Corporate Debt Financing

Corporate Debt Financing

Our corporate debt financing service:

  • Retain Ownership: Keep full control without diluting equity.
  • Tax Benefits: Interest payments are often tax-deductible.
  • Predictable Payments: Fixed rates and repayment schedules aid cash flow management.
  • Access to Capital: Quickly secure funds for growth opportunities.
  • Build Credit: Strengthen your business credit profile for better future terms.
  • Lower Cost: Debt financing can be more cost-effective than equity.
  • No Investor Interference: Maintain uninterrupted operations without outside influence.
  • Fuel Growth: Fund strategic initiatives without immediate cash outlays.
  • Refinancing Opportunities: Lower existing debt interest rates to improve cash flow.

Corporate debt financing is the process by which companies raise capital by borrowing funds. This form of financing allows businesses to access the necessary capital for various purposes, such as expanding operations, purchasing equipment, or funding new projects, without relinquishing ownership or control.

By utilising debt financing, firms can leverage their financial resources to drive growth while benefiting from potential tax deductions on interest payments.

If you’d like to know more about corporate debt financing, an Articus Finance Broker can help.

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What is the criteria for corporate debt financing?

Corporate debt financing is accessible to a variety of businesses, but eligibility typically depends on several key factors:

1. Established Businesses

Companies that have been in operation for at least two years often have a higher chance of approval, as lenders prefer businesses with a proven track record

2. Startups

Early-stage startups may qualify for debt financing if they can demonstrate strong growth potential, a solid business plan, and sufficient cash flow to cover repayments

3. Creditworthy Companies

Businesses with good credit scores (usually above 600) are more likely to secure favourable loan terms. However, Articus Finance can assist clients/companies with bad credit.

4. Profitable Enterprises

Businesses with a Strong Business Plan A well-structured business plan that outlines financial projections, the purpose of the loan, and market analysis can enhance a company's chances of obtaining financing

5. Businesses with a Strong Business Plan

A well-structured business plan that outlines financial projections, the purpose of the loan, and market analysis can enhance a company's chances of obtaining financing

6. Companies with Collateral

Businesses that can provide collateral (assets that can secure the loan) may have an easier time securing debt financing, as it reduces the lender's risk.

6. Various Industries

While some lenders may have preferences for specific industries, many types of businesses across various sectors can qualify for corporate debt financing, depending on their financial health and operational stability

Which businesses may need corporate debt financing?

1. Technology

The technology sector often requires substantial capital for research and development, product launches, and infrastructure improvements. Companies in this industry can leverage debt financing to fund innovative projects, acquire new technologies, or expand their market presence without diluting ownership.

For instance, a software company might take on debt to invest in developing a new application, allowing it to remain competitive in a rapidly evolving market.

2. Real Estate

Real estate companies frequently utilise debt financing to acquire properties, fund development projects, or renovate existing assets. Mortgages and construction loans are common forms of debt in this sector.

By leveraging debt, real estate firms can enhance their portfolios and generate rental income or capital appreciation without needing to use all their equity. This approach allows them to maximise returns on investment while managing cash flow effectively.

3. Manufacturing

Manufacturers often face high capital expenditures for machinery, equipment, and facility upgrades. Corporate debt financing enables these companies to secure the necessary funds to enhance production capabilities, improve efficiency, and meet growing demand.

For example, a car manufacturer might take out a loan to invest in automated production lines, which can lead to increased output and reduced operational costs over time.

4. Energy

Companies in the energy sector, particularly those focused on renewable energy, often require substantial upfront capital to develop projects such as solar farms or wind turbines. Debt financing allows these companies to fund large-scale initiatives while spreading the cost over time.

By securing loans or issuing bonds, energy firms can invest in infrastructure that supports sustainable energy production, aligning with global trends towards cleaner energy sources.

FAQs for Corporate Debt Financing

Corporate debt financing is the process by which companies raise capital by borrowing funds, typically through loans. This allows businesses to access necessary capital for growth and operations without giving up ownership.

Common types of corporate debt financing include term loans, lines of credit, bonds, and convertible debt. Each option has different terms, interest rates, and repayment structures, allowing businesses to choose what best fits their needs.

Eligibility for corporate debt financing typically depends on factors such as the company’s creditworthiness, financial history, business plan, and operational stability. Established businesses and those with strong credit scores generally have a higher chance of approval.

Benefits include retaining ownership and control, potential tax deductions on interest payments, predictable repayment schedules, and access to capital for growth initiatives without diluting equity.

Risks include the obligation to make regular interest and principal payments, which can strain cash flow, especially during downturns. Additionally, excessive debt can lead to financial distress and impact credit ratings.

Interest rates can vary based on factors such as the company’s credit rating, the type of debt, and prevailing market conditions. Fixed rates remain constant throughout the loan term, while variable rates can fluctuate based on market indices.

Yes, startups can access corporate debt financing, but they may face stricter requirements. A solid business plan, strong growth potential, and sometimes personal guarantees from founders can enhance their chances of securing debt funding.

