Funding Solutions
Explore how commercial and property finance can be structured to support acquisitions, developments and refinancing. These hypothetical worked examples show potential funding arrangements using stated assumptions, rather than completed transactions.
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01 · FEATURED DEVELOPMENT
£3m Development Finance for a £5m Residential Scheme
A staged senior facility supporting site acquisition, construction and repayment from completed property sales.
Gross development value£5,000,000
Total development cost£4,000,000
Proposed facility£3,000,000
Loan to GDV60.0%
Loan to cost75.0%
Cost less facility£1,000,000
Worked funding exampleExplore the funding structure
The funding requirement
An experienced developer is planning a residential scheme with projected gross development value of £5 million. Total development costs are estimated at £4 million, including acquisition, construction, professional fees, contingency and assumed finance costs. The developer needs a funding arrangement that supports acquisition and construction, with capital available as work progresses.
The proposed funding solution
A proposed £3 million senior development facility, secured against the site and drawn in stages as construction is independently certified. At 60% of GDV and 75% of total project cost, this could provide a starting point for suitable lender discussions. The lender would assess developer experience, planning, cost certainty, valuation, borrower equity and the proposed sales exit.
The potential commercial outcome
The proposed structure could support delivery of the £5 million scheme without requiring the developer to fund the entire cost personally. Repayment would come from completed unit sales. If the stated GDV and total costs are achieved, the indicative development surplus would be £1 million before any omitted costs or tax. The £1 million difference between total costs and the proposed facility is not necessarily the upfront cash equity requirement.
02 · OWNER-OCCUPIED COMMERCIAL MORTGAGE
£750,000 Commercial Mortgage to Purchase Business Premises
An established trading business moves from leasing to owning its premises.
Property purchase£1,000,000
Proposed mortgage£750,000
Loan to value75%
Deposit before costs£250,000
Worked funding exampleExplore the funding structure
The funding requirement
An established trading business plans to purchase the commercial premises it currently occupies, reducing its dependence on a landlord while retaining sufficient cash for operations.
The proposed funding solution
A proposed £750,000 commercial repayment mortgage supported by the property’s value and sustainable trading cash flow. The lender would assess debt service, trading history, borrower contribution and security, with acquisition costs budgeted separately.
The potential commercial outcome
Subject to lender approval and affordability, the business could gain long-term control of its premises while accumulating ownership in a commercial asset.
03 · COMMERCIAL BRIDGING
£600,000 Bridging Facility for a Commercial Acquisition
Short-term finance for a property purchase with a defined longer-term refinance.
Acquisition price£900,000
Proposed facility£600,000
Loan / purchase price66.7%
Illustrative term12 months
Worked funding exampleExplore the funding structure
The funding requirement
An investor identifies a commercial property acquisition with a completion deadline shorter than a conventional commercial mortgage process.
The proposed funding solution
A short-term facility secured on suitable property, coupled with a documented refinancing exit. The lender would examine security, net advance, retained interest, borrower equity and refinance affordability before committing.
The potential commercial outcome
The structure could enable a timely acquisition and give the investor a defined period to complete a longer-term commercial mortgage refinance.
04 · DEVELOPMENT EXIT
£1.2m Development Exit Finance for a Completed Scheme
A completed development is refinanced to allow an orderly sales period.
Completed scheme value£2,000,000
Existing development debt£1,200,000
Proposed exit facility£1,200,000
Loan to value60%
Worked funding exampleExplore the funding structure
The funding requirement
Construction has been completed, but several units remain unsold and the existing development facility is approaching maturity.
The proposed funding solution
A proposed £1.2 million exit facility secured against the completed properties, supported by independent valuation, remaining sales prospects and a clear repayment programme. The net proceeds must be sufficient to redeem the existing debt after relevant costs.
The potential commercial outcome
The developer could replace the maturing facility and provide additional time for considered property sales, rather than being forced into an accelerated disposal.
05 · PROPERTY REFURBISHMENT
£500,000 Facility for a Commercial Refurbishment
Acquisition and improvement funding for a property intended for longer-term investment.
Purchase price£600,000
Works budget£200,000
Cost before finance costs£800,000
Proposed facility£500,000
Worked funding exampleExplore the funding structure
The funding requirement
An investor wishes to acquire and refurbish a commercial property before securing tenants and refinancing onto a longer-term investment facility.
