Navigating your funding options to support business growth
At Stephen Alexander, we know that access to the right funding is often the difference between standing still and scaling up. Whether you're investing in new equipment, expanding your team, or simply managing cash flow more effectively, understanding the financial options available to you is essential.
That’s why we’ve partnered with Navigate Commercial Finance, who specialise in helping businesses unlock growth through tailored funding solutions. In this guest article, Adam Cooksley, Business Development Manager at Navigate Commercial Finance, shares practical insights into the most popular types of business finance, from invoice finance to property lending, and how these can support your plans for growth.
If you're reviewing your funding needs or planning your next stage of development, this guide is a helpful starting point.
Access to finance
At Navigate Commercial Finance, we understand that each business has unique funding requirements, and there’s no “one-size-fits-all” approach. Accessing the right financial solutions can play a pivotal role in driving growth and ensuring stability. Unfortunately, there are times when the high-street banks can’t support their clients due to a restricted credit appetite. That’s why we take the time to fully understand each client's needs and specific circumstances before sourcing the most appropriate funding options and partners.
There is a plethora of flexible funding solutions and lenders when it comes to raising finance, so where do you start? Below are some of the most popular funding solutions we secure to support businesses’ various working capital needs:
Invoice finance
Invoice finance gives businesses the ability to unlock cash tied up in outstanding invoices. In some cases, prepayments up to 95% can be agreed. For example, a £100k invoice, you could receive £95k almost instantly. Once your customer pays the invoice, the remaining 5% is released, and the lender takes their fee. This solution helps with working capital and smooths cash flow, making it ideal for businesses with longer payment terms. Invoice finance can also be used for acquisitions, share purchases, growth, or general day-to-day working capital.
Asset finance
If a business is planning capex, they don’t need to tie up cash reserves. Asset finance leverages machinery, equipment, or vehicles to secure funding and spread payments over a 12-72 month period. It’s also possible to refinance assets with little or no finance remaining, unlocking additional funds to support working capital, growth, act as a deposit for a new machine, acquisitions, share purchases, or to get through a quiet seasonal period.
Cashflow loans
Cashflow loans provide a lump sum of funding that can be repaid over a term of 12 to 72 months, depending on the lender and business needs. This option is useful for purchasing supplies in bulk, fulfilling large orders, making acquisitions, buy out shareholders, or navigate (pun intended) seasonal slowdowns, ensuring your business has the working capital to operate smoothly.
Revolving Credit Facilities (RCFs)
An RCF provides flexible access to funds, giving businesses the ability to borrow, repay, and borrow again as needed. Similar to an overdraft. Interest is only paid on the amount borrowed, and some lenders even calculate interest daily, making this facility a cost-efficient form of borrowing. For businesses with fluctuating cash flow or ongoing projects, an RCF offers a helpful headroom facility, enabling confidence to take on new orders.
Trade finance
Trade finance is used to pay suppliers where limited or no credit terms are offered. It provides access to funds to purchase raw materials and or fund confirmed orders. The lender pays your suppliers directly, the borrower repays the lender over an agreed period, typically up to 90days. This ensures that you can take advantage of opportune purchases or simply keep production running smoothly, if cash flow is tight.
Property finance
Property finance helps when looking to purchase or refinance commercial properties like factories, warehouses, offices, or even buy-to-let properties. Since property finance is secured against the property itself, it often comes with more favourable interest rates compared to unsecured options, making it an attractive solution for businesses needing to invest in property or release equity to fund acquisitions, growth or just general day-to-day working capital.
If you want to discuss any of the options above, please call Adam Cooksley on 07852 505 607 or email adam@navigatecf.com