Most people, especially “first-time buyers”, tend to think only with regards to approaching their particular banks in regards to arranging finance. You will find, however, other sources. You will find Commercial mortgage Lenders, Asset Finance Lenders, Lenders that specialise in factoring/invoice discounting, lenders that will 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’s very difficult Commercial Finance Bournemouth to have finance for a lot more than 70% of the worthiness of the loan – although really limited amount of cases – not impossible! If you should be searching for a lot more than 70% – anticipate to try to find other alternatives. For smaller loans, vehicles, plant, equipment etc. might 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
Don’t assume all lender is enthusiastic about lending across the complete array of business sectors. They are competitive only in the sectors by which they’re keen to lend. For instance, land and property – mortgages, vehicles, plant and machinery – asset finance. You need to therefore decide which business sector your requirement falls in.
What Is Your Credit History
The better your credit history the reduced the interest rate that you will have to pay. If your credit history is not perfect (and in this current credit crunch very little is being regarded as perfect credit history) you should be applying to a specialist commercial finance lender.
The UK government provide various grants for businesses. Some of the very common are Beneath the Small Firms Loan Guarantee Schemes [EFG] (which are easy setting up),. 75% of risk is taken by Government and provides another method of introducing vital growth capital to small businesses. Unavailable if there is existing potential security such as for example high equity in property in which a secured loan could 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 very same of an injection of capital for around £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 select you use a Broker then the Broker may also usually charge a fee for arranging the loan. Whilst the natural reaction is to approach Lenders direct, a Broker will cope with a lot of lenders covering numerous sectors and so may be more effective in the long run. A good Broker will be able to provide assist in sourcing of finance for most of the above loan and more.