Business Finance for Small Businesses
We know that timely access to business growth finance can make or break for business success. During times of quick growth, you can find that your debtor’s book increases dramatically. Putting massive pressure on your cash flow. And your ability to pay your bills as they fall due. We have direct relationships with business growth lenders. Helping you achieve your growth objectives. This means we can help you get your process right. Improve your business growth plan. Ensure you have the best management information systems to successfully get your funding. Our lenders like it when a business uses cloud accounting to manage their business.
What is Growth Finance?
Growth finance, otherwise known as growth capital loans are a flexible form of debt financing. They are also known as mezzanine finance and although they are both a form of debt, they are often used by businesses who may already have a substantial amount of debt against their business and are usually used for high growth areas such as penetrating new marketings or strategic acquisitions.
It is important to look at the size and cost of the capital and the structure of the term and if it is flexible.
Choosing the right type of capital requires a high level of expertise and it is important to engage the expertise of a company with experience in this area.
At Finance Equation, we specialise in two types of funding for the business. Limited companies preferred:
Business turnover in excess of £90k with the following in place:
- You will need to have a strong business plan.
- A trading history of at least 18 months.
- All sectors considered.
- A sales growth trend over your trading history.
- In some cases, businesses will be considered with no trading history if they have a strong business plan.
The lending term can be from:
- 12 months to 6 years repayment terms.
- 80% of your average monthly sales.
- Or a simple term loan based on your ability to pay.
- Interest rates start from 8% depending on your risk profile.
- Lending can be interest only or repayment basis.
Business turnover in excess of £1.2m with an average debtor book in excess of £100k Product unique features:
- Term loans of up to 36 months with repayments and interest agreed upfront.
- Lending based on the quality of your customers within your accounts receivable.
- No personal guarantees.
- All monies held in the borrowers account.
- Loans up to 80% of your accounts receivable.
- borrowers retain full control over their debtors.
- Credit insurance and security taken against accounts receivable.
- Loan interest from 7%-8.75%.
How to Get Started with our Business Growth Finance Service?
Our team of finance experts will hold an initial consultation to lay out all the options to help you select the right approach for your business. Once we have an understanding of your needs, we document the various options and structure of the loan and upon agreement, we work towards sourcing the loan for you. Our process enables us to access capital through multiple channels.
We love to hear from new clients to support their funding, if you would like a callback, please complete our contact form and one of our qualified accountants will be in touch.