When your company is weighing up options for business finance, there are several things to consider.

To get some guidance, you might ask friends who have borrowing experience, check out Equated Monthly Instalment (EMI) calculators or compare online finance providers. At Nationwide Corporate Finance, we aim to be transparent and help you find the perfect business finance deal to give you peace of mind and let you focus on building your business.

The basics: Protect your Credit Score

Nationwide Finance doesn’t use credit rating agencies, because too many hard queries can damage our customers credit score, we would rather help our clients avoid that. Check with providers whether they do this first, before applying.

But, as long as you only apply for finance your company is eligible for, your credit rating will improve. At Nationwide, we can offer advice and support in applying for the right finance agreement to protect you from anything that could damage credit scores.

EMI calculations

It is essential only to consider business finance that your company can service easily.

It is important to calculate repayments accurately, with Equated Monthly Installments. If you don’t calculate your EMIs correctly, you could end up with finance you could repay, but EMI payments that are out of your reach.

For example, you may apply for Finance that you can comfortably repay over 12 months but erroneously pick an eight-month EMI schedule which would stretch your resources and could lead to missed payments, wasting the benefits of your finance. Our experienced, skilled advisers can assist you in ensuring this doesn’t happen with your application.

Lending partners

Banks are a popular source of small and medium business finance, but business lending institutions can be better for acquiring working capital finance. Choosing a financial company like Nationwide Corporate Finance can yield various benefits, including lower processing fees, shorter turnaround times and easy renewals of business finance terms.

Repayments with flexibility

Business finance that comes with the option of flexibility for the payment schedule can be helpful for applicants. If your commercial partner allows you to choose between a range of repayment schedules, you get the freedom to keep the focus on developing your business, rather than making payment deadlines.

A business opts for finance to invest in growth, so to be successful, you must select the right business financing option for your company. There are many tools available online to help you analyse and compare the borrowing options at your disposal so that you can make an informed decision.

If you select the right partner, your business can experience exponential growth. To find out more, why not get in touch with Nationwide Corporate Finance today?

Many small businesses need capital or small business finance to help them develop, and there have never been more funding options available, from traditional bank loans to leasing deals and even grants. But the type and terms of the funding could have a critical effect on your business’s long-term future, so it’s important to choose wisely. Some of the options available are listed below.

Short-term Finance

If a company has lots of expenses to pay or needs money to see it through a rough patch then a short-term loan, usually lasting up to three years, could help ease its cash flow worries. The attraction is you will usually pay less in interest than if you spread your repayments over a longer period, but your monthly payments will obviously be much higher.

If you need the money to buy equipment for your business then you could also look into leasing. Many companies will arrange financing for small firms to encourage them to buy their goods and there are good deals on offer. In the last couple of years, the drop in business loan applications was partly attributed by the British Bankers Association to more small businesses agreeing alternative funding, implying that many firms have found other finance facilities to be cheaper and easier to obtain than bank loans.

Medium to long-term Funding

Longer-duration lending agreements, usually five years or more, suit companies that need to repay the money slower, because the monthly repayments won’t take such a bite out of their working capital. That can be good news for companies that know it will take them longer to get off the ground, or expect to see slower returns on their investment, such as setting up a new office.

How much a firm will repay will depend on the loan’s interest rate, which can either be fixed for the duration of the finance, or could vary, meaning the amount you owe could change according to the economic conditions.

These loans only tend to be offered by the high street banks, which are still rather reluctant to lend to small businesses and they would expect you to provide a detailed business plan and cash flow forecasts to back up your loan request.

Secured Lending

The other big factor in how much interest a company pays, apart from the length of the term, is whether it opts for a secured finance facility. A secured, or asset-backed agreement is one where the borrower has pledged ‘security’, such as its vehicles, equipment or even office, which can be taken by the lender to pay off the outstanding amount.

Some small or start-up companies might not possess any assets that could be used as security, in which case its owners or directors might be asked to use their own properties to secure funding for their business.

Many new businesses won’t be able to provide several years of accounts, which may prevent them from getting a bank loan but, don’t worry, there are other options available to you.

