A lot of people, especially “first time buyers”, tend to consider only with regards to approaching their particular banks as it pertains to arranging finance. You can find, however, other sources. You can find Commercial mortgage Lenders, Asset Finance Lenders, Lenders that specialise in factoring/invoice discounting, lenders that may provide finance predicated on existing pensions, refinancing of existing commercial finance and much, much more. Also consider a personal loan or mortgage.
What Security Do You Have For The Loan
For large commercial loans, commercial finance lenders usually require land and buildings as security for the loan. In the present economic climate it is very difficult Commercial Finance Bournemouth to have finance for more than 70% of the worth of the loan – although in an exceedingly limited quantity of cases – not impossible! If you’re searching for more than 70% – be prepared to look for other alternatives. For smaller loans, vehicles, plant, equipment etc. may be acceptable. Some lenders even enable you to refinance equipment that you already own (say a car) thereby enabling you to release capital into your business.
Which Commercial Finance Sector Does Your Application Fall Into
Its not all lender is interested in lending across the entire selection of business sectors. They are competitive only in the sectors where they are keen to lend. Like, land and property – mortgages, vehicles, plant and machinery – asset finance. You should therefore decide which business sector your requirement falls in.
What Is Your Credit History
The better your credit history the low the interest rate that you will need to pay. If your credit history isn’t perfect (and in this current credit crunch almost no has been regarded as perfect credit history) you should be signing up to a specialist commercial finance lender.
The UK government provide various grants for businesses. Some of the most common are Beneath the Small Firms Loan Guarantee Schemes [EFG] (which are easy to set up),. 75% of risk is taken by Government and provides another means of introducing vital growth capital to small businesses. Not available if there is existing potential security such as for instance high equity in property where a secured loan might be set up.
R&D Tax Credits may be available to companies who carry out any research and development, including engineering, software, computer hardware or any product development, may be qualified to receive claiming R & D tax credits. This will mean the same of an injection of capital for as much as £70,000.
DTI Marketing [and other] Government grants may be available to companies in most sectors for the development of business by utilizing DTI Marketing (and other) Grants.
Approach A Lender Direct Or Use A Broker.
When obtaining a commercial loan, the Lender usually charges a fee for providing the loan. If you decide you work with a Broker then a Broker will even usually charge a fee for arranging the loan. Whilst the natural reaction is always to approach Lenders direct, a Broker will cope with lots of lenders covering a variety of sectors and so may be better in the long run. An excellent Broker will be able to provide aid in sourcing of finance for all the above loan and more.