Commercial or business finance, sometimes referred to as alternative business funding, takes various forms. The lending can be for any business purpose and is usually on a term loan basis of up to 60 months. Personal guarantees will be taken from Directors, and occasionally security against personal property will be taken in the form of an equitable charge.
Some lenders operating in the sector provide overdraft type facilities and others offer funding according to the level of merchant card receipts where the agreed lending facility is repaid directly from customer card revenues. This funding is flexible in that there is no fixed payment. If turnover dips, then the level of payment taken dips too.
Payment is always a proportion of turnover, businesses using this funding are protected from the regular commitment of a capital and interest repayment loan, payments to which are required each month irrespective of the cash position of the business. There are very few lenders who will provide a business finance totally unsecured but, Try Financial does have one such lender.