Get what you need now, spread costs & boost your business
Use Business Loans for Operational Costs and Cashflow
Many businesses need to cover operational costs as there’s often a gap between incurring costs and getting paid, or a business is subject to seasonal income. We’ve helped thousands of customers with short-term loans for as little as 3 months, flexible loans that can be repaid early with no fees, or business loans up to 6 years.
Business loans can be used for any legitimate purpose, our customers often use them for tax bills, staff wages, supplier/stock/inventory costs, property costs, funding a project, buying a variety of items that don’t qualify for asset finance, or simply to boost cashflow and avoid having to use overdrafts or credit cards. Using up these last two items can reduce your access to contingency funds should they ever be needed and will affect your access to credit in the future.
Talk to Portman about your goals and circumstances then we will find options tailored to your business.
Key Features of Asset Finance
Use Asset Finance For New Equipment
Asset finance is a smart way to buy new equipment as its typically cheaper than a loan. From catering equipment to commercial vehicles, buying business assets offers reduced risk to lenders, meaning they could be more likely to lend and rates are typically lower because the asset acts as security for the loan.
Asset finance typically takes 3 forms: hire purchase, which involves a larger deposit and paying the VAT upfront but guarantees an ownership option, lease finance, where VAT is spread across the term, at the end of which you can continue leasing or return the items, or refinance whereby recently purchased items are sold back to a lender, releasing cash into your business, with a finance agreement for monthly payments over a fixed term.
Asset finance can be used to spread the cost of a huge variety of commercial equipment: technology, furniture, machinery, vehicles, and any type of business equipment are likely to qualify.
Eligible For Tax Benefits
Hire Purchase – often qualifies for full capital expensing; deduct the asset value from you company profits and pay less tax.
Lease Finance – often the whole or part of your monthly payment can be deducted from your balance sheet so you pay less tax.
We always advise talking to your accountant regarding potential tax benefits.
Loans and equipment finance for all types of business
Take advantage of hire purchase options and pay the VAT and deposit up-front for necessary equipment. This is followed by fixed monthly payments, affected by whether you pay off the entire loan over the term or choose a final balloon payment. At the end of the agreement, there is the option to purchase for a nominal fee, transferring ownership of the asset to the customer.
Hire purchase is well-suited for situations where equipment ownership is wanted at the end of the term. Especially in the event of assets with a significant usable lifespan, a high residual value and will not need to be upgraded.Explore Hire Purchase
For acquiring hard or soft assets without the upfront costs associated with large purchases, lease finance is an excellent option. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.
Typically, asset finance is provided for high–value ‘hard’ assets such as machinery, equipment or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.Explore Lease Finance
Business loans allow you to borrow money and repay it in monthly instalments, with interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.
Business loans can be secured or unsecured. Portman typically provides unsecured loans, which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made; these may be used in equipment refinance deals.Explore Business Loans
Start Up Loans
New businesses commonly need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your business and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.
Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.Explore Start Up Loans
If you recently bought high-value equipment outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice, and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments, including interest, whilst your asset earns you money.
If your business owns high–value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.Explore Refinance
After the long-term effects of the pandemic, subsequent supply chain disruption and social distancing measures, recovery loans can help your business get back on its feet. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.
Recovery Loans can be used for any legitimate business purpose or simply to provide cash flow. Rates are capped and the government guarantees 70% of the outstanding balance, giving added security to lenders who can now consider finance for businesses that may have previously found it difficult to obtain.
Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.Explore Recovery Loans
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