Funding solutions for a UK business


There are many reasons why a company may need funding, either long or short term. For a start, it can be frustrating when you have a new idea for the business, but don’t have the funding to support it. Alternatively, you may be experiencing rapid growth and require a short term loan to help support it, or you may be having cash flow problems.

Although a business would traditionally approach their bank for a loan or overdraft, it is not guaranteed that the application will be accepted. There are alternative sources of funding, and the most suitable will depend on the amount required, whether your company is established or just starting out, whether you have any security to offer and whether you are able to sell some shares in the company. You may want to consider finance outsourcing so you can seek professional advice.

Applying for an overdraft

If you require funding as a short-term solution, you may find that an overdraft is the most suitable and simplest option. You may have to pay a fee for an agreed overdraft and interest on the money you borrow. However, it is a flexible option, as you can choose to borrow just the amount you require. If you decide to repay the overdraft earlier than expected, you won’t be charged an early settlement fee. This option may be cheaper than applying for a loan.

Consider renting or leasing

If you need the funding to pay for business equipment or other assets, consider leasing or renting them rather than paying outright for goods. One of the main advantages is that you can usually return the equipment to the company after a set period, usually three years, and ask for the latest model. This provides access to better equipment which may not have previously been available. There is less risk attached to leasing, as you simply return the item if you can no longer pay for it, which is preferable to losing a home which you have used as security.


A loan is generally an option when paying for a specific purpose, like startup capital or new equipment. If you want a fixed repayment period and the security of knowing what monthly payments will be, a loan will be more suitable than an overdraft.

Consider all available options carefully so you find the most suitable and affordable option. If you would like to discuss alternative options, why not call us to arrange an appointment?