Alternative sources of funding

Several new options have emerged as a result of banks’ reluctance to lend to small businesses since the global financial crash of 2008. The government stepped in to in theory help the riskiest prospects: new businesses. It’s Start-Up Loan Scheme provides no-fee, unsecured personal loans of £500 to £25,000 for up to five years. It claims to offer successful applicants free mentoring advice and exclusive business offers to help get their businesses on their feet. However, it has been reported that these facilities have proved very tricky to get accepted for, in the same way, Grants can be too. Some also say that it can take up to 2 months to get a simple yes or no so you’ll just need to be patient.

To get a start-up loan you need to pass a credit check, show your business is viable through a business plan and cash flow forecast, as well as provide a “personal survival budget” which explains what personal income you have to survive (and to repay the loan).

Nationwide Corporate Finance can help raise the funds you need for your business in many different ways, you can use them for any purpose and our flexible terms can fit in with any budget.

Please call 01234 240155 to find out more or visit us on www.nationwidefinance.co.uk.

If you are looking to expand your business, access to finance is absolutely critical.

Forward-thinking businesses are using the current economic environment as an opportunity to expand into new markets, to launch new products and services, to evolve and generally to win new business, which means procuring the resources required to springboard forward and achieve an ambitious business plan!

Unfortunately, big high street banks are typically not currently inclined to help businesses to access that vital finance, despite the government supporting lending; however, a new wave of specialist finance firms has stepped in to fill the gap.

Introducing Nationwide Corporate Finance

One of the most popular names in specialist business finance is Nationwide Coporate Finance. We offer alternative finance at very attractive rates for businesses that need to access flexible, affordable funding quickly. Whether you need finance to grow, refinance, bridge a gap or to refit your premises, we have something to suit.

Our interest rates are attractive and we offer flexible repayment schemes to suit.

We are also active in the field of asset refinance and offer loans for all types of business purpose, including part-finance through to 100 per cent finance and offer repayment periods from twelve months through to five years.

Fast and effective

We make lending decisions in just three hours and accept 98 per cent of all business customer applications – we are guaranteed to be open and ready for lending! All that we ask is that you have been in operation for at least a year and that your business is UK based. We process loan applications quickly and can have the funds in your nominated bank account in just 24 hours. Remember, all your payments on business loans are 100 per cent tax deductible!

Get in touch

Our friendly and experienced team is on hand to advise and help you with your application and will ensure that you can access the finance your business needs to grow, thrive and expand.

Contact us today to discuss your needs, or complete our web callback form and a member of staff will be in touch at a time that suits you.

Carrying out a Fleet Review?

If you are keen to keep your operational costs low whilst making carbon savings for your business, there are many new makes and models available which might offer all of the necessary benefits.

Given that organisations are keen to get new deals in place with uncertainty looming, we sense this might be a good time to look around. Highly flexible fleet finance provision models are also possible, allowing you to access vans and business vehicles on a flexible basis, rather than having long and expensive leases on an individual vehicle basis.

The Finance You Need

If your strategy review demonstrates that there is room for improvement and a chance to reinvest to improve your fleet management and delivery, we can help you. At Nationwide Corporate Finance we offer a range of business finance, with flexible lending models to suit, and we offer generous terms and conditions, designed to suit the needs of business customers.

Our Offer

Because we are a small and nimble operation, we can offer finance from £10,000 to £500,000 and from just twelve months in duration to five years. We are very much open for business and guaranteed to consider your application, regardless of credit history, and in fact, we accept 98 per cent of all customer applications, unlike big banks which tend to impose onerous conditions or turn new business away in the current operating climate.

We can finance all kinds of business requirements – whether you need to invest in a fleet, refinance existing equipment or part-finance an investment. We also offer flexible payments to suit your income cycle, including variable and fixed payments.

Our Team of Experts

Our finance experts are specialised in helping businesses to access the flexible finance that they need and you will find the service rapid and friendly.

From the point of application, we make a lending decision in just three hours and the funds can be in your bank account in just 24 hours.

Year after year and survey after survey, business owners list access to funding as the most challenging part of growing their business.

Independent Businesses report that of the smallest businesses (10 employees or less), almost 50% have applied for some type of financing in the past couple of years.

Of these, almost half of them are turned down.

