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Business Loans

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Business Loans

We source high-quality business finance solutions for our clients.
We pride ourselves on providing an excellent service responsive to your needs.
 

Call us on 0203 880 8890 to discuss your requirements

Business Loans - how we can help

We offer a range of business loan solutions, from securing finance for an existing business to acquiring a business. Every business is unique, so our business finance experts provide bespoke financing solutions.

 

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Types of business finance we can source »


What can business loans be used for? »


Buying a business »


Asset finance »


Commercial Mortgages »

Types of business loan available

Types of business loans we can source

Various business finance options are available to suit the needs of small and large companies operating in any industry. Funding requirements can vary depending on the size of your company, its growth cycle, and market conditions:

Secured and unsecured business loans

Businesses looking to expand, improve working capital, or acquire another business as part of their acceleration strategy can apply for a large business loan of up to £25M, or a smaller injection of capital from £3,000 to £300,000:

  • Secured or unsecured business loans from £3K to £25M
  • Flexible and bespoke finance to suit the needs of your company
  • Fixed and variable interest rates are available
  • No early repayment fees
  • Rapid decision-making and fast funding

Ltd company loans

The main benefit of applying for a loan through a limited company is that you can typically borrow more compared to a personal loan. The interest payments on the loan may be tax deductible, and the responsibility of repaying the loan will lie with the business itself.

However, this will not be the case if, as a director, you secure the loan through a personal guarantee. 

Our video below on business loans for limited companies summarises how they work and the eligibility criteria:

Speak to one of our business loan specialists today

While you're here, check out our recent blog on '7 ways to get a business loan in the UK'

Book Consultation »

Secured business loans

Secured business loans, also known as asset-backed loans, enable a business owner to access funds by using a business asset as security. 

Since secured business loans reduce the lender's risk:

  • interest rates and repayment terms are more competitive than unsecured loans.
  • and you can usually borrow a larger sum of money to invest in your business.

Assets such as property, land, machinery and vehicles are all considered suitable security by lenders.

There are other types of secured lending, though.

For example, invoice finance is a loan you can secure using invoices (money owed to your business) as security for the loan. 

  • Secured loans can be borrowed over a longer term of up to 5 years, meaning the monthly repayments will be lower

  • Lenders are more likely to approve a business loan application when assets guarantee the loan

  • There's less need to have a strong turnover or company credit profile as assets form the guarantee

Read blog: Maximizing Cash Flow - A Guide to Invoice Finance for UK Business Owners

Unsecured business loans

Unsecured business loans can be a good option for smaller businesses or businesses with little or no assets to secure the loan against.

Secured loans can be arranged very quickly, but lenders will only agree to the loan if your business has good trading history, turnover, and clean credit profile.

With unsecured loans, the lender has no security, so they will typically assess the loan eligibility depending on the business's trading and any directors' credit profiles and assets. The exception to this is merchant cash advance loans, where lenders will base their lending on future forecast monthly takings from card sales, e.g. businesses that take payments through EPOS card terminals.

A company director is often required to guarantee an unsecured loan personally and, therefore, is typically required to be a homeowner.

      • Unsecured loans enable you to borrow up to £300,000
      • You could borrow money for up to 3 years
      • Your business should have at least one set of filed accounts (trading for a minimum of 1 year)
      • A fast decision and release of funds are possible

Related: What does and doesn't count as a business loan - our deconstruction of the business loan definition

Business loans to improve cash flow

Business loans to improve cash flow are available for businesses with variable income, when selling seasonal goods or services, or when a business relies on invoices paid by subcontractors, such as temp recruitment firms, domestic care agencies, and haulage companies.

Working capital loans can be tailored in different ways to meet the specific needs of your business, including fixed-term loans, business lines of credit, merchant cash advances, revolving credit facilities, and invoice finance.

Merchant Cash Advances are increasingly popular among businesses that rely on card transactions. This flexible funding solution allows businesses to borrow an amount based on their monthly credit and debit card turnover, in some cases up to 150% or more. 

The advance is repaid through a percentage of the business's card transaction sales, typically between 10% and 18% of each sale.  

As there is no need for collateral, merchant cash advances are ideal for businesses that experience seasonal fluctuations or peaks and troughs in their sales figures. 

Before agreeing to an advance, the lender confirms the repayment percentage with the business. With these features, merchant cash advances can offer a suitable funding option for businesses that need quick access to capital. 

Use our business loan calculator to get a quick quote. Or get a bespoke business loan quotation

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What can a business loan be used for?

The main uses of business loans are:

  • Funding for business growth and expansion

  • Improving cash flow

  • Marketing and advertising costs

  • Recruiting new staff

  • Purchasing stock or equipment

  • Expanding premises

  • Repair/refurbishment of business premises or equipment

  • Paying corporation tax (corporation tax loans)

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Loan for Buying a business

Purchasing an existing business allows you to build and strengthen what the previous owner may have created and can be an excellent means of entering a new market or developing your own business quickly. 

