Commercial finance · Overview
Commercial finance: matching the funding type to what the money is for
Different business needs call for differently structured finance. This overview compares the seven funding types we can discuss, explains what each is designed to fund, and sets out how Ocean Capital Exchange introduces businesses to third-party providers.
Definition
What commercial finance covers
Commercial finance is funding provided to businesses rather than individuals, structured around a specific purpose: releasing cash from invoices, paying suppliers for stock, acquiring equipment, borrowing a fixed sum over a term, advancing against card takings, or giving a supplier bank-backed assurance of payment.
The right structure usually follows from the purpose and the asset or cash flow that supports it. Funding a machine over its working life, for example, is a different problem from bridging a 60-day gap between paying a supplier and being paid by a customer.
Ocean Capital Exchange does not lend. We help a business describe its need clearly and introduce it to third-party providers whose products may fit. Each provider makes its own decision on its own terms.
At a glance
- Products covered
- Invoice, trade and asset finance; secured and unsecured loans; merchant cash advance; letters of credit
- Who decides
- The third-party provider, after its own assessment
- Rates and terms
- Quote-specific; none are published or implied here
- Security
- Varies by product; guarantees may be requested
- OCE's role
- Introducer to third-party finance providers; not a lender
Products
Types of commercial finance
Each verified product has a dedicated page explaining its purpose, assessment, costs and limitations.
- Invoice financeReleasing cash tied up in unpaid business invoices
- Trade financeFunding supplier payments before goods are sold
- Asset financeSpreading the cost of equipment and vehicles
- Secured business loansTerm borrowing backed by assets
- Unsecured business loansTerm borrowing without specific asset security
- Merchant cash advanceFunding collected from a share of card sales
- Letters of creditBank undertakings to pay against compliant trade documents
Suitability
Who this overview is for
The hub is a starting point for businesses that know they need funding but have not settled on a structure.
Usually a fit
- UK businesses with a defined purpose for funding, such as a stock purchase, equipment acquisition, working-capital gap or expansion project.
- Finance directors and owners comparing structures before approaching providers.
- Businesses that already know their purpose but want to check whether another product is a better match for it.
- Importers, exporters and B2B suppliers whose cash cycle is driven by payment terms.
Usually not a fit
- Personal borrowing, consumer credit or residential mortgages, which are outside this service.
- Commercial mortgages, revolving credit facilities or tax funding, which we have not confirmed as available services and do not cover here.
- Businesses seeking a guaranteed approval or a published rate before any assessment; providers do not work that way.
- Funding to cover persistent trading losses with no clear route to repayment.
Process
How an introduction works
The process is the same whichever product you end up discussing. Ocean's part ends at the introduction; the provider runs its own process from there.
- 01
Describe the need
Tell us what the funding is for, how much is involved, the timescale and how you expect it to be repaid.
- 02
Identify likely structures
We discuss which of the funding types below are designed for that purpose, and their main trade-offs.
- 03
Prepare information
You gather the documents a provider is likely to request, such as accounts, management information and details of existing borrowing.
- 04
Introduction to providers
With your agreement, we introduce you to one or more third-party providers that offer the relevant product.
- 05
Provider assessment
Each provider carries out its own due diligence and decides whether to offer finance and on what terms.
- 06
Your decision
You compare any offers received, read the agreements, and take independent advice where appropriate before signing.
An introduction is not an application approval. Providers may decline, or offer different amounts, security requirements or terms from those you requested.
Comparison
The seven funding types compared by purpose
Read across a row to see what each structure is designed to do. Detailed pages follow each product.
| Designed to fund | Supported by | Usually repaid from | |
|---|---|---|---|
| Invoice finance | Cash tied up in unpaid B2B invoices | Your sales ledger | Customer payments |
| Trade finance | Paying suppliers for specific goods before they are sold | The trade transaction and goods | Sale proceeds or customer payment |
| Asset finance | Acquiring or refinancing equipment and vehicles | The asset itself | Fixed instalments over the term |
| Secured loan | Larger one-off investments or refinancing | Charge over property or other assets | Scheduled repayments |
| Unsecured loan | Shorter-term projects, growth or working capital | Business performance; guarantees often requested | Scheduled repayments |
| Merchant cash advance | Working capital for card-taking businesses | Future card receipts | A share of daily card sales |
| Letter of credit | Payment assurance to an overseas supplier | Issuing bank's undertaking against documents | Reimbursing the bank when it pays |
In practice
Matching common needs to products
These are typical starting points, not rules. A provider's assessment may point to a different structure.
- Customers pay slowly
- Invoice finance funds the gap between invoicing and payment.
