and equipment finance, or it could asset refinancing.
Invoice financing is popular with businesses that trade on credit. The idea behind invoice financing is simple enough – the lender sends cash in advanced based on accounts receivables (invoices) – but different lenders will offer different versions to suit different types of businesses.
Discounting is one of the simplest varieties of invoice financing. This is when you deal with lenders directly and keep the business running as usual. Factoring offers some credit control, meaning that customers deal with lenders and lenders ensure invoices are paid.
This includes products such as commercial mortgages and property development finance, which helps developers acquire property for their portfolio.
We can help you access business financing at competitive rates for your property purchases, in individual names as well as limited company structures. We can also help you fund your firm’s equipment purchases with our assets leasing lenders. Our bridging lenders will help you get short term funding for your property purchases via auctions or any other short term lending you may require. This could include the financing of your year-end tax bill or stock purchase for the seasonal increase in sales.
Alternative finance has opened the door for all manner of specialist lenders, including specialist finance products. Some companies offer niche products for specific sectors, such as eCommerce financing and merchant cash advances.
No matter what kind of business you run, there’s bound to be an opportunity waiting for you. Assess your options and choose the right product for you.
Our lenders like businesses that use cloud accounting as this will show them that the owners are serious about their finances and often allows loan agreements to be maintained with ease e.g. if a lender wants you to submit quarterly management accounts this can be done quickly.
We have experience in sourcing funding to help you through a rough patch. We have access to funding circles who can provide secured and unsecured loans. Whether you are looking for a development loan or a quick infusion of cash, when you contact us we discuss your funding options and carry out a small business accounting analysis to see what financing option are available for your company.
Finding a good broker who can help a company with development funding can be a challenge for many businesses struggling with their accounts, and more so if there is an impending recession.
It is important to do your research to ensure you work with a reputable company who will ensure your company is given the correct information. This is a requirement especially as the future of your company rests on the advice you are given.
When you come to us, our first step involves ensuring that you are comfortable that you are working with an experienced, reputable team. We then focus on your requirements, where you are and where you need to be.
If we both agree that we are the right team for you, we will then collate more information to assess the best lending package that will be suitable for your needs. Once we have a list of providers, we complete the relevant documentation and manage the process for you.
We have over 30 years experience in the acquisition of funding and company loans and it is important for us to understand your needs to deliver a solution that will set your business up to succeed.
Our service will help you to get growth funding, ensuring that your company flourishes. If you have a track record showing a steady increase in your sales and a turnover in excess of £90,000, we can help you get funding for the next stage of growth.
The Finance Equation Ltd is a company registered in England & Wales. Company number 05116983. Business address: Finance Equation Ltd, 334 Ley Street, Ilford, Essex, IG1 4AF.
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