How Small Businesses Use Finance

Have you ever wondered how Small Businesses use finance to expand, innovate, and develop? While many of our resources focus on explaining financial products and tools, this article takes a different approach. We’ll cover real-life examples of how our small business owners have used financing to turn their ambitions into reality.

From covering everyday operational needs to funding ambitious growth plans, we’ll explore the most common financial challenges small businesses face and the solutions we made available to address them. Along the way, you’ll gain practical insights and inspiration to fund your own business finance journey.

If you’re considering finance as a small business, we’re here to help. Every business, trading situation and credit history combination is unique, so we don’t offer a one-size-fits-all solution. our dedicated Account Managers can work with you to create a tailored financial funding plan that aligns with your specific goals. Ready to take the next step? Get in touch today to discover how finance can support your business’s success.

Finance Along Your Journey

Contrary to the misconception that all financing is bad for business, the right financial solutions can be a powerful tool for growth and success – when used responsibly. Whether you’re a startup or an established company, finance can play a critical role at every stage of your business journey. Here’s how:

How Are Small Businesses Using Finance?

To give you a clearer picture of how finance can support your small business, we’ve shared our existing customer examples. These examples are divided into Asset Finance and Commercial Loans.

How Our Small Business Customers Have Used Commercial Loans

Commercial loans provide the capital small businesses need to invest in growth, stability, and innovation. Below, we highlight how businesses have used commercial loans to achieve transformative results.

How an Unsecured Term Loan Helped a Glamping Business Grow

A successful, family-owned, glamping pod business, specialising in the manufacture and supply of bespoke timber buildings for glamping and camping, sought to expand its operations and capitalise on the growing demand for unique holiday experiences. To achieve this, the company required £250,000 in funding.

With our support, they secured an unsecured term loan backed by a personal guarantee. This funding enabled them to:

• Increase production capacity by investing in new facilities and equipment.
• Expand product offerings with innovative glamping pod designs.
• Enter new markets across the UK, reaching more customers.
• Enhance revenue streams through increased production and market penetration.
• Strengthen their financial position for long-term growth.

Additional Benefits of Unsecured Term Loans for Growing Businesses

• Access significant funding without collateral.
• Manageable repayment terms aligned with cash flow.
• Retain full ownership of business assets.

Funding a Software Development Investment with Portman Prime

A financial strategy firm approached us with plans to enhance its software development capabilities. We provided a £250,000 Portman Prime loan, exceeding their initial request of £220,000.

This investment allowed them to:

• Enhance service offerings with cutting-edge software solutions.
• Improve operational efficiency through technology upgrades.
• Strengthen their competitive advantage in a rapidly evolving market.

Supporting A Construction Company’s Expansion with an Unsecured Business Term Loan

A construction company secured a major contract with a national grocery retailer, presenting a significant opportunity to expand its operations. To capitalise on this opportunity, the company required £250,000 in funding.

We successfully brokered an unsecured business term loan, enabling them to:

• Fuel expansion by hiring additional staff and fulfilling the contract.
• Optimise debt structure by paying off an existing loan.
• Enhance growth potential by securing a major client and strengthening their financial foundation.

A Short-term Loan for a Manufacturing Leader

A renowned British manufacturer of high-specification fire door sets and emergency access products sought to enhance their cash flow management. Facing a temporary funding gap, the company required £250,000 to maintain operational efficiency and capitalise on upcoming opportunities.

We swiftly secured an unsecured short-term loan for the full amount, allowing them to:

• Optimise cash flow and meet immediate financial obligations.
• Maintain production of critical fire safety products.
• Pursue growth opportunities with confidence.

Additional Benefits of Short-Term Loans for Manufacturers

• Fast access to capital – Quickly address urgent funding needs and bridge temporary cash flow gaps.
• Maintain production momentum – Avoid disruptions to production and continue fulfilling customer orders.

Powering Expansion for a Technology Installer with a Short-term Loan

We supported a technology installation company’s expansion and helped them connect more clients to the future through finance. An information and communication business, specialising in future-proof technology installations, sought to expand its service capacity and geographic reach. To achieve this goal, the company required £100,000 in funding.

Perfectly aligned with the company’s expansion plans, we secured a 60-month short-term loan and allowing them to:

• Grow service capacity by investing in equipment and hiring skilled technicians.
• Expand geographic reach across the UK.
• Strengthen operations and increase market share.

Additional Benefits of Short-Term Loans for Technology Companies

• Maintain Flexibility – Benefit from flexible repayment terms tailored to their specific needs and financial projections.
• Enhance Competitiveness – Strengthen their market position and gain a competitive edge.

How Our Small Business Customers Have Used Asset Finance

Asset finance is a powerful tool for businesses looking to acquire essential equipment, vehicles, or technology, without straining cash flow. For a deeper dive into the options available, check out our article: 6 Types of Asset Finance – Finding the Right Solution.

Building & Growing a Start-up for the Future with a Fixed-Term Lease

For retail and food businesses, creating an engaging and functional space is key to attracting customers and showcasing products. Here’s how we helped a startup in the automated cash management industry bring its vision to life.

