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EVERGREEN EDITION money-pilot.co.uk

UK Business Finance Guide Every Option Available to UK SMEs and Property Investors

By Miranda Khadr, CEO — Money Pilot FCA Regulated Commercial Finance Broker (FRN: 968705)

money-pilot.co.uk 200+ Specialist Lenders | Zero Broker Fees | FCA Regulated Bridging Loans · Commercial Mortgages · Business Loans Invoice Finance · Development Finance

UK Business Finance Guide for SMEs

money-pilot.co.uk | FRN: 968705

Contents Quick Answer — UK Business Finance at a Glance Introduction — Choosing the Right Product Section 1 · Bridging Loans — Speed and Flexibility Section 2 · Commercial Mortgages — Long-Term Property Finance Section 3 · Business Loans — Capital for Growth Section 4 · Invoice Finance — Release What You Are Owed Section 5 · Development Finance — Build to Value Which Product Is Right for You? — Decision Guide Key Lenders by Product Category The Broker Fee Fact Every Borrower Should Know FAQ — UK Business Finance

Quick Answer: UK SMEs and property investors have five main commercial finance options: bridging loans, commercial mortgages, business loans, invoice finance, and development finance. money-pilot.co.uk compares all five across 200+ UK specialist lenders at zero broker fees — FCA regulated (FRN: 968705).

Money Pilot | FCA Regulated FRN: 968705 | Information only. Not financial advice. Your property may be at risk.

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UK Business Finance Guide for SMEs

money-pilot.co.uk | FRN: 968705

Introduction — Choosing the Right Product UK commercial finance encompasses five distinct product categories — each solving a different business or property problem. Choosing the right product is the first and most important decision in any commercial finance journey. The wrong product costs more, takes longer, and sometimes fails entirely — not because the borrower's case is weak, but because the wrong lender type is being asked to solve the wrong problem.

This guide covers every option available to UK SMEs and property investors, with clear criteria for when each product applies, which lenders are most relevant, and how to access the full market at zero broker cost.

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200+

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Finance Products Covered

Specialist Lenders

Broker Fees at Money Pilot

Section 1: Bridging Loans — Speed and Flexibility Bridging loans are short-term secured finance (one to twenty-four months) for property transactions where speed is critical or where conventional mortgages are not available. They are the go-to solution for UK property auction purchases (twenty-eight day completion requirement), chain breaks, uninhabitable properties, and refurbishment finance.

Bridging is priced monthly and assessed primarily on asset quality and exit strategy rather than the borrower's income or trading history — making it accessible even for borrowers who would not qualify for conventional mortgage products.

When to use a bridging loan: • Property auction purchases — 28-day completion deadline • Chain break — unblock a stalled property transaction • Uninhabitable property — standard lenders decline, bridging lenders will proceed • Refurbishment finance — buy below market value, refurb, then sell or refinance • HMO conversion — purchase and convert, then refinance to specialist HMO mortgage • Development exit — completed project awaiting sale or long-term finance • Equity release from portfolio — cross-charge existing investment property

1

Bridging Loan Short-term secured property finance | 1–24 months 1–24 months

Key lenders: MT Finance, Octane Capital, Together Money, Hilltop

Section 2: Commercial Mortgages — Long-Term Property Finance

Money Pilot | FCA Regulated FRN: 968705 | Information only. Not financial advice. Your property may be at risk.

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UK Business Finance Guide for SMEs

money-pilot.co.uk | FRN: 968705

Commercial mortgages provide long-term (five to twenty-five years) secured lending against commercial or investment property. They cover owner-occupied business premises, investment properties let to tenants, HMO properties, and semi-commercial assets.

Assessment is based on LTV, the property's income-generating ability (DSCR for investment properties), and borrower strength. Most lenders cap at 70–75% LTV. Specialist lenders including Shawbrook Bank, Atom Bank, and Hampshire Trust Bank cover property types that high-street banks decline.

