Commercial Development Loans: The facts
If your business operates from its own premises, you’ll want to make sure that the property serves your needs. After all, it’s where you welcome your customers and produce your goods and/or services. However, as your business develops you may find that your current facilities are no longer sufficient to enable you to keep up with customer demand. Of course, you could try moving elsewhere, but that can be expensive and you may already be in a prime location. Instead, a more cost-effective solution might be to redevelop your existing premises with the help of a Commercial Development Loan. Commercial Development Loan come in a variety of forms and are designed to provide the funds so that you can adjust and/or expand your existing premises with total confidence. Why should I apply for a Commercial Development Loan? Although redeveloping your existing premises may cost less than deciding to move your whole business to another location, making improvements to your current commercial trading address can still prove an expensive endeavour, especially when you factor in aspects such as planning applications, architect fees, surveyor fees, contractor salaries, cost of building materials and the amount of disruption to your business. However, rather than relying solely on your own savings, you could spread out the cost of the project over a short or long-term agreement by applying for a Commercial Development Loan. Therefore, a Commercial Development Loan is a means of easing the strain upon your business’ finances whilst enabling you to make the changes that are required. What can a Commercial Development Loan be used for? What makes Commercial Development Loans such a useful tool for any business owner looking to make improvements to their existing premises is that they can be used to support any type of property development project. So whether you’re looking to improve customer-facing areas, build extensions, increase the size of your stockroom, reposition weight-bearing walls or ensure that the property complies with modern building control regulations, a Commercial Development Loan could provide you with the funds you require. Plus, if you’re an experienced property developer looking to construct property such as new homes, a Commercial Development Loan could also assist here as well. So, all you need to do now is source an agreement that’s suitable for your business’ needs. Thinking about making an improvement to your business premises? Or are you looking to devleop land in your possession? Apply for a Commercial Property Loan or learn more about how your business could benefit What types of Commercial Development Loan could I apply for? If you don’t want to move to another location or are looking to build property, a Commercial Development Loan could offer you the funds necessary to succeed. However, there are two types of Commercial Development Loans available to choose from, which are: Development Mortgages and Development Bridges. So in order to make an informed decision and acquire the funds you need, understanding the differences between these two types of loans is crucial. Development Mortgage If the project is in relation to a property that is considered habitable but needs extensive modernisation, or the construction of an entirely new property, you may want to apply for a Development Mortgage. A Development Mortgage is a long-term agreement that can last up to 20 years and is typically secured against the property itself and/or another property in your portfolio. Although such agreements typically offer up to 60% LTV, 100% LTV is achievable, but you may need to provide additional security and know that the quality of the land/property will also be brought into question. Nevertheless, though there’s no limit to how much you can borrow, the amount of funding you may receive will take into account the project’s Gross Development Value (GDV) when complete. Plus, you’ll need to be aware that you need to place some of your own equity into the agreement as well, which could be up to 40%. In addition, you’ll also need to make Fixed Monthly Repayments throughout the agreement. The amount of interest you’re charged may vary depending on whether you’re using a Fixed or Variable Rate Mortgage. Development Bridge On the other hand, if you’re looking to carry out a light redevelopment, undertake a renovation or fund a major conversion project, you may want to take a look at what a Development Bridge has to offer. A Development Bridge is a short-term agreement that can last between 1-12 months and could be arranged to support up to 100% of the project’s total costs. Typically secured against either the property in question or another in your portfolio, Development Bridges are high-interest agreements that can be established as a Closed Bridge or an Open Bridge. Closed Bridge: Using a Closed Bridge means that you’re expected to fully repay the agreement by a set date. Open Bridge: With an Open Bridge, you aren’t tied to a specific date but you are, however, expected to have fully repaid the product within a prescribed term (e.g. 12 months) Meanwhile, you also need to consider how you intend to repay and resolve the interest that’s incurred until the agreement has been resolved. To do, you have 3 options available: Pay Monthly, Rolled-Up Interest or Retained Interest. Monthly Interest Payments: This option requires you to make interest payments at the end of each month until the agreement has been resolved. Rolled-Up Interest: Combines the Principal (capital borrowed) with the total amount of interest that’s been incurred, which is repaid in full via a single repayment when the agreement matures. Retained Interest: This option enables you to borrow the interest you’ll incur for an agreed number of months. This is kept by the lender and is used to provide your business with a safety net whilst you make monthly interest payments. When the agreement matures, the lender may reimburse a portion of the retained interest, providing that it’s not been used up and/or you’ve managed to repay the agreement early. Thinking of applying for a Commercial Development Loan? Commercial property in the UK is a valuable commodity for any business, providing a wide range of benefits. That’s why, if you manage your own premises or possess valuable land, you are likely to want to make full use of it. The trouble, however, is often in the cost. But if you’re looking for a cost-effective way of achieving your property development goals you may want to consider applying for a Commercial Development Loan. All you need to do next is source an agreement that’s appropriate for your goals, which is why speaking with qualified business finance professionals could help. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also use our expertise to guide you through the application process. So if you’re looking make improvements to your premises or build on land in your possession, apply for a Commercial Development Loan today or find out more with Rangewell.