It's possible to leverage business acquisition finance in several different ways:

  • Unsecured business loan

When purchasing a business with little or no assets, you can apply for an unsecured loan to complete the purchase. In most cases, you'll be required to offer personal assets such as your residential property. 

  • Asset Finance

When purchasing a business, you can use the business's assets to secure funding from a lender. It can also be possible to leverage the assets of any business you own in the background, using both sets of assets to secure an acquisition loan and potentially get a lower interest rate.

  • Invoice Finance

If the business you are purchasing receives delayed payments every month, you can use invoice finance to raise funds needed for the acquisition. Invoice factoring allows you to borrow against future income, with funds released and guaranteed by projected income from your regular debtors.

  • Commercial mortgage

If you’re buying a business with property, a commercial mortgage could be your best option.

It's possible to borrow up to 70% of the value of a commercial property. In some cases, we can also finance 60% to 70% of the going concern value (the value of the business and property combined).

  • Seller finance

If your seller is retiring and it's beneficial for them to accept payments over several years, it's sometimes possible to arrange for the purchase price to be spread out over a specified time frame.

A vendor business owner may agree to sell shares to the acquiring owner at a pre-determined price as part of the deal. This means the seller effectively has to wait longer to get paid, but you can structure an agreement that benefits both you and the seller, reducing the amount of money you need to raise upfront.

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Speak to our team today to find out how we can help you raise funds to buy an existing business

Call us on 0203 880 8890 to discuss your requirements.

Asset Finance

Businesses often need to raise capital to purchase new assets, such as machinery or office equipment, or leverage existing assets to raise funds for another purpose. 

Asset finance is a specialist loan that's designed to meet these needs specifically:

Finance to help a business purchase assets

Business owners can use asset finance to raise cash quickly for expensive equipment, machinery, or vehicles. Various forms of asset finance are designed to facilitate the acquisition of new assets for expansion and growth, enabling a business to spread the cost of the purchase over time. 

Although asset finance has pros and cons, it can help a business conserve cash while keeping its growth momentum.

Financing assets already owned by a business

Businesses can also refinance assets it already owns to release funds to use elsewhere. Here are two ways this can work:

1. Using the asset as security to take out a loan:  Valuable assets owned by a business (physical or otherwise) can be used as security to leverage a loan. For example, a business may own expensive machinery. If the machinery is valued at £60,000, it could be possible to borrow up to 70% LTV with a secured loan against it.

What can you use as security for a business loan?

Any assets on a business's balance sheet could be used as security for a business loan, including equipment, machinery, vehicles, and accounts receivable.

2. Sell the asset and purchase it back over a period of time:  Known as asset-based lending, a business can raise cash quickly by selling a valuable asset to a lender for an agreed fixed sum. The lump sum is then paid back over a period of time with interest, after which the business can regain ownership of the asset. Another great way to free up capital. 

Note: If the asset is partially owned through hire purchase, the business can only borrow up to the level of equity currently owned.

For example, a business has a vehicle worth £20,000 acquired through hire purchase, with £4,000 left to pay. The business has £16,000 equity in the vehicle, so it could refinance it for up to £11,200 (70% LTV). The Refinance lender would pay the Hire Purchase company the £4,000 still owed, take the charge on the asset, and lend the business £11,200 based on its value.

Book Consultation »

Commercial loans, Clifton Private FinanceCommercial Mortgages

Businesses often need to acquire property as part of their growth strategy, and it can make more financial sense to purchase a property rather than rent one. Or, a business may already own a property and use a commercial mortgage to release some of the equity tied up in it.

Commercial mortgages can be used to purchase offices, retail outlets, restaurants and cafes, warehouses, care homes and medical practices. Or, if you already have a mortgage on a commercial property, you may be able to refinance to raise additional funds.

  • You can borrow up to 70% LTV with a commercial mortgage
  • Affordability is crucial, so it's important to have up-to-date accounts for your business
  • Property can be a good investment for a business as this type of asset is likely to grow in value
  • Commercial leases tend to be more expensive than a commercial mortgage

Find out more about how commercial mortgages work and how much you can borrow >

Why Choose Clifton Private Finance?

Here at Clifton Private Finance, our business loan specialists offer a complimentary advice service and can help you choose the right finance solution for your business requirements. 

Our broker team will help you source the most competitive business loans, commercial property finance, business acquisition finance and cash flow funding solutions. 

Our business loan service provides:

  • Market-leading rates
  • Fast service - finance within 5 to 7 days
  • Access to specialist lenders 
  • Expert advice - professional service 

Next Steps

As a specialist finance broker, Clifton Private Finance can provide a clear picture of your options. We will assess your circumstances and arrange a finance solution tailored to your needs.

If you need business funding, call us on 0203 880 8890complete our contact form above or book an appointment.

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