If your business is scaling faster than you have ever imagined then you are probably running into one big question which is how do you fund that growth? The traditional bank loans can be slow, rigid, and sometimes just not enough at the same time. That is where Specialist Finance comes in to make things easier for you. You simply need to think of it as a toolbox of tailored financial solutions that has the ability to keep up with your momentum even when cash flow feels tight or your balance sheet is not perfect.

We all are aware of the fact that there are hundreds of companies working in the market but let’s bring in a trusted name which is Mayfair Commercial Mortgages. It is interesting to know that  “mortgages” might be in their name but they do far more than property lending. They have built a reputation in the market for helping ambitious companies in order to find specialist finance options that fit as per their growth journey. Their guidance would definitely prove to be helpful for the business owners to avoid roadblocks and make smarter financial moves from asset-backed lending to invoice financing and venture debt.

6 Finance Options Every Growing Business Should Know

Following are six popular ways explained about how fast-growing companies are getting the capital they need without relying solely on the traditional banks.

1. Venture Debt

If you are a startup or growth-stage company which is already backed by the investors then venture debt could be a game changer for you. It is one of the easier ways to raise money without giving away too much equity. You must be thinking about the trade off in this scenario? It is interesting to know that the higher interest and sometimes warrants (a small slice of equity) could be the trade off. It has proved to be worthy but only for the companies that need quick capital between funding rounds.

2. Invoice Financing

Have you ever felt like you are waiting forever for clients to pay? Well, that is a relatable issue that could be addressed with invoice financing. So you don’t have to worry about it. You can also turn these invoices into instant cash instead of stressing over 30-90 day payment terms. This whole idea of invoice financing might be a great helping hand in keeping your operations moving while you let a finance company handle the wait.

3. Asset-Based Lending (ABL)

If you are having valuable assets like equipment, inventory, or even receivables then Asset Based Lending will let you borrow against them. It is simply perfect for the businesses with strong balance sheets but maybe weaker cash flows at the same time. Are you still wondering for the best part? The borrowing power is directly proportional to the more assets you build.

4. Revenue-Based Financing (RBF)

Revenue Based Financing one is especially popular with SaaS companies and e-commerce brands. It is interesting to know that you can pay back a percentage of your revenue instead of the fixed repayments. So if sales dip one month then your repayment goes down at the same time. It is non dilutive and flexible which does end up making it a favorite for businesses that don’t want to give away their ownership.

5. Equipment Financing or Leasing

The upfront cost might also sting when the growth means buying new machines, vehicles, or tech. The option of equipment financing would definitely play a role in spreading that cost out or lets you lease instead. It’s often considered quite easier when it comes to security than other loan types since the equipment itself usually acts as collateral.

6. Purchase Order (PO) and Inventory Financing

There might be a possibility that you have landed a big order but don’t have the cash to fulfill it. The option of purchase order financing would help you to cover supplier costs so that you can deliver without draining your bank account.  The inventory financing might let you use stock as collateral in the same way. It is interesting to know that both are lifesavers for the businesses with seasonal demand or heavy supply chain expenses also.

Why Specialist Finance Is Booming

You must have noticed that banks have tightened their credit policy that ends up making it harder for younger or rapidly scaling businesses to borrow. The option of Specialist finance does fill that gap with solutions that are tailored to real-world business needs. It is interesting to know why more businesses are turning to these solutions with the growth of fintech lenders who can process applications in record time.

FAQs About Specialist Finance

What exactly is specialist finance?

The specialist finance can be explained as a range of non-traditional financing solutions like invoice financing, venture debt, or asset-backed lending which are specifically designed to meet the needs of fast-growing businesses.

Is specialist finance more expensive than a bank loan?

Yes, specialist finance is more expensive than a bank loan as the interest rates and fees are often higher, but the flexibility and speed can outweigh the cost too.

Can startups use specialist finance?

The startups can easily use specialist finance as they often turn to venture debt, revenue-based financing, or invoice financing.

Will I lose equity with specialist finance?

That is not always the case as some options like venture debt may include warrants.

How quickly can I access specialist finance?

You can access specialist finance much quicker than the banks.