Questions to ask when thinking about Commercial Mortgages
Getting your SME business on the property ladder can be stressful. As well as deciding what furniture and equipment to take, you need to manage the situation and minimise any disruption to your operations. But before you get to that stage, you need to overcome the cost factor. With the value of real estate rising, pulling together cash from your accounts is risky and may not cover the whole amount. So why not seek another path and see how a Commercial Mortgage can help your business move or expand across the UK. Commercial Mortgages present you with the means to spread out the cost of purchasing or redeveloping property over time. However, it’s essential that you understand every aspect of the product, enabling you to decide whether it’s the most suitable route for your business. So, here are just some of the questions you need to ask about Commercial Mortgages: How can Commercial Mortgages be used? How much could you borrow with a Commercial Mortgage? Will you need to make a deposit? What types of Commercial Mortgages are available? Will you need to provide security? What documents will you need to provide? How are a Commercial Mortgages repaid? What fees and charges should you be aware of? How can my business make use a Commercial Mortgage? As well as being able to acquire valuable real estate by spreading out the total purchase price, Commercial Mortgages can also benefit properties already in your possession. By applying for a Commercial Mortgage, you can even fund vital redevelopment projects or release the equity contained in your property portfolio (known as a remortgage). As such, Commercial Mortgages are a dynamic tool useful for a wide range of UK businesses. Moving your business to a different location? Opening up another branch? Apply for a Commercial Mortgage today, or find out more about how your business could benefit! How much can I borrow with a Commercial Mortgage? If you are purchasing property, the size of any potential lump sum may be in the same region as the desired property. But if you aim to redevelop or release equity, it will, instead, be based on the amount of equity contained in the property that you own. However, Commercial Mortgages usually start from £50,000, with no set limit to what you could borrow since they work around a percentage. Yet lenders may impose their own credit limits based on how much they’re willing, or able, to lend. Will I need to make a deposit? Yes, although you are, in fact, covering a portion of the property’s equity, which typically starts from 20% of the property’s purchase price or estimated market value. By making such a commitment, you’ll, therefore, only need to borrow the remaining 80%. But, if you’re able to cover 40% of the property’s total value, lenders may offer you a lower interest rate as a result. What types of Commercial Mortgage can I choose from? There are two types of Commercial Mortgage available - Fixed Rate and Variable Rate - both of which affect how the interest is handled. With a Fixed Rate Mortgage, interest remains constant throughout the repayment process, giving you greater certainty. The downside is that if market interest rates decrease, you’ll miss out on any potential savings. However, with Variable Rate Mortgages, the amount of interest you’ll pay each month can change according to market interest rates. Although you could benefit if market interest rates fall, you risk paying more should they rise. Therefore, you’ll need to decide between consistency or the prospect of potential savings. Will I need to offer security? Yes, you’ll need to provide security using valuable unencumbered land or property. This requirement is crucial in the application process since it reassures lenders of your commitment. However, the purpose of the loan will affect what’s used as security. If you are purchasing, lenders will take security in the desired property. But if you aim to release equity or fund a redevelopment project, they’ll, instead, take security in a property that you already own outright. Note that lenders will repossess the property in question if you fall behind in the repayment scheme. What will Commercial Mortgage lenders be looking at in my application? When considering your business’ mortgage application, lenders will want to know about your goals, performance, financial situation and whether you can afford the agreement. Therefore, you’ll need to submit various documents that provide lenders with the information they need, including: detailed business plan Profit and Loss statements audited trading accounts for at least 2 years business and personal bank statements asset and liability statements growth forecasts Lenders will also look at your credit score and any relevant matters such as CCJ’s, Accelerated Payment Notices, financial obligations and whether you have a reliable history of repaying your debts. If there’s anything that lenders should know, even if it’s negative, be upfront. Lenders will always appreciate it if you inform them of any potential issues. If you don’t and they find an issue, they’ll wonder what other problems may exist, damaging your application’s credibility. How are Commercial Mortgages repaid? Commercial Mortgages are repaid using a Fixed Monthly Repayment scheme, requiring you to repay a set amount of cash at the end of each month for an agreed term, plus interest. Available terms typically extend from 3 to 25 years, possibly longer. However, if you’ve applied for a Variable Rate Mortgage, the amount of interest you’ll pay each month can fluctuate according to the going market interest rate. Are there any additional fees that I should be aware of? As well as covering a portion of the property’s equity, lenders may charge a number of fees and costs throughout the agreement, ranging from arrangement fees, valuation fees, legal fees, early repayment fees (redemption penalty), missed payment penalties, exit fees and so on. Before signing any contract, make sure that the lender thoroughly explains all of their charges. These should be expressed inside a Mortgage Illustration Document. Looking for a Commercial Mortgage? Cash is a vital commodity for any business, powering growth and development. But if you’re looking to acquire a permanent address, the potential costs involved could be beyond what you can comfortably afford. Meanwhile, you need to be close to your customers in order to earn a reliable revenue. This puts you at an impasse. Or does it? Rather than risk your business’ finances, you could apply for a Commercial Mortgage. So, don’t hold your business back. Unleash your potential! If you’re looking to spread into new markets or add to your property portfolio, apply for a Commercial Mortgage today, or find out more with Rangewell.
