FAQs

With any impending questions regarding the commercial finance industry, Elite Business Funding are here to assist and provide professional guidance informing clients about the most frequent queries received.

What role do you play as the Broker?

As a broker we handle all loan applications from start to finish, including negotiating better rates, acquiring business as well as advising the best products to suit your company’s financial circumstance.

Do you offer loans to Sole Traders and Partnerships?

Yes, we are authorised and regulated by the Financial Conduct Authority as commercial finance brokers, and are therefore able to effectively source loans for all business entities.

Are you FCA registered?

Yes we are authorised and regulated by the Financial Conduct Authority (FCA) as a commercial finance brokers.

How much can I borrow?

The amount you can borrow will depend on your business and the type of finance that you wish to take out. Typically, we can source loans from £3,000 to £2million plus depending on the finance product you require. Please give us a call to discuss your individual requirements.

What fees do you charge?

We typically charge no upfront fees and we only get paid once we have secured you the funding you require. As brokers we get directly paid from the lender. In some rare cases where no commission is paid by the lender, or for secured options we may be required to charge a fee, however this will be disclosed prior to making the application.

What are the typical rates of loans you can source?

We can source a variety of finance options, which offer varying interest rates. These can range from 0.35% per month, depending on funding product and the lenders risk appetite.

Do you offer face to face meetings?

Yes of course! One of our dedicated Relationship Managers can come to see you at your place of business or a public location of your choice. We work closely with clients to ensure we gain a true insight into their company values, previous and present financial circumstances, as well as the desired loan they wish to obtain for their business.

Will you help me with the form filling and other paperwork?

Once you have completed Elite Business Funding’s application form you won’t need to complete any other applications forms as we do this for you. It may be that we simply require your signature, or it’s possible that we will give you a call to ask additional questions however, with any other paperwork, Elite Business Funding will handle it.

I am not sure what type of finance I need. Can you assist me with this?

Certainly! Once you have spoken to one of our experienced Relationship Managers, we can advise what finance products are most suitable for your circumstance. We will also outline the pros and cons of each product to assist you in making a clear and informed decision.

How long does the funding process take?

The loan process with Elite Business Funding can vary from lender to lender, with some products we can fund you within 24 hours, others can take between one to two weeks, we always push to get the finance in place for you as quickly as possible, so that you can begin to positively focus on the growth and expansion of your business.

How confidential is clientele information?

As with all sensitive client data we ensure it remains confidential and is always constantly secured by holding it under an encrypted cloud storage. Once we no longer need to store this information, we will permanently delete it using File Shredder or AVG Shred.

What do I need to qualify for Invoice Financing?

To successfully qualify for Invoice Financing, you need to be a B2B business that sells goods or services, and your eligibility ultimately relies on your invoices. Invoice Finance is all about the future growth and potential development of your business, rather than your company’s previous credit history.

This also makes it a good choice for start-ups with some lenders as they’re willing to finance your first product.

Will my customers know if I am using Invoice Financing?

There are two main types of invoice finance which are Factoring or Discounting. Invoice Discounting is a facility whereby all collections is kept in house, so your customers are not aware that your invoices are being financed against them. Due to these factors, Invoice Financing is typically more expensive, however if you don’t mind your customers knowing that you are employing Invoice Factoring, this can have massive cost benefits.

Do I have to finance all of my invoices when signing up?

No, you don’t have to finance all your invoices and although some lenders may insist on this, the product can be cheaper if you factor all of your invoices compared to when you factor just a few. Invoice Discounting is most effective when financing the odd or select invoice as and when needed.

What are the typical terms for a Merchant Cash Advance?

Typical terms of a Merchant Cash Advance will be set to be repaid in around 3-12 months, however You only have to pay as a small percentage of your future revenue from card payments each day therefore if your card sales drop it extends the term of repayment, on the other hand, if they increase then the term will reduce.

The terms and conditions of a Merchant Cash Advance mean that you only pay the loan back when you get paid from your customers and in proportion to the turnover of the business.

If I want to apply what do I need to send and how quickly can I get funding?

Typically, the only documents that you would be required to send are identification, 3 months bank statements and 3-12 months’ worth of PDQ card statements. The turnaround time for funding is anywhere from the same day to 5 working days, but on average it is 48 hours.

What amount would I qualify for with a Merchant Cash Advance Funding Option?

All lenders in the commercial finance industry offer varying conditions and expenses, but generally you can raise up to 150% of your average monthly card sales volumes.

What do I need to apply for a start-up loan?

