19 Myths About Commercial Finance
Breaking down common myths to reveal how commercial finance really works.
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19 Myths About Commercial Finance
Breaking down common myths to reveal how commercial finance really works.
GET A FUNDING QUOTE
19 Myths About Commercial Finance You Need to Know
Reality: Commercial finance solutions are tailored to suit businesses of all sizes, from small startups to large corporations. Whether you’re aiming to expand operations, invest in new equipment, or manage cash flow, there are financial solutions available to meet your specific needs.
Reality: Timing is important, but the decision to take on debt should be based on your business’s specific needs and potential for growth, rather than market conditions alone. Strategic borrowing, even in uncertain times, can be a smart move if it supports long-term objectives. There are also more lenders offering a wide range of funding solutions that are keen to deploy funds.
Reality: Borrowing is often a strategic decision, not a sign of distress. Businesses borrow to fund growth, capex, acquisitions, seize new opportunities, or manage cash flow more effectively. It’s a proactive tool for ensuring the business continues to thrive, rather than a last resort.
Reality: While asset-backed finance is common, it’s not the only option. Many lenders offer unsecured business loans and revolving credit facilities that don’t require physical assets as collateral, based on your business’s creditworthiness and revenue. Note lenders may ask for personal guarantees.
Reality: While commercial finance is often associated with real estate, it encompasses a broad spectrum of financial products designed to meet various business needs, from operational expenses to technology investments and beyond.
Reality: Owning property is not a prerequisite for securing finance. Many financial products are available to businesses that lease premises or operate virtually, focusing instead on your overall financial health and business potential.
Reality: Timely payments are crucial, but they’re just part of the picture. Factors like credit utilisation and credit history also play significant roles. A well-rounded approach to managing your business credit is essential for long-term stability.
Reality: Each hard enquiry made when seeking credit can have an impact on your business credit score. It’s important to be strategic about when and how often you apply for new credit. By working with Navigate Commercial Finance, you can minimise unnecessary enquiries and ensure that each application serves a clear purpose in supporting your business growth.
Reality: Whilst debt service (born out of profitability) is a key factor for loans, it’s not the only determinant of how much a business can borrow. Lenders also consider other aspects, such as, revenue (how sticky is it?), your cash flow and financial forecasts, credit profile to name a few. For asset backed finance, the lender will consider the value and quality of any assets you can use as collateral. By working with an intermediary like Navigate, you can assess all these factors together to find the most suitable funding solution for your business needs.
The Navigate Commercial Finance Advantage
With a combined 100+ years working in business and finance, Navigate understands the market and has forged excellent relationships with key decision-makers at a wide range of pragmatic lenders giving us the best chance to secure your finance. We will take the stress out of finding the right finance solution with the most appropriate funding partner allowing you to focus on running your business – you have enough going on!
…plans. It is clear from working with Paul and his team that they’re experienced in their field. They were a pleasure to work with and I’d have no hesitation in using Navigate should we require business funding in the future.”
… he has never failed to deliver. He makes sure he fully understands the needs of the business before making his recommendations and will always think outside the box when looking for solutions. Paul knows the commercial funding market very well and I would highly recommend Navigate to any business in need of raising working capital finance”
Andrew Jones, Cooper Parry
… the commercial finance market and each lenders credit appetite or sweet spot.
This results in the most appropriate client-focussed solution but equally allows the lender to make an informed decision at an early stage so they can support a transaction through to completion providing peace of mind all round.”
Martin Baker, Close Brothers Invoice Finance
It has already had a vast impact on our day-to-day business activities”
Dominic Delfino, Famiglia Castagnetta
As a lender this enables me to quickly get a clear grasp of what we can deliver, whilst saving the client time rather than dealing with many funders who may not be able to deliver. Paul knows the commercial funding market very well and I would highly recommend Navigate to any business in need of raising working capital finance”
Kully Bargota, Bibby Financial Services
We sat down with Paul who listened to our plans, kicked ideas around, and then we agreed on a plan, including a four-week timeline. With constant engagement, we met the deadline and now have the finance required to support our exciting plans – great team work throughout!”
Chris Smith, CAPS Systems Ltd
and would like to extend a special thanks to Adam for his exceptional assistance throughout the process. They made it incredibly easy and straightforward. Adam and the Navigate team have been a huge part of our success, helping us secure funding for the second time, which enabled us to open our 7th and 8th gyms. The process has been seamless, and I look forward to working with them again in the future. Thank you again”
Jack Gibson, Fitness Worx
to carefully guide us through the entire process from initial scope to completion finding us the right facility to fit our requirements. It has been absolutely invaluable to our business”
John Slaughter, DS Flooring Solutions Ltd
the client’s needs, making them feel that they are in the right hands. He provides good concise information and background to enable a swift decision to lend. More Adam’s please!”
