Business finance
Business finance
There is a range of funding available to businesses. Our specialist advisers will provide you with a free consultation and help you source the right funding, tailored to your individual business requirements.
Asset Based Lending
Asset based financing is a revolving loan secured by a company's assets. The funding will be secured against a multitude of assets within the business and this product serves to meet the requirements of clients who are asset‐rich, but in need of liquidity.
Plant & Machinery finance
It makes good business sense to free up capital for large items of industrial plant and machinery. At Moorfields Commercial Finance, we will add value by guiding you or your client through the broad range of finance options available and helping to source the finance solution that best suits the individual business needs.
Inventory / Stock Finance
Inventory (also called Stock) finance is where the funder gives a loan to a business, or buys the stock on their behalf , using its inventory (the value in its stock) as collateral. This form of funding is often used by manufacturers of consumer products, where inventory tends to form a significant portion of the assets. At Moorfields Commercial Finance, our extensive network of asset based lenders are available to improve your business cash flow and we will work with you to ensure that the right option is selected at the best available rate.
Invoice Finance ‐ Factoring and Invoice Discounting
There are a variety of ways in which invoices can be funded. The two basic products are Factoring and Invoice Discounting.
Both products release up to 90% of the value of the invoices outstanding, in advance, to your client. The funder takes a small fee (typically less than 1% of the invoice value) and charges interest while the invoices remain unpaid. Once the invoices are paid, they return the balance to the client.
The security taken is a Fixed and Floating charge, and depending on the financial strength of your business a personal guarantee may be needed.
Both factoring and invoice discounting allow for fluctuations in turnover and trading terms and they are especially useful for fast growing businesses, or where there are seasonal peaks and troughs.
Within these two products are plenty of variations such as:
– Whether the customer is aware of the facility (disclosed and undisclosed)
– Whether the collections are outsourced to the finance provider openly or discreetly
– Whether bad debt protection is needed
At Moorfields Commercial Finance we have strong relationships with a number of providers and we will work together to tailor the facility to best suit the business requirements.
Trade finance
Trade finance can be used to fund goods for resale in the UK. It can also be used to fund import/export trades, even if the stock does not come into the UK. This type of finance solution will enable the business to make substantial purchases within the UK, which are then sold on to customers worldwide. It is often used in conjunction with Invoice Finance and it does not always require a Letter of Credit. Speak to Moorfields Commercial Finance about the most suitable funding solution for your individual business needs.
Bank lending
The key for all businesses seeking funding is in choosing an adviser who understands the finance market and which banks offer what products. At Moorfields Commercial Finance, we have strong relationships with all the banks across the UK.
Bank Overdraft
Bank overdrafts are a good way of gaining access to cash and, while they are often the first product a client will use and historically the most common form of business finance, they have their disadvantages. The amount is static, subject to review, and repayable upon demand. Bank overdrafts can be inflexible as they’re usually granted at short notice and generally won't accommodate peaks and troughs in turnover. They are also subject to interest rate increases without notice.
So, if you require additional funding for your business, first speak to a member of the Moorfields Commercial Finance team who will advise you of your options and source the best solution for your individual business requirements.
Bank / Term Loan
This is an agreed sum based on anticipated requirements for a specific term, often 3‐10 years. The loan is repayable in instalments, often with penalties for early redemption.
At Moorfields Commercial Finance, we work closely with all major banks to source loans for small businesses needing cash to operate effectively. We also help to negotiate the most appropriate repayment schedule and rate of interest.
Mortgages
It’s important to find the right mortgage option that suits your individual requirements. At Moorfields Commercial Finance, we have access to a number of providers and we will assist you to understand your options and make the right decisions for you and your business.
Commercial Mortgages
A commercial mortgage is funds raised by way of a specific charge against a property. At Moorfields Commercial Finance, we have access to the most competitive lenders and we will work closely with you to source the right commercial mortgage solution.
Bridging
A Bridging Loan is a way of raising short‐term finance in a very short time period. It is secured against a residential or commercial property and can ease any short‐term cash flow problems, provided there is a clear exit strategy. At Moorfields Commercial Finance, we can help source the right bridge funding solution for the business.
Equity
The finance provider will take a specific equity stake in the business and there is a commitment to a level of financial return. Planned exits are typically 3‐5 years.
Business Angel Investment
Angel Investors can invest on their own or as syndicates. They use their own finances to invest in small businesses, usually at the start‐up or during the early stage of development, and they take shares in return for equity. They then tend to use their own experience and contacts to support the growth of the business.
At Moorfields Advisory, we provide an assessment of your requirements and help to access the right people who may be interested in providing financial investment. We also provide guidance throughout the fund raising process.
Institutional stressed equity investors
A company that is going into administration, or some other form of restructure, may not sound like a good investment opportunity but, for sophisticated investors who understand how to invest in distressed securities and are willing to accept the risks, this can be an attractive option.
At Moorfields Commercial Finance, we have strong relationships with funds and institutional investors and we will work with you to source appropriate investment in the business.
Mezzanine finance
Mezzanine finance is often used to help fund property developments. Providers lend money to bridge the funding gap left by the senior debt provider, typically the 60‐80% slice.
Through our strong network of fund providers, you will have access to the right finance options for you or your client’s business.
