Business Funding Solutions

Running a business is not easy. It takes hard work and dedication, plus a lot of financial resources and planning. And while there are plenty of traditional financing options available, it’s important to know all the alternative business funding solutions available to you, to be able to make an informed decision about which finance options works best for you and your business.

Business startup funding opportunities can be difficult to achieve, thankfully there are many business funds and grant opportunities you can look into via the UK government or your local county council. The grants available will differ from industry to industry and the loan schemes you’re eligible for will vary.

Business funding for SMEs

Below, we have detailed some popular funding options available to small – medium sized enterprises in the UK:  

Asset Finance

Asset Finance

This type of business finance is also commonly referred to as “leasing”, as the business does not own the asset. Instead, it pays a periodic fee to the lender in exchange for the use of the asset. This type of finance is ideal for businesses that need to make a large purchase but don’t have the available capital to make the purchase outright.
This will help with business growth as it provides funding for businesses to purchase assets that they might not otherwise be able to purchase with their own capital, helping your business invest in other important areas.
Asset finance is a form of financial lending that enables businesses to acquire assets such as equipment, vehicles, and other capital items without spending their own capital. Instead, the asset is used as security for the loan, and the lender will typically lend a certain percentage of the asset’s value.

Bridging Loans

Bridging Loans

Bridging loans are a type of asset finance that allows businesses to access short-term finance to bridge the gap between buying an asset and selling an asset. This type of finance is ideal for businesses that need to purchase an asset quickly and don’t have the available capital to do so.
Bridging loans are typically short-term loans that are secured against the asset being purchased. The lender will typically advance a certain percentage of the purchase price and then take a fee when the asset is sold.
Bridging loans can be a great way to purchase an asset quickly without having to use your own funds. However, it’s important to remember that the loan must be repaid in full within the agreed period.

Asset Refinance

Asset Refinance

Asset refinance is a type of asset finance that enables established businesses to use their existing assets as security for a loan. This type of finance is ideal for businesses that need to raise capital but don’t have the available capital to do so.
The process of asset refinance involves taking out a loan using the existing asset as collateral. The lender will typically advance a certain percentage of the asset’s value, and then take a fee when the loan is repaid.
Asset refinance can be a great way to access the capital you need without having to use your own funds. However, it’s important to remember that the asset may be repossessed if the loan is not repaid.

VAT Loans

VAT Loans

VAT loans are a type of asset finance that allows businesses to borrow money to pay for their VAT. This type of finance is ideal for businesses that have a large VAT bill but don’t have the capital to pay it.
VAT loans are typically short-term loans that are secured against the VAT amount due. The lender will typically advance a certain percentage of the VAT amount due and then take a fee when the VAT is paid.
VAT loans can be a great way to pay your VAT bill without having to use your own funds. However, it’s important to remember that the loan must be repaid in full within the agreed period.

Corporation Tax Loans

Corporation Tax Loans

Corporation tax is a tax on the profits of limited companies and other large organisations. It is paid to the government by businesses, and the amount of tax paid depends on the company’s taxable profits. Corporation tax is an important part of the government’s revenue, and businesses must pay their fair share of tax.
Corporation tax loans are loans specifically designed for businesses to help them pay their corporation tax bill. These loans are available from a variety of lenders, and businesses can use them to pay their corporation tax bill in one lump sum, rather than having to make monthly payments.
Corporation tax loans are usually short-term loans, and they are usually offered at competitive rates.

Business Grants

Business grants can be a great way for businesses to get the financial support they need to grow and develop. Whether you’re a start-up or an established business, applying for grants can provide the funds to launch a new product or service, or to expand into new markets. In this article, we’ll look at the types of business grants available, the benefits of applying for grants, the eligibility criteria, and how to apply for them. We’ll also explore the UK government’s support for businesses during the COVID-19 pandemic, including the recovery loan schemes.

Business grants are a form of financial assistance provided by governments, charities, and other organisations to help businesses grow and develop. A business growth grant can be used to fund new products, services, or markets, as well as to help businesses in times of economic difficulty. You can look into growth programmes, a development grant and a business startup grant. In the UK, the government offers a range of grants and funds to support businesses, including grants for research and development, energy efficiency, enterprise funding, equity funding, and capital grants. You could be in the west midlands or the south west, your local county council will have all of the information you need.

Grants are a great way to get the financial support you need to take your business to the next level, and they can be a great source of income if you’re struggling to make ends meet. However, grants are often competitive and require you to meet certain criteria in order to be eligible. It’s important to understand the requirements of the grant you are applying for before submitting your application. Grants are available to a sole trader, limited liability partnership and a limited company.

UK Government Support

The UK government has introduced a range of measures to support businesses during the COVID-19 pandemic. This includes the Coronavirus Business Interruption Loan Scheme (CBILS), which provides businesses with access to loans and other forms of finance.

The government has also introduced the Bounce Back Loan Scheme (BBLS), which provides businesses with access to loans of up to £50,000. The government has also announced a range of grants and support measures for businesses in the hospitality, retail and leisure sectors.

Recovery Loan Scheme

The government has recently announced the Recovery Loan Scheme (RLS), which provides businesses with access to loans of up to £10 million via the british business bank. The scheme is designed to provide businesses with the funds they need to restart, rebuild and grow following the COVID-19 pandemic.

The scheme is available to businesses of all sizes, from start-ups to established businesses. Businesses can apply for loans of up to £10 million and the interest rates are capped at 14.99%. The loans are available for up to six years and businesses can choose to repay them in monthly instalments or in one lump sum at the end of the term. It’s important to use a business loan calculator when looking at any form of business finance, you can also seek business advice from a professional.

We have many other routes to funding, from invoice finance, a merchant cash advance, a commercial mortgage or development finance. As a commercial finance broker, we’ll spend the time pairing you with your ideal lender.

Smart Funding Solutions are authorised and regulated by the financial conduct authority, FRN: 972740.

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