Commercial Finance

Ensuring a company has in place affordable and appropriate funding can be a problem for most

SMEs. 

 

No matter what stage of growth your company is at there is funding available from initial concept to successful listing. Even businesses which are currentlyin a distressed position financially have funding routes available.

 

However, securing this funding can be very difficult for companies without specialist assistance. Signa Business Advisers have access  to funding specialists who are experienced in raising all types of finance and here are some of our options we can offer:

 

Start-up Companies often find difficulty in obtaining loans from banks and tend to look to other resources to find the funds.  Some have to re-mortgage their homes or use family and friends for the necessary support.

 

High growth start-up can look at Angel Funding There are various options for this: as an equity investment or a commercial loan, the recruitment of a Non-Executive Chairman who may have both capital and industry knowledge to invest. With high growth companies there are more options for funding available.

 

Another way for either start-ups or growth companies is to sell your debtor ledger which enhances cashflow.  There is also an option of invoice discounting which can be effective.

 

Bank loans tend to be the least expensive form of borrowing, either in the form of an overdraft or a commercial loan The major drawback for this is that the directors will almost certainly be required to give personal guarantees against the company borrowings which means that personal assets are at risk if not repaid. If your current bank is not forthcoming, then a re-banking exercise should be considered.

 

If all personal assets have already been committed then there is the possibility of securing a Government backed EFG Loan. Mezzanine loans are also a possible option – these are available through government backed Regional Trusts, but they can prove to be an expensive borrowing option.

 

Trade Finance is available if you already have orders in place from your clients.  This is particularly relevant to importing products from abroad or for buying components for manufacturing.

 

Using Sale and Leaseback techniques can be considered for assets not already committed as collateral on existing loans. By leasing plant and machinery, vehicles and some IT equipment can be a tax-efficient and certainly helps cash flow.

 

Commercial mortgages are available for larger capital projects such as the purchase of office, warehouse and industrial premises.

 

Distressed Companies have a few options available to them. Sale and Leaseback of existing, unfettered assets, even in the case of a negative balance sheet, is offered by a number of specialised organisations.

 

Turnaround Angels are a network that will invest in companies that at one time had been successful but that now need an injection of funds to turn them around.

If you would like  more information on how Signa can help please call us on 01494 562738 or send us a message.

Signa Ltd

15 Battingswood Gardens

Naphill

Bucks HP14 4SR

Tel: 01494 562738

info@signabusinessadvisers.com

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