Types of Business Funding

Grow your business with Boost Capital's alternative finance solutions

A business loan from Boost Capital can work well alongside many other types of commercial finance, including:

Bank Overdrafts
Commercial Mortgages
Development Finance
Bridging Finance
Leasing & Asset Finance
Vehicle Finance
Factoring & Invoice Discounting
Buy-To-Let

Bank Overdrafts

Chances are if your customers are currently using a type of business funding, it’s likely that they are using a bank overdraft. An overdraft is the traditional business financing facility in which a business is able to borrow capital on a bank current account. The business is able to let its account become overdrawn and is charged interest on the amount overdrawn and the length of time it is overdrawn.

While this may be the most common type of business funding, it is becoming increasingly difficult for SMEs to acquire the capital they need. Whether your clients have been rejected outright for an overdraft lending facility or if their limit is insufficient to cover their current plans, a small business loan from Boost Capital can be the ideal funding solution to meet their needs.

Commercial Mortgages

Commercial mortgages are typically used for buying a business premise, extending an existing premise, making a residential or commercial investment and/or developing property. Usually commercial mortgage lenders will only take security in the property that you are buying, which is about 70 per cent of the property’s value. Not to mention, business owners will usually need a decent-sized deposit, often requested in cash, which can leave the business strapped for capital with other business operations.

A small business loan from Boost Capital can be used to cushion the cash flow deficit incurred from taking a commercial mortgage so the business owner does not have to worry about keeping his or her business operating. And with shorter terms than most commercial mortgages, our business loan can be paid off before the mortgage term is completed.

Development Finance

Development finance is a type of commercial mortgage that allows a developer to finance the refurbishment of a property. These types of loans are short-term and tend to have higher set-up fees than commercial mortgages.

The renovation or complete build out of a commercial property is expensive and the costs of this type of project can quickly add up. From purchasing new equipment to outfit the newly refurbished premises to paying professionals to complete the project on schedule, a small business loan from Boost Capital can be a viable option to help keep your clients’ cashflow in the green.

Bridging Finance

A bridging loan is another form of commercial financing. As can be inferred by the name, bridging finance is used to bridge a gap in capital, usually in property development. This type of business funding is designed to help business owners complete the purchase of a property before selling their existing property.

While this type of funding is more short-term than other forms of financing, it is security driven, leaving a business vulnerable to losing assets. Since our funding is unsecured, adding our small business loans to your portfolio will allow you to offer a product to your clients who may not have assets to put up for security.

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