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

Business bank loan

A business bank loan works in the same way as a personal loan, but is specifically intended for business purposes.

Traditionally businesses have looked first to their own bank for a loan, but there are now many providers.
Loans are better suited to larger longer-term purchases, such as investment in plant, technology or transport.

Debt option

Leasing and hire purchase

Types of debt finance used by businesses to obtain a wide range of assets – everything from office equipment to vehicles.

Low-risk forms of debt finance that can be used to acquire assets for a business.
Available directly from specialist providers, or indirectly through equipment suppliers or finance brokers.
Secured on the asset being financed, reducing the need for additional collateral.
Useful to businesses at any stage. from start-ups to large, established organisations.

Debt option

Peer-to-peer lending

One of the major innovations in business finance where online platforms match lenders with borrowers.

A direct alternative to a bank loan.
Aims to provide business owners with affordable loans, agreed relatively quickly.
Investors are likely to be primarily private individuals.
Loans can range from a few thousand pounds up to several million.

Debt option