SME Loans | 9 No Alternative Options...
SME Loans | Short-Term Loans
SME Loans | Invoice Finance
SME Loans | Cash Flow Finance
SME Loans | Asset Finance
SME Loans | Bridging Finance
SME Loans | Asset Baset Finance
SME Loans | Pension Led Finance
SME Loans | Equity Finance
SME Loans | Litigation Funding
We procure 'Short Term Business Loans for up to 18 months, geared towards Small to Medium-sized Enterprises which have either a corporate legal structure of being a UK-registered Limited Company or a Limited Liability Partnership. We also arrange loans for HMRC Registered, Sole Traders, and Partnerships.
Many businesses use this form of flexible short-term financing too for instance; to ease cash flow issues in the short term. This funding comes unsecured or secured and is underwritten on a case-by-case basis. The loan amounts commence from £5,000 to a maximum of £250,000.
Whatever sector a Business trades in, whether in Industry or the Service Sector, all businesses need to define 'cash liquidity' to always function. The bottom line is that 'Cash is King' whether a hard cash surplus in a business bank account or the in-place availability of loan facilities.
For instance, cash liquidity requirements for the completion of a customer order are critical to compete that order to contract, as a business, will not be paid in full until all is contractually completed. The last 20% and or less final payment(s) is where the profit lies for the business.
'Invoice Finance Loans' is a collective term for the various invoiced-based lending explained by 4 headings; a) invoice discounting b) selective invoice discounting c) invoice factoring d) spot factoring. This type of finance uses invoices as a way for businesses to unlock cash tied up
within said invoices and therefore speeding up cash flow.
This is done by 'selling debtor invoices' to a third party who will advance some of the funds the invoice is worth upfront, for a percentage service fee of the invoice value. The obvious advantage of invoice finance is being paid the majority amount of an invoice within 48 hours, instead of waiting 30+ days, thus helping businesses manage their cash flow.
Another significant advantage is that invoice finance gives businesses a way to fund their growth without taking on extra liabilities or debt, as with a business loan, and using assets they already have.
a) Invoice Discounting: Invoice discounting is an invoice finance facility that allows business owners to leverage the value of their sales ledger. The business still remains in control of the sales ledger, collecting payments as normal, and sending out reminders.
b) Selective Invoice Discounting: Selective invoice finance is different from the above invoice finance by not involving an agreement for the whole sales ledger of the business but by choosing which particular invoices to be paid advanced funding.
c) Invoice Factoring: Invoice factoring is a type of accounts receivable financing that converts invoices due within 90 days into immediate cash for your small business. The factoring company will typically pay out two instalments for your invoice: an advance of 80% of your invoice and the remaining 20% (minus fees) after the invoice is paid.
d) Spot Factoring: Spot factoring, sometimes called single invoice factoring, refers to a form of accounts receivable finance where a business sells a specific invoice to a third party (factor) for a percentage of the total value, to support cash flow.
Cash Flow Finance Loans' is a form of financing in which a loan made to a company is backed by a company's expected cash flows. A company's cash flow is the amount of cash that flows in and out of a business in a specific period. Cash flow financing uses the generated cash flow as a means to pay back the loan.
It is most suitable for companies that generate significant amounts of cash from their sales but don't have a lot of physical assets, such as equipment, that would typically be used as collateral for a loan. If a company is generating positive cash flow, it means the company generates enough cash from revenue to meet its financial obligations. Cash flow loans can be either short-term or long-term. Businesses are essentially borrowing from a portion of their future cash flows
that they expect to generate.
A Lender, in turn, creates a repayment schedule based on the company's projected future cash flows as well as an analysis of historical cash flows.
Cash flow financing works in a similar fashion in that, the cash being generated is used as collateral for the loan. However, cash flow financing doesn't use fixed assets or physical assets. Businesses that typically use asset-based financing are companies with a lot of fixed assets, such as manufacturers. On the other
hand, companies that use cash flow finance are typically companies that don't have a lot of assets, such as service companies.
'Asset-Finance Loans' is an easy way for SMEs to spread the cost of new business equipment without tying up capital or disrupting cash flow; these assets can vary from a new fleet of cars for a taxi firm to ovens and refrigerators for a catering business, or machinery for a production process.
It's a way for SMEs to consider acquiring high-value equipment (assets) to get what they need to support their continuing business growth. Thereare 3 variants of Asset Finance: a) finance lease b) operating lease c) hire purchase.
a) Finance Lease: A Finance Lease will allow you to use the equipment you need without having to buy it, reducing cash flow problems, and allowing yourcompany to expand without crippling financial implications. The company will make simple monthly repayments, which can be tailored to your needs and flexibility. During the agreed period, you will pay the full cost of the asset including interest.
b) Operating Lease: Like a Finance Lease, an Operating Lease allows you to rent the asset while you need it. The key difference is that an Operating Lease is only for part of the asset’s useful life, meaning that you pay a reduced rental cost based on its purchase price and the residual value of the asset at the end of the agreement. Thus, your company full use of the asset without the burden of responsibility of disposing of it or recouping its residual value.
c) Hire Purchase: Hire Purchase plans offer the benefits of ownership without the capital outlay. The business may source a supplier for the asset initial equipment and the finance provider will, in turn, purchase the item(s) and provide the asset for the business to use. The business makes regular payments with an initial deposit and the remainder of the balance and interest are paid over time. Once payments (including an option to purchase fee) have been made at the end of
the agreement, ownership of the asset transfers to the customer.
