It’s apparent that businesses need to access finance but does the banks’ cautious lending approach, for whatever reasons, make businesses ‘take what they can get’.

The number of bridging loan providers has increased sharply and published statistics suggest that there has been an increase of 27% in the number of bridging loans taken out in the past twelve months. 

Our question is - is this necessarily good news?

By their very nature bridging loans are more expensive and provide lower loan to value ratios; the key feature of bridging loans is of course that there has to be a clear “exit strategy” in place, in other words both the borrower and the lender need to know exactly how the bridging loan is being repaid. In addition bridging loans are more expensive –interest rates of over 24% are not uncommon.

If a bridging loan is taken out, only to be renewed again and again it is a pretty expensive way of arranging business finance. On the other hand, bridging loans can be very flexible and very often there are fewer underwriting hoops to jump through. So clearly there is a market for this sort of finance but how big is this market – is it really so substantial?

Whether the market expansion is a function of real demand for bridging finance, or because bridging loans are used because the traditional business finance providers apply very restrictive underwriting criteria, we don’t know.

We are not against bridging loans per se, we know that very often there are better finance deals on the market – put simply if you approach the right lender with the right proposal and the right presentation: you can obtain the right finance for your business (right in every respect including loan to value ratios and interest rates)

If you are looking to assess all your options - get in touch. Our commercial finance partners have over 40 years’ experience in the market and have a strong panel of lenders waiting to assess your clients finance application. Don’t settle for second best - let us get the right finance for your business.

Whether your need is relatively straightforward or niche, perhaps even rather leftfield give us a call or drop an email to info@moneysolutionsuk.com outlining the details of your enquiry and we’ll do our best to find an appropriate solution or visit the dedicated commercial finance section on our website moneysolutionsuk.com/business

Consumers and Auto traders in the UK may be very interested to hear the recent comments made by a senior figure at a leading credit bureau and then consider their plans for the coming months.

A recent survey from Experian has revealed that more than half of automotive dealers have positive expectations for their used car sales and after-sales activities during the next year.

Despite 22% stating that a shortage of good quality used cars was the biggest challenge facing their business this year, 62% of dealerships predicted that their used car sales activities would grow in 2012. 

Just 38% of dealers expected new car sales volumes to increase in 2012. Nearly a quarter of dealers (23%) stated that selling vehicles profitably was the key challenge facing their business, while a further 17% stated that identifying and reaching suitable customers was their biggest problem.

More than half (55%) of dealers believed that they would grow their after-sales activity during 2012.

Alistair Scullion, managing director of Experian's Automotive business in the UK and Ireland, commented: "Our survey suggests that the sales environment for new cars continues to be a significant challenge, and dealers are adapting their businesses accordingly.

"Optimism around used car sales and after-sales activities is encouraging. It is clear that dealerships recognise that there are growth opportunities for those of them that can react quickly to changing market dynamics, while reaching customers with the right offer and fostering customer loyalty to keep them coming back to the dealership."

Car dealers have long been able to offer car finance facilities to customers but it is also possible to arrange your finance before you go out looking. This gives customers a potential benefit in knowing what they can afford and what type and value of vehicle before they go out and start looking at their dream purchase.

By using the integrated technology you can now get an instant online lending decision which removes the frustrating waiting times found with many finance providers. The loan is based on a customers own personal circumstances so they know that the deal will be tailored to give them the best rates possible depending on their situation.

Car finance rates can starts from only 7.9% APR on loans between £3k and £50k and a comparison of over 30 lenders takes place to make sure the customer gets the best possible finance deal. Buying a new car can be an emotional time so taking some of the worry out of how you are going to finance it is a positive consideration for buyers everywhere.

For more information visit Moneysolutionsuk/vehiclefinance

Retail Finance Solutions

Moneysolutionsuk bring you Retail solutions, a genuine alternative to retail finance. Our aim is to give customers more freedom in choosing how they pay for goods and services and you the retailer transparent advice on the variety of retail finance solutions available to you in the marketplace.

Retail Finance Solutions

Available to retailers who sell online as well as in store, we can offer small and medium size businesses an alternative to the traditional point of sale credit options. Traditional retail finance providers can offer products such as interest free credit or buy now pay later which enable retailers to improve their sales by giving customers choice in how they pay for goods and services.
Moneysolutionsuk can help businesses all over the UK who perhaps can't get a relationship with the main retail finance companies offer credit or loans as an alternative to cash or credit card purchases.

Ask Us For Help

We offer a variety of terms and APRs to suit the needs of each individual customer. You will deal with people that 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.

B2B Finance & Commercial Leasing

For B2B Sales Aid finance or leasing click here for more information or contact us today by completing the short enquiry form here and someone will call you back at a time to suit.

The Chancellor has just announced a new ‘National Loan Guarantee Scheme’ to support lending to businesses – yet why is there so little enthusiasm in response to it?

The Treasury confirms this with these comments “the scheme might not increase the overall amount that banks lend to British Companies”. Businesses may see it as boost at a time when funding issues are a sensitive issue but the feeling is it's just another tape ridden scheme to ‘help’ businesses survive in this tough economic climate.

Our commercial finance specialists say - "No doubt it will be another scheme to join the tsunami of failed initiatives. Just ask yourself, what happened to the Enterprise Finance Guarantee Scheme – why is there such a slow uptake? What happened to the Enterprise Capital Funds? Local Enterprise Partnerships? The list is endless and it all seems to be entangled in red tape."