Questions to ask when thinking about Commercial Loans
Turning an SME into a well-established business venture isn’t easy. As well as the dedication and many hours of hard work each day, you also need access to sufficient amounts of capital to achieve your goals. However, deciding to use your own finances is a risky strategy and could deprive other areas of your business. That’s why choosing to explore how applying for a Commercial Loan could see your business receiving the funds it needs to complete all manner of essential projects. But, as always, it pays to be fully aware of the solutions that are available to you and what they mean for your business. So before making your decision, here are some of the questions you need to ask about Commercial Loans: What aspect of your business requires funding? What types of Commercial Loans are available? How much money do you need to borrow? How is the agreement repaid? Are there any additional costs to consider? Why does my business require a Commercial Loan? This is an important question which you need to answer before making enquires for a Commercial Loan. Because Commercial Loans cover a diverse spectrum of business finance products, you need to decide whether you require the funds for purchasing real estate, acquiring valuable equipment and machinery or even supporting your business’ finances. Of course, these aren’t the only uses for a Commercial Loan, but by identifying what aspect of your business needs funding you’ll be in a much stronger position to choose an appropriate business finance product. In addition, it will also help you convince lenders that their investment will add value to your business and generate a healthy return. Got a business project that needs funding? Or could your business do with a capital injection? Apply for a Commercial Loan today or find out more about how your business could benefit. What types of Commercial Loan products are available to my business? Whenever you discuss Commercial Loans you are, in fact, talking about a number of different business finance products. Therefore, approaching a bank, broker, Alternative Finance lender or any other financial institution and asking for a Commercial Loan simply isn’t practical. By being clear about what aspect of your business you’re hoping to finance, you can begin rounding your search down to a group of products before identifying an appropriate business finance solution. By choosing to pursue a Commercial Loan just some of the products and packages you could benefit from may include Secured Loans, Unsecured Loans, Term Loans, Asset Finance, Bridging Loans and Working Capital Finance. How much money could my business borrow with a Commercial Loan? This aspect of Commercial Loans varies widely from product to product and largely depends on how the lump sum is generated. Whilst some products such as secured term loans offer between £5,000 to £1,000,000, other finance solutions may rely upon the equity or purchase cost of a concerted piece of equipment or real estate, for example. Therefore, before making your decision, you need to make sure that you’re fully aware of how each product generates a lump sum for your business so that you receive a sufficient amounting of funding. How are Commercial Loans repaid? When considering a loan for your business, what may come to mind in terms of repayment schemes are fixed monthly repayments. Although many business finance products such as Term Loans and Asset Refinance use this method, it’s not the only repayment scheme available. Commercial Loans cover many different business finance products, which all operate in their own way. For example, Bridging Loans require you to make a single final repayment at an agreed date or period, depending on whether you’ve chosen a Closed or Open Bridge product. However, in the run-up to that point, you also need to settle the interest through either monthly interest payments, rolled-up interest or retained interest. Therefore, before entering any Commercial Loan agreements, make sure that you fully understand how the product works so that you can be certain your business can afford the repayments. Are there any other costs that I need to be aware of when considering a Commercial Loan? As well as interest, some Commercial Loan products may require you to pay additional costs and fees, affecting the total cost of finance. These can include arrangement fees, administration fees, legal costs, missed/partial payment fees, redemption penalties and exit fees. Because any additional fees will largely depend on your choice of lender and Commercial Loan product, make sure that they fully explain each of these cost to you, preferably in a face-to-face meeting. Thinking about applying for a Commercial Loan? Making sure that your business is constantly growing can be a frustrating endeavour, there are so many aspects you need to consider. Just one of the many issues that you may face could involve a lack of sufficient capital. Without the necessary funds to back up your business, it can be tempting to simply delay or abandon your intended goals. However, by applying for a Commercial Loan, you could gain access to a wide range of finance solutions to allow you tocompletey any number of business projects. So if you’re look to buy equipment, redevelop your premises or support your cashflow, apply for a Commercial Loan today or find out more with Rangewell.
Things to consider when dealing with a Commercial Loan
In order to remain competitive, continually growing your business is crucial. But if finances are tight, applying for a Commercial Loan could be one answer. Covering a diverse range of business finance products and packages, including Working Capital Financing, Commercial Loans offer you the aid and support necessary to achieve any number of business projects. However, as well as weighing up the benefits of Commercial Loans, it also pays to be aware of what else it may mean for your business so that you’re able to make an informed decision. So if you’re considering applying for a Commercial Loan, here are just some of the aspects you need to be aware of: Costs of Commercial Loans Some product may require collateral Additional costs and fees may apply Lengthy application process What is the cost of a Commercial Loan? Although Commercial Loan products allow you to fund and spread the spread out the total cost of projects, purchases and so on, it will cost more in the long run as opposed to using your own funds. The reason for this is that, even though lenders want to help your business succeed, they also want to earn a return on their investment which is achieved by applying interest. However, you can reduce the cost of finance by comparing products from different lenders and assessing what factors they take into account when deciding which rate of interest to offer your business. Looking to fund a long-awaited business project? Or is your business simply in need of more cash? Apply for a Commercial Loan today or find out more about how your business could benefit. How long does it take to apply for a Commercial Loan? This depends on the type of Commercial Loan you’re applying for and the complexity of your request. While some products can take up to a week or more to arrange, other products could be agreed in as little as 48 hours. As such, when considering finance, try to give yourself ample opportunity to assess what products may be available. But if you are short of time, don’t panic. There are still plenty of Commercial Loan products that can help, even at short notice. What does it mean to offer collateral on a Commercial Loan? Although there are plenty of Unsecured Commercial Loan products available, those that are Secured will require you to present collateral for the agreement. Depending on the type of finance solution you’re considering, collateral can be offered in the form of valuable equipment, machinery, vehicles or property to intangible assets. Offering collateral gives lenders more confidence, especially when dealing with large sums because they’re able to repossess the assets in question should your business fall behind in the repayment process. However, it’s worth noting that secured products generally charge less interest than those that aren’t. Are there any additional costs involved with a Commercial Loan? As well as interest, some lenders may apply a number of different, additional costs and fees for certain business finance products. Depending on the product, these charges can range from arrangement fees, administration, legal costs and missed payment penalties to exit fees. Therefore, before signing any contract, make certain that you fully understand how the lender charges for the use of their product. By acquiring a full rundown of these costs you’ll be able to evaluate the total cost of finance and determine whether another product would be more suitable. Is your business in need of a Commercial Loan? Innovation, growth, and expansion are all important aspects of running a successful business, but achieving this can be difficult, especially if you’re planning on using your own capital. However, using your own capital can be risky, potentially depriving your business of the cash it may need later. Yet, rather than put undue strain on your business, you could take a different route and apply for a Commercial Loan. Allowing you to spread out the total cost of purchases and other business projects into manageable repayments, a Commercial Loan might just be what you need to push back the limits of your business for a brighter sustainable future. So if you’ve got a project that needs financing, apply for a Commercial Loan or find out more with Rangewell.
