There are many different types of finance available to businesses. Understanding your options, how the different products work and which ones could be most suitable for the needs of your business is essential. Click on any of the below options to find out more about some of the more common finance and investment options.
Angel Investment
Angel investing is undertaken by individuals, or groups of individuals (acting as a syndicate or network), who invest their own money in return for shares (equity) in the business
Asset Finance
Acquiring a new business asset outright can tie up large amounts of capital up front, so it may not be the most efficient use of a business’ available resources
Asset-Based Lending
Often closely associated with invoice finance or sometimes confused with asset finance, asset-based lending is available to businesses that have multiple asset types on their balance sheet.
Bank Overdrafts
An overdraft is a borrowing facility attached to your business bank account that is set at an agreed limit you agree with your bank.
Bonds and Guarantees
Banks and other providers offer a range of bonds and guarantees which support businesses by guaranteeing their ability to meet contractual obligations.
Business Credit Cards
Business credit cards work in a similar way to a personal credit card: you can buy something now, with access to a revolving line of credit with a set limit.
Business Grants
Thousands of funding programmes in the UK can help with the costs of setting up or growing your business.
Business Loans
Loans are one of the most common ways in which businesses raise money. A lender provides money which the business repays, with interest, over a set period of time.
Commercial Mortgages
A commercial mortgage is a type of loan for businesses that want to borrow for property-related purposes such as buying property and property development.
Community Development Finance Institutions (CDFIs)
Community Development Finance Institutions (CDFIs) provide loans and other support, such as mentoring, to businesses that find it difficult to access finance from mainstream sources.
Equity Finance
Equity finance involves raising money by selling a stake of (or shares in) a business, either to existing or new shareholders. This doesn’t mean you have to give up control of the business as your investor can take a minority stake.
Invoice Finance
Invoice finance is a flexible form of finance that is available to businesses that trade with other businesses on credit terms. It is available from a wide range of providers across the UK.
Letters of Credit
Letters of credit are issued by banks to guarantee to a seller that they will receive payment in full from a buyer by a specified time. They are often used in international transactions to protect both exporters and importers.
Merchant Cash Advance
Sometimes called Business Cash Advance, Merchant Cash Advance (MCA) is a product available for businesses that receive a significant proportion of payments for their goods or services through debit or credit cards.
Mezzanine Finance
Mezzanine finance is a hybrid of debt and equity financing and covers a range of funding scenarios (the word comes from the Latin for middle). In certain situations, it can work better for a business than either debt or equity options.
Private Equity and Venture Capital
Private equity providers invest in well-established businesses by providing finance in exchange for an equity or ownership stake.
Start-up Finance
There is a wide variety of external finance and other support available to new and start-up businesses, with options designed for sole traders and freelancers, microenterprises, SMEs, social enterprises and larger businesses.
Supplier Finance
Supplier finance or supply chain finance are terms that are sometimes used to describe finance arrangements where the counter-party is the buyer of products and services.
Trade Finance
When businesses export abroad they need to be sure they can afford to produce and supply the goods or services and be certain of receiving payment for them.
UK Government-backed Loan and Related Schemes
A number of UK Government-backed lending and related schemes are available to support businesses.
