Unsecured Business Term-Loan
An unsecured loan is a facility that is underwritten and supported only by the borrower’s creditworthiness, rather than any type of collateral. Unsecured lending is available to many businesses across all sectors for virtually any purpose. The amount that can be borrowed varies and is dependent upon a number of factors which includes but is not limited to the age of the business, turnover and strength of performance. The term of the borrowing is typically between 6 and 24 months however some lenders offer longer terms of up to 5 years for larger expenditure requirements, therefore allowing you to free up cash for investment in other areas of your business.
For our clients we can consider a broad range of business purposes including, but not limited to:
- HMRC Corporation and Income Tax
- VAT Payments
- Road-fund-licenses
- Fleet Insurance Premiums
- Vehicle Refurbishments
- Driver Training Costs
- Purchasing Stock for Expansion
- Funding Deposits for HP or Lease Finance
Secured Business Term-Loan
A secured debt facility is a loan in which the borrower pledges an All-Assets-Debenture or a 1st or 2nd charge against the Commercial Property as collateral for the loan. Senior debt-facilities will typically form the initial 60% – 70% advance. The loans are flexible and can be tailored to meet the needs of the business, potentially providing interest only periods of borrowing to assist with expansion planning and product delivery. With a choice of fixed or variable rate options we can structure the credit facility to suit the business’s costing preferences. Clients should expect to pay some arrangement fees, monthly interest at bank base rate plus a margin and in some cases, exit fees which could either be an agreed fixed amount or a proportion of the actual sales price of the site upon disposal.
Mezzanine Finance
Working with a senior debt facility normally provides the bulk of the funding requirement for a certain project, however additional funding may be required in order for completion. In such situations this is in the form of Mezzanine Finance, which is a complementary solution and structured more as a “top-slice” facility in order to achieve the required funding level. Such funding is usually secured by way of a second charge on the project asset and can help to achieve overall funding levels of as much as 90%-100% against the loan to value of the overall site valuation.
If you are seeking to develop or expand your business and you require tailored solutions to finance your growth and enhance your risk profile, please contact to Advance at enquiries@advanceleasing.co.uk
