Secured Finance: Unlocking Capital from Business and Personal Property
Secured finance is a highly effective solution for businesses and directors looking to raise significant funding by unlocking the capital stored in commercial and residential properties. By leveraging the value of ‘bricks and mortar’ assets, businesses can access substantial sums ranging from £25,000 up to £10 million and beyond. Secured finance is versatile, accessible for new startups needing initial capital, as well as for established companies or struggling businesses that may not qualify for traditional loans.
The secured finance process is straightforward, allowing businesses to capitalize on their existing property assets to fuel growth, manage cash flow, or support other essential needs.
Property Valuation: Start with a property valuation, which determines the amount of funding available. The capital you can access is based on the equity within the residential or commercial property owned by the business or its directors.
Funding Approval: Once the property’s value is assessed, approval follows. This type of financing generally requires less stringent criteria than unsecured finance, making it ideal for startups or businesses facing cash flow challenges.
Flexible Use of Funds: Funds are made available in a lump sum to be used however you need—whether for expansion, covering operational expenses, purchasing new inventory, or managing debt.
Repayment Terms: With repayment terms extending up to 120 months, along with options for repayment holidays and interest-only periods, secured finance is designed to be flexible and accommodating to cash flow cycles.
Exit Strategy: Upon completion of the repayment term or when you’re ready to settle the balance, an exit strategy removes the charge over the property, restoring your ownership without lingering obligations.
How Secured Finance Works
Applications of Secured Finance
Whether your business is looking for growth capital, needs cash flow support, or wants to invest in a new project, secured finance provides a flexible solution.
For New Startups: Raise the capital needed to kick-start operations, invest in necessary equipment, or market your products without the need to qualify for traditional funding.
For Struggling Businesses: Access immediate funds to manage debts, restructure operations, or purchase inventory, helping stabilize cash flow when other funding options are unavailable.
For Expansion: With high-value funding options, secured finance is ideal for businesses looking to expand, open new locations, or diversify their product lines.
For Cash Flow Management: Utilize secured finance to maintain a steady cash flow, covering payroll, operational expenses, or seasonal costs.
Frequently Asked Questions
Q: Can I use my personal property to secure finance for my business?
A: Yes, directors can use personal property, including residential buildings, to secure business financing. This option is ideal if your business does not yet own sufficient property assets or if you want to leverage multiple assets for larger funding.
Q: What types of properties qualify for secured finance?
A: Both commercial and residential properties qualify. Typically, the property must have sufficient equity to support the loan amount.
Q: How long does the application process take?
A: Secured finance is typically quicker to arrange than traditional mortgages, with funds available once the property valuation and application process are complete.
Q: Are there prepayment penalties or exit fees?
A: Terms vary by lender, but we work with you to ensure complete transparency regarding any fees. Options for early repayment and tailored exit strategies can minimize additional costs.
Access Secured Finance to Empower Your Business
Secured finance offers businesses a practical and effective way to access significant capital by leveraging property assets. With flexible terms, tailored repayment options, and access to substantial funding, you can invest confidently in your business’s future. Contact us today to explore how secured finance can support your business needs, whether you’re just starting or looking to expand.