Business Finance — everything you need to know

Business finance covers the full range of funding options available to UK companies — from commercial mortgages and secured business loans to invoice finance, asset finance, lease finance, development finance, and specialist acquisition lending. Promise Money is an FCA-regulated whole-of-market commercial finance broker. Whether you are buying commercial property, funding new equipment, solving a cash flow gap, or growing through acquisition, we can help you find the right solution.

Read the page or click the links below to jump to the section you need.

• Types of business finance
• Commercial mortgages
• Invoice finance
• Asset finance
• Lease finance
• Development finance
• Acquisition and EBITDA lending
• How do you choose the right option?

Want more detail? Read our The Business Finance 100 — 100 questions and answers covering every aspect of business finance.

Types of business finance

The main types of business finance Promise Money arranges are: commercial mortgages; invoice finance (factoring and discounting); asset finance (hire purchase and asset refinance); lease finance (finance lease and operating lease); commercial bridging finance; development finance; and EBITDA-based lending for acquisitions and management buyouts. We also assist with refinancing and debt restructuring.

Commercial mortgages

A commercial mortgage is a loan secured against a commercial property — offices, retail units, industrial units, warehouses, or mixed-use buildings. Terms typically run from 5 to 25 years with loan-to-value ratios of up to 75% for investment properties. Both fixed and variable rates are available. See our full Commercial Mortgages page for more detail.

Invoice finance

Invoice finance allows B2B businesses to unlock up to 90% of the value of outstanding invoices within 24 hours, rather than waiting 30–90 days for customers to pay. The two main types are factoring (the lender manages your ledger) and discounting (you retain control and confidentiality). No broker fee to businesses. See our full Invoice Finance page.

Asset finance

Asset finance allows businesses to acquire vehicles, machinery, and equipment by borrowing against the value of the asset itself. The most common form is hire purchase — you pay in fixed monthly instalments and own the asset outright at the final payment. Asset refinance lets you release equity from equipment you already own. See our full Asset Finance page.

Lease finance

Lease finance is a rental arrangement — you pay to use assets over an agreed term without buying them. A finance lease is designed for assets you will use for most of their working life. An operating lease is a shorter-term, often off-balance-sheet arrangement ideal for fast-depreciating technology and equipment. See our full Lease Finance page.

Development finance

Development finance is specialist short-term borrowing — typically 12 to 24 months — used to fund residential or commercial property development. It covers ground-up new builds, conversions, and heavy refurbishments. Loan-to-GDV ratios of up to 70% are typically available, with interest rolled up and repaid from sales proceeds or refinancing on practical completion.

Acquisition and EBITDA lending

EBITDA-based lending uses your business’s Earnings Before Interest, Tax, Depreciation, and Amortisation as the primary lending metric. It funds business acquisitions, management buyouts, and refinancing of existing business debt. Lenders typically lend 2–4.5 times EBITDA for SMEs. This type of finance requires detailed financial modelling — speak to our commercial team if you are considering a business purchase or MBO.

How do you choose the right option?

The right business finance product depends on your purpose (property, equipment ownership, equipment use, working capital, or acquisition), your business structure and trading history, the security available, your timescale, and the total cost of borrowing over the term. Promise Money advisers will review your requirements in full and recommend the most appropriate structure — with no obligation and no upfront broker fee.