Commercial Finance: How Does it Work?

Commercial finance can be a game changer for businesses looking to scale. Growing companies face numerous financial challenges. Access to the right commercial finance can ensure you are in the best place to seize opportunities and maximise the growth potential of your business.

We spoke to Liam Chandler of G&S Financial Solutions to determine how ambitious companies can secure their working capital to hit their targets and thrive. 

What is commercial finance?

Commercial finance, including factoring, invoice discounting, and asset-based lending, offer businesses alternative funding options based on their assets. Essentially it improves cash flow and meets financial needs, unlocking growth opportunities. Ultimately, small business owners can rely on commercial finance to access working capital, fund expansion, and achieve their goals.

How does commercial finance work?

Commercial loans can be a game-changer, fueling business growth and prosperity. Similar to personal loans, they offer flexibility and tailored repayment plans, empowering you to succeed. With fixed interest rates based on your creditworthiness, commercial loans are the key to unlocking your business’s full potential.

What are the current financial challenges facing businesses?

British business owners have displayed remarkable resilience and entrepreneurial spirit in the face of significant challenges. The impact of COVID-19, economic uncertainty, and a cost-of-living crisis have tested their mettle, making it challenging to navigate harsh trading conditions.

With consumer spending affected and inflation on the rise, ambitious businesses face limited lending options, making cash flow maintenance crucial. That said, news of the UK avoiding a recession will improve lender confidence.

How can commercial finance help businesses stay resilient?

Many businesses face the challenge of lacking funds to pursue growth opportunities like acquiring equipment, expanding premises, or hiring key personnel. Despite their ambitions, their immediate finances need improving. Crucially, by securing the right commercial finance solution, you can overcome these obstacles and take the crucial next step towards growth.

What signs might indicate a need for financial support?

Signs that a business may require a commercial financing solution include insufficient funds for critical investments or struggles in meeting financial obligations. At G&S Financial Solutions, we offer tailored financing options to address these needs and help businesses achieve financial stability and growth. 

Why use a specialist commercial finance broker?

A specialist commercial broker offers impartial advice and access to a wide network of commercial lenders and private banks. These lenders are actively looking to support viable business propositions, providing a genuine alternative to traditional high street lenders.

If your bank falls short in offering the support you need, a specialist broker can help. By quickly assessing available options, a commercial broker will find a workable and affordable business solution.

How do you help businesses secure the proper funding?

At G&S Financial Solutions, we offer a wide range of financing solutions to support businesses needing financial assistance. We offer Commercial Mortgages, Property Development Finance, Business Loans, Short-Term ‘Bridging’ Finance, Factoring, Equipment Leasing, and guidance on Grant Funding and the Government Enterprise Finance Guarantee Scheme (EFGS).  

With a track record of securing funding where others fail, we help clients save significant amounts of money over the course of the loan. Many specialist lenders in the current market prefer to work with qualified and packaged mortgage and loan proposals from brokers like us.

Every business is unique. We take a tailored approach to match the right lending option to their specific needs and goals. Our expertise and personalised guidance empower businesses to make informed decisions and confidently pursue financial success.

Perhaps you’re buying or starting a business, securing long-term capital for commercial property, funding a project, or exploring alternative financing. Whatever your circumstances we can match you to the right commerical finance solution.

Tell us how you’ve helped a client achieve financial stability. 

We recently helped a group of companies facing credit finance issues by implementing an invoice factoring solution in collaboration with a trusted lender. By leveraging their outstanding invoices, we were able to give the client access to immediate working capital.

In this scenario, invoice factoring proved effective in improving cash flow, alleviating financial strain, and ensuring timely payment of staff. The solution brought ongoing stability by relieving the firm of invoice collection and management responsibilities. The company could concentrate on core operations and growth. Ultimately, invoice factoring addressed the financial challenges and delivered long-term stability, empowering the enterprises to regain control of their finances.

What factors should be considered if pursuing commercial finance?

It is crucial to consider several factors. Gaining a thorough understanding of your recent accounts is a must. Doing this, will allow us to assess your financial situation and identify any challenges. We recommend consulting with your accountant who will provide valuable insights and help paint a clear picture of your company’s financial landscape.

At G&S Financial Solutions, we believe in doing right by the customer. We’re open to clients seeking other opinions. There is a funding solution for almost everyone, and we are committed to helping businesses find the right one.

What sets you apart and makes your services unique? 

At G&S Financial Solutions, we focus on trust, transparency, and comprehensive guidance. Ensuring our clients understand the options and potential outcomes is critical. The commercial financing industry lacks the same regulatory framework as personal finance, we uphold the same high standards.

We are qualified and regulated by the Financial Conduct Authority to offer Residential funding solutions. And we take the same approach on the Commercial side, ensuring that our clients receive expert advice and guidance. We believe in doing the right thing, always acting in our client’s best interests. 

By working with commercial finance brokers like G&S Financial Solutions, Grenfell James can support you to revolutionise your business finances. Connect with Liam Chandler on LinkedIn or call 07833 303 776 for a no-obligation chat – tell him we sent you!