Creative Financial

Commercial Borrowing

Commercial borrowing is commonly used by business owners to access cash needed for business start up, growth or improvement. There are a wide variety of programs and lenders available, so it’s important to understand your specific needs and pursue a loan that fits your situation.

What Is Commercial Borrowing?

Commercial borrowing is a financial tool available to business owners of all sizes who need funding to enhance their business. Small businesses and start-up businesses typically have a more difficult time securing a business loan, but it is certainly not impossible. Regardless of your business size, any lender you work with will want to see firm documentation that supports the viability of the business as well as the purpose for the loan.

What Can I Use It For?

Commercial borrowing can be used for many things. Some common uses include start up costs, expansion of the business, capital investments, and refinancing of business debt. Most business owners will pursue borrowing at some point because it is common to need additional funds at various stages of business development.

Where Can I Get Commercial Borrowing?

Banks are a common source of business loans, but they are often more conservative in their lending decisions. For this reason a bank is much more likely to underwrite a loan to a larger or more established business. It’s not impossible to get a loan from a traditional bank if you’re smaller or just starting up, but you will usually need to provide more extensive documentation of your business plans.

There are many other sources of business loans in the UK, There are lenders and angel investors that specialize in small or start up loans, as well as venture capitalists seeking larger investment opportunities. Additionally, there are several government programs designed to assist business owners with securing a business loan.

Are There Different Types Of Commercial Borrowing?

Yes, there are many types of commercial borrowing and the choices can sometimes be confusing. Examples include small business specific programs, industry specific loans, “micro” loans for small amounts, community development loans, and many others. Whatever your business need, there is most likely a business loan for you offered somewhere.

How Do I Find The Right Commercial Borrowing

Mark J Morsley and Associates Limited can help so contact us today