Bridging Loan News

Eland Business Services Limited have just launched a new web-site dedicated to a single finance product as part of our marketing effort.

www.bridgingfinanceoptions.com will focus solely on short term bridging loans to complement our existing general commercial finance site.

If you are an investor, property developer or maybe moving home needing cash fast and reside in the UK why not pay our site a visit.

Property Developers suffering with Finance Problems

We are increasingly receiving enquiries from UK property developers in distress as banks withdraw or reduce financial support. Developers with any kind of stretched facility or overdraft seem particularly vulnerable.

Fortunately for our customers we have a number of lenders available who will offer re-finance funds at a similar level of costs to the banks. Each development is appraised and finance on merit, therefore not all customers may receive similar terms, but we will do our best!

Why Do Businesses Choose to Lease Equipment rather than Buy?

When seeking any type of commercial finance, there are few areas of business funding that offer 100% finance availability. One area where 100% finance is available is asset based finance for equipment such as plant & machinery, computer hardware etc. In fact it is possible to lease any kind of equipment or asset, in many cases without any deposit, advanced rentals or extra security.

Many people in business think that leasing is for companies short of cash, in some instances that may be the case, but a little research shows that even the biggest companies use leasing to access assets essential to the running of their business.

One reason this finance option is a regular choice is the relative ease with which a leasing arrangement can be set up along with flexible payment terms, plus, other financial tools will still be available to the company. However the main factor in deciding to lease is cost, for most businesses the overall cost of leasing any particular asset or piece of equipment is lower than a cash purchase once loss of interest on cash on deposit and tax rules and deferred VAT payments are taken into account. It should be noted here that this rule may not hold for all businesses for example, start up companies or where poor credit history applies. Whatever individual circumstances apply, your accountant can offer professional tailored advice on any likely savings.

Unlike other finance options leasing offers fixed payments for the term of any agreement therefore easing cash flow management by not reducing working capital available to the company. Other major benefits of leasing is the possibility of upgrading or keeping technology up to date if the right finance option is taken out, adding new equipment to any arrangement is also very easy, especially once a payment record has been established. If you do not take ownership of the leased asset at the end of the term then the lender will have responsibility for it's disposal.

Finally, by opting to lease, funds can be retained within the company to aid growth, but also the opportunity to acquire access to more or higher specification equipment can add significantly to that growth.

I recommend you visit our Business Equipment Leasing page for more information on the topic of leasing.

© Eland Business Services Limited

Short Leasehold Business Loans

Within the UK commercial finance arena there is one area where it is usually very difficult to get a business loan. That area is raising finance to Buy a Short Leasehold Retail Business.

There are very few lenders who will offer finance without additional security. It is usually much cheaper to raise finance against another property, other wise funding is only on offer at a very high "short term loan" style rate. This is due to the higher risk involved and the underlying property being available on a lease on a term that is too short to raise a mortgage.

However we can now offer a facility over 5 years, providing the lease has at least 3 years to run at the end of the loan, at a very reasonable bank base rate plus 3% starting rate. The minimum loan is £30k, maximum loan is £125k and the maximum loan to value is 65%.

For more information visit our site Short Leasehold Business Loans.