Practical guides to business funding, prepared by Greystone Advisory using Swoop product information.
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,…
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 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…
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 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…
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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