Interest free Credit for customers of small businesses

We are pleased to be working with the UK's fastest growing provider of point of sale consumer finance. If your business meets the following criteria then we may be able to help you set up to offer interest free credit and other retail finance products to your customers.

Annual Business turnover:  >£100,000

Net Worth:              Positive

Established:           >12 months

Require a Consumer Credit Licence

Products financed

• Furniture and interiors
• Jewellery and watches
• Health and fitness
• Consumer electronics
• Home appliances
• Automotive and marine
• Garden and DIY
• Kitchens and bathroom

Retailers have a great opportunity to to grow their sales by offering credit (including interest free credit) online and in-store.

Here are the key benefits that are on offer to you and your customers:

•           increase sales by up to 40% and average order values by much more

•           A unique paperless e-signature credit application process that makes it quick and easy to process finance orders

•           true multi-channel solution that enables you to offer credit in-store, online and by email via one modern platform

•           daily settlement by BACS 

•           real time sales reporting and account management

•           high acceptance ratio and competitive rates, with a wide range of finance options from 6 to 48 months 

•           high quality point of sale marketing materials and staff training

From customer feedback data we know that 93% of finance orders are incremental (e.g. the customer would not have purchased, spend less, bought elsewhere and/or postponed their purchase if finance was not available).

In summary, introducing a retail credit payment option will attract more customers and increase average spend. We have extensive experience in the retail finance and consumer lending industry. We understand what you want and will give you an honest appraisal of what your options are.

Contact us today

Secured lending growth continues

There is an ever growing range of secured loan products geared towards those prime customers. The current market leader in terms of rates is Shawbrook Bank who have recently reduced their  Platinum rate, Nemo has also dropped its headline rates to the lowest figure since pre-credit crunch days to sit just behind Shawbrook at 7.008 per cent. For the first time in many years there is healthy competition in 'prime' secured loans and everyone is benefitting.

Due to the maintenance of the base rate at just 0.5 per cent many people have enjoyed a low variable rate on their mortgage for many months now. However in many cases if they apply for  additional funds to improve their property or consolidate expensive unsecured debt they may lose this privilege. Our panel of prime secured loan providers are now offering their clients the option to stay on their low base rate and borrow extra funds through a second charge at a very competitive rate.

Something else the likes of Shawbrook’s Platinum scheme brings to the table - flexibility, something not often displayed by mortgage lenders with regard to credit history. Clients with even the most minor blip are declined by the high street, even if their debts are settled. However, Shawbrook’s approach on its lowest rates is different.

They will accept customers with minor adverse. So if a customer has a missed payment on items of unsecured credit as long as it was brought back up to date quickly then this is fine. They will also ignore CCJs and defaults over three years old unless over  £5,000 – in which case they will ask for the background. 

These plans are not just for small loans. These prime lenders will lend anything from £25,000 to £125,000 at 6.9 per cent. This means that customers can now genuinely choose between a  remortgage or a secured loan.

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