Business Variable Rate Loan

It’s not unusual for a business to borrow money over the long term. If your business needs to purchase expensive new equipment, open new premises, invest in a new line of stock or launch a major marketing drive, it probably needs some extra cash to do it.

There are plenty of ways to borrow money. Banks can offer a business variable rate loan or a fixed rate arrangement. An alternative might be an overdraft, or some form of asset leasing. Whatever approach you might take, there is one consistent theme – the lender wants the assurance of getting their money back.

If you want to borrow you need to demonstrate that your business is viable and, ideally, give some sort of security for the loan.

Beyond the Business Variable Rate Loan

If you want a lump sum of cash to invest in your business, a business variable rate loan is the solution most people think of. This is a lump sum that’s paid back in instalments over time, and the interest rate moves with changes in the bank base rate.

But there are other options that are more flexible. A business variable rate loan gives an injection of cash and a predictable programme of repayments. But it doesn’t allow much scope for flexing those repayments based on changing circumstances.

Invoice finance, on the other hand, is a good example of a flexible alternative.

What Does Invoice Finance Offer You?

Invoice finance comes in various forms, and it’s an area of lending where there’s continuous innovation – which is why it’s important to take advice before committing to an arrangement.

The basic principle is that you’re borrowing money that you’ve already earned, or you’re releasing the cash that’s locked inside your sales ledger.

Your lender releases funds to you based on the value of your outstanding invoices, often up to 90% of their value. When the invoices are paid the balance is settled up.

As with all loans there’s a charge, but you’re getting the benefit of the money up to 90 days earlier than you would have had. That’s got to be worth something to your business.

The amount you can borrow could be up to 90% of the value of your sales invoices.

Find out how much you could release from your sales ledger instantly online >>

Touch Financial Give Free Advice

We won’t charge you a penny to help you choose the right business finance solution. Perhaps a business variable rate loan is your best option, but we can give you all the facts and help you decide.

We’re entirely independent, meaning our advice is impartial and we’ll focus on what’s best for your business.

Touch Financial save businesses valuable time and money by helping them to find the right financial solution. We’ve helped thousands of other organisations – can we help you?

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Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.

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