Business finance
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- Compare different ways to fund your business
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What is business finance?
Business finance covers a range of financial products that can help you manage and grow your business. It encompasses various funding avenues, designed to support your company’s growth and operational needs, including:
- Business loans
- Asset finance
- Commercial mortgages
- Invoice finance, and more.
What kind of business finance can you compare with our partner, Swoop?
You can compare a wide and flexible range of options with Swoop. The size and stage of your business, what you need the loan for and how much you need to borrow will make some types of loans more suitable than others. Options include:
Startup loans
Startup loans are designed for new businesses looking to fund initial operational costs to get off the ground.
Useful for: new businesses that need funding to cover initial costs like office space, marketing, inventory, marketing, equipment, or staff.
Growth guarantee scheme (GGS)
GGS is a government-backed loan scheme aimed at driving growth in the economy, offering businesses access to loans and other types of finance.
Useful for: businesses looking to grow with government-backed support.
Commercial mortgages
A loan secured by commercial property, that’s used to buy, develop, or refinance commercial real estate like office buildings, shops, or factories.
Useful for: businesses aiming to purchase or refinance commercial property.
Asset finance
Asset finance allows businesses to obtain equipment, machinery, or vehicles by using them as collateral for a loan or through leasing agreements.
Useful for: companies that spread the cost of equipment or vehicles over time rather than pay upfront.
Merchant Cash Advance (MCA)
An MCA provides businesses with a lump sum in exchange for a percentage of future credit card or debit sales.
Useful for: businesses with a high volume of card transactions, needing quick, short-term funding based on future sales.
Invoice finance
A way for businesses to borrow money against the amounts due from customers, improving cash flow by receiving most of the invoice's value upfront.
Useful for: businesses with delayed invoice payments that want to access funds tied up in unpaid invoices.
Unsecured term loan
An unsecured term loan is borrowed money that doesn’t require collateral and is paid back in regular instalments over a set period of time.
Useful for: businesses that need a cash injection without collateral and are looking to repay over a fixed term.
VAT loan
A VAT loan helps businesses manage their cash flow by providing the funds to pay their VAT bills on time without affecting their working capital.
Useful for: businesses needing to manage cash flow more effectively by financing their VAT payments.
Revolving credit
Similar to a credit card, revolving credit offers a business a credit limit that they can draw on for ongoing operational expenses, paying interest only on the credit used.
Useful for: businesses with varying cash flow needs that require a flexible line of credit.
Venture debt
Venture debt is a type of debt financing provided to venture-backed companies that may not yet be profitable or have sufficient assets for collateral.
Useful for: venture-backed growth businesses that need funding but want to avoid further equity dilution.
Trade finance
Trade finance represents the financial instruments and products that enable international trade, providing liquidity and managing risks associated with supply chain transactions.
Useful for: businesses involved in international trade, needing to finance and manage the risks of global transactions.
R&D tax credit loan
A new type of loan that uses expected research and development (R&D) tax credit payment as security for the loan.
Useful for: businesses that have applied for R&D tax credits get an advance on their funds so innovation can continue.
Swoop’s comparison service is quick and easy to use. Just pop in your details and see what finance options might be available to you. They compare some of the most trusted lenders and can save you time compared with checking individually.
Do I need business finance?
Only you and your business can make that decision. Deciding if you need business finance hinges on several factors specific to your company. Business finance could be a valuable step if, for example, you’re looking to:
- Expand
- Invest in new technology or equipment
- Boost your inventory
- Smooth out cash flow fluctuations
- Capitalise on market opportunities quickly
- Manage unforeseen challenges without disrupting your operations.
Swoop can help you assess your capacity to service any new debt, and explore the cost of finance and the projected return on investment that additional funding might enable.
If the numbers make sense and the growth or stability that finance can bring aligns with your strategic plan, then business finance could be a worthwhile avenue to explore.
Why compare business finance with our partner Swoop?
Compare a range of funding options to identify the loan type that best suits your specific needs.
Funding options for almost all industries, sectors and business types.
Works for time-poor business owners by efficiently pinpointing potentially suitable solutions.
Exploring your options won’t impact your credit score.
Swoop is a credit broker, not a lender, and will show you products offered by lenders. To apply you must be a UK resident aged 18 or over. Credit is subject to status and eligibility.
Depending on the nature of your business and the type of finance being applied for, some introductions will not be regulated by the FCA. For further information regarding this, please contact Swoop.
Which is the best business finance product for my company?
Choosing the best business finance product depends on the nature of your business – practices, goals and current financials.
Selecting the most suitable business finance option is pivotal and should reflect your company's:
- Age
- Sector
- Financials
- Specific capital needs
- Repayment timeline.
With a vast array of financial products available, thorough comparison is key. Swoop can help you sort through your options to weigh up the alternative products that might match your needs.
About Swoop Finance Limited (Swoop)
Compare the Market works with trusted partner Swoop Finance Limited (Swoop) to help you search for the right business funding.
Swoop streamlines the path to business finance by matching firms with a variety of tailored funding options. Harnessing advanced technology, Swoop assesses a business's financial needs with precision and pairs them with appropriate funding solutions from an extensive network of lenders and investors.
