Written by: Sam Hodgson
Business finance is the lifeblood of many companies, providing the funds necessary to fuel growth, manage day-to-day operations, and pursue long-term objectives. It encompasses a broad range of financial products, from traditional business loans and revolving lines of credit to more specialised options like equipment financing, cash flow funding, and venture capital.
Whether a business is just starting out or expanding into new markets, securing the right type of finance is crucial for sustaining operations and driving success. With a variety of funding options available, understanding how to access and leverage these resources is vital.
At Clifton Private Finance, we are experts in business finance, with a dedicated team of specialists ready to help you find the perfect financial products to suit your business needs.
Key Takeaways:
- Business finance is accessible to companies of all sizes, from startups to large corporations, with diverse financial products available for different needs.
- Secured loans require assets like property or invoices as collateral and offer lower interest rates, while unsecured loans are faster but depend on business and personal credit profiles.
- Bespoke financing solutions are available, with options for businesses of all sizes and growth stages, from small startups to large companies.
What Exactly is Business Finance?
There’s nothing complicated here - business finance is money for your company. When we talk about business finance, it’s often regarding traditional loans, but other avenues of business finance are there to suit including:
- Specialised loans for specific needs
- Revolving lines of credit
- Business grants
- Bridging finance
- Venture capital
- Private equity
- Commercial mortgages
…and much much more!
Business finance is there to help your company grow and become a huge success.
Who Can Get Business Finance?
One of the issues that we encounter every day is a lack of confidence in business owners and directors regarding obtaining finance. It’s easy to fall into the trap of thinking that business finance is for other people and that there’s no way your company would qualify.
We’re here to tell you that if you think like that, you’re wrong.
With such a wide range of business finance products from an increasing pool of reputable lenders, there is usually something for everyone, no matter your position.
So, whether you are looking for a few £1000s to kickstart an early venture, or £10M to open offices in an entirely new country, we can help you find the business finance option that’s right.
Types of Business Finance We Can Source
Various business finance options are available to suit the needs of small and large companies operating in any industry. Funding requirements can vary depending on the size of your company, its growth cycle, and market conditions:
Secured and unsecured business finance
Businesses looking to expand, improve working capital, or acquire another business as part of their acceleration strategy can apply for a large business loan of up to £25M or a smaller injection of capital from £3,000 to £300,000:
- Secured or unsecured business loans from £3K to £25M
- Flexible and bespoke finance to suit the needs of your company
- Fixed and variable interest rates are available
- No early repayment fees
- Rapid decision-making and fast funding
Limited Company Business Finance
The interest payments on the loan may be tax deductible, and the responsibility of repaying the loan will lie with the business itself.
However, this will not be the case if, as a director, you secure the loan through a personal guarantee.
Secured Business Finance
Secured business finance, also known as asset-backed finance, enables a business owner to access funds by using a business asset as security.
Since secured business loans reduce the lender's risk:
- interest rates and repayment terms are more competitive than unsecured loans.
- and you can usually borrow a larger sum of money to invest in your business.
Assets such as property, land, machinery and vehicles are all considered suitable security by lenders.
There are other types of secured lending, though.
For example, invoice finance is a loan you can secure using invoices (money owed to your business) as security for the loan.
- Secured loans can be borrowed over a longer term of up to 5 years, meaning the monthly repayments will be lower.
- Lenders are more likely to approve a business loan application when assets guarantee the loan.
- There's less need to have a strong turnover or company credit profile as assets form the guarantee.
Unsecured Business Finance
Unsecured business loans can be a good option for smaller businesses or businesses with little or no assets to secure the loan against.
Secured finance can be arranged quickly, but lenders will only agree to the loan if your business has a good trading history, turnover, and clean credit profile.
With unsecured finance, the lender has no security, so they will typically assess the loan eligibility depending on the business's trading and any directors' credit profiles and assets.
The exception to this is merchant cash advance loans, where lenders will base their lending on future forecast monthly takings from card sales, e.g. businesses that take payments through EPOS card terminals.
A company director is often required to guarantee an unsecured loan personally and, therefore, is typically required to be a homeowner.
- Unsecured loans enable you to borrow up to £300,000
- You could borrow money for up to 3 years
- Your business should have at least one set of filed accounts (trading for a minimum of 1 year)
- A fast decision and release of funds are possible
Related: Gain a deeper understanding of business loans with our Business Loan Definition guide.
Business Finance to Improve Cash Flow
Business Finance to improve cash flow is available for businesses with variable income, when selling seasonal goods or services, or when a business relies on invoices paid by subcontractors, such as temp recruitment firms, domestic care agencies, and haulage companies.
The advance is repaid through a percentage of the business's card transaction sales, typically between 10% and 18% of each sale.
As there is no need for collateral, merchant cash advances are ideal for businesses that experience seasonal fluctuations or peaks and troughs in their sales figures.
Before agreeing to an advance, the lender confirms the repayment percentage with the business. With these features, merchant cash advances can offer a suitable funding option for businesses that need quick access to capital.
See the latest market news below
2025 Business Finance Market Update
In the past year, business finance saw significant growth, perhaps surprisingly driven by challenger lenders and alternative finance providers. Many of these lenders reached their largest milestones in 2024, primarily through supporting SMEs that may have struggled to access traditional funding elsewhere.
