At Taste Finance we partner with businesses across the South-West who are looking for financial solutions including short term, medium term or long term commercial finance, commercial mortgages and bridging loans, and development finance.
We have developed relationships with a large number of commercial lenders and work across a broad spectrum of business industries to provided tailored finance solutions to businesses of all types.
It is the process of providing financial resources, usually in the form of capital, to businesses in order to facilitate the growth and expansion of their operations. It is a critical component of the economy, as it allows businesses to invest in new products, processes, and services, which can drive economic growth. It can take many forms, including loans, equity investments, and credit lines. Commercial finance is a complex, multidimensional field. A variety of factors must be considered when determining the viability of an investment or loan, including the borrower’s cash flow, credit rating, and ability to repay debt.
There are various types, each serving a specific purpose and meeting the financial needs of businesses in different ways. The most common types come under the banners of short term, medium term and long term and can be broken down into 4 main categories:
Is a type of commercial finance that uses the borrower’s assets as collateral. The most common asset used in this type of financing is accounts receivable, but other assets such as inventory, real estate, and machinery can also be used. Asset-based financing is a less risky type of funding because the lender holds the rights to the borrower s assets. If the borrower defaults, the lender can take possession of the collateral and sell it to recoup his or her losses.
Uses the cash flow from the business to determine if it can afford to make payments on the loan. Cash flow lending is a more flexible type of commercial finance. The amount of the loan, the interest rate and payment schedule may be negotiated, depending on the borrower’s financial situation. For example, if the lender believes that the borrower will be able to make on-time payments, they may agree to a longer repayment schedule. Cash flow lending is popular with small businesses because it requires less documentation than other types of commercial finance.
Uses assets, cash flow, and accounts receivable as collateral. By using assets, cash flow, and accounts receivable as collateral, business owners can get the funding that they need to meet immediate or short-term needs. This type of financing is beneficial for small businesses. When a business uses asset-based financing, it does not rely on the owner’s credit score as much as other types of finance. This makes it easier for small businesses to get funding and use their assets as collateral.
Uses past relationships between the borrower and lender to determine if the business can repay the loan. This type of lending is often used for small business loans. Relationship-based lending differs from normal borrowing because the person or people who lend the money to a business are also part of the business, which makes it more likely that they will want to see that the loan is repaid.
It can help businesses expand their operations and increase their sales. This can lead to increased profits and growth for the business. Commercial finance is often used as a way to secure the funding needed to grow a business.
It can provide working capital to businesses that may otherwise be unable to obtain it, helping the business to actually thrive, not just survive. This is especially crucial for businesses that are in a start-up phase or growing rapidly, as they often need funds quickly and do not yet have the revenue stream to support themselves.
It can provide businesses with access to new markets and new customers. This can open up new opportunities for growth and expansion. It can also help businesses to diversify their customer base and reduce their reliance on a single market or demographic.
It can provide businesses with the funds they need to purchase new machinery and technology. This in turn allows businesses to increase efficiency and decrease operating costs, which can improve their bottom line.
It can help businesses manage their cash flow and reduce their borrowing costs. This can be helpful in managing inventory, payroll, and other expenses.
Commercial financing is very versatile, which means that businesses can use it for almost any purpose. Business owners can use it for financing to secure additional supplies, build a new premises, expand their business, pay for operating expenses or even refinance existing debt.
It often has a shorter application process than traditional forms of financing because the underwriting process is streamlined. This can help businesses to secure the funds they need without having to wait weeks or even months for a decision.
The potential for large amounts of debt and financial burden in the event of unsuccessful ventures or breach of contract.
The possibility of elevated levels of risk due to the speculative nature of many commercial finance products and services.
The reliance on capital markets which can be subject to sudden and dramatic changes.
The need for specialized knowledge and skills in order to navigate the complex world of commercial finance
The potential for conflicts of interest between those providing commercial finance and those who purchase it.
If you are looking for finance solutions for your business and would like to speak to one of our team, then please contact us using the form below.
Finance Solutions For Businesses With An Appetite For Success
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