In today’s financial market raising finance for a business has never been harder, whether you are a new business or an established business.
However over the last few years, the number and variety of finance options has improved and there are now some really great deals to found and some really interesting options available to you. Because of the great variety available, knowing which is the best product for your business can be confusing and daunting.
Loans to boost your working capital
The different loan options for businesses include:
- An agreed business overdraft
- A fixed rate loan- where the interest rate stays the same over the loan period
- A variable loan- where the rate of interest changes with the base rate
- A capped loan- where the interest rate stays the same for a set period
- Asset finance
- A commercial mortgage
- Invoice Finance- Discounting or Factoring
Invoice factoring is an alternative finance option and it is gaining popularity. Unlike a loan, factoring doesn’t provide you with a lump sum that you have to pay off over time, but instead it can release up to 95% of the cash tied up in your unpaid invoices, often within 24 hours of you raising the invoice.
Factoring means that when you raise an invoice you no longer have to wait between 30-90 days for your customers to pay you.
Factoring improves your cash flow and allows you to concentrate on growing your business.
The benefits of factoring are:
- Its flexible
- Its controllable
- Its not a loan, you have already earned the money
- The available working capital grows with your business
- You don’t need to offer up assets as security
- You save time on credit control
Invoice discounting is similar to factoring, in the way that it releases cash tied up in unpaid invoices, often within 24 hours of raising the invoice. However it differs in collecting the payment, as with Invoice Discounting you collect the payments yourself.
The benefits also include improved cash flow, plus the ability to get greater amounts of finance, as the more you invoice the more you can borrow.
For further advice regarding business loans please contact us on 0800 597 4757 or apply online using the form opposite.
- Business Loans – home
- Exploring and understanding your options
- Understanding and arranging a business loan
- Ways to find business loans
- Guide to arranging a small business loan
- Starting a business loan
- Short term business loan
- Long term business loan
- Business loans UK – finding finance that delivers
- Sourcing the right commercial business loan
- Secured business loans
- Fixed rate business loan
- Business Finance Loans
- Medium term business loans
- Getting a new business startup loan
- Do you need a business startup loan?
- An alternative to small business loans
- Finding small business loans UK
- Flexible business loan boost your working capital
- Long term business loans
- Business variable rate loan
- Business fixed rate loan
- Business loan UK
- Business IT Loans
- Business development loans
- Do you need a medium term business loan?
- Reason for a new business loan
- Bad credit business loans
- Variable rate business loan
- Business secured loans
- Short term business loans