Without access to appropriate funding, businesses cannot benefit from the cash injection that they need to operate in a rapidly changing, fast-paced global economy.

What is business funding exactly?

This type of business finance is also known as debt finance. Essentially, the business takes on a loan from a business lender as a debt. The debt is then repaid over a period of time at a fixed interest rate.

What are the features of business finance?

Funding for business has specific features, which vary according to the lender:

1. Attractive interest rates
   Because business loans tend to have terms of several years associated with them, the interest rates are often attractive. This makes them an appealing option for businesses which want to grow their operations, without the need to give away a significant percentage of ownership as they would with angel or private equity investment.

2. Flexible loan terms
   Most funding for business is available with flexible loan terms, to meet the business’ specific needs.

3. Flexible repayments
   Some business loans will also offer flexibility when it comes to arranging repayment schedules. For example, there might be an initial repayment-free period. There might also be the opportunity to overpay or to stage repayments around an income cycle. Payment holidays may be included as an option.

4. Rapid access to cash
   Regardless as to the specific drivers behind the need for funding, businesses almost invariably want access to the funds quickly and easily. The pace of modern business is fast and enterprises must be ready to react accordingly. Today’s nimble internet business lenders can use AI models and common sense, with experienced advisors positioned to make a rapid lending decision. From this point, the cash can be in the business’ account within just 24 hours from approval.

5. Online administration
   Paper is a thing of the past! Today’s business finance providers usually offer digital account management, with statements, queries, FAQs and redemption figures available within private account facilities, together with online chat and other customer service benefits.

6. A great service
   The modern business world demands great service and today’s lenders see themselves as offering a value-add service within a competitive lending economy. As such, business funding also tends to come with great service as standard. Business applicants will engage with qualified, experienced and helpful business lending managers who can review their circumstances on an individual basis and provide advice and guidance where needed, in addition to rapidly processing the loan.

Who needs business funding?

Businesses of all kinds need funding. These vary from small start-ups looking for cash to bring their business plan to fruition; scale-ups looking for the necessary investment to reach the next level; and large enterprises which are looking for longer-term, substantial funding sums to finance change programmes. Examples of the ways in which firms use corporate funding include:

– Business loans and funding to launch a new website or marketing campaign
– Business debt to move to new premises or to take on new staff in anticipation of a seasonal ramp-up
– Business loans to finance new equipment or asset purchases
– Funding to accommodate unexpected bills and charges – very common with newer businesses who are adjusting to the annual tax cycle
– Business funding for new product development