Below we outline some of the different types of finance currently available. Please contact us if your business needs further finance and we will be delighted to help.
The Recovery Loan Scheme (RLS)
The RLS supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.
The Scheme, originally launched in April 2021 to help businesses recovering from the Covid-19 pandemic, has supported almost 19,000 businesses with an average of £202,000 in support.
The new iteration of the Recovery Loan Scheme (RLS) is designed to support access to finance for UK businesses as they look to invest and grow.
It will support facility sizes of up to £2million for borrowers outside the scope of the Northern Ireland Protocol. Borrowers in scope of the Northern Ireland Protocol may borrow up to £1million unless they operate in a sector where aid limits are reduced – in which case the maximum that can be borrowed is subject to a lower cap. These include agriculture, fisheries / aquaculture, and road freight haulage.
Businesses can use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, businesses must be able to afford to take out additional debt finance for these purposes.
The British Business Bank will administer the scheme on behalf of the of the Secretary of State for BEIS.
Find a lender accredited to offer Recovery Loans from the list on the British Business Bank website: Recovery Loan Scheme – British Business Bank (british-business-bank.co.uk)
Unsecured business finance
There are now over 40 lenders willing to lend unsecured small business loans in the UK. Whilst the majority of these will require a personal guarantee (PG) from directors, some do not. The difficulty being they all have different criteria, different application processes and different sectors they prefer lending to. A complex and time consuming task for business owners. Our experts save you time by guiding you through these processes and they will work quickly to understand the business and financial requirements of the applicant, introducing only those lenders who can meet those needs and who are most likely to accept the unsecured business loan application.
The benefits of arranging Unsecured Business Finance are (subject to status):
- Whilst lenders like to see 1 years’ worth of trading, providers can offer unsecured loans to start upsÂ
- Borrowers do not always need to be homeownersÂ
- Options may be available to those with an adverse credit history
- Funds can be made available within a matter of hours
- Personal loans can be used by sole traders and directors to put money into their firm.
Typical outcomes would be lenders do not take a legal charge over any specific asset. The lender does, however, seek a personal guarantee from the borrower.
Merchant cash Advances means you can raise finance based on your credit card turnover. Your proven average monthly turnover is typically the amount you can receive a merchant advance loan for.
Please talk to us about any financing needs you have for your business; we will be delighted to arrange a meeting with one of our experts.
Property finance
This is typically arranged by finance experts specialising in arranging finance for new build, conversion and refurbishment projects for property developers and investors. Property finance experts also arrange competitive bridging loans to ‘bridge’ a timing gap between a debt coming due, or the main line of credit becoming available. They can also help you to purchase your business freehold with a Commercial Mortgage tailored for you.
The benefits of arranging Property Finance are:
- Access to highly competitive rates, arranged by a team of experts who will walk with you to completion and beyond, advising you every step of the way
- Access to a full range of property finance products from a vast range of lendersÂ
- Bespoke solutions tailored to you
Business asset finance
Business Asset Finance is an agreement that enables businesses to obtain the assets needed to manage and/or expand effectively and spread the cost/outlay.
Regardless of the size of business, the decision to invest in assets is always difficult but take a look at some of the benefits:
- A great alternative to a traditional bank loan
- Increased tax benefits
- Payments can be budgeted according to cash flow
- Lenders secure against the asset.
Lenders can advise on:
- Hire Purchase – allows you to buy an asset and pay for it over a period of time, spreading the cost via an agreement with a finance company. An initial deposit is payable; andÂ
- Finance Lease – a rental agreement through which an asset can be obtained for a fixed term. At the end of the initial term, the agreement can be extended, or sold with a rebate of the sale proceeds to the client.Â
You will need to ensure your management accounts are up to date, you have current detailed lists of debtors and creditors and all assets, and you might need up to date projections before a lender will consider your application. Please talk to us about finance, our finance specialists have many years of experience and success in advising business across a wide range of sectors in obtaining working capital finance solutions.
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