Funding Bay

Funding Bay, a commercial finance broker for UK SMEs

Funding Bay operates as a commercial finance broker connecting businesses that need capital with lenders that provide it. The company describes its role as matchmaking between borrowers and funders, and states that it works with borrowers whose requirements range from £20,000 to £25 million. Its stated focus is small and medium-sized enterprises, which it helps to raise funding through corporate and commercial finance products.

Funding Bay Limited is described on the site as an FCA-authorised and regulated finance broker, with registration number 950847. The company also notes that it may receive payment or other benefit from a finance provider if a client enters into an agreement with that provider.

Financing products compared

The broker covers a range of facilities aimed at different funding needs. The site groups them as follows:

• Invoice finance, presented as a way to release funding tied up in unpaid invoices and improve working capital, including invoice discounting, invoice factoring and selective invoice financing.
• Business loans, spanning unsecured business loans, secured business loans and bridging loans.
• Asset finance, used either to release funds against existing assets or to purchase additional assets, with hire purchase, asset refinance, asset leasing and sale and leaseback listed among the options.
• Other commercial facilities named on the site include merchant cash advance, revolving credit facility and development finance.

Funding Bay also publishes loan calculators for business loans, invoice finance and asset finance, intended to give a quick indication of eligibility for products such as unsecured and secured loans.

How the brokerage process works

According to the company, its technology and team analyse the business and management's funding requirement and goals, then match that need to the criteria of one of its funders and package the application. Funding Bay states that it manages the funding process from start to finish. The site also advertises that applicants can get an offer on the table within 24 hours.

On documentation, the company indicates that requirements vary by product but that most applications call for the last fully filed accounts, the last 12 months of bank statements, up-to-date management accounts including balance sheet and profit and loss, aged receivables and aged debtors, and a schedule of all current debt in the business.

Lender network and credit checks

Funding Bay states that it works with a network of more than 200 lenders across the traditional and alternative finance market, a figure the company elsewhere puts at over 250 lenders, from high street banks to niche independent lenders. It names Lloyds and Barclays as examples of high street banks, Funding Circle as an unsecured lender and Bibby as an invoice and trade financier.

The company asserts that engaging with Funding Bay does not affect a client's credit score, and that certain lenders may perform checks for due diligence only with the client's explicit consent. It presents itself as a volume introducer able to source available rates and as experienced in fitting a business's numbers, narrative and requirements into lender criteria.

Track record and client base

Funding Bay states that since 2017 it has helped businesses raise over £100 million in funding. The site cites client testimonials from directors and finance managers at companies including Box Media Holdings, Love Seitan, Yepplo, Lucky Beans, Reward Finance Group, Maximise Capital, Soben Contract and Commercial, Harper Collins and Collins. Published success stories cover Power Systems International Limited, established in 1986 and described as a provider of custom-engineered power conversion systems; Future Fishing, an independent fishing tackle and outdoor equipment superstore based in Newark, Nottinghamshire; Capital Living; Callaghan Green; and Office Business Supplies.

Editorial content on business lending

Beyond brokerage, the site maintains guides and articles on business finance. Among the topics covered are bad credit business loans in the UK, which the company notes can reduce available options, increase borrowing costs and prompt closer scrutiny of affordability, recent trading, assets and security, and fast business loans, which it describes as accessible in 24 to 72 hours from application to funds for well-prepared applications of up to approximately £150,000.