Borrowing money: the advantages and disadvantages
As a business owner with big ambitions, the idea of pursuing your own success and reaping the rewards is often very exciting. But, as well as passion and commitment, you also need access to enough capital in order to turn your dreams into a reality. However, this is often a major stumbling block for many developing businesses, with one of the biggest challenges being having to decide between borrowing money or using your own savings. Although both sides of the argument have their merits, it’s a topic that needs to be considered very carefully. So to help make a decision that benefits the whole of your business, here are the advantages and disadvantages of borrowing money. Advantages of borrowing money Whether you’re starting up or already established, growing and supporting your business will, no doubt, require a capital investment to achieve. Naturally, you may have to put up some of the funds during the initial stages, but supporting your business by yourself in the long-term may not be sustainable. You may even decide to ask friends and family with the aim of paying them back later but if you can’t, this will only lead to strained relationships and sleepless nights. Instead, whether you’re looking to boost growth, maintain day-to-day operations, obtain new equipment, smooth and support uneven cashflow, establish a reliable supply chain or fund existing projects, exploring the advantages of borrowing money might be a wise decision. Borrowing money allows you to support aspects of your business which you may not be able to afford. Yet even if you do have the good fortune of possessing sufficient capital, parting with your savings could cause issues later in your business’ development and limit your ability to build a reputable credit rating. So, rather than purchasing goods and services upfront, exploring the advantages of borrowing money could enable you to spread out or delay the expense to a later date, making your goals more affordable in the long run. Looking to borrow money for your business? Need help sourcing a suitable finance arrangement? Apply for an Alternative Business Finance agreement or learn more about how your business could benefit. Disadvantages of borrowing money Although there are many advantages to borrowing money for your business, there are other aspects to factor in as well. Firstly, in spite of increased affordability, due to interest, service fees and legal costs, borrowing money will ultimately cost you more than if you were to support your goals by yourself. However, you may be able to reclaim interest on a quarterly basis, which is a topic that you should discuss with your accountant before placing an application. In addition, although borrowing money can either spread out or delay the expense, you’ll need to keep up-to-date with the relevant repayment scheme (depending on your chosen product). This could limit any spare cashflow you have available, making it difficult to stay within your budget or provide funds to other areas of your business. Plus, if the agreement is secured, you’ll need to present security in the form of unencumbered assets (equipment, machinery, vehicles or property), which, in turn, puts them at risk of repossession should your business default. Plus, even if the agreement is unsecured, defaulting will affect your credit rating. Alternative Finance If you do decide to apply for business finance, sourcing a suitable agreement presents yet another challenge to overcome. Your first thought may be to explore what funding opportunities your bank has to offer, but with many UK financial institutions preferring big business, borrowing money through the traditional route could prove challenging, especially if you possess a limited trading history, adverse credit, an unproven business model or insufficient assets. Fortunately, the Alternative Finance Industry is opening the doors to more and more business finance solution than ever before, regardless of your current financial situation. However, with so many solutions to choose from, sourcing a suitable finance agreement becomes an obstacle in itself, which is where we can help. Need help sourcing a suitable business finance agreement? Although borrowing money for your business has many advantages, choosing a suitable finance arrangement isn’t a simple undertaking. Yet without having access to sufficient amounts of money at your disposal, achieving your goals will, ultimately, be an uphill struggle. However, the Alternative Finance industry is enabling businesses of all shapes and sizes to reach their full potential. The challenge is sourcing a suitable finance agreement with a lender you can trust, which is where speaking with a qualified business finance professional could prove invaluable. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you’re looking to raise capital for your business, apply for an Alternative Business Finance agreement today or find out more with Rangewell.
Using Personal Loans vs. Commercial Loans
No matter the size or stage your business is at, you must always be looking for more ways to take it to the next level. Yet, in order to achieve your goals, you must also ensure you have sufficient amounts of capital to support your development, which isn’t always easy. Fortunately, there is a wide range of Commercial Loans available to help. However, some business owners decide to apply for a Personal Loan instead, in the belief that they can gain a lower interest rate compared with a Commercial Loan. Although tempting, taking this path can be problematic and may have long-term consequences. Why shouldn’t I use a Personal Loan to fund my business? Firstly, Personal Loans aren’t designed to carry and support the challenges of running a business. They are intended specifically for use on a personal level, for things such as household utility bills, home emergencies or domestic purchases. Yet, although Personal Loans may offer lower interest rates (depending on your individual circumstances), the amount available to borrow will be much less than what you could receive using a Commercial Loan product, potentially leading to you having to draw on your own savings in order to support any remaining costs and depriving you of the funds you’ll need later on in your business’ development. You’ll also miss out on the opportunity to claim corporate tax relief (depending on your local authority and financial arrangements), which isn’t available with a Personal Loan. For further information on tax relief, consult your business accountant or advisor. Looking to raise capital for your business? Need help sourcing an appropriate finance agreement? Apply for a Commercial Loan or learn more about how your business could benefit. Plus, if the Personal Loan provider discovers that you’re wrongfully using their funds to support a business (which is classed as a breach of conditions) they can either demand that you repay the agreement straight away or request that another repayment scheme is established. Besides, using a Personal Loan will also deprive you of a vital opportunity to raise your business’ credit rating and show credit agencies that you’re able to support the additional outgoing of a Commercial Loan. As such, this could cost you more money in the long run (on account of interest) should you apply for a Commercial Loan in the future. Why should I apply for a Commercial Loan instead? There are many types of Commercial Loan and all are designed specifically for supporting businesses. Because many of the products available possess little or no usage restrictions, Commercial Loans can be used for any number of purposes, including growth, refurbishment, smoothing out uneven cash flow, acquiring vital equipment, working capital expenses, coping with late