Commercial Finance

Commercial Finance

As a member of the NACFB – National Association of Commercial Finance Brokers, Fifty Nine Financial is able to fully support our clients with a wide range of commercial finance solutions, including:

Commercial Property Mortgages

Businesses can spend huge sums of money on rent. Buying the property could be a better option.

Asset Finance - Hire Purchase & Leasing etc

Need help financing new assets for a business? Vehicles, tools, software, machinery etc?

Loans to buy an existing trading business

Are you looking for funding to help support the purchase of an existing business?

Factoring & Invoice Discounting

Avoid waiting up to 120 days for your invoices to be paid. Turn outstanding invoices into cash, fast!

Supporting UK Businesses

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– Commercial property mortgages

– Asset finance

– Loans to Buy a Business

– Factoring & Invoice Discounting 

As a member of the NACFB – National Association of Commercial Finance Brokers, Fifty Nine Financial is able to fully support our clients with a wide range of commercial finance solutions.

Businesses can spend huge sums of money renting offices, warehouses, units etc. A commercial property mortgage is a facility to help acquire premises. Often the monthly payments on a commercial property loan can be similar or even less than the rent payments.

The type of business based at the property can influence the maximum loan to value that is available for a commercial property mortgage. Loan to value for commercial property mortgages would typically range between 60-80%, depending on the industry. However, in the healthcare sector, some lenders take a more favourable approach. For example, we have access to 100% mortgages for dentists to buy the property where they are based. In a similar approach, we can access 90% loans for Pharmacists to purchase their premises. One of the reasons for this is the sustainability of that type of business moving forwards.

No matter what sector your business is in, there could be a solution to finance the purchase of a commercial property. However, the quirkier the scenario, the higher the deposit a lender is likely the require.

Additionally, remortgaging an existing debt to a new lender can often save large amounts in interest if a better deal can be found. Even if early repayment charges may apply, it can still be financially advantageous if a significantly better deal can be found. 

Asset finance is a type of commercial finance used by businesses to acquire assets such as equipment, tools, vehicles, machinery, and even software etc. It works by spreading the cost of these assets over an agreed period of time. 

One of the main reasons why companies use asset finance is that it allows better management of cashflow should the aim be to grow the business, rather than paying cash up front. Therefore, this leaves your cash reserves untouched and available if needed for other reasons. Additionally, any profit gained by your business whilst using the asset may ultimately offset the cost. It can also be possible to release cash tied up in existing assets. 

Once a customer has chosen the asset they need to acquire, a finance deal can be agreed where you have a regular payment plan. Typically, a very fast turnaround can be achieved. You could have access to the asset in quick time. Depending on the structure of the finance facility, at the end of the term the asset can either be owned by the customer or handed back to the finance company. This could be in the form of either a leasing agreement or a hire purchase agreement. Therefore, there are a number of option in this area depending on the requirements on the business. 

Every day in the UK, businesses are bought and sold for a variety of reasons. It could be an experienced professional taking the plunge to acquire their own business, a business owner buying up the competition, or even an entrepreneur taking strides into a new industry where they have spotted a great opportunity. 

If the proposition looks to be a sound investment, there may be a finance provider that could lend the money required to help fund the purchase.

Key sectors that can be funded include:

  • Healthcare
  • Manufacturing
  • Nurseries
  • Retail
  • Contracting businesses
  • Hotels
  • Pubs & Restaurants
  • Commercial investments
  • Agricultural

As with other areas of commercial finance, the sector can play a huge part in how the deal can be structured. The perceived risk to the lender will have an influence, as it does in all forms of borrowing. Certain funders will specialise in funding for certain industries. The loan to value will be influenced by the industry with the norm being between 60%-80%. However, healthcare is again looked at very positively by a selection of lenders. Loans to buy a healthcare business can go as high as a 100% depending on the specifics.

Refinancing this type of debt to a new lender can often bring significant savings if a better deal can be found elsewhere. Even if an early repayment charge would apply, it can still be better financial move if a better deal can be found with a new funder.

For many businesses, 30/60/90/120 day payment terms can bring some financial pain when it comes to cash flow. However, there are some commercial finance options available that are designed to bring some relief in these situations.

Factoring

For a business with significant outstanding invoices, Factoring can be a great solution for turning those unpaid invoices into cash quickly. Factoring is a commercial finance facility where the finance provider can take control of your sales ledger. From there they can manage the collection of outstanding debts directly with your customers whilst you get settlement upfront from the finance provider. Cash flow is essential for any business. Many businesses need cash quicker than their invoice terms will provide it. If this sounds familiar Factoring could be a great solution for your business. It’s a very common form of commercial finance.

Invoice discounting

Invoice discounting is very similar to Factoring. The main difference being that you retain control of your outstanding invoices and ledger. You maintain the responsibility of chasing your customers for outstanding debts. For this reason, Invoice Discounting is a more cost-effective way of financing than Factoring. This is simply due to the lower administration requirements for the finance provider. Invoice discounting helps to avoid waiting 30/60/90 days for invoices to be paid. Turn outstanding invoices into cash, fast. Outstanding invoice values could be release as quickly as 24 hours depending on the individual circumstances.

The Right Solution

Whatever your requirements, we will always strive to find the right solution for you and your business quickly. If you’d like to discuss your situation in more detail Get In Touch!

commercial finance

Blog posts by our Director Gavin Burrows

Commercial Property Mortgages and other finance for businesses.

Commercial Property Mortgages and other finance for businesses.

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