Commercial Finance
Commercial finance covers a wide area. That is where we can help. We can step in to ensure that you obtain finance designed and tailored for your needs and requirements. Our expert knowledge of the market means that we will be able to search the market for the best commercial finance package for you. We can help you with any cash flow issues, asset purchases, provide funding for property developments and really help your business grow.
1. COMMERCIAL MORTGAGE
This is a type of mortgage for those wanting to purchase a business property as an asset gaining from rental income and value appreciation. It involves securing capital against a property which I used for commercial purposes. It cannot relate to your residence. But it can be either owner occupied or a buyer investment.
Owner occupied is where the individual owns the commercial property such as a shop and the loan is then paid off from the profits of the business. Buyer investment is where an individual owns a property but not the commercial part of it. But the individual receives income from the rental/lease payments.
This specific form of finance can be used for many commercial purposes including making improvements to a property or expanding a business. The lender will look at the individual circumstances of the person making the application and the value of the asset as well as the security offered by the individual/company taking out the loan.
We are here to ensure that your commercial objectives are met by providing you the best deal from a range of providers offering all types of commercial finance. Your needs always come first!
2. BRIDGING FINANCE
You may ask what is bridging finance otherwise known as a bridging loan? How does it work?
Put simply, it is a short term loan which provides quick funding with a minimum of formalities for either individual or commercial purposes. In essence it is ‘bridging’ a gap and that is why it is used in the short-term. It can be used for a number of purposes such as:
- Quick cash in the case of buying a new property before the old one is sold
- Below market value purchases
- In cases of refurbishment or re-development
- Conversion of a property
- To carry out essential repairs so that a property becomes eligible for mortgage lending
- Conversion of a property
- To carry out essential repairs so that a property becomes eligible for mortgage lending
- Chain breaking
- Settling tax liabilities
- Auction finance
- Probate cases
And the list goes on. What is important to note is the key requirements for such a loan. A bridging loan requires something to be held on a charge as security if the loan is not repaid-usually the equity in a property or land is used as security. You will be happy to know that this charge will be automatically removed once the loan is re-paid. Bridging loans can be secured against the following key options:
- Residential properties
- Mixed use properties
- Hotels
- Property in a poor condition
- HMO’s
- Care homes
- Guest houses
- Shops
- Offices
Most bridging loans last up to 12 months but can also be for a longer period of time…even up to 36 months in some cases! Yet what needs to be clarified from the outset is how you will aim to pay this loan off and the lender will want to see a realistic plan to convince them that this loan will be paid off.
It is important to note that the fees and interest on a bridging loan will be higher than those for a normal residential mortgage and this is due to the short nature of this type of loan, with the interest typically added to the loan sum at the end of the term.
There are many advantages. They provide you with much needed funding within a quick period-typical processing time is between 3-5 working days from the time a first enquiry is made.
Many forms of loan do not have any redemption fees. A poor credit history is often not taken into account by lenders. Interest charges can be paid monthly or when the loan is redeemed –this will be up to you and your circumstances will be taken into consideration when deciding this
Finbud will take an initial enquiry from you and then obtain the best and most bespoke bridging loan offer to suit your circumstances. We will ensure that we take you through the stages step by step until completion making use of the wide access we have to all of the top bridging loan providers on the market. Our expert and specialist advice in this area will ensure that you will feel confident about the choice of bridging loan you take.
*Application fees may apply
Most bridging loans last up to 12 months but can also be for a longer period of time…even up to 36 months in some cases! Yet what needs to be clarified from the outset is how you will aim to pay this loan off and the lender will want to see a realistic plan to convince them that this loan will be paid off.
It is important to note that the fees and interest on a bridging loan will be higher than those for a normal residential mortgage and this is due to the short nature of this type of loan, with the interest typically added to the loan sum at the end of the term.
There are many advantages. They provide you with much needed funding within a quick period-typical processing time is between 3-5 working days from the time a first enquiry is made.
Many forms of loan do not have any redemption fees. A poor credit history is often not taken into account by lenders. Interest charges can be paid monthly or when the loan is redeemed –this will be up to you and your circumstances will be taken into consideration when deciding this
Finbud will take an initial enquiry from you and then obtain the best and most bespoke bridging loan offer to suit your circumstances. We will ensure that we take you through the stages step by step until completion making use of the wide access we have to all of the top bridging loan providers on the market. Our expert and specialist advice in this area will ensure that you will feel confident about the choice of bridging loan you take.
*Application fees may apply
3. DEVELOPMENT FINANCE
This is, essentially, a short term loan designed to provide some much needed funding in a development project such as the building of new properties or used in making substantial changes to an existing property.
The range of property development projects that this can cover are diverse and can cover the following:
- Housing developments
- Conversions
- Expansions
- Apartments and flats
- Retail units
- Offices
- Part completed developments
- Commercial developments
- Holiday accommodation
There are two key areas-that of new builds and/or refurbishment of existing property.
In order to apply for this type of finance, you must be able to provide all relevant documents and information including any planning permissions obtained to the lender to assess the viability of the project. Once approval is given, your finance will be arranged. The finance will be structured from the outset to ensure that you have the funds when you require them. Once the project has been completed or sold, the lenders will expect the money to be paid back.