The proposed funding solution
A proposed £500,000 facility structured around eligible acquisition and refurbishment expenditure, with staged funds if required. The exit would depend on completed works, lettings, valuation and the resulting sustainable rental income.
The potential commercial outcome
The funding could support the improvement programme while allowing the investor to retain some capital and pursue longer-term refinancing after stabilisation.
06 · COMMERCIAL INVESTMENT
£900,000 Commercial Investment Mortgage
An investor purchases an income-producing commercial property with structured long-term debt.
Purchase price£1,200,000
Proposed mortgage£900,000
Loan to value75%
Deposit before costs£300,000
Worked funding exampleExplore the funding structure
The funding requirement
A property investor wants to acquire an income-producing commercial asset using a sustainable longer-term loan rather than committing the entire purchase price.
The proposed funding solution
A proposed investment mortgage assessed against tenant quality, lease terms, sustainable rental income, valuation, debt-service cover and the borrower’s wider financial position.
The potential commercial outcome
Subject to the lender’s underwriting and actual tenancy income, the investor could acquire the property with defined debt commitments while preserving capital for other requirements.
Business & Working Capital Funding
A selection of funding structures for businesses expanding production, fulfilling contracts, financing inventory, managing invoice-payment cycles and investing in new opportunities. Each case opens to explain the requirement, structure and potential commercial outcome.
07 · RECRUITMENT · INVOICE FINANCE
£400,000 Working Capital for a Growing Recruitment Agency
Releasing cash from unpaid invoices to fund weekly payroll as placements increase.
Eligible invoices£500,000
Indicative advance80%
Proposed funding line£400,000
Customer payment terms30–60 days
Worked funding exampleExplore the funding structure
The funding requirement
A recruitment agency has secured additional contracts with established business clients. Temporary workers must be paid weekly, while customers normally settle invoices 30 to 60 days after they are raised. Expansion therefore increases the cash required for payroll before receipts arrive.
The proposed funding solution
A £400,000 invoice discounting line against an illustrative £500,000 eligible debtor ledger at an assumed 80% advance. Availability would vary with actual eligible invoices, debtor concentration, dilution, disputes, reserves and lender criteria.
The potential commercial outcome
The agency could meet weekly payroll for a larger workforce while new client invoices remain outstanding, allowing additional placements to be serviced without waiting for customer settlement.
08 · MANUFACTURING · INVOICE FINANCE
£750,000 Facility Supporting Manufacturing Growth
Working capital to buy materials and fulfil a growing order book.
Eligible sales ledger£1,000,000
Assumed advance75%
Proposed facility£750,000
Typical customer terms60 days
Worked funding exampleExplore the funding structure
The funding requirement
A manufacturer is taking on larger contracts that require raw material purchases and wages well before customers pay. A £1 million eligible receivables ledger reflects a growing volume of work.
The proposed funding solution
A £750,000 invoice finance arrangement, assuming a 75% advance on eligible invoices. Funding would fluctuate with the ledger and be subject to lender eligibility, concentration limits, contractual terms and debt verification.
The potential commercial outcome
The manufacturer could acquire raw materials and maintain production schedules while customers complete their payment cycles, creating capacity to deliver additional contracts.
09 · WHOLESALE · STOCK FUNDING
£350,000 Stock Facility for a Wholesale Distributor
Funding additional inventory to supply expanding trade customer demand.
Additional stock purchase£500,000
Proposed funding line£350,000
Initial stock funding ratio70%
Business contribution£150,000
Worked funding exampleExplore the funding structure
The funding requirement
A regional wholesaler has secured agreements with new trade customers but needs to buy £500,000 of additional inventory before invoices can be raised and collected.
The proposed funding solution
A proposed £350,000 stock-backed or secured working-capital facility, with £150,000 supplied by the business. Actual lending would depend on eligible inventory, valuation, ownership, stock turnover and any additional security.
The potential commercial outcome
The wholesaler could take on larger customer orders, maintain stock availability and support sales growth without funding the entire inventory expansion from existing cash.
10 · IMPORT & EXPORT · TRADE FINANCE
£450,000 Trade Facility to Fulfil Export Orders
Financing supplier payments and shipment costs before overseas customers settle.
Confirmed purchase orders£750,000
Upfront supply costs£500,000
Proposed trade facility£450,000
Initial business contribution£50,000
Worked funding exampleExplore the funding structure
The funding requirement
A UK exporter has confirmed overseas customer orders worth £750,000 but needs £500,000 upfront for finished goods, freight and associated fulfilment costs before payment is received.
