Commercial finance comes in many forms. Traditional business loans available from banks and other financial institutions are still the first place many firms turn to. However, there are alternatives forms of commercial finance that Edinburgh firms are increasingly using instead. They are forms of finance that have been available for decades, but have been largely used by bigger firms. Today, these innovative forms of finance are being increasingly made available to all kinds of firms, including start-ups.
Using these forms of finance is helping firms in Edinburgh, and beyond, to get the money they need to grow their businesses quickly. These loans help firms with their cash flow issues making it possible to stay in business even during difficult financial times.
The basic types are:
Invoice factoring and discounting
Invoice discounting or factoring is borrowing money using what customers owe as collateral. When the customer pays their invoice, the loan is paid off.
Another popular form of commercial finance Edinburgh firms are using in larger numbers is asset leveraging. Firms can secure loans using physical assets such as buildings or machinery they own as security.
Trade and supplier financing can also be used. When firms turn to this variety of finance, they use orders they have secured as an asset to borrow money against or obtain stock.
Getting expert help with commercial finance in Edinburgh
At Invoice Finance Scotland, we have already helped hundreds of firms to secure alternative forms of commercial finance. Many Edinburgh firms have also benefited from our advice about various HMRC schemes.