What to consider when choosing a new funding facility


There’s a lot to consider when comparing different funding options for your business.

It’s not just about the level of funding it will provide; you’ll also need to consider any additional features of the facility, how flexible it is and of course how much it will cost.

This can make it potentially tricky to identify which option represents the right route for your company, even before you start comparing the finance providers offering those facilities – each with different areas of specialism, USPs and pricing structures.

So how do you know which combination represents the right fit for your business?

Here are five key areas to consider when choosing a new finance facility:

1. Amount of funding

The facility (or combination of facilities) you choose has to provide the funding your business requires. While some products provide a lump sum, like a loan, others work by releasing funding as and when you need it, for instance every time you raise an invoice. So the right funding facility will always be dependent on your specific funding requirement.

2. Flexibility

It’s important that any facilities you choose are flexible. For instance, will the facility support your business over the short, medium and long-term, and continue to do so either in times of growth or through leaner months, particularly if you’re a seasonal business? Can adjustments be made to the facility? And will you be tied into a long contract with the funder that might prove counter-productive in the long term?

3. Suitability

It’s also vital that your facility suits your business. A loan that needs to be repaid in six months’ time might work for businesses with a very short-term cash flow hole that needs filling, but may be counter-productive for those in need of ongoing cash flow support. Also consider what additional features the facility either includes or can include, for instance debtor protection, sales ledger management or guidance from an investor – each of which could be just as valuable as the funding provided.

4. Lender’s expertise

Some lenders specialise in certain sectors or in working with businesses of particular sizes. So make sure you choose one that can bring value to you, and can also provide the level of service and relationship that you desire and expect from a funding partner.

5. Cost

Ultimately any facility you choose needs to be affordable. A loan, for instance, might work in the short term but create challenges down the line. And remember, it can often be worth paying for a more expensive facility if it delivers more value to the business.

How to find the right facility

If you’re searching for a new funding facility or reviewing how any existing facilities compare against the wider market, a specialist finance broker can add real value to your search and help to identify the most supportive and competitive funding facilities available.

At Hilton-Baird, we’ve been helping businesses to find and secure the right funding since 1997, and have a proven track record and glowing client testimonials and success stories to show for it.

Award winning, independent and authorised by the FCA, we have expertise across the commercial finance market and are relied on by businesses of all sizes to introduce the most suitable facilities every day.

To discuss your requirements and the value we can add to your search, contact our team on 0800 9774833 or request a call back with our experienced team at a convenient time.


Some of the funders we work with

  • Time Finance
  • Accelerated Payments
  • Regency Factors
  • Team Factors
  • Barclays
  • Haydock Finance Ltd
  • Ultimate Finance Group
  • Kriya
  • Praetura Invoice Finance
  • Merchant Money
  • Lloyds Bank Commercial Finance
  • Roma Finance
  • PNC Business Credit
  • InvoCap
  • Metro Bank SME Finance
  • eCapital Commercial Finance
  • Santander Corporate & Commercial
  • Skipton Business Finance
  • Berkeley Trade Finance Ltd
  • Peak Cashflow
  • Close Brothers Invoice Finance
  • Tradeplus24
  • IGF Invoice Finance
  • Investec
  • Cynergy Business Finance
  • Optimum Finance
  • Davenham Asset Finance
  • Aldermore Invoice Finance
  • Sonovate
  • Leumi ABL
  • Woodsford Tradebridge
  • Royal Bank of Scotland
  • Blazehill Capital
  • Giant
  • Nationwide Finance
  • Pulse Cashflow Finance
  • 4Syte
  • ABN AMRO Commercial Finance
  • Partnership Invoice Finance
  • Castlebridge
  • Clear Factor
  • MaxCap
  • Davenham Trade Finance

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders