Updated: 27th November 2020
When it comes to obtaining finance for your business, the options are seemingly endless. From short-term loans through to invoice factoring, each product offers its own benefits and comes with its limitations. Once you know what you are looking for, then comes the question of who you should approach for this finance - should you go for a high street bank or are you more likely to be successful with a niche lender?
As with all major business decisions there is not a one size fits all answer. What may be right for one business could be completely wrong for another. It is vital that you locate the best option for your business, one that will not only satisfy your short-term needs but will also meet your longer term strategic goals. The experts at Real Business Finance will take the time to understand your business and the motivations behind your search for funding.
Your Finance Options
We will consider the whole range of finance options on the market and suggest the most appropriate funding channel for you. Some of the most popular forms of business finance are as follows:
As a business grows, the need for updated tools and machinery can be the difference between staying at the forefront of your field, or lagging behind unable to keep up with demand. Asset finance is a funding option which sees loans being secured against an asset owned by the borrower. As this is a type of secured borrowing, the interest rates and terms offered are often more competitive than those offered on unsecured loans.
Bridging loans are a type of short-term property-backed finance, typically used to support a business with their need for temporary funds. The aim is to ‘bridge’ the gap between a debt falling due, and the main line of credit becoming available.
Whether you need the money to finance a major growth product or to purchase stock, a business loan could be the solution you are looking for. The market is varied, with both high street banks and challenger banks offering loans for any purpose. Loans can be taken out on a short-term basis or can run for longer, depending on the amount you wish to borrow and what you plan to use this money for.
The aim of business recovery is to rescue your business and return it to profitability. A full review of the business will identify any operational and financial challenges you are facing. There are a range of recovery options that can be implemented, dependent on the financial health of your business, such as debt restructuring, turnaround and interim management.
Invoice discounting is an invoice finance facility that allows business owners to leverage the value of their sales ledger. When you send out an invoice to your customer, a proportion of the total amount becomes available from the lender to provide an invaluable source of working capital throughout the month.