FAQs
- General
- Invoice Financing
- Merchant Cash Advice
- Start Up Business Loans
- Asset Finance
- Unsecured Finance
- Secured Finance
As a broker we not only handle all loan applications from start to finish, including negotiating better rates and helping speed up the process but we also advise on the best product for your needs and how to get the most from each finance option.
Yes, being an FCA authorised and regulated broker we are indeed able to source loans of any size for all businesses.
Yes we are authorised and regulated by the Financial Conduct Authority (FCA) as a credit broker.
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 anything from £3,000 to £2million. Although if you require an amount outside this figure please give us a call and we can try top source this for you.
Typically, we charge no upfront fees and only get paid once we have secured you funding. We get paid in the form of a commission direct from the lender. In some cases where no commission is paid by the lender we may be required to charge a fee but this will be disclosed prior to making the application.
We can source a variety of different finance options offering varied rates. Anything from 0.35% to 7% per month depending on the finance option and the lenders risk appetite.
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.
Once you have completed EBF’s application form you won’t need to complete any other applications forms as we do this for you. We may need a signature, or we may call you to ask additional questions, but we will handle all the paperwork where possible.
Of course! Once you have spoken to one of our experienced Relationship Managers we can advise what product(s) are best and will run through the reasons why. We will outline the pros and cons on each product and give you our opinion on what we think is best, so you can make an informed decision.
EBF can source a loan on the same day or for some finance products it may take a week or two. We always push to get it done as quickly as possible for you, so you can focus on running and growing your business.
All your information is held under an encrypted cloud storage and once we no longer need to store it for future loans with yourself, we would permanently delete it using File Shredder or AVG Shred.
To qualify you need to be a B2B business that sells goods or services and your invoices are invoices on completion, i.e. once your goods/services have been delivered. With Invoice Finance it is all about the future growth potential rather than your previous business and credit history.
This also makes it a good choice for start-ups with some lenders willing to finance your first product.
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 away that your invoices are being financed against. Due to this it is typically a bit more expensive on the rate.
If you don’t mind your customers knowing Invoice Factoring is best and can have massive cost benefits.
No, you don’t always have to finance all your invoices although some lenders may insist on this. The product will be cheaper if you factor all of your invoices compared to just a few. Invoice Discounting is best for financing the odd or select invoice when needed.
Typical terms of an MCA will be set around 3-12 months, but this may differ if the MCA is taken out due to the nature of how it works. You only pay a percentage of your future card takings each day therefore if your card sales drop it extends the term, or if your card sales increase then the term will reduce.
You only pay the loan when you get paid from your customers and in proportion to your turnover.
Usually the only docs that you would be required to send are identification, 3 months bank statements and 3-12 months card statements. The turnaround time for funding is anywhere from the same day to 5 working days, but on average it is 48 hours.
All lenders vary but generally you can raise up to 150% of your average monthly card takings. Some have a maximum hold back of 35% meaning they can only take a maximum of 35% of your card sales as payment.
You need to be 18 year old minimum, a UK resident with right to work in the UK, a UK based business, less than 24months trading, pass credit check and not be a restricted business type or use.
You can borrow anywhere from £500 up to £25k depending on your business idea, plan or first year of trading.
For Partnerships, each individual Partner can apply for £25k and the maximum combined is £100k. Each Partner will be assessed separately, and each be personally liable for their loan taken.
Restricted businesses are Weapons, Banking and Money Transfer Services, Chemical Manufacturer, Gambling and Betting establishments, Property Investment, Pornography, Drugs, Private Investigators, Agents for 3rd parties.
Start-up loans are designed and aimed at financing costs of starting and developing/growing the business. Therefore, it can’t be used for the following uses Refinance/paying a debt,
Investment outside of the business, personal uses, training or qualifications
With Leasing you only need to make a monthly payment, as you would with rent or wages, for example. 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.
It helps to reduce your overall tax bill. This is because the cost of leasing or hiring an asset is deductible as a business expense.
If you expect to own the asset at the end of the term, then this is considered a supply of goods and VAT will be due on the whole 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 as this is a supply of services not goods.
It is possible to refinance or join a new lease while you have an existing lease agreement in place and agree on a new fixed completion date.
You can only claim back allowances for assets bought via hire purchase and long-term leases and are not able to claim capital allowance back for shorter leases typically less than 5 years. Also, as it is a trading expense you can deduct the full cost from your taxable profit.
Unsecured finance is best for companies that need finance quickly, have adverse credit, are not asset rich, are unable to give security, with many customers and small transactions. These are just a few examples, to discuss further please call our experienced advisers.
The size of the loans available will depend on your business criteria but as a range we have access to companies who can lend from £3k to £500k. Being a homeowner for example can increase the amount you qualify for.
No not always. Many lenders will look at people with adverse credit and even CCJs as long as there is good reasoning behind it. Also, if your business has more than one shareholder, one with adverse credit and one with good credit, this is allowed by most lenders.
Most lenders only use a soft search to pull your credit file, so it doesn’t leave a footprint for other lenders to see and doesn’t reduce your score.
This is the great thing about unsecured finance, 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, to pay a large invoice, to pay a HMRC bill, as a bridging loan for new work, plus many more…
Most businesses prefer to use secured finance above others as it is the least risky for a lender, meaning it offers very competitive rates if not the best. It is also generally longer-term finance so eases the cashflow due to the monthly payments being lower. Although it can be a longer process.
If you have lots of assets, are in no rush and want the cheapest option with lower monthly payments this is the option for you.
A secured business loan is perfect for asset rich companies that need to release/raise some cash for their business. It is easier to qualify for and more suited for established business, as they are typically longer-term finance.
No! As the loan will be secured against one or more assets that cover the loan amount it is a lower risk product. Due to this the credit criteria are usually a lot more relaxed than other finance meaning the minimum credit score will be lower.