To improve chances, companies should maintain a strong credit score, prepare a detailed business plan, demonstrate consistent revenue and profitability, and be transparent about their financial situation.

Secured debt is backed by collateral (assets that the lender can claim if the borrower defaults), while unsecured debt is not backed by collateral. Secured debt typically has lower interest rates due to reduced risk for lenders.

Funds from debt financing can be used for various purposes, including expanding operations, purchasing equipment, funding research and development, managing working capital, or refinancing existing debt.

Funds from debt financing can be used for various purposes, including expanding operations, purchasing equipment, funding research and development, managing working capital, or refinancing existing debt.

Which businesses may need corporate debt financing?

Using a broker for corporate debt financing offers several advantages:

  • Access to Multiple Lenders: Brokers have relationships with various lenders, providing you with a range of financing options tailored to your needs.
  • Expert Negotiation: They possess the skills to negotiate better terms and interest rates on your behalf, potentially reducing overall costs.
  • Competitive Offers: Brokers can create competition among lenders, leading to more attractive proposals and better financing packages.
  • Specialised Knowledge: Their expertise in specific financing types ensures you receive tailored advice that aligns with your business goals.
  • Streamlined Process: Brokers manage paperwork and communications, saving you time and simplifying the financing process.
  • Risk Mitigation: They help identify potential risks and provide a comprehensive assessment of your financing options.

Why Choose Us

Service

We pride ourselves on delivering exceptional service tailored to your unique business needs. Our dedicated team is committed to understanding your financial goals and providing personalised support throughout the financing process. From initial consultation to closing the deal, we ensure a seamless experience that prioritises your satisfaction.

Relationships

We have cultivated strong relationships with a diverse network of lenders, including banks, private equity firms, and alternative financing sources. These connections enable us to access a wide range of financing options and negotiate competitive terms on your behalf. Our relationships ensure that you receive the best possible offers tailored to your business.

Knowledge

Our extensive industry knowledge sets us apart. With years of experience in corporate debt financing, we stay updated on market trends, lending practices, and regulatory changes. This expertise allows us to offer informed advice and innovative solutions that align with your specific requirements, helping you make well-informed financial decisions.

Trust

Trust is the foundation of our business. We are committed to transparency and integrity in all our dealings. Our clients can rely on us to provide honest assessments, clear communication, and ethical practices. We prioritise building long-term relationships based on trust, ensuring that you feel confident in your financing decisions.

Testimonials

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Tafouse brings expertise from the prime London property market, excelling in client care. Dedicated to exceptional service, Tafouse goes above and beyond to meet your needs. Passionate about rugby, travel, and showjumping, his diverse interests reflect a commitment to excellence in every interaction.

Harry Lart

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Harry has over 16 years of experience within the Finance, Housing and Development sector. He started off his career as a CIMA Qualified Chartered Accountant and transitioned over to financial services in 2019. During this time he has dealt with a range of complex financial arrangements from ex pat mortgages to large development loans. Harry has a can do attitude and believes there’s a solution to every situation and will work tirelessly to ensure your deal crosses the line. In his spare time Harry likes to play poker, travel and try new cuisines.

Carolina Barreiros

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Carolina is a multilingual Marketing Manager originally from Portugal. She specialises in International Marketing and Business, helping organisations expand their brand awareness globally over the last 4 years. Her past work includes supporting start-ups to multinational companies in the UK and across Europe. She is a creative and passionate individual, bringing a fresh perspective to the financial industry and delivering high quality research.

In her spare time, Carolina enjoys socialising & travelling around the world, embracing different cultures and experiences. 

Antonia Grieve

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Antonia brings fantastic planning, organisational and time management skills to her role as office manager, ensuring that operations at Articus run smoothly. An experienced administrator with fantastic problem solving skills, Antonia began her career working in medical administration, so she is highly experienced working with confidential client data.

Jack Cuthbert

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Jack comes from a background of delivering great customer service. He has worked in the property industry since 2016 and has solid knowledge of the property market, combined with a good knowledge of the mortgage industry. Jack is CeMap qualified and enjoys looking after his clients and building strong working relationships. Away from work, Jack spends most of his time travelling with friends, playing football and watching Charlton Athletic.

Matthew Currey

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Matthew has experience working as a mortgage administrator and assisting with clients of any calibre. His main strength is his ability to develop a close relationship to his brokers and clients, allowing for a smooth transition throughout your mortgage journey, his friendly nature helps in making the process a lot less intimidating than it needs to be. Outside of work Matthew spends his time playing Chess and exploring the world with his Girlfriend.

Danny Doran

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Danny started his career in financial services in 2005. He has developed an ability to build relationships and collaborate for success, through consistent communication, a holistic approach to deal building and an ability to swiftly problem solve. Danny has worked with Private and High Net Worth clients for over a decade and is driven by a strong, natural desire to ensure his clients and their businesses reach their full potential. As a property investor himself, he is well placed and experienced in all things property related. Outside of work, Danny has a keen interest in psychology, the outdoors and travelling.

