A traditional Lending Facility with no rates starting as low as 1.3% APR.
Release funds tied up in your invoices within 24 hours.
Similar to its unsecured counterpart, but with security offered, typically a property or asset, with equity attached.
Gain funding, or refinance, assets within your company, such as equipment, plant or vehicles.
Business Lines of Credit facilities are loans that protect your cash flow, ensuring that it remains steady. The amount you can borrow is calculated upon the amount of sales you process that month, therefore allowing you to have access to your owed monies before you would naturally.
This product not only increases your cash flow, but is tailored to your business, allowing for flexible repayments. This funding solution is ideal for those with a good business profile, such as a strong credit score, and business assets. It is designed to boost your working capital allowing for you to cover expenses for your business that you would like to pay back overa period of time.
There are plenty of benefits to this funding solution in comparison to a more traditional facility. Business Lines of Credit are unsecured facilities, meaning no assets will have a charged placed against them. This will also allow you to have your asset or property secured under a Secured Loan product, allowing more funds to be released. Another major benefit of this type of product is the how quick and simple it is to apply through our lenders. Rather than accessing funds through physical appointments with your bank, you can apply online in a matter of minutes and gain access to
funding. There is also no commitment made upon a Business Line of Credit until you draw down funds, which of course you are committed to pay back.
The only outstanding negatives of this product are that it is sadly unavailable to new start-up companies. For new starters, there are specific produts tailored to your stage of business growth, boosting your working capital and cash flow, allowing for the purchasing of assets, equipment or investing in new projects.
As you finalise your Business Line of Credit, you as the director of the business will sign a credit line agreement with the lending partner you pair with. This agreement will state all of your previously agreed terms and conditions, including the credit line limit, the duration term of the facility, and the interest rates charged. Repayments on drawn down funds will work similarly to repayments made on business loans. The lender typically works with a 'commitment period' which allows you to draw down the amount of funds you would like to access, and then have to pay back. After the commitment period has concluded, the credit line will lock and repayments will begin. Depending on your agreement, once a certain amount of the loan, or the total borrowings are repaid, you can then draw down more funds. This repayment period can vary largely in length, from months to a matter of years, depending on the amount you borrow and the terms of your facility.
Unless you are a new start-up company, the minimum turnover most lenders will deal with is £100,000 turnover.
Similarly to Turnover, start-up companies can get funding. Once you have filed accounts for the year, we can then apply you as a fully-fledged trading business.
Due to us dealing with UK Based Lenders, we can only find funding solutions for UK Registered Businesses.
A Business Line of Credit requires a return on the only the amount of funds actually spent, and a small interest (%) fee will be added to your figure to pay back. The typical interest rate on Business Lines of Credit are around 2%.
Eligibility varies largely from lender to lender, with some much more flexible, some much less. The basic criteria for applying for a Business Line of Credit facility is as follows:
£100k minimum turnover
UK Registered Business
If you don’t meet this criteria it isn’t the end of the road, other funding options are available, and this can be discussed with one of our consultants.
A Business Line of Credit can be arranged very quickly for your business. It works similarly to a Business Loan, meaning it can be processed within a week in some cases.
A Business Line of Credit loans funds against your monthly gross sales, meaning as much money as you can make, you can access. Once you have drawn down once, your cash flow will increase, therefore possibly allowing you to borrow more in the future.
We are not your average broker. We strive to find you the perfect funding facility for your business, in the easiest way possible. We designate a member of our team of specialist finance consultants to you, walking you through the entire process until the funds are in your hands.
“ Perry & JD Capital Finance have been incredibly helpful from start to finish. They helped secure a CBILs package even when many lenders had stopped considering new applications. They've informed us of new developments every step of the way and have helped us through this uncertain time. Nice one, guys! ”
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Disclaimer: JD Capital Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.