To obtain a start up loan you must be at least 18-years-old. In addition, you must be a UK resident with the right to work in the UK. Elite Business Funding can source start up funding for UK based businesses who have been trading for no more than 24months. They also need to pass the basic credit checks.

What do I need to apply for a start-up loan?

You can borrow anywhere up to £25k based on your business plan or turnover in your first year of trading. For partnerships, each individual business partner can apply for £25k and the maximum combined is £100k. Each partner will be formerly assessed separately, and each will be required to sign a personal guarantee.

What businesses and funding uses are restricted from receiving start up finance?

The businesses that aren’t eligible for, and are restricted from receiving start up finance include; Weapons, Banking and Money Transfer Services, Chemical Manufacturers, Gambling and Betting establishments, Property Investment, Pornography, Drugs, Private Investigators and Agents for 3rd parties.

Start-up loans are designed and aimed at financing costs of newly developed and growing businesses. Therefore, it can’t be used for the following uses; Refinance and debt paying investments, especially if they are outside of the business, for personal uses or training and qualifications.

What are the benefits of Lease/Hire Purchase of equipment compared to buying it outright?

With leasing you only need to make a monthly payment, which is the same case for rent and wages. This means the capital you would have used to buy it outright can now be used for other business needs/expansion and can help with your cash flow, accelerating growth. There are also great tax benefits and VAT can in some circumstances be claimed back.

What tax benefits will I receive from using asset finance?

Asset Finance can help to reduce your overall tax bill due to the cost of leasing being deductible as a business expense. If you expect to own the asset at the end of the term, this will be considered as a supply of goods and therefore, VAT will be due on the entire expenses and amount.

In cases of hiring and leasing where you won’t own the product at the end of the term, VAT may be charged periodically due to this being a supply of services not goods.

Can I refinance or upgrade my equipment during the lease term?

It is possible to refinance or join a new lease whilst you are involved in an existing agreement, however you must be approved by the lender on your eligibility for asset finance with a new fixed completion date settled. In addition, if you are looking to upgrade any of your leased assets during your finance contract, contact us and we’ll discuss this in further detail.

Can I claim back capital allowances with Asset Finance?

With asset finance you can only claim back allowances for leases that are bought via a hire purchase and within a long-term leasing contract. You are not able to claim capital allowance back for shorter leases which are typically borrowed for less than 5 years. Also, as it is a trading expense you can deduct the full cost from your taxable profit.

What businesses benefit best from Unsecured Finance and why should you choose it?

Compared to most finance options, unsecured business loans are most appropriate for companies that require finance quickly, are typically not asset rich and are unable to provide security. To discuss the options available please call our experienced advisers.

What size of loans are available on unsecured finance?

The size of the loans available will depend on your business’ criteria, however we have access to a wide range of finance companies who can lend from £3k up to £500k, depending on your business’ financing circumstances. If you are a homeowner for example, this can dramatically increase and impact the amount you qualify for still without needing to offer security.

Do you need a good credit file to apply?

This is not always the case as many lenders will consider and assess people with adverse credit and even CCJ’s and defaults depending on the circumstances. Lenders will often assess both the background of the company, as well as the reliability of the director.

In addition, if your business has more than one shareholder, one with adverse credit and one with good credit, this is allowed by most lenders. Many lenders will only use a soft credit search to pull and assess your credit file, that only leaves a footprint and therefore doesn’t affect your credit score in anyway.

What can I use the loan for?

One of the most beneficial features of Unsecured Finance is the reality that with most lenders, you can use the finance for whatever you need as long as your business has a strong affordability. A few uses are expansion, equipment purchase, general cash flow, paying large invoices and HMRC bill, as well as bridging payment terms for invoices work, plus many more…

Why would I take a secured business loan over other finance?

Most businesses will usually look at a secured finance as they usually offer very competitive rates. It is also generally a longer-term finance option, which results in a lower monthly repayment easing cashflow. While the turnaround time can be longer due to the security of the asset being offered you can typically borrow more money than that with an unsecured loan option.

If you have lots of assets, and are looking for the cheapest option with lower monthly payments, this is the most suitable option for you and our business.

What businesses benefit from this finance the most?

A secured business loan is perfect and the most appropriate option for asset rich companies that need to release/raise cash-flow for their business. This finance solution is usually easier to qualify for, and are well-suited to established business that typically seek longer-term finance.

Do I need a perfect credit rating to qualify?

As the loan will be secured against an individual or company assets, the credit criteria is usually a lot more relaxed and less intrusive, in comparison to other finance, meaning the minimum credit score will often be lower.

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