The proposed funding solution
A proposed £450,000 trade finance line alongside a £50,000 business contribution. Lenders would examine binding orders, supplier reliability, documentary controls, buyer creditworthiness, currency exposure and repayment from sale proceeds.
The potential commercial outcome
The business could fulfil a sizeable export opportunity without exhausting operating cash while goods are purchased, shipped and paid for.
11 · CONSTRUCTION · CONTRACT FINANCE
£500,000 Working Capital for an Engineering Contractor
Helping a contractor mobilise and deliver larger commercial projects.
Confirmed project order book£2,000,000
Initial cash requirement£600,000
Proposed funding package£500,000
Business contribution£100,000
Worked funding exampleExplore the funding structure
The funding requirement
A specialist mechanical and electrical contractor has won £2 million of commercial projects. Labour, materials and mobilisation costs arise before interim certificates are approved and payments arrive.
The proposed funding solution
A proposed £500,000 specialist working-capital package potentially combining selective contract finance with funding against eligible, certified receivables. Uncertified work in progress and retentions would need particular scrutiny.
The potential commercial outcome
The contractor could mobilise additional projects and meet supplier and workforce commitments as contracts progress, without relying solely on cash from earlier jobs.
12 · TRANSPORT · INVOICE FACTORING
£300,000 Invoice Funding for a Logistics Operator
Paying fuel, drivers and fleet expenses while customers settle transport invoices.
Eligible customer invoices£400,000
Assumed advance75%
Proposed funding line£300,000
Customer terms45 days
Worked funding exampleExplore the funding structure
The funding requirement
A transport operator is servicing more delivery contracts and invoices business customers on terms of approximately 45 days, while fuel, driver wages, insurance and operating costs require prompt settlement.
The proposed funding solution
A £300,000 invoice factoring or discounting facility on an assumed £400,000 eligible ledger at 75% advance, subject to debtor quality, disputed invoices and lender reserves.
The potential commercial outcome
The operator could support additional delivery activity without allowing the customer payment cycle to dictate the number of contracts it can undertake.
13 · HEALTHCARE RECRUITMENT · PAYROLL FINANCE
£420,000 Working Capital for Healthcare Staffing Contracts
Supporting expansion of temporary staffing services to healthcare providers.
Eligible outstanding invoices£600,000
Assumed advance70%
Proposed funding line£420,000
Typical payment period30–60 days
Worked funding exampleExplore the funding structure
The funding requirement
A healthcare staffing provider has secured new contracts with care providers. Nurses and care staff are paid frequently, but customer invoices are typically paid weeks later.
The proposed funding solution
A £420,000 recruitment finance line based on a 70% assumption against £600,000 of eligible receivables. Lender assessment would examine agency compliance, timesheet approval, customer concentration and debtor payment quality.
The potential commercial outcome
The agency could increase staffing placements while maintaining predictable wage payments and servicing larger contracts.
14 · RETAIL · SEASONAL STOCK
£200,000 Seasonal Working Capital for a Retailer
Purchasing peak-season inventory without consuming everyday operating cash.
Peak stock order£300,000
Proposed revolving line£200,000
Business contribution£100,000
Illustrative cycle6 months
Worked funding exampleExplore the funding structure
The funding requirement
An established retailer expects higher sales during its peak season but must place £300,000 of inventory orders months before most sales receipts arrive.
The proposed funding solution
A proposed £200,000 revolving business credit facility for eligible inventory purchases, supported by a £100,000 business contribution. Suitability would depend on historic seasonal sales, cash-flow forecasts, security and affordable repayment.
The potential commercial outcome
The retailer could stock for expected demand and repay drawings as seasonal sales convert into cash, rather than using all available reserves before trading peaks.
15 · FOOD PRODUCTION · COMBINED FINANCE
£600,000 Funding Package for a Food Manufacturer
Combining equipment investment with liquidity for increased production.
New production equipment£350,000
Additional working capital£250,000
Total proposed package£600,000
Finance components2
Worked funding exampleExplore the funding structure
The funding requirement
A food manufacturer has secured additional supermarket and wholesale distribution opportunities. It needs £350,000 for production equipment and a further £250,000 to acquire ingredients, packaging and meet increased wages before receivables turn into cash.
The proposed funding solution
A proposed £350,000 asset finance facility for the machinery, combined with £250,000 of suitable working-capital finance, potentially using a receivables-backed line. Each component would be assessed independently for affordability and security.
