Business Finance

Access to finance is vital at every stage of the business journey. Both start ups and established enterprises can benefit from business finance. Whether you need a cash injection to smooth over cash flow gaps or access to funding to fuel expansion plans, a business finance facility is integral to sustainable business growth.

Business finance solutions typically fall into two categories; equity finance and debt finance. In simple terms, debt finance involves funding that the business repays plus interest at a later date. Equity finance is the exchange of shares or part-ownership of the company in exchange to raise capital.

Debt finance

Debt financing is a broad category that covers a wide range of business finance solutions, including:

• Invoice finance
• Equipment finance
• Trade finance
• Supply chain finance
• Traditional lenders/business loans

This category of business finance does not require the transfer of ownership or shares in exchange for finance. Funding is provided to the business and is later repaid plus interest. 

Equity finance

This type of finance can be more challenging to access, and typically involves giving up equity in the business in exchange for funding. 

• Self-funding/personal savings
• Venture capital
• Angel investors
• Family and friends

Equity finance can be more complicated than debtor finance, impacting operational decision making and the overall control of your business.

Yes. Many small business owners are unaware of how straightforward the application process for business finance can be. While a business loan from a traditional lender can take months to arrange, a business finance solution from ScotPac can be approved and you can have funding in place in as little as 24 hours.

A low credit score may impact your ability to secure funding from a traditional lender or bank. Due to strict lending criteria, you may be denied financing as the bank views your business as too much of a risk. Traditional lenders usually also require that use your personal property as collateral for funding.

Here at ScotPac, we believe that every business deserves the opportunity to grow. We’re focused on the future growth of your business rather than your personal credit history. If you’ve been rejected for a traditional business loan, speak to one of our friendly advisors about your business finance options.