Business Solutions:

• Secured Loans – The lender takes a guarantee to back the loan, which is normally a tangible asset that a company owns like property, machinery or vehicles.

• Unsecured Loans – With no tangible security backing the loan, these are riskier for lenders – and this is normally reflected in a shorter term and higher interest rate.

• Revolving Credit – Similar to an overdraft, you agree a facility limit and term and can ‘dip in and out’ depending on your needs. You only pay interest on the funds that you draw down.

• Merchant Cash Advance (MCA) – Using the regular income from Debit / Credit Card transactions to help fund business borrowing, helping to smooth income in seasonal markets. No fixed loan repayments, your repayments are tied to the volume of business you take through card transactions.

• Short Term VAT Loans – Lenders offer 12 week loans to help to settle some or all of your VAT bill – you can repay weekly or monthly.

• Invoice Discounting – The simplest form of invoice finance. You keep charge of credit control, and get paid up to 90% of your invoice’s value on the day that you issue it to your customer, with the balance when they settle.

• Invoice Factoring – As per Invoice Discounting, plus the lender manages your credit control – this can free up your time to get on with running the business.

• Selective – You select either the clients or the individual invoices to put into invoice finance, so you only use the facility when your cash flow requires it.

• Specialist Sector? – Construction Finance, Recruitment Finance and Professional Services Finance are just a few examples of specialist products that could be tailor made for your
  sector.

Trade / Supply Chain Finance is a revolving facility that can be with UK based suppliers and manufacturers as well as overseas, is flexible to accommodate deposits if required on order and other costs including import VAT and freight if these are applicable to you. And if it is from overseas, then lenders are also commonly experts in FX as well.

Asset Finance gives your business access to the machinery, plant, equipment or vehicles that it needs to operate, without the full initial outlay of their cost. It can also release value from assets that you already own towards working capital and cash flow requirements:

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• Leasing Finance – Your business doesn’t own the asset but agrees a lease usually for a fixed term and payments. You are in effect renting the asset.

• Hire Purchase (HP) – This allows your company to purchase an asset over an agreed term with agreed regular payments – the asset is yours when all of the agreed payments have been made.

• Refinance – In simple terms, your company may own assets that are either unencumbered or partially financed. Lenders will commonly lend up to 70% of their current value less any outstanding finance.

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From April 1 2021 for 2 years companies can offset 130% of qualifying spending on plant and machinery against their taxable profit in that first year under the Super Deduction tax relief scheme. Take your accountant’s advice for your business, but it could be worthwhile re-considering plans that had been shelved during the pandemic, or bringing forward plans?