Commercial Finance, Going It Alone or Using an Advisor?

Business Owners, you are not restricted to a bank manager anymore. Each year more than 4 million businesses seek funding and each year more than 2.5 million do not receive funding. This is mostly because one in five SMEs (21%) reported seeking advice before borrowing and the other most common reason was making contact with just one provider having an established relationship with that provider (41%).

At the same time, banks are employing more restrictive lending practices, making it harder for business owners and property investors to access the crucial funding they need.

Don't limit your potential, finance is vital to your business, engage with an advisor. We have access to different sources of finance and lenders that will fund a deal where some others might not. We know where to go to find the appropriate solution to resolve your problem or create an opportunity. We know exactly who to talk to, and how to negotiate the deal for the right price, and then deal with the application, Saving You Time and Money! 

Are you a business involved in Renewable Energy that provides Carbon Solutions to support the ambitious government targets to ensure the UK and EU economies produce net zero emissions by 2050? 

I came across some business leaders who were not aware of the power of bridging when used for the right purpose. And, no, it is not restricted to buying a property. You will find a high level overview below. I hope it is useful.

WHAT IS A COMMERCIAL BRIDGING LOAN?
A short-term funding option secured against an asset, typically a residential or commercial property, which is generally used to bridge the gap while long term borrowings are obtained.

WHERE COMMERCIAL BRIDGING LOAN CAN BE USEFUL:
A great opportunity or a challenge presents itself and investors/business owners have to raise funds quickly. If their finance is already tied up elsewhere, buyers will need an option to acquire appropriate funding quickly or risk losing out.
Whereas long term finance can take several months to secure, a bridging loan will be very quick to set-up (a few weeks is common).

WHY CHOOSE A COMMERCIAL BRIDGING LOAN?
Can be used to purchase property as an investment, as business premises or to fund business growth, expenses and more.

RE-BRIDGING COULD BE THE RIGHT SOLUTION FOR YOU WHEN:
- Your existing loan is coming to an end but more time is required to sell or refinance.
- You need to repay an existing loan and raise further funds.
- You have a bridge that has passed term and are in an extension or default.
- You come to the end of your loan term only to find your planned exit is no longer available.

KEY CONSIDERATIONS:
Borrowers must have a strategy, ''The Exit'', to repay bridging loans, such as refinancing with long term finance or the sale of the property, before the end of the bridging loan term. The borrower will need to provide security to act as collateral against the loan. 

If you are involved in buying goods within the UK and overseas you may have looked at a Trade Finance solution. It bridges the cash flow between importing goods and getting paid by clients while minimising currency fluctuations to maximising profit while dealing with the complexity of buying from overseas.

It works well, especially if your are buying for ''Confirmed Orders'' and have healthy ''Margins''.

But what if you are buying for ''Stock'', you don't want to provide security and PGs? Solutions seem to disappear.

Cash flow is a significant challenge for many businesses, especially those dealing with foreign currencies. Shortfalls in working capital can lead to delays in supply chain settlement which can ultimately impact your relationships and your bottom line.

We have access to specialist solutions that reduce this pressure to settle third party accounts invoices without impacting working capital. It can help you reduce the cost of short-term borrowing (subject to eligibility).

Rising business costs will start to impact business profitability, which could have a negative impact on cash flow.

It is imperative that business owners have the best and most appropriate funding in place to ensure they are robust enough to meet these challenges.

Accessing immediate cash from your debtors can have a dramatic effect on cash flow and relieve a lot of headaches and concern for business owners.

Invoice Finance is not right for every business, however, in our opinion, it could certainly help a lot of businesses.

Connect with us at Engage. We work with specialist lenders ready to provide funding (subject to eligibility).

Is maintaining a healthy cash flow to build working capital a challenge?

Are long payment terms and late payments common and impactful?

The construction sector can be challenging for contractors and sub-contractors. It can be difficult to find specialist lenders offering flexible products. This can be down to the complexity of the processes involved or the lack of adequate products available.

You will surely benefit from a solution that provides certainty over the funds you have available to manage your projects and take on new ones, a solution that provides funding against both Certified and Uncertified Applications for Payment.

Access to funds when you submit an Application for Payment, rather than waiting for certification, will provide the crucial cash flow to support your business (subject to eligibility).

Are you facing risk of Bankruptcy or Insolvency?

The majority of loans we arrange at Engage are to help businesses get off the ground or grow, however every now and then we encounter a business that is struggling or is no longer viable. It may be that an exit can not be achieved cleanly or that a buyer can not be found.

This could be down to market changes (we have seen enough of those in the last few years) or it could be down to another company letting them down. We are facing challenging times.

If you are a director of a company facing insolvency and need to borrow money to finalise a liquidation, Engage can help directors to buy back their business.

If you are a previous director facing bankruptcy (or already in bankruptcy or discharged from bankruptcy) and need to repay a main creditor, Engage can help.

We have access to lenders who can offer property-backed loans to stop bankruptcy or winding up petitions from becoming an order, to cancel or annul an order or to seek a voluntary agreement with creditors when liquidating a company or to deal with a trustee’s interests post discharge (subject to eligibility).

Are you receiving the appropriate level of service from your current bank? 

Is your bank supporting you and your business during challenging growth times?

Does your bank have the best-fit products and services to help you and your business now?

Traditional financing is becoming more important in the current market. It is crucial to understand all your options to best support your business's growth.

At Engage, we help progressive SMEs fuel their fast growth by assessing if their business sits in the correct part of the bank to access the appropriate products and services needed to deliver their ambitious expansion plans in the UK and Internationally (subject to eligibility).

Is it time to review your banking position?

Are you UK based looking to secure funds overseas for your business, your property project or your clients? 

Are you based overseas looking to secure finance to support your business, your property project or your clients?

Global access to finance is important in the current cross-border market. It is crucial to understand all your options to best support your growth.

At Engage, we provide finance solutions in EU, Asia, US, Canada and other jurisdictions like the Caribbean (subject to eligibility).

Don't wait any longer, connect with us at Engage. We work with specialist lenders ready to provide funding (subject to eligibility).

Is your company expanding across borders? 

Are you planning to raise funds through Private Equity and Venture Capital to fuel your business expansion into new markets, organically or via mergers or acquisitions anywhere in the world?

Is Business Succession an issue?

Could a tailored International Corporate Structure help you expand your business beyond its current reaches?

At Engage, we focus on solving problems by leveraging all types of financial products, however, through our partnerships with Corporate Transactions Firms, we offer a specialist service that matches growth-focused companies with a Worldwide Network of Professional Investors and Business Specialists.

Global access to finance is important in the current cross-border market. It is crucial to understand all your options to best support your growth (subject to eligibility).