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SOURCING FINANCE SUPPORTING GROWTH

Business loans and asset finance
for equipment, growth and cash flow

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Accessing business finance doesn’t need to be complicated or time-consuming. We put you in front of
multiple lenders to bring you fast, flexible solutions that meet your finance needs.

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Helping you find the right business finance

At The Funding Store we know our finance, and we know how important it is for small businesses to access the right finance, at the right time.

Put our team to the test. Contact us today and let’s talk about your specific needs. We will then set about finding the right finance for your business, all without obligation of course.

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Why use The Funding Store?

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How it works

Are you looking for a hassle free loan application with
no hidden fees and no upfront charges?

We are continually reviewing funding providers to bring you choice, competitive rates and flexibly to access the right finance, at the right time. But most importantly, we are passionate about what we do. This is evident in our enthusiasm and commitment to assisting you at each stage and after you have secured your finance.

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FAQs

What is asset finance?2021-08-17T17:37:40+00:00

Asset finance is a type of funding that gives your business the ability to access assets such as vehicles, machinery, and equipment without the need to pay for the full cost of the asset upfront.

These types of agreement typically involve regular payment for use of the asset over an agreed period of time.

How much can I borrow for an asset purchase?2021-08-17T17:40:10+00:00

We have lenders that can offer funding from £1,000 up to £10million.

What types of assets can I finance?2021-08-17T17:38:23+00:00

Almost any asset, from vehicles, equipment and machinery to soft assets, such as IT hardware and software.

Contact one of our business managers today to see if we can finance your next asset purchase

Can I borrow 100% of the value of the asset?2021-08-17T17:38:29+00:00

Some of our lenders will allow up to 100% loan to value, typically on new assets, excluding VAT.

What is asset refinance or asset-based lending?2021-08-17T17:39:28+00:00

Asset-based lending, commonly known as asset refinance, is a way of using the existing business assets to raise funding based on their equity value on the balance sheet.

This can be useful if you want to raise funding for cashflow, boost working capital or put down a deposit on a vehicle, machinery, or equipment.

What is the criteria for asset finance / refinance?2021-08-17T17:39:32+00:00

We can consider applications from new starts up to experienced businesses including sole traders, partnerships, limited liability partnerships and limited companies.

Each application is treated on its own merit, including the strength of the business, your experience, and the plans for the future.

For new starts our funders will look for director / personal guarantees in the background.

How do I apply for a asset finance?2021-08-17T17:25:36+00:00

Complete our asset finance contact form, or contact us on 01908 880420, and one of our business managers will speak with you to obtain further information relevant to your application, to help tailor the quote and product to your specific requirement.

We can also answer any questions that you may have.

What different types of asset finance agreements are available?2021-08-17T17:41:28+00:00

Let’s looks at the three most commonly used types of agreements.

Hire Purchase

This is a very simple way to purchase an asset and spread the payment over a fixed amount of time, typically monthly. The asset will appear on your balance sheet, and you will be responsible for maintenance and insurance costs. You will take full ownership of the asset once the agreement ends, and the last payment is made.

  • This type of agreement includes interest, with the full amount of the asset paid for over an agreed period of time, typically 12 months up to 8 years.
  • Each instalment includes an interest charge, which is agreed at the outset.
  • VAT paid upfront. There will be no VAT charges on each rental instalment.
  • Ownership upon completion of the agreement.
  • Full ownership once the final payment is made, typically with a small option to purchase fee, meaning that you will own the asset outright.

Finance Lease

This type of agreement is for those who want flexibility at the end of an agreement. These types of agreements include three parts to each payment made, which are asset cost, interest, and VAT.

  • Flexible payment terms, you can keep the monthly instalment low, by paying a larger deposit, or agreeing to a balloon payment at the end of the agreement. The balloon payment will typically be less than the anticipated market value of the asset, which would allow the asset to be sold to settle the outstanding balloon.
  • VAT paid on each instalment, allowing assets to be more affordable to smaller businesses and non-VAT registered businesses who would not be able to reclaim the full upfront VAT cost.
  • Flexible end of agreement options allows you to carry on using the equipment with additional instalments or sell the equipment and potentially keep some of the proceeds.

Operating Lease

With an operating lease, the agreement is normally shorter than the economic life of the asset, this allows the leasing company to use the resale value to offer reduced payments over the agreed term.

  • All of the risks, and rewards, that come with asset ownership remain with the leasing company, not you.
  • At the end of the agreement, you will no longer be able to use it and it must be returned in good condition. All terms and restrictions must have been adhered to, or you could incur additional costs (e.g., mileage / hours).
  • Repayments are treated as an operational expense, so they do not appear on your balance sheet.
  • Ability to change / upgrade equipment more frequently.
What information will I need to provide to make an application for Asset Finance?2021-08-17T17:40:55+00:00

Information that we will need to proceed.

