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How to obtain business financing

How to obtain business financing, Business finance, Manchester, Birmingham, Leeds

Most MD’s and FD’s will automatically think of their banks when considering how to obtain business financing. They tend not to consider the plethora of independent business finance companies that can often provide bespoke and unique funding options.

The bank is always a good start however and they are excellent at providing clearing facilities, small overdrafts, Enterprise FinanceGuarantee, EFG funding. In fact high street banks just about provide every single available business finance facilities available. The problem is that they will only tend to deal with businesses that have been trading for more than 3 yearsand providingthe business is profitable and has a sound balance sheet.

How to obtain business financing if your business has been trading for less than 3 years

The three main areas of business funding available via third party funders is Commercial Mortgages, Asset Finance and Invoice Finance

Commercial Mortgages is probably the most difficult area of business finance to obtain funding. However during early 2011 there is a number of commercial mortgages companies’ coming back into the market hopeful to provide a viable alternative to the banks.

Asset Finance whilst is a difficult sector there are number of independent prime funders doing 3rd party transactions. ING Lease being the biggest in the sector provides prime rates but are only available via an independent asset finance broker

Invoice Finance such as factoring and invoice discounting continues to provide the biggest alternative to the banks. Whilst the market seems to be saturated with funders there has always been plenty of choice even through the credit crunch and the recession.

Whilst XL Business Finance doesn’t say don’t use the banks just be aware that there are viable alternatives that are competitive and flexible and be conscious not to have too many eggs in one basket.

If you require advice on how to obtain business financing for your organisation please contact us today.

See also;


Invoice Discounting

invoice Financing

invoice finance