An online business can need cash for stock and advertising well before sales turn into available funds. Ecommerce funding includes arrangements assessed against online revenue, trading data and margins. How it works Some providers advance money in return for an agreed share of future sales until a specified total has been repaid. Others offer loans…
Supply chain finance can allow a supplier to receive payment earlier on an approved invoice while the buyer pays later under agreed terms. It relies on a structured arrangement involving the buyer and a finance provider. How it works Often called reverse factoring, this typically begins when a buyer approves an invoice. A participating supplier…
A buy-to-let mortgage finances property intended for letting. The decision should consider net rental cash flow, ownership structure and longer-term plans, as well as the quoted mortgage payment. How it works A lender assesses the property, deposit, rental income and borrower. Some facilities are interest-only, meaning the capital still needs to be repaid at the…
Development finance supports building, conversion or refurbishment projects. It is usually arranged around a defined project and repaid from sales or refinancing, rather than the routine income of an established property. How it works Lenders assess project costs, expected completed value, experience and the exit plan. Funds may be released in stages as work progresses,…
Bridging finance is short-term borrowing secured against property or land. It can bridge a defined timing gap, but it needs a credible way to repay the loan, commonly a sale or longer-term refinancing. How it works The lender considers the property, security, borrower and proposed exit. Interest may be paid during the term, retained from…
The government-backed Start Up Loans programme supports eligible people starting or developing a business. Crucially, the borrowing is a personal loan for business purposes, even if the business trades through a limited company. How it works The programme assesses both the business plan and the applicant’s ability to repay. It also provides business support and…
Mezzanine finance can fill a funding gap in a larger acquisition, buyout or growth transaction. It is a specialist arrangement that sits behind senior debt and can include rights linked to ownership. How it works A mezzanine funder accepts a lower repayment priority than the senior lender, usually in exchange for a higher return. Payments…
Equity finance raises money by issuing or selling shares to investors. It can support growth without ordinary loan repayments, but it changes ownership and may change how decisions are made. How it works Investors assess the business, growth plans, management and potential return. The agreed valuation affects how much ownership is exchanged for the investment.…
A management buyout allows an existing management team to acquire a business. For a family-owned company it can offer continuity, but the purchase price and funding need to leave a sustainable business afterwards. How it works A transaction may combine buyer funds, lending, investor equity and deferred payments to the seller. The structure affects control,…
Buying into a franchise can offer an established operating model, but the franchise fee is only part of the investment. Funding should cover a realistic opening budget and the period before the business supports itself. How it works Finance may combine your own contribution with loans, equipment finance or other facilities. Lenders assess the franchise,…
Practical updates for business owners
Receive useful guidance, tax updates and ideas to help you make informed decisions.