The potential commercial outcome
The manufacturer could increase output and fulfil larger wholesale orders while spreading the machinery investment and preserving liquidity during the growth phase.
16 · FACILITIES MANAGEMENT · INVOICE FINANCE
£250,000 Funding for New Facilities Management Contracts
Supporting contract mobilisation and regular staff payments.
Eligible invoiced receivables£350,000
Assumed advance70%
Potential advance£245,000
Target facility limit£250,000
Worked funding exampleExplore the funding structure
The funding requirement
A facilities management company has won new cleaning and maintenance contracts. Mobilisation and payroll costs start immediately, but customers pay monthly invoices on extended terms.
The proposed funding solution
An invoice finance facility with a target limit of £250,000. At an assumed 70% advance on £350,000 of eligible invoices, the illustrative immediately available amount would be £245,000, with further availability depending on new invoices and lender terms.
The potential commercial outcome
The business could mobilise new contracts, pay staff and suppliers on time and service a growing customer base without waiting for its first invoice collections.
17 · ENGINEERING · ACQUISITION FINANCE
£1.2m Asset-Based Package for an Engineering Acquisition
Combining receivables, machinery and funding for an ownership transition.
Receivables facility£600,000
Machinery-backed funding£400,000
Cash-flow term funding£200,000
Combined proposed funding£1,200,000
Worked funding exampleExplore the funding structure
The funding requirement
An established engineering company’s management team is considering an ownership acquisition. The business has trading receivables, eligible machinery and established operating cash flow that could support a structured financing package.
The proposed funding solution
A proposed £1.2 million package combining £600,000 of receivables finance, £400,000 against eligible machinery and £200,000 of cash-flow term finance. The transaction would require independent valuation, debt-service analysis, funding controls and a sustainable post-acquisition cash position.
The potential commercial outcome
Subject to lender support and the overall transaction funding requirement, the management team could use existing business assets and cash flow as part of a carefully structured ownership transition.
18 · HOSPITALITY · BUSINESS EXPANSION
£150,000 Finance to Open a Second Hospitality Site
Spreading upfront costs while an established operator expands.
Fit-out and launch budget£200,000
Proposed business loan£150,000
Business contribution£50,000
Illustrative term5 years
Worked funding exampleExplore the funding structure
The funding requirement
A profitable hospitality operator identifies a second suitable location requiring £200,000 for fit-out, initial stock, recruitment and launch costs.
The proposed funding solution
A proposed £150,000 business term loan, alongside £50,000 of borrower funds, with repayments assessed against existing business cash generation and credible forecasts for the additional site. Security and guarantees would depend on the lender.
The potential commercial outcome
The operator could establish a second site while spreading the initial investment over a longer period, provided both locations can service their ongoing obligations.
19 · HOSPITALITY · MERCHANT CASH ADVANCE
£60,000 Merchant Cash Advance for a Seasonal Hotel
Preparing for the summer season with funding repaid through an agreed share of future card takings.
Proposed merchant cash advance£60,000
Card-sales deduction15%
Illustrative monthly card sales£50,000
Monthly deduction at £50k sales£7,500
Worked funding exampleExplore the funding structure
The funding requirement
An independent coastal hotel experiences strong summer occupancy but quieter winter trading. Before the next peak season, it wishes to invest £60,000 in room improvements, linen, essential equipment and seasonal staff recruitment, while preserving working cash.
The proposed funding solution
A £60,000 merchant cash advance could be arranged against future eligible debit and credit card receipts. The hotel processes approximately £50,000 per month in qualifying card payments on average. A £60,000 advance and a 15% deduction from eligible card receipts are consistent with the published illustration on 365 Finance’s hotel funding page. At £50,000 of card sales, the illustrative monthly deduction would be £7,500. During a strong £80,000 month it would be £12,000; during a quieter £20,000 month it would be £3,000. The provider would agree the total repayable amount and fixed funding charge individually before the hotel proceeds.
The potential commercial outcome
The hotel could complete improvements and prepare for peak occupancy without using all its available cash. Card-linked deductions would rise during busier periods and fall during quieter periods, subject to the provider’s contractual terms. The total cost would be established in the actual offer. This is a merchant cash advance, not an automatically renewable revolving credit line; further funding would require a new assessment and agreement.
Have a similar funding requirement?
Talk to EAS Finance about the proposed transaction, available security, funding structure and intended repayment route. The initial assessment is free, with no upfront EAS broker fee.