One of the most common misconceptions that clients have is that if their own bank is unable to assist them in raising finance, then they will be refused finance by every other bank and lender.

The really good news for anyone looking to raise finance for their business is that this is most definitely not the case.

Solution Finance, as finance broking specialists, have access to a number of lenders providing finance for almost every conceivable need - for example one client required finance to lease a holiday island in the Indian Ocean.

Many of the financial lending institutions we deal with have been set up to fill voids in the market, where there was a requirement for finance, but no lender willing to meet it. This is a constantly changing landscape with new lenders and innovative products entering the market all the time.

Once we have established your objectives and identified the most appropriate type of finance for your circumstances as detailed below, we will look to source the most suitable terms from our data base of lenders to meet your needs as cost effectively as possible.


We are able to arrange the following types of commercial finance:

These types of loans can be used for any business purpose; for example to acquire premises, fund business expansion, consolidate debt etc. The loan will generally need to be secured against an asset – this could be a business asset, or a personal one like your home.

The amount that can be raised will depend upon the asset type. Loans up to 100% of the purchase price of an asset can be obtained, subject to suitable security and repayment capability.

If insufficient assets are available to be taken as security, then a number of lenders are able to offer a loan under the Enterprise Finance Guarantee Scheme (EFGS).

EFGS loans are currently available for periods of between 6 months and ten years on sums from £5,000 to £1,000,000 for small and medium enterprises. The commercial aspects of the loan are matters between the borrower and the lender.

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Bank policy on lending for development and building purposes varies greatly between lenders. Even a very strong building proposition can be turned down just because it does not meet a lenders criteria, or they change policy because they are already too exposed to lending in this sector.

We have access to lenders that will fund 100% of the development costs for the right proposition - therefore if you are refused finance for building purposes we would be delighted to hear from you.

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Many clients are very suspicious about leasing equipment/vehicles – as they feel far more comfortable purchasing such an asset, as they do with their homes. Unfortunately the vast majority of assets purchased, unlike our homes, do not appreciate in value and often need to be replaced with a new one only a few years later.

When the asset has to be sold, for example 3 years later, it is usually at a substantial loss to the original purchase price. In effect money has been invested into an asset that has depreciated in value for around 3 years. The money paid into this asset may also have been borrowed on an interest bearing loan, adding further to the cost.

 

The alternative to this scenario is leasing. This will not be the right choice for everyone, but it is worth considering. There are many different types of lease, but in very simple terms leasing of equipment or vehicles is the same as renting them. Rental periods vary, but the most common is typically over a 3 year period with an initial deposit of around 3 times the monthly cost.

With a lease you will never own the vehicle/equipment, but then why do you need to, unless you intend keeping it for a longer period of time.

The benefits of leasing:

• No large capital outlay
• Can be very tax efficient for Limited Companies as they are a rental cost.
• You are not investing in what is usually, a depreciating asset.
• At the end of the lease you hand it back or swap it for a new one – more convenient
• Asset can be leased over the same period as the warranty – reduces worry of cost of breakdown as the vehicle will be
   returned before the warranty expires.
• New equipment will help to promote a good impression of your business as well as the equipment being more up to date and
   operating more efficiently. This in turn should reduce the chance of breakdown and lost productivity.

The disadvantages of leasing:

• The asset is never owned by the lessee unless an option exists for it to be purchased at the end of the contract
• Interest is paid on the amount financed over the term
• A fee is usually payable if the contract is not paid for the full duration

We provide advice on finance for HGV’s, vans, cars, factory machinery, plant, printing equipment, computer equipment, CCTV, sports equipment, vending machines, air conditioning units – virtually anything.

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A bank overdraft is a line of credit to support fluctuations in a businesses cash flow; for example seasonal trade, large stock purchases, high manufacturing output. Overdrafts are not a good option for funding larger needs, such as capital or expansion expenses. For these needs it is less expensive to obtain a separate business loan.

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This type of finance allows for up to 90% of an invoice to be paid to a business as soon as it is raised. The money is paid by the Factoring or Invoice Discounting Company for a fee, directly to the business. These arrangements can provide valuable cash flow to the business that allows it to continue to trade without having to wait for invoices to be paid.

The main difference between factoring and invoice discounting is that with factoring the factoring company takes on responsibility for credit control of the invoices and collects the outstanding invoices on behalf of the business. With invoice discounting, the business still receives up to 90% of the invoices up front, but the business manages its own credit control.

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I need a loan to buy commercial premises for my business but the main banks don’t want to help me. Is there any other way that I can raise the finance?

If only I could find a bank that would lend me the money to buy the land and start building houses I would be able to make a really good return.


“I seemed to be getting further and further away from being able to purchase the property at the start of my new business venture. I was introduced to Steve Fletcher, and within 2 weeks had an offer of finance to support the property purchase. We are extremely grateful to him for helping me secure the funding for my business.”
Pip Nolan – Lock Keepers Tea Rooms, Newark

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Solution Finance Ltd. Florence House, Lower High Street, Waddington, Lincoln, LN5 9QA
Telephone: 01522 722292 Fax: 01522 722293


Registered office as above. Registered in England No.5255898.

Solution Finance is a trading style of Solution Finance Ltd which is authorised and regulated by the Financial Conduct Authority. FCA Registration number 446767

Licensed by the Office of Fair Trading. Consumer Credit Licence Number 580155

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK

The Financial Conduct Authority does not regulate, Vehicle Sourcing and some forms of Debt Consolidation, Bridging Finance, Mortgages, Business Finance and Loans.

As we are independent you have the choice whether to pay a fee for the mortgage advice we provide. Typical 1.0% of the mortgage amount.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debts secured on it.