What is Commercial Finance?
As the old maxim goes - to make money, you need money. If you're looking for a way to access funds but don't want to touch your cash flow, commercial finance could be the ideal solution. Whether you're a new, established or developing business, at some point, you may need to consider external financing options.
Commercial finance is also known as business finance and, as the name suggests, is finance for commercial purposes. It is lending designed for enterprises rather than individuals and encompasses a range of financing options.
Why Do Companies Need Commercial Finance?
Commercial finance provides business owners with the capital they need when they need it, enabling them to achieve their goals and objectives. Among them can be to increase working capital, to purchase equipment and inventory, to expand products and services, to pay taxes if enough money hasn't been set aside, to open new premises and to increase working capital because of a temporary shortfall of funds.
For businesses with limited cash reserves, commercial finance can be an invaluable lifeline to overcome financial hurdles.
Who is Eligible for Commercial Finance?
Most businesses are eligible for commercial finance solutions, be they sole traders, partnerships or large companies. In general, lenders prefer firms to have been trading for as long as possible, but solutions are available for start-ups and businesses with adverse credit.
What Types of Commercial Finance Are There?
Commercial finance can be used to cover almost any business expense, and there is a considerable number of financing options on the market. These include:
- Mortgages for all types of commercial properties.
- Secured and unsecured commercial loans.
- Bridging loans.
- Development finance.
- Remortgages.
- Crowdfunding and peer-to-peer lending.
- Invoice financing.
- Overdrafts.
- Trade credit.
- Business credit cards.
Is Commercial Financing Right For Me?
There is no one-size-fits-all answer to this question, and which type is right for you will depend on a range of factors. For example, your needs and business goals, how quickly you need the funds, what you want them for, how much you can realistically pay back each month, the risks of secured borrowing and the kind of collateral you can provide.
Once you have carefully looked at each consideration, you'll be in a better position to understand the type of finance you will need for your unique circumstances.
Pros and Cons of Commercial Finance
While commercial financing is very useful, it may not be for everyone. Weighing up the pros and cons will help business owners make informed decisions.
Pros
- Enables you to spread the costs of acquiring assets for your business.
- It can help you navigate cash flow peaks and troughs.
- You can fund growth opportunities.
Cons
- You are taking on extra debt.
- It’s more expensive than using your own funds.
- If you take on equity financing, you'll be giving up a share of your business.
If your business is experiencing a cash flow problem or you require funds to take you to the next level, let's talk. Contact our friendly and knowledgeable commercial financing team on 020 8292 6556
What is Commercial Finance?
As the old maxim goes - to make money, you need money. If you're looking for a way to access funds but don't want to touch your cash flow, commercial finance could be the ideal solution. Whether you're a new, established or developing business, at some point, you may need to consider external financing options.
Commercial finance is also known as business finance and, as the name suggests, is finance for commercial purposes. It is lending designed for enterprises rather than individuals and encompasses a range of financing options.
Why Do Companies Need Commercial Finance?
Commercial finance provides business owners with the capital they need when they need it, enabling them to achieve their goals and objectives. Among them can be to increase working capital, to purchase equipment and inventory, to expand products and services, to pay taxes if enough money hasn't been set aside, to open new premises and to increase working capital because of a temporary shortfall of funds.
For businesses with limited cash reserves, commercial finance can be an invaluable lifeline to overcome financial hurdles.
Who is Eligible for Commercial Finance?
Most businesses are eligible for commercial finance solutions, be they sole traders, partnerships or large companies. In general, lenders prefer firms to have been trading for as long as possible, but solutions are available for start-ups and businesses with adverse credit.
What Types of Commercial Finance Are There?
Commercial finance can be used to cover almost any business expense, and there is a considerable number of financing options on the market. These include:
- Mortgages for all types of commercial properties.
- Secured and unsecured commercial loans.
- Bridging loans.
- Development finance.
- Remortgages.
- Crowdfunding and peer-to-peer lending.
- Invoice financing.
- Overdrafts.
- Trade credit.
- Business credit cards.
Is Commercial Financing Right For Me?
There is no one-size-fits-all answer to this question, and which type is right for you will depend on a range of factors. For example, your needs and business goals, how quickly you need the funds, what you want them for, how much you can realistically pay back each month, the risks of secured borrowing and the kind of collateral you can provide.
Once you have carefully looked at each consideration, you'll be in a better position to understand the type of finance you will need for your unique circumstances.
Pros and Cons of Commercial Finance
While commercial financing is very useful, it may not be for everyone. Weighing up the pros and cons will help business owners make informed decisions.
Pros
- Enables you to spread the costs of acquiring assets for your business.
- It can help you navigate cash flow peaks and troughs.
- You can fund growth opportunities.
Cons
- You are taking on extra debt.
- It’s more expensive than using your own funds.
- If you take on equity financing, you'll be giving up a share of your business.
If your business is experiencing a cash flow problem or you require funds to take you to the next level, let's talk. Contact our friendly and knowledgeable commercial financing team on 020 8292 6556
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