Reward Funding review: asset secured business finance for UK firms

Reward Funding is a UK lender that provides asset secured finance to businesses and property investors, with a reputation for moving quickly on time critical deals. It lends against property, plant, machinery and other assets rather than relying only on trading history. Smart Funding Solutions is an independent broker that can compare Reward with other secured and asset based lenders before you commit. You can read more on Reward Funding's own website.

01About Reward Funding

Reward Funding is the trading name of Reward Finance Group Limited, registered in England and Wales. It was established in 2010 to fill the gap left when traditional lenders pulled back from small business lending. Its website says it has five UK offices and works with a large network of introducers.

Reward describes itself as a source of flexible, asset secured funding that helps entrepreneurial people thrive. It underwrites in house, gives decision making authority to its regional teams, and structures facilities around each deal rather than forcing borrowers into a standard template. It lists membership of the NACFB, FIBA, the FLA and the AABF.

Reward Funding is one of the lenders on our panel. Smart Funding Solutions is an independent broker and is not part of Reward Funding.

02What Reward Funding funds

Product	What it is for	Typical size	Typical term
Business finance	Short term secured funding for asset rich businesses: working capital, acquisitions, refinancing	Case by case	Usually short term
Asset finance (asset refinance)	Raising cash against property, plant, machinery and other assets, owned outright or already on finance	Case by case	Case by case
Property finance	Fast residential and commercial purchases, refinancing and sales	Case by case	Short term

The common thread is security. Reward's business finance is aimed at companies that have valuable assets and need a quick injection of cash. Its asset refinance product can lend against a wide mix of assets, including commercial and residential property and plant and machinery, whether they are unencumbered or already financed with another lender, and whether or not they sit on the company's balance sheet. That flexibility is useful when a director owns property personally that could support a business facility.

Reward lists the typical uses as raising money for expansion, seizing an investment opportunity, buying assets, improving cash flow, funding acquisitions and consolidating or refinancing debt. Our guides to secured business loans and asset refinance explain how these structures generally work.

03Who Reward Funding suits (and who it may not)

Reward is at its best when a business has a clear opportunity or pressure, real assets to offer as security, and a need for speed.

• Time critical deals: buying a competitor, a property or stock at a discount where the window is short.
• Asset rich businesses with uneven trading: where the balance sheet is stronger than recent profits.
• Refinancing and consolidation: tidying up several debts into one facility. See our page on business debt consolidation loans.
• Property investors needing short-term funding to buy or refinance quickly.

It is less suitable for businesses with no meaningful assets, or for owners looking for long term, low cost borrowing over many years. Short term secured lending is usually more expensive than a mainstream bank loan, so it works best with a clear exit, such as a sale, a refinance onto longer term debt, or cash coming in from a contract.

04What Reward Funding looks at

Reward says it tries to understand the wider context of a business, not just the numbers. Even so, for asset secured lending you can typically expect it to look at:

• The assets offered as security, their value and any existing charges.
• Valuations of property or equipment, often arranged during the process.
• Recent accounts, management figures and bank statements.
• The purpose of the funding and, crucially, how it will be repaid.
• The background and experience of the directors or investors.

The exit is often the single most important part of the case. A credible plan for repaying a short term facility makes a deal far easier to approve.

05Pros and cons

• Pro: a focus on speed and time critical opportunities.
• Pro: in house underwriting and local decision making.
• Pro: lends against a broad range of assets, including those already on finance.
• Pro: considers the story behind the business, not just its latest accounts.

• Con: secured lending puts property or assets at risk if repayments are missed.
• Con: short terms mean you need a clear repayment or refinance plan.
• Con: typically costs more than long term bank debt.
• Con: valuations and legal work add time and cost to the process.

06Applying through a broker vs going direct

Reward works with a large network of introducers, and secured deals are usually arranged through a broker. The reason is practical: with short-term secured finance, the structure, the security package and the exit plan all affect whether a deal is approved and what it costs. Small changes can make a big difference.

We take the time to understand the opportunity, search the market and approach suitable lenders with a well presented case, so you are not repeating your story to several funders. It is free to enquire; any broker fee is disclosed separately before you proceed. For a quick first look at your options, use our instant quotes tool to compare lenders in minutes.

07Alternatives to Reward Funding

• 4Syte: offers invoice finance and secured lending, which can suit businesses wanting working capital linked to their sales ledger.
• Ultimate Finance: combines asset finance, invoice finance and secured loans, a good comparison for SMEs that need a longer relationship.
• Together: a property focused lender worth comparing where the main security is property.