What are the options available for commercial finance?
For commercial finance there are three options available which fit into different categories and are suited better to different situations. It’s important to look at all three before choosing the right finance package for your business.
Working capital business loan
Known as a commercial or business loan it is very similar to a personal loan in that you can get finance for high amounts whether it is secured or unsecured, but the difference is that the loan is made in the business name.
Assets in business
Asset financing as it is known is using assets to secure finance. Assets with no security against them can be sold to a finance company and leased back by the business which will release equity within the business. A wide variety of assets classed as soft or hard can be used.
This option of raising finance is available to those with a debtor book. Using a 30-, 60- or 90-day debtor book a finance company can release some of that invoice early paying your business the amounts on the invoice. As soon as the invoices come in, they are paid to the finance company.
What documents are needed for commercial finance?
Here at J&J Commercial Finance we will do a ‘fact-finding’ session with you and your business. We will ask to see income and expenditure statements, business accounts (for the last 2 years), and assets and liabilities statements.
Using this information, we will do our own research and use our network of over 200 lenders to approach those that we think may be suitable and interested.
What are the pitfalls to securing your own commercial finance?
Whilst, it may seem straight forward to try to secure your own finance package there are a few things to be aware of and pitfalls to avoid. Firstly, don’t just contact one company as there are hundreds of companies out there and you need to secure the best finance package for your business. Secondly, it is important to make sure that you are placed with the right finance option for your business needs. Lastly, you should always use a trusted lender as recommended by others or licensed by the Financial Conduct Authority.
If you do need to release some finance to help your business grow send J&J Commercial Finance a message or give them call on 07399 660 002. Here at J&J Commercial Finance we are committed to providing no-obligation, impartial and confidential initial consultation. To find out more head to our website where you can see who we have worked with and our latest blogs and case studies.