Summary Of Current Bank Lending For UK Business
As you all know during this current economic climate the variety and amounts of finance available has changed drastically. Here at CD Property Finance we have put together a summary of finance facilities that may be on offer.
Overdrafts short term working capital lending. Beware it can be expensive so check offered interest rate.
Commercial Mortgages for purchases and remortgages of commercial property such as offices shops industrial premises care homes leisure and licensed premises. Up to 80 loan to value available. Banks are keen to lend to businesses with good cash flows and quality security.
Factoring and Confidential Invoice Discounting for any business that could experience cash flow problems caused by debtors paying late. The bank buys the invoices from the customer and advances up to 90 of the value almost immediately.
Factoring tends to be for smaller businesses and is disclosed to your customer. Minimum turnover is around 100k per annum.
The banks and other lenders are very keen on this business as it is short term lending with a defined repayment source.
Stock Finance lower lent than for factoring and stock must be easily saleable.
Asset Finance to raise longer term funding secured on the business’s plant machinery vehicles etc.
EFG Enterprise Finance Guarantee
This is available where the bank is happy to lend on loan or overdraft but cannot obtain sufficient security. One example is where the bank would normally lend 70 of the value of the offered security but the borrower needs 90. The extra 20 could be covered by the EFG. Maximum loan term 10 years.
CD Property Finance has banks that are keen to lend using the EFG.
This is not a list of all bank financing schemes. CD Property Finance can advise and expand on these banking facilities and many more.
About the writer:nbsp;nbsp;Chris Dowdeswell is an Associate of the Chartered Institute of Bankers and a long standing member of the National Association of Commercial Finance Brokers.Chris Dowdeswell worked in commercial and property banking in the City of London and overseas for over 20 years before setting up CDPF and has a wealth of experience and contacts which he uses for the benefit of his clients.
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