Long Term Business Loans
If you need working capital to invest in your business chances are you’ll be looking at long term business loans. The most obvious place to go is your bank, and they’ll be pleased to see you. But theirs might not be the most cost-effective or flexible solution.
There are other approaches to finance. If you’re not sure what the options are, or which would work for you, it makes sense to talk to a commercial finance broker.
Brokers, such as Touch Financial, specialise in matching borrowers with lenders. We know what’s available, the benefits of different solutions, and we’ve got years of experience of meeting the needs of thousands of organisations.
An Alternative to Long Term Business Loans
Do you have a busy order book, a full stockroom, or a brimming sales ledger? If you do, any commercial finance broker will tell you these are assets that you can use to borrow money.
Asset based lending is becoming increasingly popular, and it’s a not just a short term solution. Invoice finance, for example, is a common alternative to having a long term business loan.
There are two sorts of invoice finance – discounting and factoring. Both let you unlock cash you’re owed but that’s still to be paid. Factoring offers the additional benefit of outsourcing the often time-consuming burden of credit control.
Invoice Finance Explained
It’s frustrating to have a cash flow problem when you’re owed money by customers. This is the problem that invoice finance solves – you borrow only what you’re already owed, so you know how you’ll repay.
Invoice finance is a revolving debt – every time you raise an invoice you can borrow more money, and when it’s paid the debt is settled. As your business grows and you invoice more, the amount you can borrow grows with you – which is different from traditional long term business loans.
The process works like this:
- You raise an invoice and the lender advances you up to 90%, often within 24 hours.
- Your customer pays the invoice, which might be up to 90 days later.
- If you’re factoring, the lender raises statements and pursues payment.
- The lender settles the outstanding balance of the invoice, having deducted their fees.
Find out how much you could release from your sales ledger instantly online >>
Make Touch Financial Work For You
Our role is to save you time and money, and to let you focus on what you do best – growing your business.
As the UK’s leading commercial finance broker we’ve got a proven record of successfully matching businesses with the right financial solution, and we work with some of the UK’s leading lenders, including Lloyds TSB Commercial Finance.
We’re independently owned, so we’re impartial and deliver what’s right for you. Even better, our service costs you nothing – we’re paid by the lenders.
We’ve helped thousands of organisations find the right solution to their need for short or long term business loans. Can we help you?
Compare factoring quotes instantly online >>
Also in this section:
- Learn more about starting a business loan
- Read about a long term business loan
- Alternative to long term business loans?
- Overview of business variable rate loan
- Learn more about a business fixed rate loan
