Question 1

How does using a commercial finance broker differ from going to my bank?

Accepted Answer

Your bank can only offer its own products. That is a significant limitation if your business does not fit neatly into their lending criteria.

As a commercial finance broker, we work with a wide range of lenders, including high-street banks, challenger banks and specialist providers. That means we can look at the whole lending market and find the finance structure that actually fits your situation, rather than the only one available from your bank.

The right lender for your business is not always the most obvious one.

Question 2

Can you help if my bank has already declined my application?

Accepted Answer

Yes. A bank decline is not always the end of the road.

Banks often use automated systems that do not account for the full picture. Your case may have been declined because the wrong lender was approached, the application was not packaged properly, or a different type of finance would be more suitable.

We look at what happened, understand the reason for the decline, and work out whether there is a better route. If there is, we help you prepare a stronger case and present it to lenders who are a better fit. If we do not think we can help, we will tell you upfront.

Question 3

What types of businesses do you work with?

Accepted Answer

We work with UK-based business owners across a broad range of sectors, from established companies looking for growth capital to property investors and developers needing specialist finance.

Whether you are a limited company, a partnership or a sole trader, the aim is the same: to find the right finance for your specific situation, not a generic product that roughly fits.

Question 4

Will I need to give a personal guarantee?

Accepted Answer

In many cases, yes. Lenders often require a personal guarantee, particularly for unsecured business loans and cash flow finance.

Whether a personal guarantee is needed depends on the lender, the product and the financial position of your business. We will always explain this clearly before you commit to anything, so you understand what you are agreeing to and why.

If you want to understand personal guarantees in more detail before applying for anything, we have a plain-English guide that covers what they mean in practice. *** add guide link***

Question 5

How long does the finance process take?

Accepted Answer

It depends on what you need.

Straightforward asset or equipment finance can often be arranged quickly. More complex cases like commercial mortgages, development finance and bridging take longer because of the legal checks and valuations involved.

What we can tell you is that preparation matters. The clearer the case and the better the information provided upfront, the fewer delays there tend to be. Our job is to manage the process, communicate clearly and keep things moving.

Question 6

What information will I need to provide?

Accepted Answer

Lenders need to understand the financial position of your business and why you need the finance.

That usually means recent management accounts, business bank statements and a clear explanation of what the money is for and how it will be used.

The exact requirements depend on the type of finance and the lender. We will walk you through what is needed so your application is prepared properly from the start - which gives it the best chance of a positive outcome.

Question 7

What is a commercial finance broker?

Accepted Answer

A commercial finance broker helps business owners find and arrange finance from a range of lenders rather than being tied to one bank's products.

Where a bank will only offer what it has on its own shelf, a broker can look across the market. That includes high-street banks, challenger banks and specialist lenders, many of which business owners would not find easily on their own.

A good broker does more than make introductions. They look at the business, understand what the finance needs to achieve, package the case properly and present it to lenders in a way that gives it the best chance of success.

Reservoir Finance is a Commercial Finance Broker based in the East Midlands, working with SME business owners, property investors and developers across the UK.

Question 8

How do I know which type of business finance I need?

Accepted Answer

It depends on what the money is for.

If you need money in the business for cash flow, supplier payments, a tax bill or working capital - that is a different product from asset finance, which covers vehicles, equipment and machinery. Property transactions sit in a different category again.

Choosing the wrong type of finance can create more pressure later, even if the money arrives quickly. A short-term cash flow product is not the right answer for a long-term investment. A business loan is not the same as invoice finance.

We help business owners work out which route makes sense before submitting any applications. If you are not sure where you sit, that is exactly the conversation to have with us first.

Question 9

How much does using a commercial finance broker cost?

Accepted Answer

The cost depends on the type of finance, the lender and the work involved.

In many cases, we are paid a commission by the lender when the finance completes and no broker fee is payable by you.

For property finance or more complex applications, a fee may apply. If so, we will explain this upfront and confirm it in writing before you proceed.

No surprises, no hidden fees. Our full fee structure is set out in our Initial Disclosure Document (IDD), which you can download here.*(*****************

Pension based funding offers business owners the option to invest a portion of their pension in their own business

Pension based funding

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