- Supplier wants paying before goods arrive
- Trade finance or a letter of credit, depending on whether you need funding or payment assurance.
- New machinery or vehicles
- Asset finance spreads the cost over the asset's working life.
- Fixed-cost project or acquisition
- A secured or unsecured term loan with scheduled repayments.
- Seasonal card-takings business
- A merchant cash advance repaid as a share of card sales.
- Total cost of planned purchaseAssumed figure
- £120,000
- Cash the business can commitAssumed figure
- £45,000
- Funding gap to discuss£120,000 minus £45,000
- £75,000
Hypothetical arithmetic only. It shows how to size a need before speaking to providers; it says nothing about whether, or on what terms, a provider would fund the gap.
Weighing it up
Why the structure matters
Choosing finance by purpose has real advantages, but every product carries obligations.
Benefits
- Repayment matched to cash flow
- Structures repaid from the asset or receivable they fund can be easier to service.
- Preserves cash reserves
- Spreading large costs can leave working capital for day-to-day trading.
- Clear comparison
- Knowing the purpose makes provider quotes easier to compare like with like.
Material limitations
- Cost
- All finance has a cost, which can be significant relative to the sum involved.
- Security and guarantees
- Many facilities require charges over assets or personal guarantees from directors.
- No guaranteed outcome
- Providers may decline or offer less than requested.
- Contractual commitments
- Minimum terms, early repayment charges and covenants can restrict future flexibility.
Due diligence
What providers generally consider
There are no universal eligibility criteria. Each provider and product applies its own. Areas commonly reviewed across commercial finance include:
- Purpose
- What the money is for and whether it fits the product.
- Repayment source
- How the business will repay: trading cash flow, receivables, sale proceeds or card takings.
- Financial performance
- Accounts, management figures and trends.
- Existing borrowing
- Current facilities and any charges registered over the business.
- Security available
- Assets, receivables or guarantees that could support the facility.
- Directors and ownership
- Background and credit history of the people behind the business.
Information often requested
- Recent filed accounts and current management accounts
- Business bank statements
- Details of existing borrowing and security
- A short description of the funding purpose and amount
The documents list is indicative. Providers set their own requirements. Ocean Capital Exchange does not make lending decisions.
Pricing structure
How costs differ across products
We do not publish rates because pricing is set by each provider for each case. The type of charge, though, follows the product:
- Interest
- Charged on term loans and asset finance, fixed or variable, on the balance outstanding.
- Discount and service fees
- Typical of invoice and some trade finance, linked to funds drawn and turnover.
- Fixed repayment amount
- Merchant cash advance is usually priced as a fixed sum repaid on top of the advance, not as interest.
- Commissions
- Letters of credit carry bank commissions and document charges rather than borrowing interest unless funding is drawn.
- Arrangement and exit fees
- Set-up, early repayment and termination charges can apply across products.
Repayment and settlement
- Scheduled repayments apply to loans and asset finance.
- Receivable-backed products are usually settled from customer or sale proceeds.
- Merchant cash advance repayments flex with card sales.
- Letters of credit create an obligation to reimburse the issuing bank when it pays the supplier.
Checklist for comparing quotes
- 1.Total amount repayable, not only the headline rate
- 2.All fees, including arrangement, exit and minimums
- 3.Security and guarantees required
- 4.Term, notice periods and early settlement terms
- 5.Covenants or reporting obligations
Funding-gap tool
Size your funding gap before you compare products
Enter the total cost of what you need to fund and the cash you can commit. The first tool shows the gap to discuss with providers. The further planning tools explore possible funding structures, including clearly labelled revolving-credit and tax-funding illustrations whose availability through us is unconfirmed. These are discussion tools only, not verified offerings, quotes or recommendations. Required money and rate inputs start blank; no provider rates are assumed.
Illustrative result
Complete every field to see a result.
0 of 2 required figures entered
Ocean Capital Exchange is an introducer, not a lender or issuing bank. Check the actual repayment schedule, all charges and security obligations with the provider before committing.
Further planning tools
The overview below explores funding structures. Revolving-credit and tax-funding illustrations are retained for discussion only: availability through Ocean Capital Exchange is unconfirmed. They are not included in our verified product list and are not offers or recommendations.
01 · Funding overview
Which kinds of finance fit the need?
Reasoned categories
Enter your funding amount explored, trading history in months, annual turnover to see the breakdown.
2 of 5 required figures entered
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Product-specific regulatory disclosures require review before production. Suggestions are funding categories to explore, not credit approval, guaranteed eligibility or a lender match. Some exploratory product categories have unconfirmed availability. How this calculator works.