payments or releasing equity. It’s also worth noting that Commercial Loan lenders take more factors into account, allowing you to receive funding on the back of a cash revenue, credit and debit card transactions, collateral, unpaid business-to-business (B2B) invoices, inventory or even the equity held within your unencumbered assets (equipment, machinery, vehicles or property). As such, depending on your chosen product and the purpose of the agreement, there’s no set limit to how much capital your business could borrow. In addition, because of the various types of loans on offer, Commercial Loans tend to be more customisable than Personal Loans. So, as well as the amount you could borrow, there are short and long-term agreements available which also present you with a variety of different repayment schemes. As such, depending on the product, you could resolve the agreement using anything from Fixed Monthly Repayments, Flexible Monthly Repayments, Deferred Payments or even Interest-Only Repayments. Therefore, by looking around you could find a suitable Commercial Loan agreement that takes into account your business’ individual financial circumstances - eliminating the need to apply for a Personal Loan instead. Need help raising funds for your business? Although it can be a difficult and frustrating process, acquiring additional funds for your business is often vital for growth. But it’s also important that you source an appropriate financial solution that’s cost-effective as well. As such, it can be tempting to try and support your business using a Personal Loan, but this is a risky decision that can have negative long-term consequences. Fortunately, due to the rising prominence of the Alternative Finance Industry, there’s no need to take this route. By exploring what the UK lending landscape has to offer, you could find a product that matches your business’ requirements more closely. All you need to do is source the most appropriate product from the most suitable lender. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you’re looking to raise capital for your business, apply for a Commercial Loan today or find out more with Rangewell.
Do you qualify for a Small Business Loan?
If you’re a small business owner operating in the UK, raising the funds you need to support investment can be intimidating. Although you may be clear on your short and long-term business goals, deciding how to obtain the necessary funds to bring them to fruition isn’t easy. Like many small business owners, you might not be aware of what funding opportunities are appropriate for your current financial situation, which can become an obstacle in itself. However, by exploring what the Alternative Finance Industry has to offer, you may begin to find that the array of funding opportunities available isn’t as limited as you first thought. So if you’re looking to raise capital for your business, here’s what you need to consider in order to qualify for a Small Business Loan. What finance solutions are available to small businesses? Naturally, as a small business owner, you may possess a limited trading history. Although it’s true that qualifying for some products can prove challenging as a result, there are still plenty of finance solutions available which could be of assistance. So if you’re looking to begin work on a key growth project, smooth out uneven cash flow or support an unexpected payment demand, for example, some of the products available are Secured Business Loans, Merchant Cash Advance, Overdraft Replacement and Invoice Discounting. Looking to invest in the future of your small business? Aren’t sure which finance solutions your business may be eligible for? Apply for a Small Business Loan or learn more about how your business could benefit. Will I need to give lenders access to my credit profile? When applying for any finance solution, lenders will usually ask to review your credit score, allowing them to form a better understanding of your current financial situation. As such, they may incorporate into their checks whether you have recent or past CCJs, Accelerated Payment Notices, any outstanding debt (e.g. credit card debt) and a reliable history of resolving debt on time. However, the amount of attention that’s given to your profile when deciding whether or not to offer your business an agreement tends to vary from product to product. For instance, if applying for a Secured Business Loan, your credit rating will be a deciding factor but, on the other hand, a Merchant Cash Advance application relies primarily on the reliability of your credit and debit card transactions. It’s worth noting that, although possessing an adverse credit rating may not always lead to a rejection, it will affect how much interest your business is charged throughout the agreement. Therefore, if you’re worried about how your credit profile may affect your application or looking to save your business money in the long run, you may wish to generate a credit report with one of the UK’s leading credit agencies: Experian, Equifax, Clearscore or Callcredit. If the report shows up any issues, assess whether there’s anything you can do to improve the situation before placing your application. Will I need to provide collateral? This really depends on the on your choice of product. If you’re considering a Secured finance solution, you’ll need to present unencumbered assets (equipment, machinery, vehicles, property or capital which is not subject to an existing finance agreement) as collateral. Although security raises lender confidence and could help you earn a more favourable interest rate, this does, in fact, mean putting assets at risk of repossession should your business default. Meanwhile, products that are Unsecured do not require the use of collateral but can be more challenging to qualify for and lenders may charge more interest on account of the increased risk to them. An exception to this, however, is the Merchant Cash Advance, since lenders tend to focus mainly on your card-based sales. What documents will I need to provide? As well as granting access to your credit profile and deciding whether or not to use a product that’s secured, you’ll also need to provide lenders with a variety of documents when placing your application. Although this can vary according to which product you choose to apply for, the most commonly asked-for documents include proof of identity, past and recent bank statements, profit and loss statements, sales reports, collateral documentation and tax returns. These documents are vital for allowing lenders to gain a deeper understanding of how your business trades and where you stand financially. So to improve your chances of success, you should review all of the documents provided to you by the lender before submitting your application. This is because, as well as outlining what documents need to be presented, it will also let you know what format they should be submitted in as well, helping you avoid any unnecessary hold-ups as a result. Thinking of applying for a Small Business Loan? Having access to a sufficient amount of capital is crucial to any business, regardless of size or sector. But as a small business owner, acquiring the funds you need to drive your vision forward can be a frustrating endeavour. With so many different finance solutions to choose from, it is easy to feel lost and confused by what the UK lending landscape has to offer. But rather than using your own funds or waste precious time trying to apply for a product that may not be suitable, there is another way to acquire the funds your business requires. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you’re looking to raise funding for your business but aren’t sure which way to turn, apply for a Small Business Loan today or find out more with Rangewell.
