Uk Commercial Finance
Commercial Finance
The UK commercial finance industry has grown dramatically over the last few years. As a result business owners are enjoying a wide choice of commercial financial services.
You might need to borrow money yourself to start your own business, expand it or make investments to give your business competitive advantage.
Typically you apply for a loan and if successful you make monthly repayments which consist of interest and a proportion of the loan amount. It normally takes a few years for small to medium sized businesses to qualify for a commercial finance loan.
How can you use commercial finance?
Whilst expansion is probably the most common reason for applying for a loan, there's a few other ways your business can use commercial finance. It can offer you a way to:
- renovate your business space
- buy equipment to increase your business profits
- build your working capital
- build up your stock or
- organise your paperwork.
Tips for securing commercial finance
Accessing commercial finance is quite involved. Prepare yourself by gathering these papers together before you approach a lender. You need your:
- last 3 years' of personal financial statements
- tax returns
- monthly cash flow forecasts
- business plan which must be well thought out and detailed
- managerial staff details
- company's financial statements with balance sheet and profit and loss figures and
- plan of how the loan will be implemented.
Popular commercial finance options include invoice factoring and invoice discounting and commercial mortgages.