A dynamic Start-up business, specialising in automated cash management systems for retail and food businesses, sought to establish a dedicated retail space. This space would serve as a hub for showcasing their innovative solutions and attracting new clients. Initially seeking £50,000 in funding, the company partnered with us to secure a fixed-term lease for £90,020.

This financing solution enabled them to:

• Create an immersive experience by designing a cutting-edge retail space to demonstrate their technology.
• Enhance brand visibility and attract potential customers.
• Drive sales growth by converting prospects through real-world demonstrations.
• Strengthen their market position as an industry leader.

Collaboration with Our Trusted Partners

Adding another layer of value, the finance provider for this project was a trusted manufacturing partner of the Portman Finance Group. Our Partner provides a full set of fit-out solutions, including decorating, shelving, and refrigeration systems. This collaboration ensured a seamless process and a cohesive final result.

We work with a network of trusted partners to connect small businesses with contractors, suppliers, dealers, or manufacturers to meet their asset needs.

Benefits of a Fixed-term Lease for Shop Fit-Outs

• Preserves Capital – Avoid tying up significant capital in upfront fit-out costs.
• Predictable Payments – Manage cash flow with fixed monthly payments over a defined lease term.
• Flexibility – Adapt to changing business needs with options to upgrade or relocate at the end of the lease term.
• Tax Efficiency – Potentially benefit from tax deductions on lease payments.

Explore our fit-out page for more on how you could finance your next commercial renovation project with us:

Sale & Hire Purchase Back To Invest In Patient Care

For healthcare providers, investing in advanced equipment is essential for delivering high-quality care. Here’s how we helped a chiropractic clinic acquire a vital diagnostic tool.

A well-established chiropractic and wellbeing clinic, offering a range of services including chiropractic care, massage therapy, and laser therapy, sought to expand its diagnostic capabilities. The acquisition of an X-ray machine was crucial for providing more accurate assessments and personalised treatment plans for their patients.

With the X-ray machine valued at £43,900. We structured a Sale & Hire Purchase Back deal, allowing them to:

• Enhance diagnostic capabilities for more accurate assessments.
• Uplift patient care with tailored treatment plans.
• Increase revenue growth through expanded services.

Discover our finance solutions for medical, healthcare and dental businesses, we also support the beauty, salon and clinic industry.

Driving Efficiency & Growth With Vehicle Finance For A Catering Business

A successful catering company, known for its diverse offerings from wedding feasts to street food options, sought to enhance its delivery capabilities and operational efficiency. Initially considering a £25,000 asset finance solution, the company opted for a more strategic approach with Portman.

We structured a Hire Purchase agreement for a commercial vehicle, tailored to their specific needs, with a total value of £17,995.

This solution allowed the company to:

• Transition to asset ownership and move away from costly rentals.
• Expand operations with a reliable and efficient delivery vehicle.
• Improve cash flow by reducing ongoing rental expenses.

Is your small business looking to replace/purchase new company vehicles, plant, vans, or fleet? See how we can support your vision with finance, for an affordable way to upgrade.

How Our Small Business Customers Use Alternative Finance Options

Refreshing A Franchise with a Merchant Cash Advance

A Subway franchise owner recognised the need to update their store to align with the latest brand standards and enhance the customer experience. To achieve this, they required £40,000 in funding for a complete refit. We secured them an MCA, providing the franchise owner with the necessary capital to revamp their store.

This investment enabled them to:

• Modernise their space with updated interiors and exteriors.
• Improve the customer experience with new furniture and décor.
• Boost operational efficiency with upgraded kitchen equipment.
• Drive revenue and profitability by attracting new and repeat customers.

Benefits of Merchant Cash Advances for Franchises

• Fast Access to Capital – Quickly secure funding for time-sensitive projects like store refits, using a percentage of your customer transactions as repayment.
• Flexible Repayment – Repay the advance through a percentage of future credit card sales, aligning repayments with business performance.
• Minimal Requirements – Often easier to qualify for than traditional loans, with less stringent credit requirements.

The food industry can be competitive and maintaining a fresh and inviting atmosphere is important for attracting and retaining customers. If you are in the Hospitality & Leisure industry, take a look at how we can help finance your small business or explore the details and benefit of a MCA solution.

Choosing The Right Finance For Your Small Business

Explore our helpful articles on Types of Finance for more information on the options available to small businesses. For additional support, browse our Small Business Tips Articles.

To summarise, as a small business you have a range of financing options to choose from. With Portman, these include:

Considerations for Choosing the Right Option

Selecting the most suitable financing option depends on several factors:

• Funding Needs ▶︎ Determine the amount required to achieve your goals.
• Repayment Terms ▶︎ Ensure the schedule and costs align with your cash flow.
• Creditworthiness ▶︎Assess your credit history to secure favourable terms.
• Purpose of Financing ▶︎ Clearly define how the funds will be used to demonstrate strategic value.

Final Thoughts

Access to finance is crucial for small business success. By understanding the various financing options available and making informed decisions aligned with your goals, small businesses are able to fuel growth, navigate challenges, and build a thriving business.

As both a lender and broker, we’re here to help. Get in touch with us and we’ll do the heavy lifting of finding you the right option. Share a few details about your funding needs, and we’ll guide you through the best business finance options for your unique situation.

Ready to take the next step? Enquire with us today!

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Written by Marianne Gabriel

Senior Marketing Executive