Types Of Corporate Finance

Enness arranges corporate finance for private companies, business owners and entrepreneurs. There are plenty of lending solutions and products corporates can use to raise finance from mainstream products like working capital finance to personal guarantee finance.

Here, we lay out some of the business finance products we arrange and how they can be used. Whatever you are looking to achieve and no matter how much your company needs to borrow, Enness will help you access the most competitive finance available on the market.

Corporate Finance Types

Stock Finance

Stock finance will see a business use its existing stock or inventory as collateral for a loan. A company can essentially release capital tied up in stock to generate liquidity or working capital requirements. The type of stock or inventory a business has doesn’t affect its ability to access this type of finance – provided there is good demand for the product, lenders can consider loans. Large stock loans are possible, and we regularly broker loans of several million pounds.

Working Capital Finance

A working capital loan is a type of finance that is designed to offer day-to-day liquidity to a company. While working capital loans can be broad in their use, they are always used to fund day-to-day operations, rather than assets. Businesses can use working capital loans to facilitate business growth, take advantage of opportunities in your marketplace, hire staff and so on. To ensure a working capital loan is as effective as possible, it is essential to consider your working capital cycle to ensure the loan is efficient and maximises your ability to utilise capital.

Commercial Property Finance

Corporations use commercial property finance to raise the capital they need to buy commercial property – this can be anything from hotels to restaurants, care homes, student accommodation, office or retail space. Loans of several million pounds are standard for commercial property finance, and it’s important to ensure that the deal can be delivered at pace, as any delay in financing can have a material impact on cash flow and revenue.

VAT Finance

Businesses can use VAT finance to improve cash flow and retain working capital within the company. Increasingly popular, a VAT finance facility will see a lender pay off your VAT liability directly to His Majesty’s Revenue And Customs (HMRC). The business will then pay back the lender on a monthly basis, or as a lump sum at term (usually when the VAT is reimbursed), minus any fees and interest. We can arrange VAT loans in just a few days, including very large deals of several hundred thousand pounds. It is worth noting that many lenders will reimburse a business the amount it paid in VAT up to 28 days after payment to HMRC, as some companies want to benefit from VAT finance after they have settled their liability as a pure-play cash flow optimisation strategy. 

Invoice Finance

Invoice finance allows businesses to access capital tied up in unpaid debtor invoices or receivables by effectively using them as security for a loan. These loans are used for a variety of purposes, which includes using invoices as security for a loan that allows a business to access capital quickly, access working capital, pay off liabilities or manage cash flow.

Lenders offer both invoice discounting and invoice factoring as options for this type of finance. Invoice finance can be structured in various ways depending on what a business needs capital for and how visible the business wants the lender to be in the credit control and invoice collection processes.

Income Tax Loans

Income tax loans are used by individuals – often business owners that have significant income that is derived from one or more companies – as a way to cover their income tax liability.

An income tax loan will see lenders cover and pay off an individual’s income tax liability, usually settling this directly with HMRC. The borrower will then repay the credit over several months in fixed monthly amounts that cover the loan, interest and any fees. Income tax loans allow individuals to retain liquidity (rather than paying off an income tax liability as a lump sum) and facilitate personal cash flow management.

Personal Guarantee Insurance

Increasingly, lenders are requesting that business owners make personal guarantees when they raise capital for a company as a way to manage risk. This means that company owners are often personally liable for any nonpayment of a corporate loan.

Personal guarantee insurance effectively safeguards business owners from having to pay a corporate loan from their personal wealth if the company were to default on the finance. This is done through Personal Guarantee Insurance, which is a niche corporate finance product that can insure a portion of the personal guarantee.

Get in Touch

At Enness Global, we are committed to providing tailored, strategic corporate finance solutions to help your business thrive. Whether you are looking to optimise working capital, acquire commercial property, or manage your tax liabilities, our experienced team is here to guide you through the process.

If you are a business owner or entrepreneur seeking expert advice and competitive finance options, we encourage you to reach out. Our specialists can arrange financing for a wide range of needs, from stock finance to personal guarantee insurance.

For a personalised consultation, please contact us or call us at +44 (0) 20 3758 9393. We look forward to helping you secure the financial solutions your business requires.

FAQs – Types of Corporate Finance

1. What types of businesses can apply for corporate finance?
Corporate finance is available to private companies of all sizes, including SMEs, scale-ups, and established corporates. Lenders focus on the strength of the business, assets, revenue flows, and overall financial health rather than size alone.

2. How quickly can corporate finance be arranged?
Timeframes vary by product. Working capital and VAT finance can often be arranged within days, while commercial property finance or stock finance may take longer due to underwriting and valuation requirements. Enness will always work to secure funding as quickly as possible.

3. Is collateral required for all types of corporate finance?
Not always. Some products, like invoice finance or stock finance, use specific assets as collateral. Others, such as working capital loans, may rely on business performance, covenants, or personal guarantees. Enness will help structure the most suitable and efficient option.

4. Can corporate finance help with cash flow challenges?
Yes. Products such as VAT finance, invoice finance, and working capital loans are specifically designed to improve liquidity, manage outgoings, and create flexibility during periods of rapid growth or unexpected expenses.