0161 241 8093
07866 568322


Debt is a way to finance your business where:

Examples of Debt Finance

Bank Loan

Bank Overdraft

Government backed Start-Up Loan

Second and third tier loans - usually higher interest rates where the banks won’t lend

Invoice Finance – Factoring / Confidential Invoice Financing

Asset Finance - deposit paid and then the balance paid over a specified period.

Crowd-funding debt

Hire Purchase


Trade Finance

Tier 1 Entrepreneur Funding

Pros and Cons of Debt Finance


  • You don’t have to sell a share of your business to get the funding
  • If secured against company assets (via a debenture) you may not have to give personal guarantees on that finance.
  • The legal costs of acquiring the finance may be less than that raised via equity
  • Generally, you can borrow lower amounts than would be invested under equity
  • It is generally a quicker process than when raising equity finance


  • Your business may be at risk if you don’t pay the debt back
  • You may have to give security against the debt – personal guarantees
  • The interest rate may make the purpose for which the debt was borrowed un-profitable
  • The debt may lower the value of your business
  • You may not be able to borrow all the finance you need to fund your requirement
  • If you are an early stage business, you may not have the track-record to support the repayment schedule.


Types of Business Finance and Funding