Subscription software businesses often spend on development and customer acquisition before recovering that cost through monthly fees. SaaS finance is a specialist route assessed against recurring revenue and retention. How it works Funding may be structured as a loan or a revenue-based advance. Providers look at recurring revenue, customer concentration, churn, contract length and the…
An unsecured loan can provide a lump sum for business plans without a charge over a specific asset. It still creates a repayment commitment, and directors may face personal exposure. How it works A lender assesses trading history, cash flow, credit records and the purpose of the loan. The business repays capital and interest over…
A revolving credit facility lets a business draw, repay and draw again within an agreed limit. It can help manage uneven receipts when there is a clear plan to replenish the facility. How it works Access is available for an agreed period and subject to the lender’s conditions. Interest usually relates to amounts drawn, but…
Past payment difficulties can limit funding choices, but a declined application does not explain the whole position. Start by understanding the credit record and what the business can realistically afford. How it works Lenders take different views of late payments, judgments and previous financial difficulties. Some consider recent trading improvements or asset security; others will…
A secured business loan uses property or other assets as security. It may support a larger or longer-term project, but the assets pledged could be lost if repayments are not maintained. How it works The lender values acceptable security and reviews the business’s ability to repay. Security can include commercial property, equipment or a wider…
A merchant cash advance provides funding linked to future card takings. It may suit a business with regular card sales, but the repayment deductions need to leave enough cash for everyday costs. How it works The provider assesses card-processing history and advances an agreed amount. A proportion of card receipts is then used to repay…
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