Financing routes
Banks, Private Funders and Other Financing Providers
Three routes, three very different outcomes. Choosing the wrong one — or being placed on the wrong one — can be a costly mistake.
Side by side
| Consideration | Banks | Private funders | Other financing providers |
|---|---|---|---|
| Typical cost | Lowest | Moderate to high | Highest |
| Typical tenure | Longest | Short to medium | Shortest |
| Criteria | Strictest, formal credit policy | Flexible, commercially assessed | Asset or receivable led assessment |
| Speed | Slowest | Faster | Fastest |
| Security | Often required for larger quantum | Varies, frequently asset or receivable backed | Varies by lender |
| Credit record | Recorded on CBS | Varies by funder | Varies by provider |
| Best suited to | Companies with clean accounts that banks accept | Sound businesses outside bank criteria or timing | Asset, receivable or trade led needs |
This comparison is general guidance only. Each provider sets its own criteria, pricing and terms, and these can change over time.
How we choose the route for your case
Bank first, if a bank will accept the case
If your financials, credit profile and security support a bank facility, we check that first — it's almost always the cheapest option with the longest tenure.
Private funders where structure matters
If bank criteria can't be met, or the timing or security doesn't fit, a private funder may offer a workable structure at a higher price.
Specialist providers where they fit
Specialist receivables, equipment, property and trade financiers — we consider these when your business or timing calls for a non-bank route.
Common questions about the routes
Which route is cheapest?
Bank facilities are usually the lowest cost with the longest tenure, but have the strictest criteria and take the longest. Cost is only one factor — tenure and repayment frequency often matter more to your cashflow.
What are other financing providers?
Specialist providers cover receivables, equipment, property and trade financing, as well as growth capital. We look at them when a bank or private funder route doesn't fit your business or timing.
Can you use more than one route at once?
Sometimes, yes — for example a bank term facility alongside a private receivables line. That's a decision we make together with you, not a default option.
Do you receive commission from providers?
Where a provider pays us an introducer fee, we disclose this to you in writing as part of our engagement terms. Our recommendation is based on documented criteria so you can see why we suggest it.
Talk through your financing position
A Loura consultant will review your position and tell you plainly what is realistic before anything is submitted anywhere.