Small Business funding update

One of our commercial funding partners Bibby Financial Services has launched the Small Business Cash Access funding facility, aimed specifically at start-ups and small and micro businesses with a turnover of £300,000 per annum or less. The facility has been launched specifically to support those smaller businesses most in need and entrepreneurs looking to start a new venture. Andy Tait, executive director at Bibby has recently said: “We have always recognised how tough it is for businesses of all sizes to succeed, but it is particularly difficult for those at the smaller end of the scale or those starting out who are trying to grow in a negative climate. “The recession led to a wave of new businesses and entrepreneurship as many people found themselves with the opportunity or little choice but to go it alone. Now those businesses are starting to mature, taking on staff and moving into bigger premises. But they are not getting the support they need financially, because they are considered as too much of a risk by some funders.” Research from Bibby carried out during Q1 for the Business Factors Index shows that just 4% of SMEs have applied for funding from initiatives such as the National Loan Guarantee Scheme. Andy added: “Our research has revealed that many smaller businesses are relying on their inflexible overdrafts or dipping into personal savings as a way to finance their companies, which are in no way sustainable because, quite simply, those pots of money have a limit.” The new facility from Bibby advances 90% of the value of the invoices raised to customers by the business and releases the remaining 10%, minus a small single fee once the customer settles the invoice. “The aim is to allow people who have not considered invoice finance before to try this credible form of flexible funding and reap the rewards it can bring,” explained Andy.

How can I get a loan with no credit check?

A question often asked is how can you possibly get a loan without being credit checked. The short answer is that without some sort of additional security being offered you can't! Any lender offering you an unsecured loan will conduct a credit check on you whether you be using the loan to buy furniture, a holiday or a car. 

There are however one or two lenders around that will offer you a no credit check loan so long as you can meet certain criteria. One way to borrow money with no check is to put up something tangible as security, for example a car or a piece of art. Loans secured in this way are becoming ever more popular for the asset rich cash poor demographic as a means of raising funds quickly (usually cash in the bank within 48 hours) with minimal fuss. The lender simply securely stores the asset until the loan has been repaid, typically within 3 - 6 months. This can therefore be used as an excellent bridging facility or for commercial purposes such as the dreaded VAT bill and you can can borrow up to £1,000,000 in this way.

For smaller personal loans with no credit check then a guarantor loan is an option if you are needing to borrow up to £5000. You simply need to provide the added security of a guarantor who gives the lender comfort that the loan will be repaid if you default. This can be especially useful if you have little credit history or indeed a rather tarnished one. 


Google them - They can be called poor credit loans, bad credit loans, no credit check loans amongst many other things but they all generally refer to a guarantor loan. Don't be misled though, there is no easy way to get a loan if you have had issues in the recent past or don't meet the criteria of the big banks. For the select few who can get a guarantor to help then getting a no credit check loan is a reality.



  

Who really likes banks?

I think by now there is hardly any business person or entrepreneur who would answer this question with a yes. Bank bashing continues in full swing but we don’t believe that this is the solution – it may just help us to get things off our chest.

Yes, banks are still operating with extremely confusing and restrictive lending criteria; on the other hand nobody wants to go back to the days of 2005 or 2006 when money was thrown at anybody and anything without any prudence. So the upshot of it all is that organising business finance remains a painful prospect destined for one rejection after the other. We can only advise one thing: “if something hurts – stop doing it”. Organising business finance is something we specialise in and we will take all the hassle and pain away from your clients so that they can concentrate on running and developing their business.

In the meantime if you or indeed any of your clients require any business finance discuss their proposal with us – remember that you can always contact me without any obligation on your part.

The Bank of mum and dad

Typically for those people who can't get a loan through their bank or from one of the many prime lending institutions (think big banks, supermarket chains etc) the options are relatively limited. Historically how many of us when younger had to ask, nay beg our parents for some help to get that car finance we needed or a loan towards the deposit on a rented flat. 

In these austere times many parents haven't perhaps got the funds readily available to help out their children. Their ISA maybe has been plundered already, the credit card up to it's limit or the bank account suffering from a drop off in quarterly bonus rewards.

One of our personal loan products may be beneficial as an alternative to the bank of Mum and Dad as it allows them to help their offspring raise the money they require in the form of a loan but without them having to put their hand in their own pocket.

