Business Loans
Secured business finance an alternative to business loans
Business loans and overdrafts are not as accessible as they used to be. This is true for all businesses but especially for firms that are looking for business finance for the first time. Even the trusty overdraft can no longer be counted on for a cash flow boost while there is a danger of banks recalling credit or refusing to renew a facility.
Loans that are secured against an asset, however, are an ideal source of finance. Lenders tend to prefer offering loans on a secured basis because it protects them from default or non-payment.
If you can borrow against your invoices, your property or other assets you will have a means of balancing your cash flow into the future and gaining valuable funds for growth.
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What are your financing options?
With all the options available it can sometimes be difficult to get your head around which finance is right for your business. To make matters worse different types of finance can go by many different names, for example factoring and invoice discounting are both forms of invoice finance. The table below offers a quick overview of the main types of commercial finance and the benefits of each product.
If you are trying to weigh up your financing options try our Finance Wizard above and we'll quickly tell you the products which best match your business.
| Funding Type | Description | Type of Security | Key Benefits |
Factoring |
Factoring is the process of turning your unpaid business invoices into cash. As part of the process a lender will manage your also sales ledger. | Secured on your business invoices |
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Invoice Discounting |
Invoice discounting is an alternative way of drawing money against your invoices. However, your business retains control over the administration of your sales ledger. | Secured on your business invoices |
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| Commercial Mortgages | Commercial mortgages are typically used to buy buildings and land for business purposes. The lender holds the legal rights over the business property/land until the loan is fully paid. | Secured on your property or other collateral |
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| Asset Finance | Asset finance is the use of credit or leasing facilities provided by a specialist third party credit or leasing provider to finance the acquisition of assets for your business. | Secured on your assets or other collateral |
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| Trade Finance | Trade finance is used to fulfil confirmed orders, which your business can not fully fund. Trade finance is typically not available for perishable goods or services. | Secured on your assets or other collateral |
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