UK-based companies frequently expand their operations to the United States, registering subsidiaries to capitalize on the vast opportunities of the American market. However, a common challenge arises when these businesses seek financing in USD for their US subsidiaries. Traditional US banks often hesitate to provide loans to foreign-owned entities due to differences in financial systems, unfamiliar credit histories, and jurisdictional solvency limitations. This leaves many UK-owned companies struggling to secure the capital needed to fuel their US operations.
Below are some common barriers that UK business owners frequently encounter when seeking funds for their US subsidiaries:
- Personal Guarantee Requirements. Many US lenders require a personal guarantee from a US citizen or legal resident, a condition that most UK business owners cannot meet. Without this, applications are often rejected outright—regardless of the subsidiary’s financial viability.
- Lack of Cross-Border Resources. US lenders typically lack local UK contacts or the institutional knowledge to gather necessary documents from UK entities. This knowledge gap can delay transactions, as lenders struggle to retrieve items required for underwriting or compliance.
- Inability to Compare UK and US Financial Products. Lenders unfamiliar with UK financial instruments are unable to offer meaningful comparisons between funding options available in the UK versus those in the US. This leaves business owners without a clear basis for making informed capital decisions.
- Requests for Non-Existent UK Documentation. US underwriting processes often ask for documents that do not exist under UK regulatory frameworks (e.g., certain tax filings or entity verifications). UK business owners are left scrambling to explain these differences or produce equivalents.
Where Capital Source stands apart…
With a decade of experience supporting foreign-owned businesses and a deep understanding of UK commercial law, our seasoned team delivers tailored trade finance solutions designed to spur cross-border commerce and strengthen the enduring alliance between the United Kingdom and the United States. Whether it’s navigating unfamiliar regulatory frameworks or bridging the terminology gap between financial systems, Capital Source is non-bank credit provider that proudly welcomes our UK comrades looking to expend their footprint in the USA.
Unlike conventional lenders, we don’t require a US Social Security Number (SSN) for credit approval, and our eligibility criteria are straightforward:
- A registered US entity
- A commercial US checking account
- 6 months of transaction history under the US registered entity
- Organized financial statements (P&L and Balance Sheet)
- Attractive gross margins
- Near-term visibility to cashflow-positive status
If your business meets the requirements above, you’re already pre-qualified to explore our funding options.
Flexible Financing Options for UK-Owned Companies in the US
- Invoice Factoring. Get up to 85% of invoice value advanced upon installation of an accounts receivable based facility. Perfect for maintaining cash flow while waiting on payments from US customers.
- Working Capital Loans. From payroll and inventory to marketing and project costs, our working capital loans are processed in 24–72 hours and require minimal documentation.
- Equipment Financing. Need to purchase or upgrade machinery or equipment? We offer financing with competitive rates and flexible terms, helping you grow without depleting cash reserves.
- Purchase Order Financing. Need funds to fulfill a large purchase order from a US customer? We offer PO financing that may cover up to 80% of supplier costs, so you can deliver without tying up working capital. Ideal for importers, distributors, and manufacturers scaling up fast.
Capital Source’s trade finance options deliver speed, simplicity, and flexibility to overcome these hurdles.
- Invoice Factoring for Fast Cash Flow. US factoring for UK business subsidiaries unlocks cash by selling invoices. Capital Source advances up to 90% of invoice values in 24–48 hours, ideal for covering operational costs or seizing contracts without bank delays.
- Equipment Financing for Growth. Need equipment for your US subsidiary? Capital Source’s equipment financing covers purchases or upgrades with competitive rates and flexible terms, keeping operations running without draining cash reserves.
- Purchase Order Financing for Large Orders. Fulfill big US contracts with Capital Source’s purchase order financing, which funds up to 100% of order costs. This helps subsidiaries meet demand without upfront investment.
- Working Capital Loans for Ad-hoc Scenarios. From payroll and inventory to marketing and emergencies, our working capital loans provide fast, flexible funds to keep your US operations agile.
4 Ways to Fund Your US Subsidiary
“To each, it may be said, belongs what is best in the traditions of both our peoples. We are with Europe, but not of it. We are linked but not comprised. We are interested and associated but not absorbed. And it is in that spirit that we work most closely with our friends across the Atlantic.”
— Winston Churchill
| Funding Vehicle | Use Case | Turn-around Time | Advance Amount / Basis | Best For |
|---|---|---|---|---|
| A/R Facility | Accessing cash tied up in invoices | 1-3 Weeks to set up | Up to 85% of invoice value | Bridging receivables, accelerating cash-flow |
| Equipment Financing | Purchasing or upgrading equipment | 1-2 Weeks if vendor is identified | Up to 90% of NOLV | Investing in assets without straining balance sheet cash |
| Purchase Order Facility | Fulfilling large US purchase orders | 1-3 Weeks to set up< | Up to 80% of your supplier cost | Scaling quickly to meet demand |
| Working Capital Loans/Advances | Covering general expenses—payroll, marketing, and more | 24–72 hours | Up to 120% of AMR | Versatile funding with fast approval |
Why apply for funding through Capital Source?
- Speed: Term sheets with 24-48 hours
- Simplicity: Streamlined application process
- Flexibility: Credit facilities tailored to cross-pond growth
Ready to fund your US subsidiary? Connect with one of our international financing experts today and explore how Capital Source can unlock fast, flexible funding for your UK business operating in the United States.
Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Consult qualified professionals for advice on regulatory compliance or business incorporation.
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