How to find a Commercial Loans broker
Finding an appropriate financial support mechanism for your business is crucial, but can be an arduous endeavour if you don’t know where to begin. For many businesses, the answer could lie with a Commercial Loan, but with so many different finance solutions to choose from, it’s easy to get lost and confused with what’s on offer. That is why seeking the services of a qualified Commercial Loans broker can prove invaluable in your business’ journey to a brighter future. However, how do source a broker that’s suitable for your business’ needs? In order to guide you here are just a few of the questions you need to consider, including: Why does your business need finance? What sectors does the broker cover? How many lenders do they work with? How close is their relationship with their associated lenders? How do their past clients rate their services? What aspect of my business needs financing? Although this is more of a question for yourself, it’s nevertheless an important one to ask. When considering whether to apply for a Commercial Loan, what many business owners first think of is a Term Loan. However, Commercial Loans now cover a wide range of business finance solutions, each of which provides funds for your business in different ways. As such, your choice of finance broker should be a reflection of this diversity with their services and expertise covering a large number of business finance products. Plus, by being clear about what you’re hoping to achieve, your chosen broker will be in a much stronger position to pin down what types of Commercial Loans may be most appropriate for your business’ needs. Have a business project that needs funding? Or could your finances do with a cash injection? Apply for a Commercial Loan, or learn more about how your business could benefit. What sectors do they cover? When deciding which brokerage to use in your search for a Commercial Loan, you need to look at someone who has both knowledge and experience in your sector. That way you’ll be able to communicate your intentions to someone who already has an understanding of the risks and potential issues involved in your sector. In addition, they’ll know which business lenders to approach and how to pitch your application, expressing the returns that they could gain from their investment. How many lenders do they work with? Another aspect to consider is how many lenders their services cover. By covering a large number of lenders they’ll be able to offer your business access to a wider range of business finance solutions. This helps to make your search more concise, enabling you to source an appropriate solution for your business that also has a competitive interest rate. Therefore, the more lenders they cover, the more confident you can be in your choice of Commercial Loan. How closely connected are they to their associated lenders? In addition, you need to be aware of how closely connected they are to their associated lenders. The purpose of a finance broker is to act as a gateway into what the Alternative Finance industry has to offer. But when you choose to use their services, you need to make sure that this remains the case. If you’re repeatedly being show products from the same lender(s) it could be a sign of an undisclosed arrangement, which may not be to your business’ benefit. Although it could just be that they’re the most suitable fit for your business needs, it may also mean that they have a relationship with that particular lender, earning them maximum commision whenever they send a business their way. In some cases, it could even be that the broker owns that particular lending company or vice versa. If you believe such a relationship exists, you need to re-evaluate your position with their services. How do their customers rate their services? Another way to check the suitability of a specific broker is to review how their services stand with their past clients. You can do this by going through their case studies, reading online reviews or checking in on any forums discussing their services. Naturally, everyone will have a different experience regarding a specific lender. But, if there was a breakdown in the broker-client relationship, try to assess what led to this situation and whether it could’ve been avoided. If there’s a noticeable trend of dissatisfaction, it could indicate more serious issues concerning their work ethic and how they operate. Looking for a Commercial Loans broker? Ensuring that your business has the funds it needs to grow and achieve a sustainable future isn’t easy. One issue that many business owners face is not knowing which finance solution to apply for. Although there are now more finance solutions available to business owners than ever before, the array of choice is simply bewildering. That is why using the services of a finance broker is so invaluable, guiding you through all of the products that are available until you source a solution that meets your business’ requirements. However, with so many finance brokers all vying for your business, how do you know which one to choose? At Rangewell, we go beyond your typical finance broker. We’re an Access to Finance specialist, working with over 300 lenders to source an appropriate solution from more than 23,000 business finance products. Our services are free and impartial, and we’ll also guide you through each step of the application process. So whether you’re looking to scale up your business or even give your finances a cash injection, apply for a Commercial Loan today, or find out more at Rangewell.
