The top 5 industries currently using business finance in the UK

Business finance is a critical tool for companies seeking growth, stability, and expansion. Various industries in the UK rely on financing options such as asset finance, invoice financing, and business loans to support their operations. Here are the top five industries currently leveraging business finance.

1. Manufacturing

The manufacturing sector requires significant capital investment in machinery, raw materials, and production facilities. Business finance helps manufacturers to:

• Acquire cutting-edge equipment through asset finance.
• Manage cash flow fluctuations with invoice financing.
• Expand operations and invest in new product lines with business loans. 

2. Construction

Construction businesses frequently rely on external finance due to the high costs associated with projects, materials, and labour. Common financing options include:

• Equipment leasing for heavy machinery.
• Trade finance to manage supply chain payments.
• Bridging loans to cover short-term funding gaps between project payments.

3. Retail and e-commerce

Retailers and online businesses face fluctuating demand and need finance to maintain inventory, marketing, and operational costs. They typically use:

• Merchant cash advances, repaid via card sales.
• Working capital loans for seasonal stock purchases.
• Invoice financing to maintain steady cash flow from suppliers. 

4. Transportation and logistics

Logistics companies require substantial investment in fleet management, fuel, and infrastructure. Business finance supports them by:

• Providing asset finance for purchasing vehicles and equipment.
• Offering invoice factoring to manage delayed client payments.
• Funding expansions into new markets with business loans.

5. Hospitality and tourism

The hospitality sector, including restaurants, hotels, and travel businesses, relies heavily on business finance to manage operational costs and seasonal fluctuations. Financial solutions include:

• Equipment leasing for kitchen and hospitality equipment.
• Short-term loans to handle peak season staffing costs.
• Business overdrafts to cover unexpected expenses.

Real projects, real impact

At NGI Finance, we’re proud to have recently supported a diverse range of businesses across the Thames Valley with tailored finance solutions. From funding the fit-out and purchase of three pubs and refinancing two hotels in the hospitality sector, to supporting a construction business with finance for scaffolding, trucks, and vehicles. We’ve also helped expand a local transport company’s fleet of coaches and provided finance to boost retail operations including a vibrant hair salon and a traditional butchers. These projects demonstrate how flexible business finance can empower growth, efficiency, and long-term success across key sectors.

These five industries are among the most prominent users of business finance in the UK. By leveraging various financing solutions, businesses can enhance their cash flow, expand their operations, and remain competitive in their respective markets.

If your business operates in one of these sectors, exploring the right finance options can help drive long-term success. For help, please call our business finance team on 01993 706403 or e-mail enquiries@ngifinance.co.uk.