There are Many Different Forms of Business Finance Available
Property Based Finance
Typically up to 25 years & 70/75% loan to value.
Short term finance, always secured on property, again normally up to 70/75% LTV, can be arranged quickly.
2ND CHARGE LENDING
Often a business or individual has equity in a property, but does not wish to re-mortgage or extend an existing mortgage.
BUY TO LET MORTGAGE
Typically up to 25 years and 70/75% LTV.
Available to assist developers to deliver their projects. A substantial portion of both the land and constructions costs can be financed.
Asset Based Finance
An excellent way to finance growth if you sell to other businesses – factoring effectively turns these invoices into cash sales, initially at up to 85% of gross invoice value, with the balance being received when the customer pays.
CONFIDENTIAL INVOICE DISCOUNTING
Operates in a similar way to factoring, but the use of a finance house is kept confidential. Often only available after a period of factoring.
SINGLE INVOICE FACTORING
Allows the client to decide exactly what invoices are or are not financed.
Most types of equipment can be financed, either on hire purchase or lease purchase, often with extremely low initial payments. Pay for your machinery while it’s earning for you.
Machinery previously purchased can also be financed – normally known as sale & lease back.
MOTOR VEHICLE FINANCE
This could be hire purchase, lease purchase, or contract hire. Contract hire is effectively renting for a fixed term – at the end of the term the vehicle is returned to the owner.
QUIRKY ASSET FINANCE
Some, more unusual assets, such as software, have not been easy to finance in the past. NFS is connected with a lender prepared to consider all types of asset finance.
Has your business received a large order recently? Struggling to pay for the stock/ machinery etc. possibly being sourced from overseas? Let a trade finance house take the strain.
Loans and Equity
ENTERPRISE FINANCE GUARANTEE SCHEME
Government backed, providing security to the bank when the borrower doesn’t have any property to use as security. The borrower remains liable if the loan goes bad.
NFS can access up to £0.5M in unsecured finance (requires PG from borrower) expensive money, but if you have a profitable project to get off the ground, this could be the answer.
NFS can assist people about to enter the world of business by sourcing unsecured start-up loans at very reasonable rates of interest of up to £25K. Those with security can access larger sums.
Are you struggling to sell large ticket items (to the general public) as your customers can’t finance them? Vendor finance is the answer.
A specialist financial product designed to assist construction companies purchase materials for their project.
A rapidly growing, addition to the market. Individual lenders bid to lend to your business, but if you don’t obtain the amount requested you receive nothing. Two years (profitable) published accounts normally required.
Asset based lending secured against such items as cars, paintings, jewellery, watches etc. This is short term lending, normally used to meet an urgent need, such as paying Corporation Tax or VAT.
Sell a piece of the action! No interest or repayments to make. SME’s will normally be selling to business angels or crowd funding the business (which operates on similar principles to crowdlending).
Clients aged over 55 can access the equity in their home (or other residence) to provide funds for business purposes. The amount that can be accessed is dependent on age and the value of the property.