SME Finance
Streamline your payments, cover your expenses and focus on building your business. Learn how SME finance can make it all possible.
What is SME Funding?
SME funding is financing for small- to medium-sized businesses. It typically comes from financial institutions or investors in the form of loans or equity. You can use it to pay expenses, improve cash flow, or fund your company’s growth.
Why is financing important for small businesses?
If you’re looking to expand your business, increase your inventory or upgrade equipment, SME finance offers a range of ways to access the funds you need.
It can also help you improve cash flow, navigate unexpected costs, and take advantage of other opportunities to grow and invest.
Small business funding options
It’s easier to focus on growth when you know your everyday expenses are covered. Here are some of the main business funding sources that can give you that all-important peace of mind:
Business Credit Cards and Charge Cards
Business Credit Cards and Charge Cards can help improve company cash flow and consolidate business expenditure. What’s more, you and your employees can earn rewards on everyday business expenses. Some even offer handy extra perks, such as travel rewards. There are a few key differences between Business Credit Cards and Charge Cards.
Credit Cards have a spending limit, which you can increase on request if needed. They also allow you to pay your balance in full at the end of each billing period, or repay over time with interest – making them one of the more flexible business funding options for SMEs.
Charge Cards, on the other hand, have no pre-set spending limit – although this doesn’t mean you can make unlimited purchases. Instead, you increase your purchasing power over time by building a good spending and payment record. Charge Cards also have no interest charges, as long as you repay your balance in full at the end of each billing period.
Before applying for a Business Credit Card or Charge Card, check our eligibility criteria to confirm that:
- You’re over 18
- You have a permanent UK address
- Your business has a current UK Bank or Building Society account
- Neither you nor your business has any County Court Judgements for non-payment of debt
- Check your eligibility for an American Express Business Card or Charge Card
Corporate Cards
Corporate Cards are another source of business funding, and an efficient way to monitor employee spending.
With Corporate Cards, you can set spending limits for employees and gain access to tools, reports and insights to drive business growth.
Your essential everyday business purchases can earn you reward points to redeem with well-known retailers. And, depending on which Card you choose, you can also enjoy travel perks, such as exclusive airport lounge access and fast-tracking through airport security.
To be accepted for a Corporate Card, most providers ask that your business’s annual turnover meets a certain minimum sum set by the provider.
Working Capital
Working capital is the amount of money your company has available to meet its short-term obligations. This includes paying employees and making everyday business purchases.
There are small business funding options available to help you maintain good working capital. These can help your company to remain financially strong, and in a better position for growth.
Business Loans
Business loans are offered by a lender to help cover expenses or invest in your company’s growth. Your lender approves a funding amount and payment terms, and your business repays the loan over a fixed period of time – usually with interest added. These are a few of the common requirements your business will need to meet in order to be approved for a business loan:
- A good personal and business credit score
- For the business to have existed for at least 3 months, though some providers could require this to be up to 2 years
- The minimum level of annual revenue set by the provide
- A total income that exceeds total expenses by a certain ratio
- For a secured loan, an asset should be offered as collateral
Need help and support?
For expert tips on business funding and choosing the right option for your company, our helpful guides and articles have you covered.
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Receive the funding you need for your business today.
Contact us now to explore our financing solutions.
Speak to a specialist at 0800 085 7732
Frequently Asked Questions
What types of funding are available to small businesses?
Small businesses can receive many types of financing, including:
· Business Credit Cards
· Working capital solutions
· Merchant financing
· Small business loans
To learn more about the business funding options American Express can offer your business, contact us today at 0800 085 7732.
How are most businesses funded?
Two major sources of funding for businesses to cover your expenses can come in the form of loans or equity. You can receive a loan from a lender that you can repay over a set time period, or receive money from an investor, who will own a part of your company as equity and benefit through dividends when your company grows.
How much funding will I need for my business?
The financing that your business will need depends on your goals, your expenses, and how you plan to spend your funds. You can use a Business Credit Card to gain flexibility when managing your finances, as you can keep money in your account for longer. A Business Card can also help you consolidate your expenses and earn rewards from the money your company spends. Working capital solutions can give you the funding you need to pay your suppliers, help improve your cash flow with more flexible pay
periods, and drive business growth.
Can I apply for business funding options online?
For many business funding options, you can apply online. To explore financing solutions from American Express, learn more here or contact us at 0800 085 7732.
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