There are clearly incentives there but businesses are likely to struggle with the time to manage their applications for such finance. There is the copious amount of administration, time and extra costs businesses are unable to alocate to such projects. 

This is where our commercial finance parthers can help your business. We can apply for business finance on their behalf leaving them to manage and grow their business. After a free initial meeting with no obligation they will know the right way to access your clients finance whether it is direct through our strong panel of lenders or through a finance scheme thus overcoming the hurdles on your clients behalf. 

Contact us me and find out what we can do for you – there are no costs and no obligation to find out more!

http://www.moneysolutionsuk.com/commercialfinance.html

Guarantor Loans 

Guarantor Loans are one possible solution for customers who have never had credit in the past or have got an impaired credit and  require a loan. There are a great many loan products available in the Uk, but the guarantor loan enables customers who have a good character and willingness to pay the opportunity to raise a loan should they need one. It could be seen as an irony that consumers in the uk who require credit the most are the least likely to get it. If consumers with impaired credit are lucky enough to be offered a facility, they will more than likely be charged a higher rate for the privilege.

Many lenders in the Uk are targeting asset backed finance to give themselves greater comfort and security in the current climate. This move away from unsecured lending is exemplified by the range of available property-backed homeowner loan providers, and also the increasing number of niche products such as ones that enable a customer to raise money secured against personal valuables like cars, antiques or jewellery.

A guarantor loan could be viewed in a similar vein. If a customer cannot get a loan from his or her bank or doesn't meet the criteria of one of the other large financial institutions in the Uk it doesn't always follow that they have a poor track record of paying back a loan. If a customer hasn't had credit before they may be declined, if they have changed jobs or moved recently they may also be declined.

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.

The product is self vetting in this case. Ask yourself, would you stand guarantor unless you were extremely confident that the applicant was going to make payments on the loan? The guarantor generally is going be someone related to the applicant or very close to them or possibly in some cases an employer or landlord. They also need to be a homeowner and in receipt of a regular income. To prevent fraud the guarantor will be sent the proceeds of the loan to pass on to the applicant. This final stage in the process ensures that they are fully aware of their commitment and also verifies their relationship with the applicant.

Find out more by visiting us HERE

What Options Are Available When Offering Retail Finance?

For retailers who have never offered retail finance then let me take a few minutes of your time to explain what it can do for your business, what it takes to get a facility in place and what the alternative are if you can’t get a direct retail finance facility.


True retail finance involves the use of Debtor creditor Supplier agreements (definitions) and requires the retailer to have a consumer credit licence with category C coverage on it. This will enable you to act as a broker and process consumer credit agreements through your various trading channels IE Web, Shop or mail order.

When I talk about retail finance I am usually talking about Interest free credit (IFC) as used by many large furniture outlets like DFS or SCS. There is also the Buy Now Pay Later (BNPL) product largely used in lower margin sectors such as IT and consumer electronics IE Currys, PC World etc. This product is not to be confused with IFC though as there is a significant difference between the two offers plus it’s also illegal for BNPL to be presented as IFC. Lastly there is interest bearing or classic credit, where the customer pays a rate of interest determined by the retailer.

There are other offers that could also be considered retail finance. Store cards as offered by large department stores for example and even some co branded credit cards available through many large national retailers and online resellers like Play.com. True retail finance though in my mind is that which is offered by the likes of Barclays Partner finance, Hitachi or v12 Finance. Fixed term credit agreements that are specific to the purchase of goods and or services from a specific retailer.


To offer retail finance a retailer usually needs to meet certain criteria to be accepted by a lender as an introducer. The criteria will vary from one retail finance lender to another but generally they are consistent in that they will all consider the products you sell, your retail sales turnover and your time in business. It may be that your business doesn’t meet some or all of the criteria and therefore leaves you without a retail finance offering.

This is an issue faced by many businesses throughout the Uk and considering the recent history in the retail finance market where two previously key players pulled out and another went into administration it may not change much in the near future.

The options then are to look to brokers such as moneysolutionsuk to help your customers who need finance the most get assistance in sourcing a loan that can then be used to purchase from you. It is a process sometimes dressed up as retail finance but the truth is that it is simply an alternative to traditional retail finance for companies who can’t get a direct line into one of the 6 main lenders. It may also be treated as a supplement to traditional retail finance where we may offer to help customers declined by a retail finance lender but still needing credit in order to buy.


If you can a direct line arrangement in place with a retail finance company then this frankly is the best process for you being that you will get paid directly by the lender and have control over the rates on offer. You won’t though be able to control the acceptance rates of the lender and in this sense having a back up offer such as Moneysolutionsuk may be very useful for business.


But what if you can’t get a direct facility? Our process enables you to advertise our facilities and enables customers who perhaps have been turned down for a bank loan or credit card . For customers who don’t quite meet the sometimes rigid and restrictive criteria of the big banks we can help. We use a rate for risk model and will work on the customers behalf to get a loan offer from an extensive panel of unsecured and secured lenders so whether the customer wants £1000 to buy a sofa or £25,000 to extend his house and fit a new kitchen we can perhaps help.


We can offer guidance on what’s available in the market based on personal experience and an honest appraisal of what we may be able to do. If we think you can get a line into one of the traditional lenders we’ll tell you. We don’t charge prohibitive arrangement fees or management fees as for the typical SME clients we support it simply doesn’t warrant it. Why should you pay for something we don’t do?

So if you want to discuss your options or are looking for a cost effective alternative to retail finance then contact us today