If you’re in the universe of business, then you’ve probably heard terms like “commercial finance” and “commercial financing solutions” before. Although they are very commonly heard terms, they can still be a little confusing for some business owners, who aren’t aware of the many commercial financing solutions available.
As commercial finance specialists, we love educating people on this topic. Especially because this information could potentially help you a lot in the long run. So, if you want to know more about commercial finance in the UK, read on.
What is Commercial Finance in the UK?
A simple definition would be a great way to get started. Commercial finance is an umbrella term used for a wide array of business finance products that provide both short and long-term commercial financing solutions. This is usually provided by someone outside your business, like commercial finance specialists.
The reason this is important is because you might need this help if your business has reached the point of imminent growth. There may be obstacles in the way when it comes to growth, but the major obstruction is usually funding.
Commercial finance in the UK makes sure that businesses of all sizes can thrive and reach their goals, instead of missing out because of funding. It helps when you can’t generate income fast enough to re-invest it. Commercial financing solutions ensure that you always have business capital.
Of late, commercial finance in the UK has boomed and helped a lot of SMEs grow, making it the ideal solution for everyone.
Who Can Use Commercial Financing Solutions?
Well, the answer to this question is very simple – anybody who owns a business can apply for business finance.
Different providers have different criteria, but as a general rule of thumb you’ll have to show financial accounts, director information, and business bank statements. Online commercial finance specialists and companies use algorithms and underwriting processes that ensure that their assessment criteria are as secure and to the point as banks.
There are even commercial financing solutions for businesses that have adverse credit or start-ups who struggle to find funding.
What Kind Of Commercial Financing Solutions Are There?
There are lots of ways in which commercial finance specialists like us can help you. Here’s a list of the different solutions we offer:
Short-Term Commercial Finance:
Business Credit Cards
Trade Credit|
Bridging Finance
Medium-Term Commercial Finance:
Business Loans
Crowdfunding
Overdrafts
Long-Term Commercial Finance:
Invoice Factoring
Asset-Based Lending
Invoice Discounting
Commercial Mortgages
Which Commercial Financing Solution Is Right For You?
Now that you know the different commercial financing solutions, you’re probably wondering which option is right for your business.
In reality, there isn’t a one-shot answer for this question, as it is very subjective. Different businesses may require different solutions, based on different factors.
Here are a few questions to ask yourself that can help you decide which solution is right for you:
For starters, what is your need for funding?
Which industry do you work in?
How long do you need your loan to last?
What is the size of your business?
How much money do you need approximately, to meet your goal?
What’s your risk profile?
Realistically speaking, how much can you repay monthly?
Once you’ve taken a deep look into these questions, you’ll know where your business stands, and which commercial financing solution is perfect for you. Speaking to a commercial finance specialist can help you look at the options available to you.
Conclusion
Now that you know more about commercial finance in the UK, you may be inclined to opt for commercial financing solutions for your business. If this is the case, our commercial finance specialists at PFN Finance will be more than happy to help you. Contact us to learn more about how we can help.
