Business Finance UK

Business Banking
As well as allowing you to make and receive payments by cash, cheque or electronic means, a Business Bank Account allows, subject to approval, access to short term cash flow finance in the form of an overdraft.

Invoice Finance
Optimising your cash flow can be a major factor in the ongoing success and growth of your business. Invoice Finance could make it easier for you to successfully manage your cash, regardless of whether your business is a start-up or established operation.

Factoring
The business of debt Factoring involves selling your invoices to a third party (factor). This service is often used by companies who want or need to improve their cash flow situation.

Business Credit Card
Helping to ease your cash flow burden, a Business Credit Card is a most useful tool to incorporate into your company finances. Your card can be of benefit regardless of whether your company is well established, just starting out, has one employee (you) or several thousand!

Commercial Mortgage
You may be in the first stages of planning, or in the process of considering constructing a new commercial building, moving to a new office, expanding current facilities or modifying your existing business accommodation. Regardless of the circumstances you could possibly require direct access to Commercial Mortgage funding at low rates.

Corporate Finance
Traditionally the domain of traditional investment bankers, today's UK Corporate Finance sector also has active participants from commercial banking, entrepreneurs in venture capital and governmental agencies seeking to entice corporations to relocate or expand in their areas.

Business Bridging Finance
Business Bridging Finance is often a short term mortgage which is secured by your property. The bridging loan may have a higher interest rate than your conventional mortgage, but you can gain the loan quickly to bridge the time between your purchase and your sale.

Vehicle Leasing
Vehicle leasing is an option being followed by increasing numbers of drivers as a means of having a new vehicle ready for use including road tax, insurance, fully serviced for the period and breakdown cover.

A number of businesses may be eligible for the Small Firms Loan Guarantee (SFLG).

• The Government guarantees bank loans to small firms with viable business proposals, in situations where they have been unable to secure a loan through conventional channels.
  
• Businesses who have an idea to develop or market an innovative product, process or service, but are not sure whether they are ready to take it forward successfully, might be able to receive help under a Grant for pursuing an innovative Idea.

The Small Business Service has made available a series of guidance notes covering potential sources of EU funding available to small firms.

Late Payment
As part of its package of measures to combat late payment, the Government introduced the Late Payment of Commercial Debts (Interest) Act 1998, which gave small firms with 50 or less employees a statutory right to interest for the late payment of commercial debts. This statutory right to interest and other new entitlements are available to all businesses and public sector bodies from 7 August 2002.

As an innovative and growth-orientated business, you might be having difficulty attracting the investment you need to innovate and grow your company. The following schemes supported by the DTI can help address this problem:

The SFLG guarantees loans from the banks and various other financial institutions for small firms that have viable business proposals but who have tried and failed to get a conventional loan because of lack of security.

The Government is keen to explore how ECF's might improve SME access to equity finance. They will help fill the ‘equity gap’ that faces some high-growth businesses seeking relatively modest amounts of risk capital. A pathfinder round of ECF's will be launched once state aids clearance has been received from the European Commission.

Venture capital provides long-term committed capital to certain businesses. Venture capitalists will purchase shares in growing businesses on behalf of institutional investors. Venture capital investors are committed to the long-term success of the business, obtaining their return by way of dividends but principally by selling their shares in the business in due course.

Venture capitalists are looking for businesses capable of growing quickly, usually within five years. These businesses must be able to demonstrate a specific competitive advantage and differentiation in a chosen market and be led and managed by an experienced and ambitious management team.

The British Venture Capital Association provide a search engine to identify suitable investors by market sector, geographical area and investment size. The European Private Equity and Venture Capital Association promotes the venture capital industry in Europe and includes a directory and links to members.

Business Angels are informal investors. They are often wealthy individuals searching for profitable investment opportunities. Usually with business backgrounds, they are able to make both small scale equity investments and potential larger scale capital investments in SME's. They are often able to provide hands-on management and other expertise which can be of benefit to a small business.

HSBC | Decision Finance

Please Note! YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER BUSINESS FINANCE PRODUCT SECURED ON IT.