Theo Osborn

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Theo started his journey in the specialist finance industry while working as a journalist at an industry trade magazine. During this time he amassed a great knowledge of mortgages, bridging, development and commercial funding and established a wealth of relationships in the industry. He transferred these skills and now specialises in assisting clients with their specialist finance requirements. Working alongside the CEO, Theo has learnt the nuances of ultra-complex transactions and knows how to most efficiently manage the funding process to completion. Theo aims to achieve the best solution for every client he deals with a particular focus on sourcing funding for developments and refurbishment.

Stefanos Petrou

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Stefanos started in financial services in 2013 managing clients across central London. Consistently providing a high level of thorough service. Prioritising communication, research, and innovation in order to meet his clients complex goals. Stefanos strengths lie in maintaining long standing relationships and being by his clients side throughout the process. Outside of work Stefanos enjoys spending time with his friends and family, unless of course Arsenal F.C are playing.

Dino Lazarides

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William Gleeson

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William started in financial services 2014 arranging finance for HNW clients and their families. One of his main strengths is building deep, long standing relationships with his clients, which enables him to fully understand their needs and tailor solutions to fit each client individually. William has relationships with a variety of lenders ranging from international private banks to some of the largest lenders within the UK. Outside of work, William enjoys spending time with his young family and is an avid rugby player.

Steven Boyde

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Steven started working across London’s property and financial services market in 2007. He specialises in development, bridging and commercial finance and has completed many multi-million transactions. Steven believes in customer focused relationships and has many clients who have been with him for years. Away from work, Steven spends most of his time with his two children and wife, on the golf course or watching Plymouth Argyle.

Samuel Asante

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Whether you require access to bespoke funding, or need to fund a project of any scale, Samuel will always find a solution to meet the requirements of any client. No matter how complex your case is, through his innovative and determined nature, he can find a structure to finance a client’s plans. As a trained martial artist, Samuel’s passion and confidence carries over into the workplace, and you can expect a clear and concise transaction journey from start to finish.

Jason Hunt

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Jason started in 2012 in financial services working across London’s property and financial services markets for HNW individuals. He is able to construct tailor-made solutions to suit his client’s needs, no matter how complicated. He has completed multi-million pound residential, buy to let and commercial developments across the UK. Jason is a confident and motivated individual whom takes pride in offering an exceptional and professional level of service to all of his clients. Outside of work he enjoys hiking, cycling and traveling the world with his sights set on Base Camp Everest.

Assad Younis

Mortgage Broker

Assad prides himself on being open minded and thinking outside the box. Through a personalised approach and consistent communication; Assad’s strong relationships with specialist lenders gives him the ability to reach the ideal outcome for his clients. With a particular strength in dealing with foreign nationals and ex-pats he approaches his clients with a can-do attitude. His attention to detail allows him to actively support his clients and build a long-term relationship by giving a truly tailored approach.  Outside of work, Assad is a keen explorer and foodie, regularly travelling to remote destinations and testing out the local cuisines.

Shyan Zubair

Co-Founder & Managing Director

Shyan is a global businessman with keen commercial acumen and a deep understanding of the UK property market. Following the successful completion of an undergraduate and postgraduate degree in Mathematics from King’s College London, Shyan has held a range of highly strategic roles, with a focus on UK property investment – meaning he is well versed in the world of HNW property finance. Not only is he an experienced UK landlord, he has an impressive history in the world of property trading, and has played a pivotal role in the completion of a number of large scale development projects with values up to £30 million.

Oliver Hines-Lloyd

Co-Founder & CEO

Ollie entered the world of high net worth mortgages after living in Geneva, where he provided tailored financial advice to private clients. This experience shaped his career trajectory, giving him first-hand experience in understanding and communicating the benefits of financial advice – all while developing the ability to build exceptional client relationships. Following this, Ollie moved back to London where he began specialising in mortgages. His drive, ambition and natural flair for anticipating the needs of his clients led him to progress quickly from Client Services to broker, where he honed his skillset after passing his CeMap exams. Outside of work, Ollie is an avid traveller – and an equally keen supporter of his local club, Fulham FC.

Antonio Michael

Co-Founder & CEO

Antonio has over a decade’s experience arranging and negotiating mortgage finance for some of the UK property market’s most complex transactions. During his career, he has worked at some of the UK’s most prestigious mortgage brokerages, as well as the fast-paced world of currency broking. As a result, he has a wealth of relevant experience in handling complicated cases, like clients buying properties through trusts. Crucially, Antonio has developed an almost unparalleled network of close industry relationships. This enables him to navigate challenging situations with ease, and he relishes taking on cases that have struggled to progress elsewhere and seeing them through to completion.

Antonio Michael

Co-Founder & CEO

Antonio started in financial services in 2006, arranging and negotiating mortgage finance for some of the UK property market’s most complex transactions. During his career, he has worked at some of the UK’s most prestigious mortgage brokerages, as well as the fast-paced world of currency broking.

As a result, he has a wealth of relevant experience in handling complicated cases, like clients buying properties through trusts. Crucially, Antonio has developed an almost unparalleled network of close industry relationships. This enables him to navigate challenging situations with ease, and he relishes taking on cases that have struggled to progress elsewhere and seeing them through to completion.