Finance for Small and Medium Sized Businesses

Finance for SMEs

SMEs are businesses which employ 250 staff or less and they currently make up over 95% of businesses in the UK. There are SMEs in every sector from fashion to food, legal to finance and everything in-between and as a country, we rely on our backbone of SMEs to keep the economy moving.

Like all businesses, SMEs need finance when they are struggling to keep their cash flow on track or when they decide the time is right to expand. As each business is different, the experience of getting finance for SMEs will never be the same and where one SME may find it easy to obtain finance, others find it very difficult.

This is where we can help, our experience and connections with banks and financing companies across the UK, mean we are well placed to find finance for SMEs, whatever the size and sector. Whether you are struggling to find a funder, you are looking to set up your first financing facility or you are wanting to switch providers, we can help you to find the best deal quickly and conveniently.

What are the financing products available for SMEs?

Finding finance for SMEs is not always is no easy task, there are many financing products available from the traditional to the alternative, offered by big name lenders and niche funders. Here at WF Financial Solutions, it is our job to scour the market, to find the best deal, which will provide you with the funding you require and offer the service you need, to make funding your business as simple as possible.

Commercial finance is a catchall term for a number of business financing products which are designed to help a business whatever stage they are at. Commercial financing solutions include:

Asset finance

This covers many financing options, the two most used include: hire purchase and leasing, which allow you to purchase the assets you need and pay the cost of it back over a period of time to suit you. There are also many hybrid products out there, providing flexibility for businesses which can be beneficial depending on your circumstances. Whether you need to replace existing assets or purchase new equipment, this financing solution could be ideal for you.

• Hire Purchase – This form of asset finance allows you to purchase new assets, pay it back over a period of time and at the end of the agreement, you will own the asset outright. It is a good way of purchasing expensive equipment and new technology without taking a big lump of cash out of your cash flow.
• Leasing – This asset finance option provides you with the opportunity to possess assets, for a specific time period but where it differs from HP is that at the end of the agreement, you will not automatically own the asset. You may have the flexibility to decide whether you want to upgrade, give it back or pay a balloon payment to own the asset outright.
• Refinancing – This is a good solution for businesses that are struggling with cash flow but have a significant amount of money tied up in assets on their balance sheet. You will be able to sell an asset or assets to a finance company who leases the assets back to you, whilst you pay back the money borrowed. Re-financing is there to help you release cash whilst allowing use of your assets for day-to-day trade.

Invoice finance

Invoice finance can be a brilliant option when considering finance for SMEs. It consists of two main products – invoice discounting and factoring. These allow you to raise finance against your debtor ledger. Both services can be extremely beneficial for businesses that have regular clients on their books, particularly if they are regularly receiving payments late, which could either be harming their cash flow or limiting their opportunity to grow.

• Factoring – With factoring, your funder takes control of your debtor ledger on top of providing you with the funding you need.
• Invoice discounting – For more established businesses, invoice discounting allows you to remain in control of your own credit management in-house and maintain customer service standards when dealing with your clients.

Trade finance

If you are considering importing or exporting, trade finance may be the answer. This encompasses a range of products to provide funding for businesses who trade internationally. Regardless of whether you are importing or exporting, funders of trade finance work to understand yours and your clients’ needs, regardless of language and currency differences. If you trade internationally or you are looking to expand into that market, then this financing solution could be ideal for you.

Business banking and commercial mortgages

Whether you are just starting out and are looking for a business bank account or you are looking to switch to a provider who can offer you a better deal, we can help you find the business banking facility which is the best suited for you. When looking for finance for SMEs our connections mean we are well placed to find you a flexible and affordable business banking facility with a bank you can trust.

Purchasing a commercial property is a big commitment and a huge cost to your business, which is why we work with a range of commercial mortgage providers to help you find a lender. If you are looking to take out your first mortgage or re-mortgage an existing business premise, we will work with you to find the mortgage lender who can give you the best rates, service and security for such a large and important asset of your company.

Why Choose us?

If you are a small business looking into funding, or a director trying to find finance for SMEs, perhaps it is raising finance against an asset, setting up a new banking facility or even moving funders to someone who can offer you a better. Get in touch with us for more information and for your free, no obligation quote.

We know what finance suppliers are looking for and we can help you prepare a good case to secure the right deal and to take the stress out of the process.

So for further information regarding the different types of commercial finance, what we can offer you and how we can help your business. Simply get in touch with us and ask for your free, no obligation quote.