Can I combine multiple finance products for one project or purchase?
Short answer
Yes — many UK businesses combine two or more finance products to fund a single project or purchase. Combining finance is common for complex acquisitions, large capital investments, or staged projects where different funding types suit different needs.
How you combine products depends on lender rules, security requirements, cashflow timing and the overall cost of capital. Best Business Loans does not provide loans; we help match you with lenders or brokers who specialise in blended funding solutions.
When and why businesses combine finance products
Combining finance products is often driven by timing and type of cost: you might use asset finance to buy machinery, invoice finance to cover short-term working capital, and a term loan to fund a longer-term expansion. Each product solves a specific cashflow or security need.
Businesses combine finance to lower upfront costs, preserve working capital, manage tax or accounting treatment, and spread repayment risk. For example, a hospitality business might use a hire purchase for kitchen equipment while using a short-term loan to pay fit-out contractors.
It’s also common in staged projects: initial mobilisation may be funded by an overdraft or invoice finance, while later capital expenditure is supported by equipment finance or refinance. A blended approach often produces better cashflow alignment than a single funding source.
Common combinations and how they work
Here are typical pairings you’ll see in the market, and why lenders accept them:
- Asset finance + term loan: Asset finance funds equipment with the equipment as security, while a term loan covers installation or associated costs.
- Invoice finance + overdraft: Invoice finance unlocks cash from outstanding invoices, and an overdraft provides short-term top-up for payroll or urgent purchases.
- Hire purchase + refinance/consolidation: Businesses use hire purchase to spread the cost of vehicles, then refinance when cashflow improves to reduce rates or change terms.
- Grant + commercial loan: A grant or government-backed contribution reduces the required loan amount and improves lender appetite for the remaining finance.
Each combination works because different products attach to distinct assets or cashflows, reducing lender overlap and protecting priority positions. That said, lender consent is often required where securities or charges are involved.
Practical steps to structure combined finance
1) Map the project costs and timing. Separate capital expenditure, working capital, and contingency so you can match each to the most suitable product.
2) Identify assets and cashflows that can act as security. Lenders prefer assets they can value and repossess if necessary, such as machinery, vehicles or invoices.
3) Talk to lenders or brokers early about inter-creditor issues. Some lenders will require subordination agreements or clear priority terms when more than one provider takes security over the same asset.
4) Compare total cost and flexibility, not just headline rates. Arrangement fees, early repayment charges and balloon payments can change the effective monthly burden.
5) Consider staged approvals or Decision in Principle (DIP). An initial DIP helps you estimate likely offers and identify potential conflicts before signing any contracts.
Risks, lender concerns and compliance
Lenders worry about security ranking, borrower insolvency, cross-default clauses and adequate coverage of loan-to-value ratios. If two products share the same asset without clear priority, recovery becomes complicated and risk rises.
Combining finance can increase your administrative burden: multiple repayments, different covenants, and regular reporting may be required. Always ensure your accountant or finance director models the payments under stress scenarios.
From a compliance perspective, be transparent in promotional material and applications. Best Business Loans is an introducer and not authorised to lend or give regulated advice; lenders will carry out eligibility checks and affordability assessments in line with FCA rules where applicable.
For clarity and to avoid misleading claims in advertising or proposals, disclose key costs, security requirements and who is responsible for each tranche of funding. This protects both you and the prospective lenders.
How Best Business Loans helps when you need blended funding
We match established UK businesses with lenders and brokers who have experience structuring combined finance packages. Our AI-driven system analyses your requirements and suggests compatible funding routes to reduce conflicts and speed up introductions.
Use our Quick Quote to get a Decision in Principle or an eligibility check from relevant providers. The Quick Quote is free, confidential and designed to clarify whether a blended approach is feasible for your project.
We can help you identify specialist providers for industry-specific needs — for example, asset finance firms for heavy machinery or invoice finance specialists for B2B firms. To explore tailored small business solutions, see our small business loans page: https://bestbusinessloans.ai/industry/small-business-loans/.
Before submitting applications, collect accurate asset lists, latest management accounts and aged debtor reports. These documents reduce the time lenders need to make a DIP and increase your chances of acceptable terms.
Key takeaways
- Yes — combining finance products is a common, practical approach to fund a single project or purchase.
- Match the finance type to the cost: use asset finance for equipment, invoice finance for receivables and term loans for longer-term investment.
- Get lender input early to resolve security priority and avoid cross-default risk.
- Compare total cost, flexibility and covenant burden rather than headline rates alone.
- Start with a Quick Quote or Decision in Principle to clarify eligibility and likely offers.
How to proceed — next steps
If you’re planning a purchase or project and think blended finance could help, complete our Quick Quote form for a free eligibility check. We’ll match you with lenders or brokers who specialise in the type and scale of funding you need.
Best Business Loans is an independent introducer and does not provide credit. We work with established UK businesses and trusted lending partners to present you with suitable options so you can make an informed decision.
About Best Business Loans
Best Business Loans uses AI to match UK SMEs with relevant lenders and brokers for commercial finance needs. Our platform helps you save time, explore blended funding options, and get clearer decisions from specialist providers.
Ready to see if combining finance products is the right route for your project? Start a Quick Quote now for a fast, no-obligation eligibility check and Decision in Principle from matched providers.
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