If you’re considering applying for financing this year, every lender – including banks, credit unions, and online lenders – looks at the same five categories of credit. Although the credit categories are the same, the credit scoring models that banks use can be drastically different than the credit scoring models that an online lender uses.

For example, for Bank Finance Applications you need to show five years of profitability, whereas an online lender will consider new start businesses through to established businesses. Regardless of the “scoring” techniques here’s what every lender is looking for…referred to as the 5 C’s of credit.

Character

Simply put, this is your reputation. When lenders evaluate character, they look at stability. For example, how long you’ve lived at your current address, how long your business has been open, how many years of industry experience you have, and whether you have a good record of paying suppliers and bills on time and in full. These days, social media profiles, activity, comments, and reviews of your business make it much easier to measure the “character” of you and your business.

Capacity

This is arguably the most important factor a lender will consider in deciding whether to lend you money. It is essentially whether you have the capacity (ability) to make repayments. Most traditional lenders have a sophisticated debt to equity model but for the most part, your current bank statements illustrate how/if you can meet the payments.

For example, if your average monthly ending balance is £1,000 and the repayment is £3,000 per month you probably won’t qualify.

Capital

Capital refers to the value of your assets minus your liabilities. In simple terms, how much you own – minus how much you owe. The more capital/investment in your business the better your chances of getting financing.

Collateral

In most cases, the Finance Applicant will be asked what assets he/she can provide to secure the funding.

For example, if you own a home, car, or other personal assets, those will be considered when a lender decides whether to grant your application. The more collateral you have, the more willing a lender will be to provide funding. Some online lenders don’t require collateral but it almost always helps improve your “score.”

Conditions

Lenders consider a number of outside circumstances that may affect the borrower’s financial situation and ability to repay. The local economy, the industry, and the level of competition are factors every lender is looking at. For example, if a business was in the oil and gas industry in 2015 chances are they found it difficult if not impossible to access working capital finance.

Although every lender looks at the 5 C’s of Credit, some – like Nationwidefinance.co.uk tend to put more credit scoring “weight” on the business itself.

Acquiring expensive equipment outright isn’t feasible for everyone, and even if it is financially, there may be no point if the business only intends to keep hold of the equipment for a short time – i.e. for only part of its usable life.

This is where a finance lease comes into play. With a finance lease, you get unlimited use of equipment over a period of time, after which the asset is returned.

If the lessee plans ahead, this means it’s possible to take out a new lease as the old one ends and acquire newer, even better equipment with low initial outlay.

There are six other key benefits of a finance lease for your business:

Small initial outlay – this can be as little as one month’s rental. Increasing your initial rental has the effect of lowering your monthly payments.

Monthly payments – these are spread over a set term dependent on the value of the equipment, and what is manageable for you.

Opportunity to extend – finance leases often give you the opportunity to extend the lease at the end of the agreement. An example of where this may be desired is if you still need the equipment to fulfil an order or contract.

Opportunity to sell – you can also opt to sell the asset at the end of the agreement. If you choose this option, the sale will be managed by the lessor and most of the profit from the sale will be passed onto you (if there is any).

Tax deductible – the monthly rentals of a finance lease are fully tax deductible. The VAT on a finance lease is also fully reclaimable as a capital allowance.

Keeps cash in your business – this is perhaps the most important benefit for businesses without the luxury of a cash stockpile. A finance lease does not require a large initial outlay or payment further down the line. This keeps cash in your business and doesn’t disrupt your cash flow to any great extent.

What can be purchased on a finance lease?

Finance leases are most popular with vehicles of the domestic, commercial and industrial varieties, as well as plant equipment, machinery and electronics like computers.

Mostly however this finance facility is used to acquire high-ticket items because there is a balloon built into the agreement which isn’t repaid during the course of the agreement.  This has the effect of lowering monthly rentals considerably versus a hire purchase, which is where you pay off the full purchase price over time.

Ultimately, you will never own the equipment leased on a finance lease, unless you trigger an option to purchase. The benefit of this is lower payments over the course of the agreement. The downside is if you do opt to purchase, you will end up paying way more than on a hire purchase to begin with. For this reason, a finance lease is best used to acquire assets you do not intend to own outright.