Commercial Finance Broker
Commercial finance brokers for UK businesses
FCA Authorised | Reference: 729876
Commercial finance arranged across the whole product range
Mill Wood Finance is a commercial finance brokerage working with businesses across the UK. We have arranged funding since 1999 and are a credit broker rather than a lender, which means we are paid to find the right facility rather than to sell you a particular one.
Commercial finance covers the practical funding a business uses to trade and grow. Buying premises, funding equipment, releasing cash tied up in unpaid invoices, financing stock, funding an acquisition, or replacing borrowing that has become expensive. Each of those sits in a different part of the lending market with different funders and different criteria.
We work with businesses in retail, hospitality, manufacturing, construction, haulage, wholesale and professional services, among others. What the sector tells a lender matters as much as the figures, and knowing how a particular trade is currently viewed is a large part of choosing where to take a case.
Getting the funding structure right
Businesses often come to us naming a specific facility, usually the one they have heard of or the one their bank mentioned. Frequently something else fits the requirement better and costs considerably less.
The mismatch is usually one of duration. Short-term funding used to cover a long-term need becomes expensive quickly, and long-term borrowing taken out for a temporary gap ties up security the business may want later. We start with what the money is for and how it will be repaid, then work back to which facility suits.
What is already in place matters too. A lender holding a debenture or a charge over assets can restrict what another funder will consider later, so adding facilities one at a time, each arranged in isolation, is how businesses end up paying more than they need to across the whole funding position.
Secured and unsecured commercial finance
Most commercial finance falls into one of two categories, and which one applies changes what you can borrow and what it costs.
Secured facilities are backed by an asset, usually property, equipment or the invoices the business is owed. Because the lender has recourse to something tangible, secured lending generally allows larger sums, longer terms and keener pricing. Commercial mortgages, asset refinance and invoice finance all work this way.
Unsecured facilities are backed by the trading position of the business alone, often supported by a personal guarantee from the directors. They are quicker to arrange and require no asset, but the amounts are smaller and the cost is higher.
Asset finance sits alongside both. Hire purchase spreads the cost of equipment over a fixed term and leaves you owning it at the end. Leasing keeps the asset off your balance sheet and suits equipment that dates quickly or needs regular replacement. Which route works better usually comes down to how long you expect to keep the asset and how you want the cost treated.
How can a commercial finance broker help you?
A commercial finance broker sits between a business and the lending market. Rather than approaching funders one at a time and hoping, a business works with a broker who knows which lenders are active in each product area and what each of them will consider.
The commercial lending market extends a long way past the high street, taking in challenger banks, independent finance houses, specialist funders and lenders who work only in particular products or sectors. A bank can offer you its own products assessed against its own criteria, and nothing more. If the answer comes back no, you have learned nothing about whether another lender would have taken a different view, and you have usually lost several weeks finding out.
At Mill Wood Finance we work with a panel of commercial lenders covering the main product areas, and we prepare a full business case for every application rather than forwarding your figures and waiting to hear back. Where a case does not stack up we say so early, and where a different facility would suit the business better than the one you arrived asking about, we will set out why.
FCA Authorised since 1999
Mill Wood Finance is one of the longest-established independent commercial finance brokerages in the UK. We are authorised and regulated by the FCA for our credit broking activities under reference 729876. We are a credit broker and not a lender.
A named broker throughout
You deal with the same person from the first conversation to completion. That person knows the business, knows where the application has got to, and picks up the phone when you ring.
Who we work with
We work with UK businesses across trading sectors, and the reasons they come to us vary considerably. Common ones include:
- Buying premises rather than continuing to lease, or refinancing a commercial mortgage reaching the end of its term
- Funding equipment, vehicles or plant, or releasing capital held in assets the business already owns
- Waiting on customer payments while suppliers and payroll still need paying
- Funding the purchase of another business, or buying out a partner
- Carrying several facilities taken on at different times and wanting to simplify them
- Being declined by their own bank without a clear explanation of why
Our Brokerage Process
We keep the process straightforward so you can focus on running your business. From your first conversation with us through to a completed application, here is what to expect:
FAQs
What is commercial finance?
Commercial finance is the funding businesses use to operate and grow. It covers property purchase, equipment funding, invoice finance, working capital facilities, acquisition funding and secured lending. The common thread is that the finance is arranged for business purposes rather than personal ones, and is assessed on the trading position of the business.
What is the difference between commercial finance and corporate finance?
Commercial finance deals with practical funding products such as asset finance, secured loans and working capital facilities. Corporate finance sits at a more strategic level, dealing with how a business structures its overall funding position and plans for events such as acquisitions or refinancing. Many businesses need both, and we provide advisory across corporate finance and commercial finance so that funding decisions work together.
Who can apply for commercial finance in the UK?
Any UK business can apply, though criteria vary substantially between products and lenders. Most funders will want business bank statements, management accounts, details of the directors and a clear explanation of what the borrowing is for. Requirements differ depending on whether the facility is secured or unsecured, and on how long the business has been trading.
What is the difference between secured and unsecured commercial finance?
Secured finance is backed by an asset such as property, equipment or unpaid invoices, which generally allows larger amounts, longer terms and lower rates. Unsecured finance relies on the trading strength of the business and often a personal guarantee from the directors. It is faster to arrange and needs no asset, but the sums are smaller and it costs more. Which is appropriate depends on what the business owns and what the funding is for.
What commercial lenders do you have access to?
We work with a panel of lenders spanning high street banks, challenger banks, independent finance houses and specialist funders who concentrate on particular products or sectors. Which of them is right depends entirely on the facility you need and the position of the business, which is what the first conversation establishes.
How long does commercial finance take to arrange?
It depends heavily on the product. Invoice finance and cash flow facilities can move in days. Commercial mortgages and acquisition funding usually run to weeks because of valuation and legal work. We will give you a realistic timeline at the outset rather than an optimistic one.
Is Mill Wood Finance regulated?
Yes. Mill Wood Finance Limited is authorised and regulated by the Financial Conduct Authority for its credit broking activities. Our Firm Reference Number is 729876 and can be verified on the FCA register. We have been operating since 1999.
Speak to a specialist commercial finance broker
- Free Consultation
- Dedicated Account Manager
- Transparent Fees