Every application benefits from the personalised guidance of an expert funding manager, ensuring a tailored and informed approach to securing the right financial support for each company’s unique growth path.
Swoop is not part of Compare the Market Limited. Compare the Market receives a % of the commission that our partner Swoop earns. All applications are subject to lending and eligibility criteria. Fees may be charged in certain circumstances.
Swoop Finance Limited are authorised and regulated by the Financial Conduct Authority (936513).
How do I compare and apply for business finance?
It’s straightforward to apply and much easier if you’ve got your paperwork ready in advance. You’ll get help along the way. Just follow these steps.
- Register your business: start by entering key details about your company’s structure, industry, and financial needs.
- Integrate your data: for more precise matching, you can integrate your bank accounts and/or accounting software. This will enrich your financial profile and improve the accuracy of funding matches. Swoop uses bank-grade security to protect your information.
- See your matches: Swoop uses advanced algorithms to sift through all your options, matching your business with the most suitable funding opportunities based on the data you’ve supplied.
- Choose and apply for a finance product: weigh up your options and choose the best funding product from your matches, then begin your application.
- Benefit from expert assistance: a Swoop funding expert will help you throughout the application process, making sure all paperwork and documentation is correctly filed, offering insights and advice, and helping you navigate the potential complexities of application.
- Receive your funding: once your application is approved, you’ll get the funding according to the agreed terms.
- Gain from ongoing tracking: after securing funding, Swoop provides tools to continuously track your funding options, adapt to changes in your business circumstances and monitor your financial performance and metrics.
This process not only simplifies the search and application for funding but also makes sure that each step is guided by expertise, tailored to your business’ specific needs and monitored for continuous improvement.
What can I use business funding for?
Business funding can be used in a variety of ways to support and expand a company’s operations.
Top 12 most common uses for business funding
- Working capital
To cover day-to-day operational costs such as payroll, rent and utilities, helping businesses manage cash flow fluctuations. - Equipment purchase
To finance the acquisition of new machinery, vehicles, or technology that can improve efficiency and production capacity. - Expansion projects
To fund the expansion of business operations, including opening new locations, entering new markets, or scaling up production. - Inventory purchase
To buy inventory in bulk, which can be particularly useful for seasonal businesses that need to prepare for high-demand periods. - Debt refinancing
To consolidate existing debts into a single loan with a lower interest rate, reducing monthly payments and freeing up cash. - Marketing and advertising
To invest in marketing campaigns and promotional activities to increase brand awareness and sales. - Research and development (R&D)
To fund innovation projects, including the development of new products or services, which can give a competitive edge. - Acquisitions
To finance the purchase of other businesses, enabling rapid growth and expanded market share. - Property purchase
To buy commercial property for manufacturing, retail, or office space, which can be an asset to the business. - Emergency funding
To cover unexpected expenses or to maintain operations during unforeseen downturns in business . - Startup capital
To cover initial costs such as product development, market research, legal fees, and initial inventory. - VAT funding
Providing financial leeway and cash flow stability when managing quarterly VAT payments.
If you need funding for something else, then we can help you explore your options.
Frequently asked questions
What happens if I can’t make repayments?
If you can’t make your loan repayments, act quickly to minimise potential impacts:
- Contact the lender as soon as possible to discuss potential solutions, like restructuring your loan or temporary forbearance.
- Review your loan agreement to make sure you understand the consequences of missed payments.
- Restructure the loan – can you negotiate changes to your payment terms to make them more manageable?
- Refinance the loan – consider refinancing your loan with another lender for better terms.
- Seek financial advice and get professional support on managing your debt effectively.
- Understand the legal and credit implications, so you’re aware that failure to meet payments may lead to legal actions and affect your business credit score.
Are interest rates higher for business finance products?
The answer to this will very much depend on individual circumstances. In some cases, businesses can secure lower financing rates if they’re well-established, even if the individual owner's personal circumstances may demand higher rates.
But there are situations where personal rates may be more favourable. One point to bear in mind is that a key factor influencing rates is the type of security provided. For example, mortgages typically offer lower rates compared to credit cards due to the nature of the asset secured.
Generally, businesses might access cheaper funding options because they have a greater variety of assets to leverage, such as debtor books or vehicles, which can provide more flexible or favourable financing terms.
Are business finance products available for small businesses and start-ups?
Yes. Financial institutions and alternative lenders offer options tailored to smaller businesses with eligibility criteria and repayment terms to suit different business models and stages of development. These include:
- Startup loans: government-backed loans designed to help new businesses get off the ground.
- Business credit lines: flexible credit solutions that allow businesses to draw funds as needed.
- Invoice financing: helps improve cash flow by advancing funds against unpaid invoices.
- Asset financing: provides funding to buy or lease equipment with no need for large upfront investments.
- Merchant Cash Advances: offers funding based on future credit card sales, ideal for businesses with high card transaction volumes.
How safe is any information that I supply Swoop?
Swoop uses bank-grade security. Your important personal and business information is encrypted and protected with the same industry-leading technologies that are used by banks.
