Choose by the cash-flow pattern
For a one-off investment with a measurable payback period, compare a term loan with asset finance where relevant. For a fluctuating gap between receipts and payments, investigate an overdraft or other revolving arrangement. For business-to-business invoices, investigate invoice finance. The British Business Bank’s guidance describes these as different routes, each with its own suitability considerations.
Source: British Business Bank: finance options ↗
- An overdraft review date matters even if borrowing is within the limit.
- For asset finance, compare ownership, return and final-payment obligations.
- For invoice finance, ask who communicates with customers and who carries non-payment risk.
Growth Guarantee Scheme: check the operative terms
The British Business Bank’s scheme page currently distinguishes announced enhancements from the existing terms under which lenders continue to operate. This library does not treat an announcement as a live offer. Ask an accredited lender which version applies to your application and confirm the amount, eligibility and term in writing.
Source: British Business Bank: Growth Guarantee Scheme status ↗
- The guarantee supports the lender; the borrower remains responsible for the debt.
- Scheme participation does not mean every application will be accepted.
- Check personal-guarantee requirements and the total price of the actual facility.
Direct lenders and product scope
NatWest publishes business loans and overdrafts; iwoca describes its own business lending service. The directory links to these specific offerings. A company may have other products, partners or referral channels, so confirm the contracting lender rather than assuming every service on its website is provided directly.
Source: NatWest: business lending and finance ↗
- Ask whether the quoted interest figure is annual, monthly, fixed or variable.
- Identify the legal borrower: company, partnership or individual.
- For a personal guarantee, understand the cap, enforcement conditions and release process before signing.
Worked planning example: an agency
Illustrative only: an agency expects GBP 60,000 of receipts in six weeks, but owes GBP 35,000 of payroll and supplier payments before then. Its opening cash is GBP 10,000. The basic timing gap is GBP 25,000, before fees and a contingency. Compare an overdraft proposal with eligible invoice funding against that dated gap, not against annual turnover. Then delay the largest receipt by two weeks and recalculate.
Prepare a proposal that explains repayment
Bring management accounts, bank statements, debtor and creditor ageing, existing finance details and a forecast that reconciles to opening cash. Treat VAT and other tax-payment dates as cash outflows in the planning schedule; obtain accounting advice for their actual treatment. Explain whether the funding bridges a temporary delay or supports an ongoing loss. Debt can bridge timing but cannot make an unprofitable contract profitable.
- What happens at annual review or facility expiry?
- Does early repayment reduce all remaining interest, and are exit fees due?
- What happens if a customer disputes an invoice or an asset needs to be sold?
Take the next step
Put your proposal beside the cash-flow forecast. Check the net proceeds, payment dates and obligations before deciding.
Examples are hypothetical and use stated assumptions, not provider quotes. Sources describe public information checked on the date above. Availability and terms can change. No independent professional review is claimed.