Raising capital for your small business can be one of the most difficult and stressful parts of owning a business. It's time-consuming, often involves costly fees, and you may not get the money when you need it. But with the right advice, you can find the right financing option for your business.

There are a few things to consider before taking out a business loan, such as how much money you need, the length of time you need it for, and your creditworthiness. With that being said, below are different ways to finance your business or types of loan facilities:

Business loans

One of the easiest ways to raise money for your business is with a business loan from a bank or other financial institution. However, this depends on how much money you need, how long you need it for, and what your creditworthiness is like. There are three main types of business loans:

Commercial loans – this is a type of loan that's commonly used by large businesses, such as restaurants or retail stores, for short-term growth. They generally involve larger amounts of money over longer periods of time.

Equity financing

Another option for raising money for your business is equity financing, which is when you sell a stake in your business in exchange for funding. This can be a great option if you don't want to take on debt or if you need a large amount of money. However, it does involve giving up some control of your business, so it's important to weigh the pros and cons before deciding if this is the right option for you.

Crowdfunding

Crowdfunding is when you raise money from a large group of people, typically through an online platform like Kickstarter or Indiegogo. This can be a great way to raise money, especially if you have a strong online presence. However, it can be difficult to reach your goal, and there's no guarantee that you'll get the money even if you do reach your goal. 

Asset Finance

Asset finance is a way of funding the purchase of assets using debt. This can be done either by taking out a loan or by leasing the asset. Asset finance can be used to fund both personal and business assets.

There are many benefits to using asset finance, including the ability to spread the cost of an asset over its useful life, freeing up capital for other purposes and potentially reducing the amount of tax payable.

Asset finance can be used to fund a wide range of assets, including vehicles, machinery, equipment and property. In some cases, it may also be possible to use asset finance to refinance existing assets.

Alternative Business Overdraft

An alternative business overdraft is a type of financing that can provide your business with the working capital it needs to cover unexpected expenses or opportunities. With an alternative business overdraft, you can borrow up to a predetermined amount at a competitive interest rate and repayment terms that work for your business.

if your business is in need of quick funding to cover an unforeseen expense or opportunity, then an alternative business overdraft may be the right solution for you. With an alternative business overdraft, you can get the funds you need quickly and at a competitive interest rate, making it easy to manage your finances and keep your business running smoothly.

Invoice Factoring

Invoice factoring is the process of selling your unpaid invoices to a third-party company in exchange for immediate payment. This can be a useful option if you're struggling to make ends meet and need cash flow fast.

The main benefit of invoice factoring is that it can give you access to much-needed capital quickly and without going through the traditional lending process. This can be a major advantage if you have bad credit or are otherwise unable to qualify for a loan.

There are some disadvantages to invoice factoring, however. One is that it can be quite expensive, as most companies will charge fees for their services. Another is that by selling your invoices, you're essentially giving up control over when you get paid – the factor will typically collect payments from your customers on your behalf and then send you the funds less their fees.

Get the money you need to help your business grow today, call us on 0203 2909019

Whether you’re starting your business or growing it, you need to know how to get the money that you need, when you need it. You may have heard of business credit cards and merchant accounts; they're two of the many financing tools available to help you scale your business.

Business Loans:

Overdrafts:

Overdrafts are short-term loans tied to your account balance, which means you can borrow money whenever you need it. The interest rates for overdrafts are usually higher than interest rates offered for loans or lines of credit, but overdrafts often cost less than bounced checks. The downside is that overdraft charges vary widely depending on the bank.

But if you're looking for immediate cash flow, an overdraft might be the right option for you.

Invoice Finance:

Send invoices and get paid faster. With Invoice Finance, you can invoice clients with the push of a button, keep track of all your outstanding invoices, and manage late payments.

Merchant Cash Advance (MCA) is an alternative to traditional bank financing. MCA is a non-recourse loan that allows your business to benefit from the cash flow you generate right away. MCA can be a short-term financing solution for your business, but it's important to understand the terms and conditions of this loan. With MCA, your business receives a line of credit that is based on the amount you collect from customers at the time of purchase.

Looking to grow your business but need funds? We can help match you with a lender who can get your business the capital it needs to grow. Call us now on 02032909019 to start a conversation about how we can help.