| Products | Business loans, asset, car, invoice and tax finance |
|---|---|
| Typical loan size | £25,000 to £5m+ |
| Terms | From a few months to around 10 years |
| Security | Unsecured, asset-backed or property-secured |
| Personal guarantees | Often required from directors |
| FCA regulated? | Most lending to limited companies is not regulated |
Who is this for?
- Growing SMEs funding expansion, stock or hiring
- Businesses buying vehicles, machinery or equipment
- Directors and companies financing prestige or supercars
- Firms with long invoice payment terms needing cash flow
- Companies spreading VAT or corporation tax bills
Business loans
A business loan provides a lump sum repaid over a fixed term, usually monthly. It can fund growth, refurbishment, acquisitions or working capital. Loans may be unsecured, or secured against business assets or property.
Lenders assess trading history, profitability, cash flow and credit records. Unsecured loans usually require a personal guarantee from directors. Larger amounts or longer terms often need property security, which may make a commercial mortgage or bridging loan a better fit.
Lending to limited companies is generally not FCA regulated. Some smaller loans to sole traders and partnerships can be regulated.
Asset finance
Asset finance lets a business acquire equipment, vehicles or machinery and pay for it over time. The asset itself usually acts as security, which can make approval easier and leave other credit lines free.
- Hire purchase: you pay instalments and own the asset at the end.
- Finance lease: you use the asset for most of its life without taking ownership.
- Operating lease: you rent the asset for a shorter period and return it.
- Asset refinance: you release cash from equipment you already own.
The tax and accounting treatment differs between these options, so check with your accountant.
New and used assets can usually be funded. Some lenders also fund soft assets such as software, though often on shorter terms.
Prestige and supercar finance
Prestige car finance funds high-value, classic and supercars that mainstream car finance providers may not cover. Specialist lenders understand how these cars hold value and can offer flexible structures.
Common options include hire purchase, lease purchase with a final balloon payment, and equity release against a car you already own. Balloon structures lower monthly payments but leave a large sum due at the end. The car may be repossessed if you do not keep up payments. Finance taken personally is usually regulated consumer credit, while finance taken by a company is often not.
Invoice finance
Invoice finance releases cash tied up in unpaid customer invoices. A lender advances a large share of the invoice value straight away, then pays the balance, less fees, when your customer pays.
- Factoring: the lender manages your sales ledger and collects payment, so customers know.
- Invoice discounting: you keep control of collections, and it can be confidential.
- Selective invoice finance: you choose which invoices to fund.
It suits B2B firms with reliable customers on long payment terms. Fees and contract terms vary widely, and some agreements have minimum periods.
Lenders focus mainly on the quality of your customers and your invoicing process, not just your own credit record.
VAT and tax loans
A VAT or tax loan spreads a large bill, such as quarterly VAT or corporation tax, over several months. The lender pays HMRC directly and you repay in instalments.
VAT loans are usually short, often around three to six months, to fit before the next VAT quarter. Corporation tax loans can run for up to a year. They protect cash flow, but they add interest to a bill you already owe. HMRC's own Time to Pay arrangements may be an alternative worth considering.
How does OMB help with business finance?
The business finance market is broad and fragmented, with many specialist lenders that each favour certain sectors and products. Choosing the wrong facility can be costly or restrict future borrowing.
We start with your cash flow and goals, then compare options across the market. For directors, protecting the business with key person insurance is often worth considering alongside new borrowing.
We also consider whether borrowing should be secured, how repayments fit seasonal cash flow, and whether existing facilities could be restructured. Where a business owns property, raising money against it can sometimes be more suitable than unsecured borrowing, though it puts the property at risk.
We will always explain how we are paid and whether the borrowing is regulated before you proceed.
How we arrange it
- Free 15-minute call
- We review your accounts, cash flow and purpose
- We compare suitable lenders and facility types
- Application, credit checks and offer
- Funds released and facility reviewed over time
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£280,000 asset finance covering 80% of the cost of new plant for an Essex contractor
£750,000 acquisition loan at 54% of purchase price for a Midlands estate agency
£400,000 invoice finance facility for a growing London recruitment firm
From the blogTerm loan, asset finance or invoice finance? Choosing business finance in 2026
Read the articleFrequently asked questions
Can I get a business loan without security?
Yes, many lenders offer unsecured business loans, but they usually require a personal guarantee from directors. Amounts and terms tend to be lower than secured loans. Lenders will look closely at your trading history, profitability and credit record. Costs are usually higher than for secured borrowing.
What is a personal guarantee?
A personal guarantee is a promise by a director or owner to repay the business debt personally if the company cannot. It can put your personal assets at risk. Some guarantees are limited to a set amount. Always take independent legal advice before signing one.
Is business finance regulated by the FCA?
Most lending to limited companies is not regulated by the FCA. Some lending to sole traders and small partnerships is regulated, depending on the amount. Unregulated borrowing gives you fewer consumer protections, so understanding the terms is especially important. We will tell you which applies to your borrowing.
What is the difference between hire purchase and leasing?
With hire purchase, you pay instalments and own the asset once the final payment is made. With leasing, you pay to use the asset and usually return it or upgrade at the end. The tax treatment differs, so ask your accountant which suits your business.
Can I finance a supercar through my company?
Often, yes. Company finance for prestige cars is widely available, but there may be benefit-in-kind tax and other implications if the car is used privately. Take tax advice before deciding whether to finance a car personally or through the business.
What is a balloon payment on car finance?
A balloon payment is a large final payment due at the end of the agreement. It lowers your monthly payments but leaves a significant sum to pay, refinance or settle by selling the car. If the car's value falls, you may owe more than it is worth.
How does invoice finance work?
A lender advances a large proportion of your unpaid invoices straight away. When your customer pays, you receive the balance minus the lender's fees. It turns invoices into cash quickly, but fees vary and contracts can include minimum terms and notice periods.
Can I borrow to pay my VAT bill?
Yes. A VAT loan pays HMRC on your behalf and you repay over a few months, usually before your next VAT quarter. It eases cash flow but adds interest. HMRC's Time to Pay arrangements may be an alternative if you are struggling to pay.
Can I get business finance with poor credit?
Some specialist lenders consider businesses or directors with past credit issues, often with security or higher costs. Asset finance and invoice finance can be more accessible because they are backed by assets or invoices. We will be honest about what is realistic.
How long does business finance take?
Simple unsecured loans and VAT loans can be relatively quick. Asset finance depends on the supplier and asset. Property-secured loans take longer because of valuation and legal work. Having up-to-date accounts and bank statements ready speeds things up. We will give you a realistic timescale at the outset.
Important: Commercial mortgages and most business finance are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments on loans secured against it.