What are the best funding options available?

Businesses looking for funding have never had as much choice as they do today.

While bank lending may be the right solution for certain businesses, others may be far better suited to pursue funding from alternative lenders and specialist debt funds.

Funding types:

• Secured business loans (property secured, such as commercial mortgages)

• Unsecured business loans

• Asset Based Lending (invoice finance, plant & machinery, stock etc.)

• Asset Finance (Leasing & Hire Purchase)

• Trade Finance

There are a number of lenders that are keen to finance businesses that have a strong asset base. Businesses that own real estate, plant and machinery or have an inventory base that the lender can take security over will be attractive as the assets provide downside protection for the lender.

Additionally lenders are also keen to fund businesses where they can see consistent recurring or contractual revenue, as those businesses have higher levels of certainty over the future cashflows that they will generate, and which will be available to service new debt.

Capital Structure Considerations

Our article on business loans is here

Check out our finding the right finance article here

And our article on the State of the funding market here