British Pound Sterling

Finance Types

Finance Types Available

  • Business Angel

    If you have ever watched the popular television programme, the Dragon’s Den, you will have seen real business angels in action.

    In fact, there are an estimated 18,000 such angels at work in the UK – wealthy individuals prepared to invest their private funds into a business, in return for a share in the equity.

    Shared equity, of course, may mean that a business angel also assumes a share of the decision-making in your business.

  • Equity Release

    Equity release is not only for owner occupiers of private residences, but solutions are also available for commercial property.

    If you have owned your business premises for a number of years, have paid off the greater part of any mortgage balance and the property has increased significantly in value, equity release may unlock the cash tied up in the property, yet still allow you to continue to occupy and run your business from the premises.

  • Finance Lease

    Although this is essentially a lease agreement – you do not own the machinery or vehicles, but have exclusive use of them.

    The lease is typically for the long-term, usually stretching over the working life of the plant or machinery and its acquisition is normally reflected in the balance sheet of your business.

  • Operating Lease

    This type of lease is generally for the much shorter term – say, one to five years – with the return of the leased equipment to the lessor at the end of the agreement or effective renewal through the agreement of a new lease.

  • Factoring

    Your invoices receivable from your customers are an asset and it is possible to ‘sell’ this asset to a factor, who then acquires your invoices.

    In return, you receive a significant proportion of the value of the invoices [typically, around 85%] in advance, and the balance once the factor has received payment of those outstanding invoices.

    Naturally, the factor charges a fee or commission for the services provided;

  • Hire Purchase

    This is perhaps one of the most traditional methods of buying major items and pieces of equipment on credit.

    You put down a deposit – typically 10% of the price – and make regular monthly payments to complete the purchase.

    The long term commitment is for the purchase of the items involved, although ownership does not actually pass to you until the final payment is made [the equipment, machinery or vehicles may be repossessed if you default on the monthly payments].

  • Asset Refinancing

    Any unencumbered assets (in other words, those which have not already been used as security against other borrowing) held by your business may be used to raise finance against those assets.

  • Overdraft

    These are short-term or ongoing lines of credit advanced by your bank or other lender.

    Typically, the availability of any overdraft facility depends on the viability of your business – since this is the best indication of the funds borrowed by way of an overdraft being repaid.

  • Loans

    A lender may advance a loan for a fixed amount – whether unsecured or secured against assets of your business – for repayment generally by instalment over an agreed term.

    If the loan is secured, of course, the lender may take possession of the assets used as security.

  • Import Loan

    As well as protecting your trading in imports against non-delivery, you may also need the additional financial assistance required to start up such new trading activities.

    These may take the form of import loans – which may be unsecured or secured against some of your business assets.

  • Letter Of Credit

    Letters of credit offer a secure way of ensuring that your foreign supplier receives the goods you have ordered, whilst at the same time guarding your own business against the risk of non-delivery, incomplete delivery or delays.

  • Invoice Discounting

    A proven way of raising the additional finance necessary for trade, is to tap into the otherwise underused value of your own business assets, as represented by your invoices receivable from customers.

    Invoice discounting offers a method of borrowing against the security offered by invoices issued, but for which payment has not yet been received.

    Such loans are typically extended to up to 95% value of the invoices you have issued and the loan is repaid together with service charges, once you receive payment on those invoices.

    Since you continue to be responsible for the collection of outstanding invoices, customers are unlikely to know that these have been used as security against loans you have in place.

  1. Money

    Business / Commercial

  2. Consumer Finance

    Personal / Consumer