The top five reasons why commercial finance makes economic sense

21st June 2022

If your business is ready to grow, relocate or evolve into new markets, having access to a tailored funding stream could be the difference you need to make it a successful move.

Organisations take out specialist commercial finance for many reasons – with the right lending in place, you’ll be in prime position to take advantage of some great benefits and to bring your business growth strategy to life.

Here are the top five reasons why commercial finance could mean success for your business:

  1. Increase your working capital

If your business is experiencing a period of rapid growth or your cashflow is stretched due to delayed customer payments, a short-term loan to boost your working capital will help you bridge the gap in your invoice payments and ensure you have enough funds to meet your outgoings.

  1. Purchase njew assets

If you’re looking to streamline your operations and increase efficiency, having access to a lending stream to buy property, plant, machinery or software could be a vital step to optimising your profitability or evening winning new contracts. Borrowing money to finance an asset purchase will usually require security to protect your lender’s risk, but it could mean you’ll be able to borrow more over a longer repayment period.

  1. Negotiate better supplier discounts

 With cash in the bank and easy access to your working capital, you’re in a prime position to negotiate more favourable terms with your suppliers. Early settlement discounts and prompt payment incentives can add up to big cost savings and mean your money is safe to be put to good use on other expenses.

  1. Boost your credit rating

If your long-term business plan means you’re likely to want to secure a substantial credit line in the months or years ahead, applying for commercial finance and ensuring your repayments are made on time can really boost your company’s credit score. A healthy credit score can mean that longer term borrowing requirement will be much easier to secure.

  1. Start a new business

 When you’re ready to get your bright idea of the ground and start up a new business, the first thing that could hold you back is lack of funding. Saving for asset purchases, upfront business costs and working capital requirements can seriously hinder a new venture’s success let alone its launch. It’s vital that you calculate how much you’ll need to borrow and talk to an accountant on the best way to structure a small business loan. Your lender may want to take security over any physical assets or you might be advised to apply for an unsecured loan on a short term.

Whatever the reason for applying for commercial finance, there’s no substitute for impartial advice from Charters Financial Services’ specialist business partners who tailor commercial finance packages to suit individual needs now and for the years ahead. Call us on 03454 500200 for advice on your next best steps or, for more information, click here.  (

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ours was not the most straight forward of situations, nevertheless Julie worked tirelessly, hour upon hour to ensure that we were able to get a mortgaged secured for our dream house! I honestly believe that without Julie's knowledge in the sector and her determination to get the job done, we would have lost out on our mortgage. We will be forever thankful for Julie's services! Definitely recommend to anyone looking for a knowledgeable, skilled and dedicated professional to handle their financial situation.

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April 2020

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