Lending Products
Unsecured Loan
Unsecured business loans in the UK are a type of financing option that is made available to companies and businesses without the need for collateral or security. This means that the lender does not require the borrower to put up any assets as security for the loan. Instead, the lender assesses the creditworthiness of the borrower and their ability to repay the loan.
Unsecured business loans can be used for a variety of purposes such as working capital, purchasing equipment, expanding operations, or improving cash flow. They are typically used for smaller loans or short-term funding needs. The interest rates on unsecured business loans are generally higher than secured loans, as the lender is taking on more risk.
Unsecured business loans are a popular option for small and medium-sized businesses that may not have the assets to secure a loan. They can also be a good option for businesses that have been in operation for a short time and may not have a long credit history.
Secured Loan
Secured loans for UK businesses are a type of financing option where the lender requires the borrower to put up some form of collateral or security in order to secure the loan. This collateral can take the form of assets such as property, equipment, or inventory, and it serves as a form of protection for the lender in case the borrower is unable to repay the loan.
Secured loans are typically used for larger loans or long-term funding needs. They can be used for a variety of purposes such as purchasing property, expanding operations, or financing a major business project. The interest rates on secured loans are generally lower than unsecured loans, as the lender has the added security of the collateral.
Secured loans are a good option for businesses that have assets that can be used as collateral and for those that require a large amount of funding.
Invoice Finance
Invoice finance is a type of funding that allows businesses to access cash tied up in unpaid invoices. The lender, usually a bank or specialized finance provider, will advance a percentage of the invoice amount to the business, usually between 70-90%, and the remaining amount is paid to the business once the customer pays the invoice. There are two types of invoice finance: invoice factoring, where the lender takes on the responsibility of collecting payment from the customer, and invoice discounting, where the business remains responsible for collecting payment from the customer but has access to the funds advanced by the lender. Invoice finance can help businesses manage their cash flow and access working capital without having to wait for customers to pay their invoices.
Asset Finance
Asset finance is a type of financing option that allows businesses to acquire assets such as equipment, vehicles, or machinery without having to pay for them upfront. Instead, the lender provides the funds to purchase the assets and the business repays the loan over time, usually through a series of fixed payments. The assets serve as collateral for the loan, and the lender may have the right to repossess the assets if the borrower defaults on the loan. There are different types of asset finance such as leasing, hire purchase, and loan finance. Asset finance can help businesses acquire the assets they need to operate and grow their business without having to tie up their own cash or use up their credit lines. It also allows the business to acquire the assets they need and spread the cost over the period of time that the assets will be used.
Merchant Cash Advance [MCA]
A merchant cash advance (MCA) is a type of short-term funding that allows a business to borrow money in exchange for a percentage of its future credit card sales. The lender provides a lump sum of cash to the business, and the business agrees to repay the loan by allowing the lender to collect a fixed percentage of its daily credit card sales until the loan is fully repaid.
The lender will typically base the amount of the loan on the business's average credit card sales, as well as its creditworthiness and overall financial health.
One of the key benefits of an MCA is that it is relatively easy to qualify for, even for businesses with poor credit or limited financial history. Additionally, since the lender collects a percentage of the business's daily credit card sales, the business only has to repay the loan when it has the funds available. This can be useful for businesses that experience fluctuations in their cash flow. Overall, a merchant cash advance can be a useful option for businesses that need quick access to cash and have a steady stream of credit card sales.
Property Finance
Property finance in the UK refers to the various types of financing options available to individuals and businesses for the purchase, development, or refurbishment of commercial or residential property. The most common forms of property finance in the UK include mortgages, bridging loan, buy-to-let, commercial mortgages, and development finance.
Mortgages are the most common form of property finance for individuals looking to purchase a residential property. They typically involve borrowing a large sum of money from a lender, such as a bank or building society, and using the property as collateral. The borrower then repays the loan over a period of time, usually 25 years, with interest.
Commercial mortgages are similar to residential mortgages but are used to finance the purchase of commercial property such as offices, warehouses, or retail spaces. The terms and conditions of commercial mortgages can vary depending on the type and size of the property, as well as the creditworthiness of the borrower.
Development finance is a type of property finance that is used to fund the development or refurbishment of properties. This can include anything from building new homes to converting existing buildings into apartments. Development finance is typically provided by specialized lenders, and the terms and conditions can vary depending on the size and scope of the project.
Trade Finance
Trade finance in the UK refers to the financial products and services that facilitate international trade by providing businesses with the funding and credit they need to purchase goods and services from other countries. It is designed to help businesses manage the risks associated with international trade, such as currency fluctuations, non-payment, and shipping delays. The most common forms of trade finance in the UK include letters of credit, export finance, and supply chain finance.
A letter of credit is a type of trade finance that is used to guarantee payment for goods and services between a buyer and a seller. The buyer's bank issues a letter of credit to the seller, which guarantees that payment will be made once the goods or services have been delivered and the required documents have been presented. This type of trade finance helps mitigate the risk of non-payment for the seller and allows the buyer to purchase goods or services without having to pay upfront.
Export finance is a type of trade finance that is used to help businesses finance the export of goods and services. It can include products such as export credit insurance, pre-shipment finance, and post-shipment finance. Export credit insurance, for example, can help protect a business from the risk of non-payment by a foreign buyer, while pre-shipment finance can help with the costs of producing and shipping the goods.
Supply Chain finance, also known as reverse factoring, is a type of trade finance that allows businesses to finance their supply chain by using their accounts payable as collateral for a loan. This type of finance can be used by businesses to improve their cash flow by accelerating the payment of their invoices, allowing them to pay suppliers early and at a discount.