Commercial and Business Loans
Compare funding for working capital, expansion, acquisitions, refinancing and strategic investment, with a structure shaped around the purpose of the borrowing and the ability of the business to repay it.
What are commercial and business loans?
Commercial loans provide businesses with capital for a defined purpose. That might include strengthening working capital, purchasing stock, opening another location, completing an acquisition, refinancing existing borrowing or investing in growth.
Unlike consumer borrowing, commercial funding is assessed against the business, the purpose of the facility and the proposed repayment route. Lenders may review trading history, profitability, cash flow, assets, management experience, existing commitments and the overall quality of the proposal.
Shadowfax Funding Solutions compares suitable structures across its lender panel. Where a conventional loan is not the most efficient answer, we can also consider invoice finance, asset finance, trade finance or a blended funding package.
Types of commercial funding
Unsecured Business Loans
Borrowing without a specific asset being taken as security. Lenders focus on trading performance, affordability, credit profile and the strength of the application.
Secured Business Loans
Facilities supported by property or other acceptable assets may offer higher limits, longer terms or a structure suited to larger requirements.
Working-Capital Loans
Funding for stock, recruitment, tax, marketing, contract mobilisation or temporary pressure created by growth and trading cycles.
Acquisition and MBO Finance
Structured funding for business purchases, management buyouts, management buy-ins and succession transactions.
Who may use commercial loans?
Growing Businesses
Companies investing ahead of new contracts, increased demand, additional staff, new locations or a broader product range.
Established Businesses
Profitable businesses seeking capital for acquisitions, strategic investment, refinancing or a planned change in ownership.
Professional and Owner-Managed Firms
Practices and SMEs funding partner buy-ins, succession, recruitment, customer-book acquisitions or technology investment.
How a commercial loan may support expansion
An established business wants to invest £250,000 in recruitment, systems and a second operating location. The proposal needs to demonstrate why the investment is required, how the business will benefit and how repayments will be met.
A lender may consider historic performance, current management information, forecasts, existing commitments and any available security. The most appropriate solution could be one loan or a combination of facilities.
Important: This is an illustration, not a quotation or indication of approval. Terms and availability depend on the business, proposal and lender.
When another facility may be more suitable
Unpaid Customer Invoices
If working capital is tied up in a strong sales ledger, invoice finance may provide funding that responds to eligible turnover.
Vehicles and Equipment
Asset finance may preserve working capital by matching repayments to the useful life of machinery, vehicles or technology.
Imported Goods and Purchase Orders
Trade or purchase finance may fund stock through the trade cycle before completed sales convert into receivables.
How Shadowfax approaches a commercial funding review
Requirement
We establish the amount, purpose, timing and commercial objective.
Affordability
We review performance, cash flow, commitments and the proposed repayment route.
Structure
We consider whether a loan, specialist facility or blended package is the better fit.
Market Comparison
We approach lenders whose appetite and criteria are relevant to the proposal.
Completion Support
We help coordinate information, due diligence, offers and documentation.
Compare commercial funding options
Commercial and Business Loan FAQs
How much can a business borrow?
The amount available depends on affordability, trading performance, existing commitments, security, the funding purpose and lender criteria. Facilities can range from smaller working-capital loans to larger structured commercial transactions.
Are unsecured commercial loans available?
Yes, some lenders provide unsecured facilities to eligible businesses. Approval is based on factors such as trading history, affordability, credit profile and the strength of the application.
Is property security always required?
No. Security requirements vary by lender, facility size, term and risk. Some loans are unsecured, while others may require business assets, property or personal guarantees.
Can a newer business obtain funding?
Potentially. Options for newer businesses may be more limited, but some lenders will consider the management team, contracts, forecasts, sector experience and available security.
Can commercial loans fund an acquisition or management buyout?
Yes. Acquisition and buyout funding may combine senior debt, deferred consideration, vendor finance, asset finance, invoice finance or other facilities, depending on the transaction.
How quickly can funding be arranged?
Timescales vary according to the lender, facility type, information available, security and complexity. A complete, well-presented application can help avoid unnecessary delay.
What information will lenders usually request?
Requirements vary, but commonly include filed accounts, management information, bank statements, forecasts, details of existing borrowing and a clear explanation of the funding purpose.
How is Shadowfax Funding Solutions paid?
Any broker fees and lender commission arrangements will be explained before you proceed.
Not sure whether a business loan is the best option?
A commercial loan may be appropriate, but invoice finance, asset finance, trade finance or a blended package could produce a better fit. We can help you compare the available routes.
Funding is subject to status, lender criteria, due diligence and final approval. Shadowfax Funding Solutions Limited acts as a commercial finance broker, not a lender. Terms, availability, security and charges vary by provider and proposal.