How to find suitable business finance solutions for your clients
In order for your clients’ business to succeed, they need to ensure a reliable rate of growth and a steady foundation with which to build on. However, to achieve their goals, they’ll also require access to sufficient amounts of capital and support, which is where you come in. As an accountant, you’re in a position of trust helping business owners manage their finances. But are you also guiding them on matters of finance? Although it’s tempting for your clients to look internally and fund key projects by themselves, this could deplete essential cash reserves, which they may depend on later in their development. Fortunately, you’re in the perfect position to show them another way. By exploring what the Alternative Finance industry has to offer, your clients could gain access to the funds they require to target and enhance any aspect of their business. All you need to do is source a suitable finance solution for their business. What does your client need funding for and how soon do they need it? Before you can source an appropriate agreement for your clients, you need to take the time to fully appreciate their goals. Are they looking to obtain vital equipment? Support cashflow shortfalls? Purchase property? Replenish their inventory? Or do they seek to revitalise and expand their services? From here, you can then ascertain a timeframe for when they need the funds by and what they value most in any potential agreement. Do they require access to quick capital? Are they looking for a flexible repayment scheme? How willing are they to provide collateral? Considering each of these factors will help you to begin narrowing down the list of finance solutions. But in order to source a specific product, you now need to delve deeper and assess how your client’s business is structured. Are your clients in need of business finance? Need help sourcing an appropriate agreement? Apply for Business Finance or learn more about how your clients could benefit. How does your client’s business operate? In order to gain a tighter grasp of what type of finance is suitable for achieving their objectives, you now need to carefully review how their business operates. In particular, you need to ascertain their primary source of revenue and how it’s generated. Do they conduct most of their trade with other businesses using B2B (business-to-business) invoices? Are they able to accept card payments, whether online or in store? Does their revenue fluctuate throughout the course of the year? Or, do they provide goods and services overseas? What you need to appreciate is that every business finance solution functions differently, making each product applicable under specific circumstances. So by identifying your client’s key objectives and gather an in-depth insight into their mode of operating, you can now round the list down even further. The next step is considering what paperwork is required. What documents will your client need to provide with their application? When reviewing your client’s application lenders will want to gain a deeper understanding of how they operate and where they stand financially. So, although the documents that are required with each individual product varies, the most common documents your clients will be asked for may include proof of identity, cashflow forecasts, profit and loss statements, recent and past bank statements, company balance sheet and collateral documentation. This should all be outlined by the documents your clients will receive, and should also stipulate the most appropriate format for providing key information. As such, you should carefully review what exactly the lender requires from your client and how it needs to be provided. Doing this well beforehand, if possible, will help make the application much smoother and reduce the need for the lender to chase your client for any missing documents. Need help sourcing business finance for your clients? With so many business finance solutions available, pinning down an exact product for your client’s needs isn’t going to be easy. As such, carefully reviewing what their goals are, how their business operates and when they need the funding by can steer you in the right direction. Yet once you identify a specific product, the next challenge is finding a trustworthy lender who’s willing to accommodate your client’s request, which is where we can help. At Rangewell, we’re an Access to Finance specialist working with over 300 lenders to offer you an overview of more than 23,000 business finance products. We love working with accountants and IFAs - we work with you, in the way you want, to support your clients or customers. Our services are free to use and we’ll also guide you or your clients through the application process. So if you’re looking to source an appropriate finance agreement for your clients, apply for Business Finance today or find out more about partnering with Rangewell.
Do you know if your business needs finance?
Although it’s important to have a clear vision and a strong passion for the industry you’re operating in, enthusiasm alone can only drive your business so far. To achieve your goals and shrug off local competition, making sure that you have sufficient capital readily available is crucial. Unfortunately, this is often a stumbling block that has lead to the demise of many UK businesses. But there is a solution in the form of business finance, providing you know how and when it may be applicable. So to demystify this issue, here’s what you need to consider in order to know if your business needs business finance. Are you planning to support growth and innovation? Business Finance can be used for a wide range of purposes, especially since many of the products that are available aren’t subject to any usage restrictions. This makes it possible for you to support key growth projects, innovation, scaling up or even expanding trade into new markets. So, rather than drawing on your own cash reserves and risk running out of money, business finance allows you to pursue your goals in a cost-effective manner and eases the pressure that a large expense can cause. Do you have a growth project you want to get started on? Or having issues with your cash flow? Apply for Business Finance or learn more about how your business could benefit. How reliable is your cashflow? For any business to succeed, retaining a reliable cashflow is vital. It enables you to run day-to-day operations, giving you the means to provide goods and services to your customers. Yet, sometimes without warning, your cashflow may come under threat. As such, before any lasting damage is done, exploring how business finance could support your cashflow could be a wise move. Although you can track your business’ cashflow using spreadsheets, innovations in digital technology are making it easier to identify any potential issues just over the horizon sooner. So if the issue stems from a seasonal trade shortfall, late payments or unexpected expenses, you could set up a business finance agreement beforehand in order to tackle it head on as soon as it strikes. Therefore, whether you’re expecting, or are in the middle of, a cashflow crisis, applying for a suitable business finance solution could be the answer. Does your business need a cash cushion? However, not every issue can be predicted. Sometimes your business may face an emergency situation out of nowhere. Whether it’s the result of flash flooding, vandalism or local economic factors, you could use a business finance agreement to establish a protective cash cushion. This means that you can support your monthly revenue without having to deplete your savings and risk your day-to-day operations. Could your business benefit from applying for Business Finance? Ensuring that your business has access to sufficient amounts of capital is a vital responsibility that can’t be ignored. Naturally, it can be tempting to rely solely upon your own cash reserves, but this can cause any number of issues which may affect your business’ long-term success. That’s why Business Finance is vital. However, with so many different products available, knowing when you should apply can be confusing. But, rather than wasting valuable time, speaking with a qualified business finance professional could be what you need to find a way forward. At Rangewell, we’re an Access to Finance specialist and have mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you’re looking to provide funds for growth, innovation or to resolve cashflow issues, apply for Business Finance today or find out more with Rangewell.