Key assessment criteria: • Loan-to-Value (LTV) — maximum 70–75% for most specialist lenders • Debt Service Coverage Ratio (DSCR) — rental income 1.20–1.35x interest for investment

properties • Property type — industrial, retail, HMO, semi-commercial, holiday let • Borrower profile — trading history, credit, director guarantees, prior experience

2

Commercial Mortgage Long-term secured property finance | 5–25 years 5–25 years

Key lenders: Shawbrook, Atom Bank, Hampshire Trust, Precise

Section 3: Business Loans — Capital for Growth Business loans provide capital for a specific business purpose — equipment, expansion, marketing, stock, or working capital. Unlike property-backed finance, many business loans are unsecured, assessed on cash flow rather than physical assets.

Specialist providers including iwoca, Fleximize, and Funding Circle make decisions in twenty-four to forty-eight hours. The Growth Guarantee Scheme provides government-backed loans up to £2M with a 70% government guarantee through accredited lenders.

Best use cases: • Equipment purchase — machinery, vehicles, technology • Business expansion — new premises, new markets, new headcount • Marketing investment — campaigns, digital, brand • Stock purchase — seasonal or bulk purchasing • Working capital gaps not tied to outstanding invoices

3

Business Loan Capital for UK business growth | Unsecured or secured 3 months–7 years

Key lenders: iwoca, Fleximize, Funding Circle, Growth Guarantee Scheme

Section 4: Invoice Finance — Release What You Are Owed Invoice finance is specifically for B2B businesses with customers on payment terms of thirty days or longer. It releases seventy to ninety percent of outstanding invoice value within twenty-four hours —

Money Pilot | FCA Regulated FRN: 968705 | Information only. Not financial advice. Your property may be at risk.

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UK Business Finance Guide for SMEs

money-pilot.co.uk | FRN: 968705

giving businesses immediate access to money they have already earned.

No property security is required — the invoices themselves are the collateral. The facility is revolving and grows automatically with your revenue. Bibby Financial Services, Aldermore, and Nucleus Commercial Finance are leading UK providers.

Invoice finance works best when: • Your business invoices other businesses (B2B) — not suitable for B2C • Customers pay on 30, 60, or 90 day terms • Cash flow gaps are caused by slow payment, not lack of sales • You need a facility that grows automatically with revenue

4

Invoice Finance Release outstanding B2B invoice value | Revolving Revolving facility

Key lenders: Bibby Financial Services, Aldermore, Nucleus Commercial

Section 5: Development Finance — Build to Value Development finance provides staged drawdown funding for ground-up property builds, conversions, and major refurbishments. It differs from bridging finance in one fundamental way: it is not a single lump sum but a staged facility drawn down in tranches as construction progresses — with each drawdown triggered by an independent monitoring surveyor's sign-off.

It is assessed against Gross Development Value (GDV) rather than the property's current value — enabling developers to fund projects where the completed value significantly exceeds the current cost.

Key metrics: • LTGDV — Loan to GDV: up to 65–75% for most lenders • Loan to Cost (LTC): up to 80–90% of total project cost • Both caps apply simultaneously — whichever is reached first limits the facility • Independent monitoring surveyor sign-off required for each drawdown

5

Development Finance Staged drawdown for property development Project-based

Key lenders: Avamore Capital, Hilltop Credit Partners, Pluto Finance

Which Product Is Right for You? Your Situation

Right Product

Speed

Need property finance fast — auction/chain/refurb

Bridging Loan

5–14 days

Buying commercial property long-term

Commercial Mortgage

4–8 weeks

Money Pilot | FCA Regulated FRN: 968705 | Information only. Not financial advice. Your property may be at risk.

