Our FAQs page is the quick route to finding out all about commercial finance

Commercial Finance FAQs

Below are the most commonly asked questions about this type of loan

What is commercial finance?

Most examples of commercial finance are similar to their everyday consumer equivalents. Nevertheless, eligibility, interest rates, and overall borrowing costs vary significantly from one product to the next.

Examples of short-term commercial finance products include business credit cards and overdrafts, trade credit, invoice discounting, and invoice factoring.

Medium-term products include bridging loans, crowdfunding, business loans, commercial mortgages, development finance, asset-based lending, and equipment leasing.

Longer-term products include larger business loans, commercial mortgages, and more.

Choosing the ideal commercial finance product means evaluating your objectives and financial status in accordance with the options available.

When are commercial loans useful?

Commercial loans are useful in a diverse range of situations. Whether you are looking to fund a new contract, buy out another business, expand internally, or branch out internationally, a commercial loan can help you succeed with your plans with minimal stress and complications.

As well as securing finance against real estate assets, some lenders will accept additional collateral as security, such as machinery, vehicles, and equipment.

How to finance commercial real estate?

Securing the funds required to purchase commercial real estate is possible through a variety of channels. As previously touched upon, it’s important to first consider how much you need to borrow, how quickly you can pay it back, and how stable (or otherwise) your current financial position is.

If you have a defined exit strategy in mind, a commercial bridging loan could be ideal. Designed to be repaid within a matter of months, interest payments and overall borrowing costs can be brought down to absolute minimums. If you’re thinking a little more long-term, a commercial mortgage could be the way to go.

Similar in nature to a traditional mortgage, the process is somewhat longer and more complicated, though it spreads the costs with affordable monthly repayments. Specialist business loans, development finance, and secured loans (asset-based lending) are also worth considering.

Before making your final decision, compare the UK’s commercial finance market in its entirety, with the help of an independent broker. With dozens of specialist lenders and hundreds of dynamic products to choose from, the objective input of a trained third party could prove invaluable.

What is business finance?

Business finance is using all of the information that you have in your financial statements to make the best decision for your company and its future.

At Donkey Finance, we know that it can be overwhelming to decide upon the best decision for your company, which is why we are here to help you. When you need small business funding or are a larger company needing help, as long as you meet our criteria, we will offer you the assistance that you need.

Why is finance important in business?

Finance is what keeps your business running, which is why many people turn to us instead of traditional banks for alternative business funding. We will consider all types of security, as long as you have 12 months or more of trading history, £100k or more annual turnover, and are a limited company.

With our help, you can enjoy business start-up funding, financing for a major purchase, or simply help pay your bills until you are able to reconcile your accounts receivable.

Are you an independent broker?

Commercial finance, or business funding, is a type of lending that is designed specifically for commercial borrowers. In the past, this particular type of loan product was normally offered by mainstream lending facilities such as banks and building societies.

However, these days, there are a number of alternative borrowing options available for commercial loan applicants via previously unavailable lending channels.

Why work with us?

When you apply for a business loan using our services, you can rest assured that the decision to lend is not based simply on a computer algorithm and that we judge each application purely on its own merits, along with the security you can offer.

Our competitive commercial financing options are available from 6 months to 5 years, with the lowest borrowing rates imaginable. We also provide flexible underwriting options and always try to approve every single application we receive, wherever humanly possible.

At Donkey Finance, we also understand that you will usually need to access the approved funds swiftly. In most cases, a commercial loan can be approved in as little as 24 hours, and our streamlined approach to lending means that the funds are delivered directly to your bank account with minimal practical delay.

We also approve more than 90% of all applications we receive, and you can even apply online for your added convenience. In short, if your plans make sense and the equity you can offer is sufficient, your chances of acquiring the funding you need via our services are almost guaranteed.