email: accounts@timezoneaccountancy.co.uk || phone: +44 7411 808708
COMMERCIAL FINANCE SOLUTIONS TO HELP YOUR BUSINESS
Secured Business Loans
A secured loan is a loan that is secured against your property, secured loans allow you to borrow up to £100k.
What is a Secured Loan?
A secured loan is a loan that can be secured against property or assets it enables businesses to obtain higher ammonts of funding for any business purpose.
How you can use a Secured Loan
There is no restriction on the use of the funds. However, most lenders like to record what the purpose is, to better understand how their clients, use their facilities. Popular reasons include:
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Raising working capital
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Covering marketing expenses
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Funding expansion, including the purchase of additional property
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Payment of VAT bills/tax bills
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Covering stock costs
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Covering costs of staff training
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Funding the purchase, refurbishment or upgrade of equipment/assets
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Restructuring of current debt
Unsecured Business Loans
Simmilar to unsecured personal loans, unsecured business loans are a way of borrowing without securing against property or assets.
What is a Unsecured Business Loan?
An unsecured business loan is a way of borrowing without securing against a property or assets. Unsecured loans are usually used for borrowing smaller ammounts.
How you can use an Unsecured Business Loan
There is no restriction on the use of the funds. However, most lenders like to record what the purpose is, to better understand how their clients, use their facilities. Popular reasons include:
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Raising working capital
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Covering marketing expenses
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Funding expansion, including the purchase of additional property
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Payment of VAT bills/tax bills
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Covering stock costs
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Covering costs of staff training
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Funding the purchase, refurbishment or upgrade of equipment/assets
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Restructuring of current debt
Invoice Finance
Invoice finance can improve cash flow and give you access to the funding you need to grow your business.
What is a Invoice Finance?
Invoice Finance is a term used to describe an asset-based finance facility. Businesses sell their invoices to a funder for up to 95% of their value. Invoice finance enables your business to fund growth and working capital, while payments from your clients are being chased. Invoice Finance comes with two forms:
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Invoice factoring – Factor finance companies buy your outstanding invoices from you for up to 95% of the value of your invoice and then chase your customers for payment. The funder then provides you with the outstanding amount, their interest and fee for the service is taken out of this final balance.
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Invoice discounting – Your business retains full control over credit management and pay the funder’s advance when your clients pay you as well as a fee for their service.
A lack of cash flow can be a drain on your working capital and waiting for payments from your clients also restricts growth, with invoice finance up to 95% of the value of your invoices could be in your bank the day your invoice is raised. Choose to finance some or all your sales ledger; you can even select just a single invoice.
Am I suitable for Invoice Finance?
Invoice finance is suitable for businesses who trade business to business across a wide range of industries including recruitment, manufacturing and engineering, haulage and transport, construction, print and packaging, wholesale and distribution, and security.
By releasing up to 95% of the money due from customers, invoice finance will improve a business’s cash flow allowing them to pay wages and suppliers, reinvest in the business and fund growth. Advantages of using invoice finance include:
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Typically invoice finance will provide far higher availability of cash compared to a traditional overdraft.
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Invoice finance is priced similarly when compared to overdrafts.
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Allow your money to work for your business, reinvest, grow and enjoy early settlement discounts with suppliers.
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Invoice finance grows as your business grows, giving you far greater flexibility than an overdraft.
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Provides certainty of when you’ll be paid, means you can react more quickly to market opportunities.
The invoice finance provider can manage your sales ledger and protect you from bad debts as extra services.
Asset Finance
We provide funding for the equipment you need for your business without you having to dip into your working capital.
Asset Finance
Asset Finance is a type of loan that enables businesses to obtain funding for the purchase of assets they need to successfully operate and grow. Assets such as cars and vehicles, equipment, software, machinery, systems, tools, furniture, mobile buildings, containers, and other technology, or allows you to release capital in assets you own.
There can be tax benefits which can help your business, but we recommend speaking to your accountant beforehand.
You can use asset finance for:
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Cars and vehicles
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Mobile homes/buildings
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Office equipment
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Computers and software including phone systems
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Agricultural and plant equipment
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Construction equipment
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Tools
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Hotel, pub and restaurant furniture
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Medical and dental equipment
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Containers
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Renewable energy and sustainable technology
Hire Purchase
Hire Purchase enables you to secure ownership of assets by paying in installments over time. The cost of an asset can be spread over its useful working life and paid for out of the revenue it earns. Payment patterns can be tailored to suit individual needs, generally involving a 10% deposit and all VAT paid upfront followed by a series of monthly or quarterly installments. Customers can choose between a fixed rate or base rate hire purchase.
Hire Purchase is similar to equipment leasing, but your business owns the item.
Finance & Operating Lease
A Leasing Agreement gives a business full use of an asset for an agreed period, at an agreed monthly or quarterly rental. The funder will purchase the required asset, claim any available allowances or writing down allowances and pass the full benefit on within the lease rentals. Funders have different leasing plans, each designed to meet the requirements of specific circumstances.
The two types of equipment leasing are known as finance leasing and operating leasing. Paying cash outright for capital assets can be a signature drain on your working capital and waiting for cash from your receivables also restricts growth.
Asset refinancing agreements are aimed at businesses that already own the asset and which now need to release some of the capital tied up in those assets. The funder buys the asset from you and leases it back to you for an agreed period of time at an agreed monthly or quarterly rental.
