Small Business Finance: Making the Right Choice

By Lloyds TSB Commercial

If you are looking to take advantage of new opportunities and grow your company, funding is often the key.

The best place to start is with your business plan. Spend some time creating a clear, strong plan with financial forecasts, clearly thought out for the next three to five years. Anticipate issues which may require additional finance and take factors such as industry regulation into account.

This will give you – and your bank – a clearer view of which options will meet your business’ needs in the short, medium and long-term.

At Lloyds TSB Commercial, we will help you explore a variety of funding options and help you make a choice that is right for your business – we have outlined some of these below.

Factoring and invoice discounting allows you to release the value of your invoices and can help bridge the gap between supplying services or products and receiving payment, helping stabilise cash flow and manage the impact of late payments.

Term loans are a more structured borrowing method, based on lending against a security – such as your company’s assets or another form of guarantee.

This type of financing is typically used for the purchase or refurbishment of premises or other fixed assets. Because the loan is secured, the rate offered often reflects the lower risk.

Lloyds TSB Commercial has also been one of the largest participants in the Government’s Enterprise Finance Guarantee (EFG) Scheme. This allows viable and eligible businesses with a turnover of up to £25 million which lack lending security to apply for term lending for a number of purposes, including the improvement of working capital and partial consolidation of overdrafts.

In 2010, roughly three in every 10 loans generated under this scheme were offered by Lloyds TSB

Lloyds TSB Commercial strives to understand the requirements of your business with the aim of providing you with a funding opportunity to make your plans a reality.

For more information about how Lloyds TSB can work with you and your business, please contact your Relationship Manager or visit

To find out about factoring or invoice discounting visit

Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment.

Factoring and Invoice Discounting facilities are provided by Lloyds TSB Commercial Finance Limited. When using these products and services your agreement is with a Lloyds Banking Group company whose terms and conditions will apply.

Lloyds TSB Commercial Finance Ltd. Registered office: No. 1, Brookhill Way, Banbury, OX16 3EL, Registered in England and Wales no. 733011.

Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15M.

Authorised and regulated by the Financial Services Authority.

We subscribe to The Lending Code; copies of the Code can be obtained from

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