Why should I use Ark Business Finance?
As one of the UK's most established and experienced asset-based lending brokers, we are ideally placed to find you the right funding option quickly, allowing you to get on and run your business, saving you precious time and money.
Will Ark charge me for their advice?
We are paid an agreed fee by the lender, which we will disclose to you prior to successful completion of the agreement.
How long will the process take?
It primarily depends on the size and complexity of the deal, but our USP is to ensure that we make it a quick and efficient process by only dealing with decision makers to whom you often will not have access.
What level of turnover do I need to qualify?
There is no minimum or maximum turnover threshold – we deal with a wide range of companies ranging from start-up businesses to well-established multimillion-pound organisations.
What are the pros and cons of debtor finance?
Pros: debtor finance was designed for and therefore best suits businesses with stable or increasing turnover, as the lending is directly linked to this. Your business is simply borrowing its own money in advance of being paid, providing a specific asset to repay the borrowing, unlike traditional overdraft lending.
Cons: if you have declining turnover or very seasonal sales, debtor finance is not a suitable option to fund your business and in many cases will exacerbate your funding issues, not solve them.
What is the length of the agreement?
Typically, most debt-based facilities (factoring/invoice finance) last 12 months with a 3-month notice period, making it a 15-month agreement. However, we have lenders who will provide select and shorter-term facilities.
Business loans can range from 1 month to 15 years, subject to the type of loan you choose.
Are there termination charges for early exit?
In most cases, but not all, there will be a charge for exiting a finance facility early.
Will I have to provide a personal guarantee?
It is very likely that a business owner will need to provide the director's personal guarantees for any type of finance that Ark advises on. However, we can negotiate limits to these guarantees to match the risk.
What is the average funding percentage offered?
Within the industry, many lenders will fund as high as 90% of your approved sales ledger balance. However, this is not commonplace and should not be considered an average figure to work from.
Can I fund construction/contractual debt?
Ark has a great deal of experience of funding deals within this sector, with several specialist contractual lenders to choose from.
Do you provide personal loans?
Unfortunately, Ark is only able to assist with Limited Company business loans.
What is the difference between factoring and invoice finance?
Typically, factoring is a fully disclosed facility providing an additional credit collection service, whereas invoice finance is fully confidential.