Sources of Finance for Your Business

Sources of Finance for Your Business

Let’s be honest. Running a small business means constantly juggling time, cash flow, and a never-ending list of expenses. Whether you’re laying bricks, fitting kitchens, managing a corner shop or running an online boutique, money fuels every move you make.

So—what do you do when you need funding?

This guide cuts through the noise. We’ll walk you through the top sources of finance for your business, what each option means for your cash flow, and how to make a smart decision without wasting time.

You’ll also learn why working with a broker matters—and what makes First Oak Capital a different breed from the rest.

Let’s dive in.

Why SMEs Need to Explore Finance Options

Cash flow gaps. Big orders. Equipment breakdowns. Late invoices. Growth opportunities.

Sound familiar?

Every business owner hits a point where extra funding becomes not just useful—but essential. And yet, many SMEs don’t realise how many finance options are available, or they’ve been burned by rejections and stop trying.

Here’s the thing: you don’t need a perfect credit score to get funded.
You just need the right option—and the right support.

The Most Common Sources of Finance for UK SMEs

Let’s break down the major sources of finance available to you. We’ll cover what they are, how they work, and when they make sense.

1. Unsecured Business Loans

Need cash fast? Don’t want to risk assets?
Unsecured business loans are often the go-to.

• No collateral required

• Terms from 3 to 60 months

• Borrow from £5,000 to £500,000

These loans are perfect for:

• Buying stock

• Covering short-term costs

• Expanding marketing

• Hiring new staff

And because they’re based on your trading history—not your van or shop—you can stay flexible.

2. Secured Business Loans

If you own assets—like property, vehicles, or equipment—secured loans might work better.

• Higher borrowing limits

• Lower interest rates

• Longer repayment terms

Ideal when:

• You’re investing in big expansion

• You need more than £250,000

• You want more competitive terms

Just remember: your assets are on the line. So make sure the loan supports real business growth.

3. Asset Finance

Equipment not cutting it? Need to invest in tools, vans, or machinery?

Asset finance helps you spread the cost over time instead of shelling out in one go.

Types include:

• Hire purchase

• Finance lease

• Operating lease

Why it works:

• Keeps cash in the business

• Upgrades your tools or vehicles

• Offers potential tax advantages

Tradespeople love it because it keeps their kit up-to-date without draining their accounts.

4. Invoice Finance

Sick of waiting 30, 60, even 90 days to get paid?
Invoice finance gives you access to cash tied up in unpaid invoices.

• Get up to 95% of invoice value upfront

• Great for B2B and contract work

• Keeps cash flow smooth

Perfect for:

• Builders

• Wholesalers

• Suppliers

It’s fast, flexible, and helps you stay ahead of the curve—even if your clients drag their heels.

5. Merchant Cash Advance

If you’re taking lots of card payments—say you run a shop, salon, café, or e-commerce store—this one’s for you.

With a merchant cash advance, you borrow based on your card sales.

• Repay automatically as you trade

• No fixed monthly payments

• Flexible and responsive

It grows and shrinks with your business. So if sales slow down, repayments adjust too.

6. Business Credit Cards

They’re simple, fast, and flexible.
Use them for:

• Emergency purchases

• Travel and supplies

• Small gaps in cash flow

Just keep an eye on rates. They can work well for short-term spending but become costly if left unmanaged.

7. Overdrafts & Lines of Credit

Want something on standby for unexpected costs?

Business overdrafts and revolving credit facilities give you access to money when you need it—without borrowing more than you must.

• Pay interest only on what you use

• Reuse the facility as it’s repaid

• Acts like a safety net

Great for trades and retail businesses where income isn’t always predictable.

What’s the “Best” Source of Finance?

There’s no one-size-fits-all. The right choice depends on:

• How much you need

• How fast you need it

• Your trading history

• What the funds are for

• And how you want to repay

But don’t worry—you don’t need to figure it all out alone.

What If You’ve Been Declined Before?

Don’t let one rejection close the door.

Banks say no for loads of reasons that have nothing to do with your potential:

• You’re too new

• You’re too small

• You’ve had one bad quarter

• Or they simply don’t understand your industry

We’ve helped hundreds of SMEs who were declined elsewhere—and found them funding within days.

Rejection isn’t the end. Sometimes, it’s just the wrong lender.
Let us help you find the right one.

What You’ll Need to Apply

Most lenders will want a few basics:

• 6 months of business bank statements

• Latest set of accounts (if available)

• Proof of ID and address

• Business overview or plan (especially for newer businesses)

No need to stress—we help you gather everything and make the application clean, clear, and complete.

Why Using a Broker Saves Time, Stress, and Mistakes

Here’s the truth: applying to the wrong lender can tank your chances—and your credit score.

Most business owners don’t know which lenders are open to their sector or profile. That’s where brokers come in.

Here’s what you get when you use a broker like First Oak Capital:

✅ Access to multiple lenders – including ones not available to the public
✅ Faster approvals – because we know exactly what each lender wants
✅ Better terms – thanks to our relationships and negotiating power
✅ Less paperwork – we handle the application legwork
✅ Smarter matching – so you’re not wasting time on lenders who’ll say no

Why Most Brokers Still Miss the Mark

Let’s be honest. Most brokers treat you like a number.
You call up, they run a few checks, and then you either fit their box—or you’re out.

No follow-up. No fight. No flexibility.

Here’s the problem: real businesses don’t fit in tidy boxes. Especially not trades or retail. One slow month or one bounced payment shouldn’t ruin your chances.

The Right Finance Can Unlock Your Next Move

You’ve worked hard to build your business. Don’t let cash flow problems, tight margins, or rigid lenders slow you down.

Whether you need £5k to cover stock, £50k to hire more hands, or £500k to scale big—we’re here to help you make it happen.

At First Oak Capital, we don’t believe in “computer says no.”
We believe in finding the solution that fits your business—not forcing your business to fit someone else’s system.

Let’s find the right source of finance—for your business, your way.

What Makes First Oak Capital Different?

We’re not a call centre. We’re not an automated chatbot. We’re real people who care about helping UK businesses succeed — whether you’re just getting started or scaling up.

Here’s how we’re different:

• We understand the pressures and unpredictability business owners face

• We speak in plain English — no jargon, no fluff

• We move fast when timing matters most

• We offer honest advice based on real experience, not sales scripts

Most importantly, we don’t stop at “computer says no.”
If you’re turned down by a lender, we’ll tell you why — and what to do next. Often, there’s another lender or a better-fit product we can pivot to straight away.

As proud supporters of the National Association of Commercial Finance Brokers (NACFB), we uphold the highest standards in transparency, ethics, and client care — so you know you’re working with professionals who genuinely have your back.

You focus on your business. We’ll take care of the finance.

How the Process Works with First Oak Capital

You’re busy. So we make it simple.

Step 1: Quick Discovery Call

We learn about your business, goals, and challenges.

Step 2: Tailored Matchmaking

We match you with lenders who suit your needs—not the other way around.

Step 3: Application Support

We handle the paperwork. You focus on running your business.

Step 4: Approval & Funding

Fast decisions. Fast funding. No fluff.

What You Can Expect Working With Us

✅ A quick call to understand your business and goals
✅ Clear, honest feedback on what’s possible
✅ An expert who handles the heavy lifting
✅ A well-matched lender and a smooth process
✅ Support from start to finish (and beyond)

You’ll never be just a number. We treat every client like we’re part of your team.

Ready to borrow smarter?

Click here to apply now or speak to one of our friendly brokers today.