Factoring and Invoice Discounting Helpline

Medium term business loans are loans that are repaid over a term of 1 to 3 years.

Commercial lenders will consider lending to all types of businesses, whether you are well established or just starting out. However what may differ is the amount of money that you will be offered and the terms of the loan.

As a business you also need to decide what's the best solution for your business and its future. You don't want to enter into an inflexible agreement that may hold your business back in the future. If you are in the start-up phase you need to decide whether you want to commit to a medium term business loan or whether you need something more flexible and for a shorter term.

Getting advice on short and medium term business loans

There are plenty of options available to businesses looking for short and medium term business loans. To fully understand what is available to you and what is the best option for you it is wise to get some free independent advice from a commercial finance specialist.

Not only will they be able to assess you finance needs by getting to know your business, but they will be able to recommend the best and most cost effective solutions for you, they will also be able to introduce you to prospective lenders and held you finalise the loan.

Short and medium term options?

There are several finance products that can be used as both short and medium term business loans, like business overdrafts for example. However asset based lending such as Invoice Finance which includes discounting and factoring can offer even more flexibility.

Invoice Factoring

Invoice factoring is a form or business loan, where the amount borrowed is usually up to 95% of the value of your sales ledger. In real terms this can represent a huge amount of cash and therefore potential for your business.

Invoice factoring works by you issuing your customers their invoices, and the factoring company pays you up to 95% of the value of the invoice within 24 hours of you raising the invoice. The factoring company then collects the outstanding amount from your customers, and when the invoice is paid, your loan is paid off.

The advantages of invoice factoring are that there is no security required and it is a flexible and controllable option for short and medium term borrowing.

For further information regarding business loans please contact our advice team on 0800 597 4757 or apply online using the form opposite.