Angie Preece, BCRS Business Loans
for our financial operations. Paul and his team took the time to understand our business inside out, helping us establish international and domestic current accounts, secure finance, and implement debt insurance, tailored to fit our needs perfectly. This winter, we faced a significant challenge: a surge in work from a key customer put pressure on our concentration limits at a critical time. Thanks to Navigate’s swift and practical approach, we secured the funding we needed within days, ensuring we could meet every commitment. They’ve been consistently available to answer follow-up questions, providing clear, practical advice every step of the way. The combination of expertise and genuine care is rare to find. We wouldn’t hesitate to recommend them.“
Sarah Summerfield, Agile Supply Chain Management
Adam took time to understand our business, our goals and aspirations, and paired us with the perfect Finance Partner, a responsible lender who is a wonderful fit for our organisation. Raising finance for our business was a very challenging process as we did not fit the typical “tick box” criteria required by traditional lenders. Furthermore, we required a lender who would judge our performance based on forecast data, not just historical data. Adam did not let this deter him in his search, he persisted, worked hard for us and was determined in the face of adversity until the deal was signed. Navigate Commercial Finance are highly recommended. A motivated team who provide a fantastic service and offer value for money in terms of fees.Thank you so much for playing a part in helping our business flourish, the future looks very bright thanks to your support.This winter, we faced a significant challenge: a surge in work from a key customer put pressure on our concentration limits at a critical time. Thanks to Navigate’s swift and practical approach, we secured the funding we needed within days, ensuring we could meet every commitment. They’ve been consistently available to answer follow-up questions, providing clear, practical advice every step of the way.”
Sarah Roberts, Antlers CR
embarking on any form of lending, and I was well outside my comfort zone, but the funding was vital to support the growth of my business. To say Paul made the process “easy” wouldn’t be entirely accurate, these types of deals never are, however from our very first conversation about the acquisition and the level of finance required, Paul guided me through every step with clarity and reassurance. As a complete novice, I was never made to feel that any question was too small or too obvious, and Paul was always on hand to explain things patiently and thoroughly.
Paul’s expertise and proactive approach played a key role in ensuring the deal ran smoothly, and we were delighted to complete just before Christmas. Throughout the process, I genuinely felt that Navigate were there to support my business growth, not just to complete a transaction. I wouldn’t hesitate to recommend Paul and Navigate to any business considering invoice finance.”
Kay Venables, Fishers
and they have consistently exceeded expectations. Over the years, they have helped numerous clients secure the right commercial funding solutions, always with a tailored approach that puts the client’s interests first. What truly sets Navigate apart is their consultative style. They don’t sell—they listen, understand, and advise. Their team takes the time to fully grasp each client’s unique circumstances before recommending the most suitable options, which gives us complete confidence when making referrals. Their customer service is impeccable, combining professionalism with a genuinely personal touch. Queries are handled promptly, communication is clear throughout the process, and nothing ever feels like too much trouble. Above all, their knowledge of the invoice finance and wider commercial finance market is second to none. This expertise, paired with their commitment to finding the best outcomes, makes Navigate an invaluable partner for us and our clients alike.
We wouldn’t hesitate to recommend them.”
Daniel Montgomery, MDCA Limited
Reality: Interest rates on commercial loans vary based on several factors, including your business’s creditworthiness, the type of loan, and current market conditions. With proper planning and guidance, you can secure competitive rates that align with your business goals.
Reality: Not all debt is bad. Strategic borrowing can be a powerful tool for growth, enabling businesses to invest in new opportunities, expand operations, and improve cash flow. The key is to manage debt responsibly and ensure it aligns with your long-term strategy.
Reality: Your business’s financial arrangements are typically confidential between you and your lender. Customers generally have no visibility into your debt unless it’s publicly disclosed for specific reasons, such as in the case of public companies or registrations at Companies House. In fact, leveraging finance wisely can strengthen your business, ensuring better service, quicker payments and stability for your customers.
Reality: While being in business for a long time can positively impact your creditworthiness, it doesn’t guarantee an excellent credit score. Active management of your credit profile is essential. Regular reviews and strategic adjustments to your credit practices are necessary to maintain and improve your credit standing.
Reality: Commercial finance is not inherently riskier than personal finance. In fact, it can be a safer option when used correctly, as it is designed to support business operations and growth, with terms and conditions that reflect the specific needs of a business.
Reality: Even startups and early-stage businesses can access commercial finance, provided they have a solid business plan and demonstrate potential for growth. Lenders often look at future projections as well as current performance.
Reality: While some financial products may take time, many commercial finance options are designed for quick approval and disbursement. Working with a knowledgeable broker can help expedite the process, ensuring you get the funds when you need them.
Reality: Relying solely on personal credit can limit your business’s financial potential. Establishing distinct business credit offers numerous advantages, including better access to funding, higher credit limits, and the ability to separate personal and business finances. This separation not only enhances your financial stability but also supports long-term growth and future opportunities.
Reality: Working with a commercial finance broker, like Navigate, allows you to access a wide range of lending options without the hassle of shopping around yourself. Brokers have extensive networks and key stakeholder relationships This approach ensures you get the most suitable finance solution, saving you time and potentially reducing costs.
Reality: While the process may seem complex, it doesn’t have to be. With the right guidance, navigating commercial finance can be straightforward. We’re here to provide clarity and support, making sure you understand each step and how it benefits your business.
UK Business Landscape
The United Kingdom remains a global economic heavyweight, generating over £2.5 trillion in Gross Value Added (GVA) annually and supporting a workforce of 33 million. As the world’s sixth-largest economy, it acts as a premier international hub for finance, legal services, and trade, driving critical supply chains across Europe and the Atlantic while commanding significant soft power influence.
While historically a “services superpower” (accounting for 80% of output), the UK’s modern strengths lie in high-value innovation: fintech, life sciences, and advanced manufacturing in aerospace and green energy. It hosts Europe’s largest technology ecosystem, now valued at over $1 trillion. Following recent volatility, the economic outlook has stabilised; growth is forecast to reach 1.5%–1.6% by 2026 (IMF/OBR). Driven by falling inflation and the net-zero transition, the UK is positioned to leverage these high-growth sectors for sustainable long-term expansion.
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