Small businesses and the self-employed
Find out about the main financial products small businesses need to be familiar with.
Small business loans
Small businesses and the self-employed often turn to the banks for finance.
A credit facility or line of credit is a common form of borrowing used by businesses and is normally renewable annually.
Bill discounting and advances
The bank pays the small business’s receivables arising from its business or commercial activity in advance.
Reverse factoring or supply chain financing is a supplier-payment management service whereby the bank may offer to pay invoices before they are due.
This involves advance payment based on the purchase of receivables arising from real-estate, services or construction activities. This may or may not entail the bank or factor taking the risk of default and handling collection when due.
Leasing and renting
These are arrangements grant the use of an asset in exchange for periodic payments covering the cost of use plus interest and financial charges, which are tax deductible.
Letters of credit
A letter of credit or documentary credit is a payment mechanism used in international transactions to give added security to both the exporter and the importer.
Property developer loan
This is a specific form of lending tailored to property developers and to buyers of finished properties from developers when they take over a share of the loan granted to the developer by subrogation.
FREQUENTLY ASKED QUESTIONS
Can a lender charge a small business an account manitenance fee for an accoun linked to a mortgage?Read answerabout
Can a lender charge a small business an account manitenance fee for an accoun linked to a mortgage?
Do I have to be notified in advance about the non-renewal of a credit facility?Read answerabout
Do I have to be notified in advance about the non-renewal of a credit facility?