Your potential business finance solutions...

Asset-based finance

A collective term used to describe invoice finance (IF), and asset-based lending (ABL). Invoice finance includes factoring, invoice discounting and supply chain finance.

Asset-based lending is provided on a similar basis to invoice finance, with funding extended against debts.
Factoring is used by smaller SME businesses to support cash flow by generating money against unpaid invoices.
Invoice discounting is similar to factoring, but can be more appealing to larger businesses.
Supply chain finance, sometimes called reverse factoring, is where smaller suppliers can take advantage of the credit strength of larger customers.

Debt option

Bonds

A form of fixed-term borrowing that enable businesses to borrow money from investors in return for regular interest payments.

Have a predetermined “maturity” date when the bond is redeemed and investors are repaid their original investment.
Offer businesses issuing the bond more control over the terms of the finance.
Traditionally corporate bonds and retail bonds would be traded on the stock market.
Online platforms have entered the market, offering a one-stop-shop for raising finance through bonds.

Debt option

IPO/Public offering

An initial public offering, or IPO, is the first sale of stock issued by a company to the public.

The sale of shares in a company to institutional, larger investors and the general public.
Going public requires transparency of financial information.
Can generate significant finance to support business growth or to pay back early investors.
An opportunity for a company to critically examine itself.

Equity option

Private equity

Provides medium to long-term investments in established companies with high-growth potential looking to make significant changes.

An option for companies that are planning to make significant changes to scale the business.
In exchange for finance private equity firms take a large stake, often a controlling stake, in the business.
Investors aim to improve the profitability through operational improvements.
Private equity firms will typically introduce corporate disciplines and a management structure.

Equity option

Venture capital

Venture capital firms invest in businesses with the potential for high returns, such as those with innovative new technologies.

Venture capitalists look for companies with a proven track record and the size of the investment will relate to the business stage.
VC firms invest in a portfolio of businesses, so those that succeed have to compensate for those that fail.
Finance tends to be offered in stages, with “stage A” investment in a start-up or pre-profit, starting at as little as £50k.
Investment can potentially range up to tens of millions of pounds.

Equity option