Businesses are continuing to face significant economic challenges carried over from 2023. High inflation, supply chain disruptions, and geopolitical tensions persist, which have complicated financial planning and made it difficult for businesses to acquire funding.
But the Bank of England has cut its base interest rate for the first time in 4 years, signalling a cautious shift toward economic stabilisation after years of inflationary pressure. Further cuts are anticipated, and businesses can expect a flurry of spending in the coming months.
As well as this, a number of banks and large firms seem to be racing to the finish line to implement generative AI and new technology that could streamline business and boost profits. Enhancing tech in banking looks like a win-win for lenders and borrowers, offering more personalised financial solutions and a quicker, more secure process.
In the tech industry, investments in AI are reshaping business. Tech giants like Alphabet, Amazon, and Microsoft have seen their market values surge, driven by the rush to implement AI.
Seven Top Tips for Mastering Business Finance
If you are looking to quickly become the king of business finance, we’re on your side. Here are our top tips for mastering business finance:
1 - Start With Confidence
Business finance is there for you, but not if you shy away from it. Entering the arena with a positive attitude and understanding that you will be successful in obtaining finance is going to help a lot. Sure, there’ll be some knocks on the way and not every application leads to the desired result, but confidence will help a lot.
2 - Keep Your Credit Score in Good Order
If you are looking for business loans, many of them (not all, but many!) are going to look at your business credit history, especially for the previous three months. And, if you are a small business or only recently incorporated, then you should expect some scrutiny on your personal credit history too.
Prioritising your current debt management and making sure that you’ve made payments on time will put you in a good position to obtain business finance.
Not to worry too much though - at Clifton Private Finance we work with a wide range of lenders, including some who look to other factors when determining loan viability. Remember - there’s always a business finance product for you, no matter your history.
3 - Do Your Research
Like any subject, once you dig in you’ll find the world of business finance is vast, but don’t let that put you off a little learning. Reading the odd article written by experts on the specific type of business finance you are after is going to help you gain an understanding and increase your confidence.
Luckily, we at Clifton Private Finance can help once more. Our website contains a whole library of informative, interesting, and occasionally entertaining articles that break down many different sides of business finance for you.
4 - Keep Your Business Plan in Top Condition
Remember your business plan? You probably put it together in the early days of the business and then forgot all about it. It’s time to dig it out of that drawer and dust it off.
An accurate, honest, and up-to-date business plan is a powerful tool when it comes to acquiring business finance. It will present your business ideas in a professional way, making decision-makers a lot more confident when considering your application.
Business plans are essential for many business loans, grant applications, investment opportunities, and more.
It’s also worth considering professional help when it comes to making your business plan, not just with the accounting, but also in terms of writing and presentation. You get one chance to make that first impression - it’s worth taking the time and effort to do it right.
5 - Pick the Right Product for Your Specific Need
Over the years, the developments in business finance mean it’s no longer a one-size-fits-all situation. Different products exist to fit the various needs of companies across the UK, and some are incredibly niche.
Selecting the right business finance option can make a huge difference to your business - consider:
- Better interest rates
- Larger potential loan amounts
- Tailored repayment structure
- Greater lender understanding
- Potential for “free” money with niche grants
- Additional specialist help
- Loan flexibility
- Faster applications
Choosing the wrong business finance product, on the other hand, can mean increased pressure on the business, a more expensive end solution, and a lack of understanding on both sides that increases personal stress and anxiety.
6 - Be Honest and Plan
Business finance can only properly help you if you are honest about your business and its financial position. It is essential that you have a realistic understanding of the company and how it operates.
When considering loans and other similar business finance options, you need to have a watertight plan for repayments; if you are thinking about equity finance, you need to understand what the loss of shares will mean; and if you are looking to grant funding, you must appreciate the dedication needed in fulfilling the criteria.
Rushing into business finance without proper consideration of your business and the impact of any responsibilities will lead to later problems.
7 - Use a Business Finance Broker
Going it alone will be hard. While you may be successful, it’s doubtful that you will end up with the perfect product and it may be more costly to your business than it had to be.
It’s advantageous to get expert help with anything and, when it comes to business finance, that means an experienced broker.
As a broker, we have vast knowledge of the business finance sector and can access a wide range of lenders as well as advise on the many other options available to you. We can find you the best possible deal that truly suits your business needs, taking into account all the finer aspects of the financing that may seem small at first but could have a huge impact later.
Think about how good you are in your field, and how much you could help someone coming to that to find their feet and avoid making mistakes - that’s what it’s like speaking to one of our team about your business finance.
We work every day to get the best finance for our clients and are aware of all the most recent changes and opportunities that are out there.
How to Get Business Finance
Whether you are an experienced CFO, or a sole trader looking for their first loan, we can help. Contact Clifton Private Finance today and we’ll find the finest business finance product for you, moving your company forward in ways that - until now - have only been dreams.
Our broker team will help you source the most competitive business loans, commercial property finance, business acquisition finance and cash flow funding solutions.
Our business finance service provides:
- Market-leading rates
- Fast service - finance within 5 to 7 days
- Access to specialist lenders
- Expert advice - professional service
