10 Advantages of Business Finance 

According to the British Business Bank, 67% of SMEs in the UK are currently using some form of debt or finance. Business funding is as natural as taking a mortgage and has many benefits, yet some businesses consider taking finance to be a reflection of poor performance. Businesses need money to survive, managing it correctly ensures the business runs efficiently. Finding the right funding solution is crucial to unlocking your business potential whilst at the same time making your expenses affordable and manageable. 

In this article, we will spell out some of the reasons that using finance is beneficial to your business. Learn more about the 10 advantages of business finance. Or, jump to the specific step you’re interested in using the Table of Contents:

  1. Immediate Needs Financing
  2. Spreading Investment Costs
  3. Financing Growth Initiatives
  4. Predictable Payment Structures
  5. Securing Competitive Rates
  6. Building Business Credit History
  7. Protecting Personal Assets
  8. Maintaining Operational Liquidity
  9. Potential Tax Benefits
  10. Hedging Against Inflation

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The Advantages of Business Finance

Sometimes opportunities come without warning, equipment may need replacing, machines need upgrading or vehicles might break down. Whilst setting a proportion of profits aside for future investment each month is good practice, you just might not have the time to save before the need or opportunity is gone.

Unlock the potential of your business with access to a wide range of financing options. Our expert advisors will work closely with you to understand your specific needs and goals, then provide a personalized quote tailored to your unique requirements.

Contact Portman today to discuss your financing options and take the next step towards achieving your ambitions.

Even if you can afford to buy an item outright, the initial outlay might eat up a lot of your free cash in one go. Rather than taking the hit in one go, it might be preferable to spread the cost over time and pay the loan back whilst you generate revenue.

To serve more customers you might need more equipment, more vehicles, larger premises or to scale up your technology. Business finance allows you to expand when you need to.

Similar to a fixed vs variable mortgage, the Bank of England base rate and lender standard rates might change but your rate remains fixed. This gives you the certainty needed for long-term business planning.

Competitive interest rates are a cornerstone of smart business financing; by minimising borrowing costs, you can:

  • Reduce Interest Expense

Lower rates translate directly to significant cost savings over the loan term. This will free-up valuable capital for core business functions.

  • Boost Profit Margins

Money saved in interest is money added to the bottom line. Competitive rates encourage a business to invest in growth initiative, innovation, and operational efficiencies, ultimately leading to increased profitability and better long-term sustainability.

Enhance long-term viability, strategic financing with competitive rates fosters a solid financial foundation for your business.

As both a broker and a lender, we have unparalleled access to the market. This unique position allows us to meticulously search for the most competitive rates tailored to your specific business finance needs. Enquire online.

As your business grows, you may need access to more credit to fuel expansion. Proving you can take credit and pay it back might help you build your score and open doors in the future. A good track record will also help you to secure more funds at lower interest rates in future.

We understand the importance of a healthy business credit profile. Discover valuable insights and best practices in our comprehensive articles.

Business owners often put their own money into their company especially in an emergency. Taking finance means there’s less need to mix personal finances with the business. With certain business finance products, such as a business loan, usually no collateral is asked for provided you meet eligibility criteria. Visit our Business Loans area to find out more if you could benefit and qualify for business loans.

Using free cash, a credit card or overdraft might seem like an easy solution, but it can mean nothing is available in an emergency. Maxing out these options first could hinder your ability to get finance until they are paid off.

Hire Purchase agreements may allow you to claim Annual Investment Allowance or Super Deduction on your corporate tax bill, you may also be able to depreciate the asset. Lease Agreements are effectively rentals and it may be possible that the entire monthly payment can be deducted from profits before tax is calculated. Please seek professional tax advice.

With today’s price inflation rate, getting what you need immediately can ensure you pay today’s prices and not what might be an increased price in 6 or 12 months’ time.

Finance can be a catalyst for growth, when you’re starting a new business, you’ll need capital to launch. After a couple of years, you might need to expand and even the most established businesses will rely on finance to purchase equipment or vehicles, or fund refurbishments and new locations.  


Our account managers are experts in finding the right finance solution. We know how to structure finance proposals to give you the greatest chance of success.  

Portman is a leading provider of finance to UK SMEs. Our experts have arranged over £1billion in bespoke funding for over 16,000 companies in the last 15 years. As both a lender and a broker, we are best placed to meet your finance needs.  

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