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The commercial finance market today

The commercial finance market today
Monday, January 07, 2019

Commercial finance is the money that you borrow to use for any one or more of a variety of different business purposes. It doesn’t matter what sector you are operating in - there will nearly always be banks and other financial institutions interested in helping you grow your company as long as you’ve got the fundamentals right so far and a great business plan to boot.

Here is Panthera’s guide to raising commercial finance for your business.

What is commercial finance?

When you’re growing your business, there are a few challenges that do crop up.

For example, a rapidly growing business will mean that your fixed costs start to rise because you have to buy more stock and employ more staff to service your customers. And the increase in business can mean that your profit margins aren’t as high as they should be because of something called diseconomies of scale (this is where the size of a business has a negative impact on the economic output of a business because of a lack of efficient systems within the business).

Commercial finance gives you the money that you need in order to:

• restructure to handle the costs of a rapidly growing business,

• bring in the systems you need to service customers at a lower cost so you make more money on everything you sell, and

• grow your business at a manageable and successful rate.

Where can I get commercial finance?

It is best to speak with your accountant before heading out to find a source of commercial finance on your own. Your accountant will be invaluable in preparing the financial information needed to convince lenders that what you need the money for is a good investment. Your accountant can also help you source the commercial finance by pointing you in the direction of the most appropriate lender for your kind of business.

Since the 2008 crash, traditional banks have been a lot more hesitant to provide finance for companies. There is a great amount of risk involved at their end so we would recommend that you seek out a private finance broker who will be more familiar with your industry.

Private finance brokers offer many advantages. Although most will charge you a fee, they are likely to know the type of lender who is happy working with companies of your size and in your line of business. They are better at negotiating lower interest rates than if you approached a lender directly.

You could still choose to go to a high street bank in order to find your funding. However, they tend to have much stricter lending criteria, and, as a result, you will be less likely to be accepted.

Will I be accepted for funding?

Each kind of lender will have different requirements that you must meet. Additionally, some private finance brokers will prefer working with businesses in one particular field.

If your business is reasonably new and you have only been trading for between six months and two years, you may still be able to find a commercial finance firm that is willing to lend you money but it will be a struggle.

If your business is older than 2 years, you will find the process a lot easier, particularly with the financial and management reports your accountant has provided you with.

Either way, bank account statements, credit histories, and P&L and cashflow forecasts are all things that they will likely be interested in examining before they decide whether or not they lend your business the money.

Am I at risk with this kind of commercial finance?

Each individual finance firm will ask for a different level of security on the loan. Most will want a personal or director’s guarantee.

A personal or director’s guarantee on your finance facility means that, if your company is unable to pay off the loan, you will be personally liable for it. If your company has multiple directors and shareholders, then this responsibility will be shared equally between you. Every individual who is named on the commercial finance agreement will be jointly liable to repay the loan.

What are interest rates for commercial finance like?

This varies between each finance firm. In very general terms, you can expect to see interest rates of between 0.5% and 8% per month across the board. The more security you provide and the more impressive the package your accountant has put together describing your business, the lower these rates will tend to be.

We can help

If you are looking at accelerating your business’ success by using commercial finance, get in touch with our team. We will happily guide you through the whole process, making sure that your business is ready to take on the finance and guiding you through the process of securing the money.

To find out more, please call 01235 768 561 or email

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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