Discuss your funding options
Speak to our team whenever you’re ready. You don’t need to complete this calculator to discuss your options or request a quote.
Our enquiry form opens in a new tab. Calculator figures are not sent automatically; include any you would like us to review.
02 · Exploratory · Availability unconfirmed
Revolving credit cost illustration
Exploratory calculator. Availability of this type of funding through Ocean Capital Exchange is unconfirmed and subject to discussion. It is shown to help you think through costs, not as a product we currently offer.
Cost of a constant draw
Enter your assumed credit limit, amount drawn, duration in days, annual interest on amount drawn, annual facility fee on full limit, annual charge on unused facility, fixed additional fees to see the breakdown.
0 of 7 required figures entered
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Product-specific regulatory disclosures require review before production. This is an exploratory model, not confirmation of an available revolving-credit product or offered limit. How this calculator works.
Discuss flexible funding options
Speak to our team whenever you’re ready. You don’t need to complete this calculator to discuss your options or request a quote.
Our enquiry form opens in a new tab. Calculator figures are not sent automatically; include any you would like us to review.
03 · Exploratory · Availability unconfirmed
Tax bill funding illustration
Private lender finance to spread a tax liability. This is not an HMRC Time to Pay arrangement and is not approved by HMRC.
Exploratory calculator. Availability of this type of funding through Ocean Capital Exchange is unconfirmed and subject to discussion. It is shown to help you think through costs, not as a product we currently offer.
Repayments and total cost
Enter your tax liability to finance, annual rate, finance term in months, upfront arrangement fees to see the breakdown.
1 of 5 required figures entered
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Product-specific regulatory disclosures require review before production. This models private lender finance, not HMRC Time to Pay or HMRC interest. Standalone product availability has not been confirmed. How this calculator works.
Discuss tax-related funding needs
Speak to our team whenever you’re ready. You don’t need to complete this calculator to discuss your options or request a quote.
Our enquiry form opens in a new tab. Calculator figures are not sent automatically; include any you would like us to review.
Want to discuss these figures? Open our enquiry form (opens in a new tab). Calculator figures are not transferred automatically, so please include any you want us to review.
Commercial finance questions
Still unsure? Call +44 20 7183 2026.
Does Ocean Capital Exchange lend money?
No. Ocean Capital Exchange introduces businesses to third-party finance providers. The provider assesses your business, decides whether to offer finance and sets the terms.
How do I know which type of finance suits my business?
Start with the purpose. Unpaid invoices point towards invoice finance; equipment towards asset finance; supplier payments for imported goods towards trade finance or a letter of credit; a fixed project cost towards a term loan. The comparison table above summarises each structure.
What is the difference between trade finance and a letter of credit?
Trade finance provides funding to pay a supplier. A letter of credit is a bank's undertaking to pay the supplier if compliant documents are presented; it gives assurance but is not, in itself, a loan.
Can I combine more than one product?
Some businesses use more than one facility, for example asset finance for equipment alongside invoice finance for working capital. Providers will consider existing borrowing and security when assessing any new facility.
Do you offer commercial mortgages or revolving credit facilities?
These have not been confirmed as services we currently introduce, so they are not covered on this site. Ask us directly if you have a specific need.
Will I need to give a personal guarantee?
It depends on the product and provider. Personal guarantees are common for unsecured lending and are requested for many other facilities. Any requirement is set out in the provider's offer.
Are rates shown anywhere on this site?
We do not advertise provider rates. Pricing is quote-specific and depends on the provider and your circumstances. Worked examples use explicitly hypothetical rates, and calculators on product pages use only figures you enter.
Independent background reading
These independent sources explain general concepts. They do not endorse Ocean Capital Exchange or confirm our providers, product availability or terms. Your provider’s agreement takes precedence over an illustration.
Important information
Ocean Capital Exchange Ltd introduces businesses to third-party providers of commercial finance. We are not a lender, do not make credit decisions and do not guarantee that finance will be offered or on what terms. Any facility is subject to the provider's own assessment, due diligence, approval and documentation.
Products named on this page are those we can discuss; their availability for any business depends entirely on provider criteria.
This page is general information, not financial, legal or tax advice. Worked examples and calculator results are hypothetical arithmetic based on assumed or visitor-entered figures; they are not quotes, offers or typical terms. Business finance may require security or personal guarantees. Read any agreement carefully and take independent advice where appropriate.
Tell us what the funding is for
Share the purpose, amount and timescale. We can explain which structures are designed for it and introduce you to suitable third-party providers.
- Or call
- +44 20 7183 2026
- Office
- 73 Watling Street, London, EC4M 9BJ