We can provide unregulated 'Commercial Bridging Loans' from £100k to £5m and up to a maximum term of 36 months, to SMEs which have either a legal corporate structure of being a UK-registered Limited Company or a Limited Liability Partnership. We also arrange finance for HMRC Registered,
Sole Traders, and Partnerships.
This facility would be suitable for instance; commercial property investment, B2L property purchase, pub/restaurant finance, business growth loan, marketing bridge loan, auction bridge loan, 2nd charge business loan, revolving credit facility, and many more business scenarios.
An unregulated commercial bridge loan is a short-term loan used until a business secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow.
Bridging loans are defined as either ‘opened’ or ‘closed’.
A loan is closed if the borrower has a clear and credible repayment plan or exit strategy in places, such as the sale of loan security or longer term finance.
Open bridging loans are riskier to both the borrower and lender due to the greater likelihood of there not being a defined and clear future exit. With contractual interest-only payment service costs averaging of up to 1% per month, this finance product is not a tall designed to be in place for no more than 36 months.
Real estate; Bridging loans are often used for commercial real estate purchases to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity in order to secure long-term financing.
'Asset-Based Loans' blends invoice finance funds released against other business assets, such as stock, property, plant, and machinery, providing additional capital than invoice finance alone.
Asset-based lending refers to a business loan secured by using a company’s assets as collateral. The extra funds can be used as a contingency, providing additional working capital as and when required.
The application process for traditional business bank loans tends to be lengthy and complicated, involving lots of documents and long waiting times. Using Assets on their balance sheet the business can release equity tied up in existing assets owned.
We try hard to provide bespoke solutions for both simple and complex short-term loan cases while high street lenders may not be able to help with for instance; impaired Credit. Common sense is all about having an open mind and a good understanding of a situation, this approach is what sets us apart from specialist providers.
'Pension Led Loans' is an innovative financing option that allows SME owners true flexibility and the option to invest in their business using their own pension funds.
We have access to a unique opportunity where business clients can access a loan of up to 50% of their pension funds by transferring existing in place schemes into a Small Self-Administered Scheme (SSAS).
Interest is charged at approximately 4% pa on the loan. The loan must be paid back within 5 years. The balance of the fund can be invested to provide a secure return, which includes property and fixed-term investments that mitigate Stock Market volatility.
The pension investment is HMRC regulated and administered by professional trustees, who are regulated by the Financial Conduct Authority (FCA). SME Loans Limited does not provide any financial or pension advice of any kind as is only solely an Introducer to several product providers and their services.
'Equity Finance Loans' are the process of raising capital through the sale of shares. Companies raise money because they might have a short term need to pay bills or they might have a long-term goal and require funds to invest in their growth.
By selling shares, they sell ownership in their company in return for cash...
It is critically important to acquire the right opinion/advice from a specialist company business lawyer and not sell more than 49% of the commercial enterprises' shares otherwise voting rights/ownership/ will be greatly diminished. Further, for the business owner to stay in control it is important to have a clause with any legal agreement that the shares can be purchased back for a future time for a prior agreed sum.
Equity financing comes from many sources; for example, an entrepreneur's friends and family, investors, or an initial public offering (IPO). Industry giants such as e.g. Google and Facebook raised billions in capital through IPOs. Equity financing involves the sale of common equity but also the sale of other equity or quasi-equity instruments such as preferred stock, convertible preferred stock, and equity units that include common shares and warrants.
For instance, a start-up that grows into a successful company will have several rounds of equity financing as it evolves. Since a start-up typically attracts different types of investors at various stages of its evolution, it may use different equity instruments for its financing needs.
Later, if the company needs additional capital, it may choose secondary equity financings such as a 'Rights Offering' or an offering of equity units that includes warrants as a sweetener. In a rights offering, each shareholder receives the right to purchase a pro-rata allocation of additional
shares at a specific price and within a specific period (usually 16 to 30 days). Shareholders, notably, are not obligated to exercise this right.
SME Loans can arrange a provider of 'Legal Capital Funding Loans' that companies can use to offload the cost and risk of pursuing meritorious litigation, whether on a single-case basis or as part of a larger recovery effort.
The provider can also monetize pending awards, giving companies the ability to control the timing of cash flows relating to their commercial litigation and arbitration assets Their various solutions are flexible and can be used at any stage of the legal process to finance matters.
Single Case Litigation Finance - Fund fees and expenses associated with high-stakes commercial claims to offload risk and cost and create certainty around budgets and outcomes.
How does the provider assists?
a) offload legal fees and expenses and the risk of loss b) monetise and accelerate
awards c) enforce outstanding judgments or awards d) work with counsel of
choice e) create certainty around litigation budgets, timing,
and risk management.