Often referred to as No credit check loans or Guarantor loans  the customer gets the benefit of borrowing the money in their own name and controlling the monthly payments on a typical advance of up to £5000. The parent or though it can equally be another family member or friend simply to stand behind you and guarantee that the payments will be met if the customer falls behind on the payments themselves.

To get a guarantor loan you will need to have a guarantor who is happy with your credit worthiness and is willing to back your guarantor loan. They will need to be between 18 and 75, a homeowner with a Uk bank account and steady income. If they trust you then our lenders trust you and therefore your credit rating is not so important.

So if you are the banker at the local branch of Mum and Dad then maybe you could consider this next time you are asked for help with a loan.

Have you previously failed for a loan? Have you looked at the Guarantor Loan market that makes it's possible for some customers to qualify for a loan.

The guarantors as a rule need to be a home owner. Home ownership is considered a key factor  when assessing the credit worthiness of the guarantor and the application as a whole and at this point in time is a mandatory requirement.

This can be be a stumbling block for some customers who don't know a suitable homeowner to act as guarantor on a loan for them. It may be the only home owner you know is a family member and you are not comfortable asking them. You may have a friend however who has a good clean credit history and happy to help you or perhaps an employer?

If they can help they just need to meet the guarantor loan criteria. Your guarantor must be aged 18-70, be good with their money, financially stable and own their own home.


As highlighted in a previous article a guarantor loan is most likely not for customers who have a poor track record if they have no genuine intent to improve their situation. It is similar to applying for a job and not being able to supply character references. This type of loan will only be helpful to a customer who can find someone who is deemed a secure and responsible individual to stand guarantor to the loan. The guarantor for the loan is ultimately responsible for the payments should the applicant default, this is the lenders security.

Click here for more information on guarantor loans

Update on Buy to Let loan opportunities


Are you looking to take advantage of the opportunities in the current housing market? Do you own one or more buy to let properties? 
If you are looking to raise funds for business cash injection, further property purchase or development, in fact almost anything then a 1st or 2nd charge on the existing buy to let could be what you looking for.
Furthermore if the repayments fit within the existing rental income no further proof of income is required!
We can help with arranging First or Second Charge secured loans for Buy to Let purchases or full remortgages via our regulated mortgage advisors.
Up to £50,000 can be arranged as a Second Charge and rental income can be used in many cases used to meet the repayments. The basic criteria for this is:

• Minimum Valuation £75,000
• Adverse credit accepted
• Large loans accepted
• Loans can be used for any purpose

At a time when lending remains tight within some of the big banks then our customers appreciate more than ever having the flexibility afforded to them via our extensive panel of secured lenders. We can help with loans from just £1k to £500k plus and get you a quick decision with no up front fees.

Service driven industries are moving at the speed of light towards ‘online’ communication only, but how important is face to face contact for your business? Do you like call centres or endless form filling on the internet with more and more passwords and unique usernames? All these hurdles before you can ask a question or get a simple answer to a simple issue!

So many companies forget the old fashioned approach of ‘getting to know your client’ and ‘finding out what the client wants’; they choose to operate in what they believe is a more cost effective and efficient manner for them….but what about you?

 

Our commercial finance partners are not opposed to the use of modern IT having embraced technology some time ago. The difference they say is "that IT supports us so we can support your clients and not the other way around. So even with online communication we don’t lose the personal communication we have with our clients."

Although online communication is beneficial for all businesses looking to target a wide audience for a general purpose, with each finance application being unique, an individual approach to assessing your clients’ financials and business plan can ensure your clients get the right deal for their business.

Their ethos is to always have an initial meeting or conversation with a client so that they can fully understand and appreciate their proposal. 

"From experience we know this is an enormous benefit to our client, because the better we understand them and their requirements the better we are equipped to arrange the right finance for them. After all, all business and commercial loans are underwritten on their own merits and do not follow the standard approach normally applied to residential and buy-to-let mortgages."

So if you call this old fashioned – you are right; but in today’s world it is refreshingly old fashioned and refreshingly effective!  The old fashioned approach works - and there's a long list of satisfied customers to back this up too.

If you want to find out more about how we can help your business – contact us for a free initial meeting without obligation.