Benefits of Commercial Loans
As a business owner, your primary focus needs to be set firmly on maintaining your business’ growth. But if you lack sufficient capital, or you’d rather not risk your business’ finances, you can feel like you’re stuck between a rock and a hard place. However, by exploring the possibilities that are available for your business through a Commercial Loan, there are a number of ways that you can gain the cash you need to grow and support your business’ development. Still unsure about applying for a Commercial Loan? Just take a look at some of the benefits that are on offer... Access to a diverse range of finance products Spreads out costs and expenses Available for a range of financial situations What sort of finance products can I apply for? Simply put, a Commercial Loan is a loan designed exclusively for business purposes. As such, when you’re discussing such a far-reaching term, the number of finance products you could choose from to support your business going forward is large. So whether you intend to purchase property, obtain new equipment, fund redevelopments, support IT upgrades or even receive a capital injection after a previous finance agreement, with a Commercial Loan you can succeed. Just some of the many business finance products and packages that you could benefit from include, but aren’t limited to Secured Loans, Unsecured Loans, Working Capital Finance, Commercial Mortgages, Bridging Loans and so on. So no matter your goal, or how much cash you need, you could turn your dreams into reality by applying for a Commercial Loan. Have a project that needs financing? Or do you need access to additional cash? Apply for a Commercial Loan or find out more about how your business could benefit! How could a Commercial Loan help my business’ finances? When thinking about finance, one of the first things you’ll want to know about is how it’s repaid. One of the many benefits of a Commercial Loan for your business is the ability to spread the costs involved in making purchases, funding vital projects or paying down other financial commitments. For the majority of finance products, this could involve making fixed monthly repayments at the end of each month, but this is by no means the only repayment scheme available. With Commercial Loans covering so many different funding options, you could apply for products where repayments can adapt to your monthly revenue or even choose a product that is gradually repaid by your clients. In the case of some products, you could even defer making repayments to a later date when you expect to be able to do so. So depending on the product you choose, you could be making repayments that conform to how your business operates. What if my business has a weak credit score? Admittedly, having a weak credit score or suffering from other issues relevant to your business financial situation could close the door to some business finance products, but not all. With Commercial Loans incorporating a large number of different solutions, there are still plenty of products that your business could qualify for. Whilst some products require you to present collateral in the form of equipment, machinery, property, receivables or intangible assets, others may not. Although some lenders make decisions based on your credit profile and whether you have a reliable history of repaying your debts on time, other lenders may prefer to assess your monthly sales reports. So, although having issues affecting your business’ finances may be disheartening, there are still many options available to your business by choosing a Commercial Loan. Ready to apply for a Commercial Loan? Searching for business finance can be a long and lonely process, leading to many sleepless nights. As well as deciding on what aspect of your business you need to support, you must also source a solution suitable to meet both your goals and current financial situation. But if you don’t know what to look for or know how each individual product works, making the right decision for your business can seem impossible. And that’s before you even get round to choosing a lender. However, you’re not alone. We support SMEs from all sectors find the most appropriate and affordable finance solutions to meet their needs by searching the whole of the business finance market using our finance tool along with our expertise in the industry. So, if you have a project that needs financing or you’re looking to bolster your cash reserves, apply for a Commercial Loan today, or find out more with Rangewell.
How to apply for a Commercial Loan
Got a business project that you wish to get started on, but lack the necessary financial support? Then why not apply for a Commercial Loan? Commercial Loans are designed specifically for business use, and cover a number of different business finance products and packages, ranging from Small Business Loans, Secured Loans, Unsecured Loans, Revolving Credit Facilities and Working Capital Finance to Asset Finance and Invoice Finance. However, with so many products to choose from, it’s easy to feel lost and overwhelmed. So, if you’re looking for a Commercial Loan but don’t know where to begin, here are a few tips that can help you acquire a suitable finance solution for your business’ needs. Why does my business require a Commercial Loan? Before pursuing a Commercial Loan, you must be certain about why you require finance in the first place and whether it’ll add value to your business. Does your business require new equipment, are the funds to help purchase property, more technology or to provide support during low trading periods? By identifying exactly what your business needs, you’ll be in a stronger position to focus your search on specific products which are aligned with your goals. Want to get started on a long-awaited business project? Or are you in need of more cash? Apply for a Commercial Loan or find out more about how your business could benefit! How much money does my business need? Once you’ve decided what aspect of your business requires the funding, you’ll then need to work out how money you need. A common mistake that many business owners make is not borrowing enough. As well as causing your project to stall, it may lead to you needing to acquire further finance or dip into your capital. Plus, being clear on how much money your business needs will help you decide which finance solutions can offer you the necessary support. Whilst some products offer access to a set amount of funding, other Commercial Loan solutions possess no credit limits, but are determined by other product-specific factors. (for example, Invoice Finance uses the equity stored in your unpaid business-to-business invoices.) What’s my business’ current financial situation? Another important aspect to consider when sourcing a Commercial Loan is the current financial situation of your business. Although the necessary criteria for applying for a Commercial Loan can vary between different products and lenders, decision-makers will generally want to assess your business’ credit score, debt to income ratio, trading history, cash flow and Industry specific risk assessments (or, Standard industrial classification of economic activities (SIC). This allows you and any potential lenders to determine your business’ financial performance and assess whether you can afford the agreement or if another finance solution would be more appropriate. So, although retaining a strong credit profile is the goal of every business owner, you’ll still be able to qualify for finance with a weak credit score, but the number of solutions available will be restricted as a result. Will I need to provide collateral for a Commercial Loan? This depends on the type of Commercial Loan you’re looking to apply for. If the product is Secured, you will need to provide collateral for the agreement in the form of valuable equipment, machinery, vehicles, property to intangible assets. Ultimately, this puts the assets that you put forward at risk of repossession should your business fall behind in the product’s repayment scheme. Meanwhile, Unsecured Commercial Loans don’t require you to present security. However, although there are some exceptions, these types of agreements can be much harder to acquire if your business has a weak credit score. What documents will Commercial Loan lenders require? Although this can vary across products and different lenders, you may be required to submit a range of financial documents when applying for a Commercial Loan. This helps lenders to gain a thorough understanding of how your business operates, whether you have any existing debt and how well your business is growing. As such, it generally helps if you find out what documents you’ll need to provide in advance to avoid any delays. Some of the most common documents that lenders may ask for can include proof of identity, proof of address, recent and past bank statements, latest tax returns, Balance Sheet records, profit and loss statements and audited financial records for at least 2 years. In need of a Commercial Loan? Making sure that your business has everything it needs to progress and reach new heights can be frustrating. As well as deciding what to prioritise and which direction to take, you need to consider your finances. If you lack the necessary funds or you’d rather not risk your business’ financial well-being, you could explore the benefits of a Commercial Loan. So no matter the project or how much money you need to get the job done, applying for a Commercial Loan could be the solution you’re looking for. If you’ve got a project you want to get going or you need a capital injection after a previous finance agreement, apply for a Commercial Loan today or find out more with Rangewell.