Lenders assess the finance they will offer based on the end value of the development once it is finished and this is often referred to as the Gross Development Value (GDV). They will offer a % of this value. We can help you obtain what is called Mezzanine funding which will provide additional funds if required to increase the overall funding. There also other options to look at.
We will take the time to fully understand your project from start to finish and look closely at your funding requirements, then identify your options and discuss next steps highlighting the costs and advantages and disadvantages of each option so that you are able to make an informed choice and more importantly the right choice for you!
*Application fees may apply
4. BUSINESS LOANS
We offer small business loans and finance solutions to many different businesses. Our goal is to help you get the funds you need to grow your business in the way you want.
Finbud will use its expertise and access to a wide variety of lenders to ensure you obtain the best deal tailored to your circumstances. Typically, our experts will take the time to understand your business fully and at the same time consider your particular financial circumstances. We will then be able to ascertain and pin point the lenders that will be willing to provide you with an unsecured loan.
We can offer:
- Unsecured loans-no assets required
- Loans of up to £350,000
- Competitive rates
- Only need to provide a minimum of 1 year trading accounts
- Loan term typically from 1-60 months
- No early repayment charges
- Flexible repayment options
- Business plans and forecasts not always required
- Slightly adverse profiles ( i.e. CCJ’s) may be considered
- Fast completions- money can be released as little as 24 hours of an application being made
- The loans will usually require a personal guarantee from the Directors or business owners..but some do not.
An important point to highlight is that unlike small business loans from the bank which limit how you use the business funding you receive, we do not limit how you use the business funding that is given to you. You are free to use the funds on a range of business expenses such as for:
- Cash flow
- Stock purchasing
- Marketing and advertising expenses
- Replacing equipment
- Staff training
- Any expansion plans
- Restructuring current debt
This is not an exhaustive list and so you may have other usages of the funds which will also be acceptable.
Overall, the whole procedure is carried out in a professional and efficient manner saving you both stress and time. So contact us now and we can start the ball rolling…
*Application fees may apply
We will help you achieve your goals by identifying the best finance option on the market to match the asset you want alongside your specific requirements. We will advise you of all of the risks and costs involved.
*Broker fees may apply
5. ASSET FINANCE
Asset finance enables a business to obtain finance against assets. It is similar to a loan taken out to obtain much needed assets for your business and at the same time it is a fixed term contract. Assets such as the following can be obtained in this way:
- Commercial vehicles and cars
- Coaches and buses
- Vans
- Business and Technology
- Plant and Machinery
- Packaging and labelling machines
- Aviation, Agricultural and marine equipment
These are some of the key assets but there are also more. Of course, what you will need will depend on your business’s needs and your own requirements. It is a very common form of finance for businesses, like bank loans and overdrafts. However, it has more advantages than a bank loan as it can provide much needed cash flow as well as tax benefits for a business wishing to purchase a new piece of equipment.
A sale and leaseback of the asset frees up value within the asset and at the same time minimises ownership risk. A business can also benefit from fixed monthly payments and in some cases maintenance of the asset can be included within the monthly repayments.
There are many different types of financing options such as Hire purchase, Contract hire, operating lease, finance lease, aviation and marine mortgages, and sale and leaseback. We will endeavour to talk you through each finance option and match the best one for the asset you are considering obtaining finance on.
There are many, many advantages of obtaining asset finance, but here is our top list of reasons:
- Releases tied up cash
- Valuable alternative to a bank loan
- Offers stability with fixed payments
- Opens up additional credit lines
- Minimizes ownership risk
- Offers flexibility and is sustainable with the option to replace and update
- equipment at the end of the lease
We will help you achieve your goals by identifying the best finance option on the market to match the asset you want alongside your specific requirements. We will advise you of all of the risks and costs involved.
*Broker fees may apply
6. INVOICE FINANCE
Put simply, this type of finance releases much needed cash from outstanding customer invoices which may be payable in 30, 60 or even 90 days. The funds obtained in this way are a useful cash injection into the business. This in turn may help you to pay wages, order more supplies and invest in business equipment.
Businesses can often face struggles and tight periods and therefore invoice finance may be an extremely useful way to release cash quickly.
There are two main types of invoice finance:
- Factoring
Factoring changes unpaid invoices into working capital. In this case, funding is provided as well as credit control. Therefore, it is a full service which provides you with initial funds and then re-claims the funds back from the Service Provider. Typically, the lender can give you up to 95% of the value of an invoice up front and then once the invoice is paid you will receive the balance less than an agreed fee payable to the lender.
- Invoice Discounting
Invoice Discounting enables you to receive up to 95% of the money you are owed within 24 hours of submitting an invoice. This part is similar to Factoring. However, the difference lies in the fact that the credit management part of it is left to you to organise and manage. Of course, this will mean that the fee payable to the lender will be less than that of Factoring which is a plus but at the same time it also means more responsibility will lie with you in recouping payments.
The main benefits of Invoice finance are:
- More cost effective than loans or overdrafts
- Provides instant working capital
- Receive cash as soon as sales invoice is raised instead of waiting long periods
- Saves time pursuing invoices
- Confidential process s customers need never know about it.
- Can provide a much needed cash injection during difficult times for your business
If you feel that your business will benefit from invoice finance, then contact us and we will advise you on the best type of invoice finance for your business and ensure that you gain all of the benefits you need that will lead you to success.
