Essex Commercial Finance

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Based in Chelmsford

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Commercial Finance Guide

Financial Planning

We aim to achieve the best outcome for clients with suitable solutions for their requirements – but depending on what the business needs or is looking to achieve, what are the range of products and facilities that could be suitable, subject to eligibility?

Independent and unbiased, with absolutely no ties or affiliations to any specific lenders, we have whole of market access to 75+ providers of solutions in Business FinanceCommercial Property and Business Services.

This is a broad guide to the commercial finance available to UK companies from our lending partners – many can be used to conserve cash flow and help businesses to trade out of the current environment in ways that you may not have thought about previously.

Finance Solutions

Coronavirus Business Interruption Loan Scheme (CBILS)

Eligible companies can apply until March 31st for the following types of facilities under CBILS with our lenders:

  • CBILS Business Loans – Loans from £50,001 to £750,000, over 2 to 5 years
  • CBILS Invoice Finance – 12 Months Cost Free / + Term Loan / Top Up Funding
  • CBILS Asset Finance – Available up to £5m over a maximum term of 6 years
  • CBILS Trade Finance – Revolving facility up to £5m notional

CBILS Eligibility check:

Business Loans

  • Secured Loans – The lender takes a guarantee to back the loan, which is normally a tangible asset that a company owns like commercial property, machinery or vehicles.
  • Unsecured Loans – With no tangible security backing the loan, these are riskier for lenders – and this is normally reflected in a shorter term and higher interest rate.
  • Revolving Credit – Similar to an overdraft, your business will agree a facility limit and term with a lender and can ‘dip in and out’ depending on their needs, helping cashflow.
  • Merchant Cash Advance (MCA) – Using the regular income from Debit / Credit Card transactions to help fund business borrowing, helping to smooth income in seasonal markets.
  • Short Term VAT Loans – 12 week loans to help to settle some or all of your VAT bill – you can repay weekly or monthly.

Invoice Finance

  • Invoice Discounting – The simplest form of invoice finance. Your company keeps charge of credit control and making sure clients pay on time. Early payment of an invoice, without the need to wait 60/90 days you may currently experience.
  • Invoice Factoring – This takes away the burden of credit control and following up with clients for timely payments, and this can free up your time to get on with running the business.
  • Selective  – You select either the clients or the individual invoices to put into invoice finance, allowing you to only use the facility when your cash flow situation requires it.
  • Specialist Sector?  – Construction Finance, Recruitment Finance and Professional Services Finance are just a few examples of finance products that could be tailor made for your sector.

Trade Finance

Companies will either buy raw materials that they manufacture or assemble to create finished and saleable goods, or they will purchase ‘finished goods’ from a manufacturer or supplier – packaged and ready for delivery to their customers or held as stock.

Trade Finance is a revolving facility that can be used with UK based suppliers as well as overseas, is flexible to accommodate deposits if required on order and other costs, including import VAT and freight if these are applicable to you. And if it is from overseas, then Trade Finance lenders are also commonly experts in FX as well.

Asset Finance

Asset Finance gives your business access to the vehicles, machinery, plant or equipment that it needs to operate, without the full initial outlay of their cost. It can also release value from assets that you already own towards working capital and cash flow requirements:

  • Leasing Finance – Your business doesn’t own the asset but agrees a lease usually for a fixed term and payments. You are in effect renting the asset. 
  • Hire Purchase (HP) – This allows your company to purchase an asset over an agreed term with agreed regular payments – the asset is yours when all of the agreed payments have been made. 
  • Refinance – In simple terms, your company may own assets that are either unencumbered or partially financed. Lenders will commonly lend up to 70% of their current value less any outstanding finance. 

Commercial Property

Bridging Finance

Short-term property finance with faster completion compared to traditional mortgage finance; the ‘Exit’ from the loan is commonly the sale of the asset, or long-term re-financing.

Multiple uses: auction purchases / requirement to purchase quickly / refurbishment and development periods / raising working capital and cash flow for businesses. 

Commercial Mortgages

Commercial Mortgages are used to fund the purchase, or refinance of, commercial, semi-commercial or residential properties. In general terms, there are 3 main uses for Commercial Mortgages:

  • Owner Occupied – The purchase or refinance of the property where the company is currently operating, or the purchase of a new property to move to and operate from.
  • Commercial Investment – The purchase or refinance of commercial or semi-commercial property which will be rented to another company to operate from – essentially a commercial Buy To Let.
  • Buy To Let – An investor may purchase, via a limited company, an investment property as part of a long-term investment strategy, building a portfolio of property.

Development Finance

Finance terms available vary according to the initial value of the property / land, the costs and fees of the development work, the projected value of the completed development and your previous experience of development. Variants include:

  • Light Refurbishment – Cosmetic refurbishment with no structural changes.
  • Heavy Refurbishment – Contains cosmetic work, but usually renovation work including structural changes or changes to the footprint of the property.
  • Ground Up Development – Commonly starts from vacant land, can include demolition and rebuild projects.

Business Services

Business Utilities

Not only is it important to review your borrowing costs, but for many businesses that have premises it is just as important to review your monthly costs – such as your Gas, Electricity, Phone (and Mobile) and Broadband costs.

Research and Development (R&D) Tax Relief Scheme

Essex Commercial Finance work with tax specialist partners to enable us to help clients that are eligible for R&D Tax Credits to claim for relief or refunds that can add vital funds back into the company to support your ongoing business activities – either as a reduction in their corporation tax or a refund for ‘innovation’ in the work that they conduct.

Equity Funding

Some clients can look for Equity Funding instead of debt, or a combination of both. We work with Corporate Finance partners who are able to help source appropriate seed, growth, acquisition or disposal funding from within their private and institutional client bases.

We have a lot of ‘possible’ solutions for a client, and help you work through which ones might be suitable for your requirements – even using a traditional product in a way you hadn’t thought of before.

Cards on the table, we want the same as you do – the best outcome for your requirements.

How do you want to get funded?

Mark. / 07726 195 106

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Essex Commercial Finance Limited  is a company registered in England and Wales with Company number 12610135
Registered Office : Suite 3, 8 Kingsdale Business Centre, Regina Road, Chelmsford, Essex, CM1 1PE

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