  • Director(s) full name(s) and contact details.
  • Full business name, address, phone number and email address.
  • Industry and date you started your business.
  • Annual turnover of your business.
  • Full details of the asset that you are looking to purchase.
What is a business loan?2021-08-17T17:43:38+00:00

A business loan is a loan that is intended to be used for business purposes only. Business loans are offered by lenders, to businesses, using criteria which they set.

In exchange for a business loan, lenders will add an arrangement fee plus interest, which is then repaid on a set schedule over a set term.

Interest rates can vary from lender to lender as can the qualifying criteria.

How much can I borrow with a business loan?2021-08-17T17:43:42+00:00

We have lenders that can offer funding from £1,000 up to £10million.

What should I consider before taking a business loan?2021-08-17T17:43:47+00:00
  • What is the purpose of the business loan

Cashflow, unexpected bill or an asset purchase, if the latter then you may want to consider asset finance, it may potentially be a better product for your business.

  • Work out how much you are looking to borrow

If you are looking for a business loan for cashflow purposes, then you may want to use a qualified professional to assist with a cashflow forecast to work out what the potential borrowing will need to be.

  • Calculate what you can afford to repay

Work out what the business can afford to repay monthly, remember that though a longer term may bring the monthly payments down, you will pay more in interest over that longer term.

Again, we recommend talking to a qualified professional to assist with this.

  • Decide between a secured or unsecured business loan

Some of our lenders will offer both unsecured and secured options, we recommend that you always take independent legal advice before proceeding.

  • Understand the fees and charges

Make sure you understand the true cost of any business loan by comparing all the fees and charges.

Not all, but most of our lenders do charge an arrangement fee for unsecured and secured business loans, these will be provided to you with any conditional offers that you may receive.

Please remember that any offer you receive is non-obligatory and you do not have to proceed.

  • Speak to our business managers

If you have any questions or queries about an offer that you have received, then please do not hesitate to contact one of our business managers on 01908 880420.

What are the different types of business loans?2021-08-17T17:43:51+00:00

There are a variety of different types of business loans on the market, so make sure that you research what product will be most suitable for your business.

Some of the types of business loans that we can source.

  • Revolving credit facility | Business line of credit

If you are looking for flexibility, then this option should be considered. Only make repayments based on the drawdown amount and repay at any time with no early repayment charges.

  • Unsecured business loans

Business term loan up to 6 years with a fixed interest rate, allowing you to budget over the term of the agreement. No early repayment charges, settle early, save on future interest.

  • Secured business loans

Sometimes businesses need to provide security, either due to the amount, or due to the additional risk that the lender is taking. Either commercial or residential property as security will be requested with our secured loans. Fixed interest rates with terms up to 20 years.

  • Merchant cash advance

Most commonly it is used in retail, hospitality, and e-commerce businesses, who take online payments, however a range of small businesses can use a merchant cash advance.

Rates, terms and amounts can vary lender to lender, but you can potentially release up to 100% of your 3-12 month average card sales. Making repayments flexible as you only repay as you earn, with no penalties or charges for faster or slower repayments.

  • Short term business loans

We have lenders that can offer fast funding options over a short term for up to £200,000. These options are typically more expensive than traditional unsecured business loans.

  • Commercial mortgage

A commercial mortgage is a great way to raise funding for a commercial premise purchase, be it your current premises that you are renting or moving your business to a new site, maybe due to expansion and growth.

We have a property expert available to call you back at a convenient time.

What is the criteria for a business loan?2021-08-17T17:43:57+00:00

We can consider applications from new starts up to experienced businesses including sole traders, partnerships, limited liability partnerships and limited companies.

Each application is treated on its own merit, including the strength of the business, your experience, and the plans for the future.

For new starts some of our funders may look for secured funding.

Things taken into consideration from our panel of funders.

  • Business and Personal credit score.
  • Age of your business.
  • Annual turnover.
  • Profit and Loss account.
  • Balance sheet.
  • Affordability.
  • Outstanding creditors.
How do I apply for a business loan?2021-08-17T17:44:03+00:00

Complete our business loans contact form, or contact us on 01908 880420, and one of our business managers will speak with you to obtain further information relevant to your application, to help tailor the quote and product to your specific requirement.

We can also answer any questions that you may have.

What is a VAT loan?2021-08-25T08:04:12+00:00

In short a VAT loan allows your business to spread the cost of its VAT bill over 3 months, giving your business the added benefits of:

  • A rolling facility each quarter
  • Quick and simple to arrange
  • Paid directly to HMRC
  • Takes the pressure off cash reserves
  • Smooths cash flow peaks and troughs
  • No deposit required 0+3 profiles
  • No Director Guarantees on applications up to £150,000
What information will I need to provide to make an application for a Business Loan?2021-08-17T17:44:13+00:00

Information that we will need to proceed.

  • Director(s) full name(s) and contact details.
  • Full business name, address, phone number and email address.
  • Industry and date you started your business.
  • Annual turnover of your business.
  • How much you are looking to borrow.
  • How you intend to use the funds.

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