There are a variety of business loans to suit a company that needs an extra cash injection. There are two types of asset finance, one where lenders secure finance against the existing company assets, whereas equipment finance is used to acquire additional assets for the business, such as more machinery or vehicles. Working capital loans are there for businesses who wish to keep trading but do not require money for company expansion or growth.
As each business requires money for different reasons, there is a varied market for assets and capital finance. Revolution Brokers are specialists with relationships with whole of market lenders and can help and start applications within matter of hours.
Working capital loans
Working capital business loans are a simple and flexible way to secure finance for company owners to ensure that operations continue to run smoothly. It could be that the company has a bad credit history, but is currently trading well. Lenders will take your company's individual situation into consideration - there is help for businesses to continue trading.
These loans are traditionally used so that companies can continue to run everyday operations, rather than capital to purchase additional equipment or assets to grow a business. Companies may not have to offer assets as security for a working capital loan, although lenders may require higher rates of interest or a personal guarantee for limited companies.
Depending on your business needs, there are various kinds of asset finance available. These loans are generally used for business expansion, such as the acquisition of more equipment, tools, vehicles or machinery. Lenders will take into account a number of variables before agreeing to an application. The asset may be secured against existing assets, such as property or machinery.
There are various types of equipment finance, including:
The company spreads the cost over a period of instalments and receives full ownership when the term ends
The lender rents the asset to the company on a lease. There are options to continue leasing the asset, buy it outright, upgrade or return it.
A tax-efficient way to rent an asset. As you don't own the asset, it doesn't appear on your balance sheet so it's possible to offset costs against profit and claim VAT.
The amount of finance options may seem overwhelming. Revolution Brokers is a whole of market brokers and will help you to secure the loan that fits your needs best. Get in touch to find out more.