Commercial Finance

Many businesses seek to own the premises that they trade from and indeed owning property for the purposes of investment is also very common. Commercial mortgages for both owner occupiers and property investors are available.

There is an array of products on the market and funding can be sourced for a variety of property types on both an interest only and repayment basis.

Invoice finance is a way of releasing cash that is tied up in a company’s debtor book (unpaid invoices). The lender takes security over the unpaid invoices and releases a percentage of the invoice value to your business. There are multiple options available, from lending against 1 or a couple of specific invoices, or just lending against a specific debtor to lending against the whole debtor book. You can opt to borrow for as little as a few days, to having the security of a facility being in place for a few years. It really can be as flexible as you would like it to be. A typical example as to how this could improve your business’s cashflow would be if you offer your customers credit terms of 60 days, but you have to pay your suppliers in 30 days, there would be a cashflow timing difference and this could put pressure on the company’s cashflow or prevent growth. At Prosperity Commercial Finance, we understand that these types of facilities can be complicated and have many factors to consider. We are here to guide you through the options, make sense of any finance jargon and help to make the decision-making process as simple as possible.

There are several types of trade finance facilities but most commonly this facility is used to pay suppliers and then bridge the cashflow timing difference until you receive the funds from your customers. These facilities are typically used for companies that internationally trade as goods often have to be paid for before they are shipped, and then it can take time to get the goods to the UK, complete the relevant quality checks and then distribute the goods. This can cause cashflow issues with the extensive gap between paying your supplier and receiving any funds for the goods.

Other options of trade finance include, but are not limited to the following:

• Bonds & guarantees
• Letters of credit
• Foreign exchange

There is an array of business grants available and we can put you in touch with a firm we have worked with for several years. They can advise whether there are grants available in your area and manage the application for you, from start to finish. Contact us to learn more about commercial finance advice today.