Business Finance

Asset finance

What is asset finance?

An asset finance solution, or asset based loan, is used by a business to grow through the purchase of commercial assets or equipment, such as vehicles and machinery. Regular payments are made over an agreed period, rather than you having to pay the full cost upfront.

Asset financing is the most popular method of funding when your business requires new or updated equipment.

Asset finance – the Fundi way

Our asset finance team has a wealth of experience in sourcing the right funding for your next business move.

Let us discuss your needs and we’ll come up with a solution to suit you. The finance will be secured against the asset you wish to purchase, and payments tailored and structured to fit your specific requirements and budget. The cost can be repaid through the options below:

Hire purchase – Use regular instalments to pay off capital and interest, with ownership of the asset being transferred to your business at the end of the agreement. This allows you to have the flexibility to keep the cash in your bank for a rainy day or accelerate business growth plans.

Finance lease – Ownership does not transfer over to the lease at the end of the term automatically, this depends on the terms of the specific funder. The agreement may enter a period of secondary rentals to allow you to keep utilising or, you may be able to use a third party with the lessee receiving the majority of the proceeds.

Equity release – This business financing solution will boost the cash flow of your business.

Using an existing asset, you can have a proportion of the value released into your bank account for you to use within the business, paying the amount back, with some interest, over an agreed term.

Refinance – Want to reduce your monthly business cost? Let our Fundi finance brokers review your current finance agreements and look at ways to reduce the burden of your current financial agreements to ease the strain.

Finance leasing Vs Hire purchase

What is the difference between finance leasing and hire purchase? The fundamental difference is the ownership of the assets at the end of the agreement. Thus, building the company’s balance sheet.

When hire purchased, the ownership of the asset passes to the customer once the agreement elapses, whereas with a finance lease it will not automatically transfer.

Another difference between finance leasing and hire purchase is the way the VAT is paid. Hire purchase agreements typically require the VAT to be paid as a lump sum. This can be at the beginning of the agreement or deferred for a 3 to 4 month period. This is then claimed back as a lump sum from HMRC. However, with a finance lease the VAT is paid across the agreement, with every payment made being VATable. 50% of the VAT is claimable at the start of the agreement.

Let our Fundis talk you through these options and help you make an informed decision.

Invoice finance

What is invoice finance?

Invoice financing uses an unpaid invoice as security for funding, giving you quick access to the value of the invoice.

Invoice finance – the Fundi way

How does invoice financing work at Fundi? Our expert invoice finance brokers will assist you in getting your invoices paid instantly, rather than waiting for the payment terms period to elapse. The funder will provide you with a percentage of the invoice amount which will be paid right away, with interest charged until payment is received. This is an excellent option in place of an overdraft facility, or to ease cashflow pressures.

Unsecured loans

What is an unsecured loan?

An unsecured business loan in the UK refers to money borrowed from a lender against which you make regular payments until the business loan is repaid in full, along with any interest owed. This type of funding is not secured against any asset. Funders may require a guarantee from business owners, but not in all cases.

Unsecured loans – the Fundi way

What could be more flexible than cash? A great financing option when smaller balances are required, or for businesses without a large, fixed asset base needing funds to allow the business to progress.

This can also be a way to secure seed capital through a start up loan, which we would be happy to assist with

Cashflow loans

What is a cashflow loan?

A cashflow finance solution is a typically short-term business loan that can support you when cashflow is tight. This business finance option provides a low-cost cash injection which could assist with paying wages or an unexpected bill.

Cashflow loans – the Fundi way

Let one of our experts get to know your business needs and current position to source the best possible option for you to move forward. We will take time and care in searching for a competitive viable deal and tailor it to your business.

Commercial mortgages

What is a commercial mortgage?

Simply put, commercial mortgages provide a business loan which is secured on a property.

Commercial mortgages – the Fundi way

A commercial mortgage is a property secured facility paid back monthly – either interest only, or capital and interest.

Let our UK-based, specialist team of commercial mortgage brokers know when your current business mortgage is up for review and we will contact you when you need us, to make sure you find the cheapest possible solution on the market.

Bridging finance

What is bridging finance?

A bridging loan is typically a short-term loan taken out for an agreed period of development and can be used for a variety of purposes until further financing becomes available upon completion of the project.

Bridging financing – the Fundi way

We understand a thing or two about commercial financing so we can assist in securing the bridging loan you need. Get in touch with a Fundi today to find out how we can help support your business growth and keep your cashflow positive throughout your developments.

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