Commercial Loans - info

Commercial Loans

Name: Grow Funding
Address: 27A Goring Road, Goring By Sea, West Sussex, BN12 4AR, United Kingdom
Telephone: 01903660091
Price range: Competitive
Rating: 5

There are many terms on the market to describe a commercial loan, such as business finance, alternative lending and commercial funding to name a few. Ultimately, they call come down to two options secured or unsecured loans used for a business purpose.

Many years ago, UK businesses wouldn’t have imagined going anywhere else but their high street banks for a commercial loan, however in changing times and with the HM Treasury setting up the bank referral scheme it has became a more competitive market for business finance.

With so many commercial lenders available it is important to know who you are dealing with. However, this is not always possible for SME businesses as you do not always have access to the latest changing rates and criteria.

The first rule is to make sure you are dealing with a reputable company, you can do this by checking if they are FCA regulated, click link provided below.

https://register.fca.org.uk/

As a UK business you could go directly to some lenders, like funding circle and lending crowd but you may face one disadvantage and that’s knowing the criteria they are favorable on. A little like a personal credit file your business will have a credit file and you don’t want to run the risk of having multiple failed credit searches. That is why using an FCA commercial broker will guarantee you will be matched with the right lender at the best rates over the terms you require. Grow Funding is an approved FCA commercial Finance broker.

Once you have agreed the amount you want to borrow and decided on a repayment term the next stage is to work out if it is a secured or unsecured business loan. In most cases a secured loan is usually cheaper as the lender is taking a lower risk. The security can be secured against the company’s assets, property or a personal guarantee with assets.

The benefit of using an independent lender means the lender will look at the business applying from a bespoke view point. This is great news as there is a greater chance of acceptance and obtaining a larger loan amount. Using a commercial broker that already has a relationship with the lender could help to as they will be able to represent you in line with the lender framework.

The Advantages:

Funding (MBOs) Management buy-outs
Turnarounds and pre-packs
Growth and expansion
Funding new contracts, employing additional employees, investing into stock or marketing

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Asset finance is a type of lending that enables you to access business assets such as equipment, machinery and vehicles without having to buy them upfront. It can also allow you to release cash from the value in assets you already own or use your existing assets as security against a business loan from an asset finance lender.

Business asset finance is typically attractive to businesses who want to put their growth plans into action but don’t necessarily have the ready cash, or business owners who would rather spread large costs over a longer period.

Short-term asset finance also enables businesses to remain competitive by making it easier for them to access the latest technology. Asset finance is a broad category that relates to valuable items in your business.

Here is one of our case studies of asset-based invoice finance –

Case Study - Feb - 2019

Invoice factoring for Essex based building company

This company had been awarded a large value contract with a London borough council to install new kitchens and bathrooms into their residential council properties. With limited funds in the bank to cover the cost of labour and materials, Grow Funding arranged a suitable Invoice factoring facility to allow the business to release cash tied up in their outstanding invoices. This means going forward at the point of them giving the invoice to the council they can factor the invoice to provide them with cash in the bank to cover their cash flow needs. An initial facility size of £165,000 was set up with view to this growing over time.

The Advantages:

• Credit insurance to protect you against bad debtors

• The funds are secured and valued against your assets

• Funds can be used for any business needs

• There is the possibility of being flexible in comparison to loans and overdrafts

Mail

Grow Funding ltd - 70 Goring Road - Goring by sea- Worthing - West Sussex - BN12 4AB

01903 660091

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