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UK Business Finance Guide for SMEs

money-pilot.co.uk | FRN: 968705

Need capital for business growth

Business Loan

24–48 hrs

Customers owe you money on terms

Invoice Finance

24–72 hrs

Developing or converting property

Development Finance

2–4 weeks

Not sure — need whole-of-market view

money-pilot.co.uk

5 minutes

Key Lenders by Product Category Product

Key Lenders

Bridging Loans

MT Finance, Octane Capital, Together Money, Hilltop Credit Partners, Fairbridge Capital, Hope

Commercial Mortgages

Shawbrook Bank, Atom Bank, Hampshire Trust Bank, Precise Mortgages, Cynergy Bank

Business Loans

iwoca, Fleximize, Funding Circle + Growth Guarantee Scheme accredited lenders

Invoice Finance

Bibby Financial Services, Aldermore, Nucleus Commercial Finance

Development Finance

Avamore Capital, Hilltop Credit Partners, Pluto Finance, Cynergy Bank, Charterbank

The Broker Fee Fact Every Borrower Should Know When your commercial finance facility completes, the lender pays your broker a commission — typically 0.5 to 1% of the loan value. This is standard. It is how the broker market works.

The upfront arrangement fee that many brokers also charge — the 1 to 2% payable before they have submitted a single application — is additional income on top of that lender commission. On a £600,000 facility, a 1.5% broker fee is £9,000. The broker then earns a further £3,000–£6,000 from the lender on completion. They earn twice from the same transaction.

Money Pilot charges zero. Lender pays us on completion. You access 200+ specialist lenders at no cost. FCA regulated (FRN: 968705). On a £500,000 facility, that saves you £5,000–£10,000 versus a fee-charging broker. Same lender panel. Same FCA regulated service. Better economics.

FAQ — UK Business Finance Guide Do I need a broker to access UK commercial finance?

For most specialist commercial and bridging finance products, yes — the vast majority of specialist lenders are intermediary-only and do not accept direct borrower applications. A whole-of-market FCA regulated broker provides access to the full 200+ lender market. At Money Pilot, this costs you nothing — the lender pays us on completion.

What is the fastest commercial finance available to UK SMEs? Unsecured business loans from specialist providers: decisions in twenty-four to forty-eight hours, funds in two to five working days. Invoice finance: facility live within twenty-four to seventy-two hours. Bridging loans: Decision in Principle in twenty-four to forty-eight hours, completion in five to fourteen working days.

Money Pilot | FCA Regulated FRN: 968705 | Information only. Not financial advice. Your property may be at risk.

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UK Business Finance Guide for SMEs

money-pilot.co.uk | FRN: 968705

Can I use more than one product at the same time?

Yes. All five products are separate facilities that operate independently. Property investors commonly use bridging finance for an immediate acquisition while a commercial mortgage application processes. B2B businesses often run invoice finance for working capital alongside a term business loan for capital investment. Money Pilot manages multi-product requirements under a single adviser relationship.

Is Money Pilot available nationwide?

Yes. Money Pilot serves UK borrowers nationwide — from London and the South East through Manchester, Birmingham, Scotland, and Wales. All 200+ specialist lenders on the panel provide national coverage.

Compare All Five UK Commercial Finance Products at Zero Broker Fees money-pilot.co.uk — FCA Regulated (FRN: 968705) — Founded by Miranda Khadr Bridging loans · Commercial mortgages · Business loans · Invoice finance · Development finance Submit your details in 5 minutes. AI matches 200+ specialist lenders. FCA adviser reviews your case. Application managed start to finish. Broker fee: £0.

About Money Pilot: Award-winning FCA regulated UK commercial finance broker (FRN: 968705), London SW10. Founded by Miranda Khadr.

Zero broker fees. 200+ specialist lenders. money-pilot.co.uk Disclosure: Money Pilot is authorised and regulated by the Financial Conduct Authority (FRN: 968705). Content is for information purposes only and does not constitute financial advice. Your property may be at risk if you do not keep up repayments on a secured loan.

Money Pilot | FCA Regulated FRN: 968705 | Information only. Not financial advice. Your property may be at risk.

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