- 01 Aug
Lender Of Last Resort
Is being called a "lender of last resort" such a bad thing?
Lenders Of Last Resort
The term could be defined as a financier that is called upon only when the borrower can't get finance anywhere else. Often they are considered the last resort because either the terms are onerous or the price is higher than the norm.
Aversion To The Term
Back when I was working for factoring companies in the 80s and early 90s, there was a definite aversion to ever being referred to as a lender of last resort. The term harked back to how the industry used to be thought of, and the factors wanted to get away from that label. The term had been coined because often a factoring company was able to help finance a business that could not access traditional bank finance.
That shift in perception has been largely achieved. Invoice finance has become much more mainstream, being offered by major banks and also seeing the product portfolio grow to include fintech offerings and highly selective, no contract style facilities. Also, rates have reduced for many customers, as providers compete to acquire clients. Many funders have moved up the chain, seeking larger and larger lends, away from smaller deals.
When we conducted research into barriers to using invoice finance back in 2015, only 8% mentioned reputation / last resort, as an issue, that figure may well have reduced even further since.
Unable To Get Business Finance
However, there are a few providers on our panel that have actively migrated towards that niche of helping companies that have been unable to raise business finance elsewhere. Although perhaps not a huge niche, there is a steady demand, and one that is grateful to be serviced by flexible lenders that can understand and work with people in difficult situations. We are pleased to have lenders on our panel that will deal with:
- Prior poor credit history (both company and personal)
- Non home owners e.g. in rented accommdation
- Companies with prior business failures
- Companies with CCJs and HMRC tax arrears
- Companies in CVA arrangements, or in imminent risk of insolvency
- Loss making businesses with a negative net worth
Find A Lender
The lenders always want to understand the circumstances, but there are very few situations - excluding perhaps deliberate frauds, that can't be overcome. In a world where credit scores seem to drive everything, not everyone has the perfect profile, and many are pleased to be able to find someone that can help when they are in difficulties. We are always happy to listen to your situation, in confidence, and we will be able to find a lender for most companies, regardless of your circumstances.
Bank finance seems to be becoming harder to come by so companies that have exhausted all the traditional options of raising business finance e.g. bank overdraft, loans, crowdfunding, invoice discounting etc. may be relieved to hear that there are alternative lenders that are still likely to be able to help, and take a more flexible view.
- 27 Feb
Invoice Finance Despite A CCJ And Time To Pay Arrangement
Demonstrations of how we can help companies are more powerful than just talking about theoretical cases. In a recent example case, we had a prospect that was looking for a more stable facility than the selective invoice finance facility that they had used sporadically, from one of the single invoice finance providers.This problem that they had experienced was that their selective invoice finance...
- 18 Feb
Can I Access Invoice Finance With CCJs?
Analytical software allows you to see exactly how people are finding your website, and which search terms they are using. I just noticed a repeated search phrase being used "can I access invoice finance with CCJs?". It would make sense as you are most likely to need funding support if you are under creditor pressure and you have ended up being taken to court by a supplier.A CCJ is a "County...
- 21 Sep
Invoice Finance For Non Homeowners In Rented Accommodation
Renting doesn't have to be a barrier to accessing receivables finance for your company. However the number of invoice finance companies requiring clients to be homeowners has increased in recent years. Historically, it was never an issue, but many of the providers have added in this requirement, in order to ensure there is some substance behind personal guarantees that are often required by some...
- 13 Apr
Alternative Finance If Declined By A Bank
If your company is having difficulty finding business finance through traditional sources i.e. banks, you may want to turn to the alternative finance market, which will provide further options.There are plenty of alternative finance solutions here, we have arrangements in place with a large number of funders that can help in a wide range of circumstances.One option is a business loan from an...
- 30 Mar
Business Funding For A Discharged Bankrupt Director
We have expertise in helping companies that have struggled to raise the business funding that they need elsewhere. There can be for many different reasons, but one that we are currently working with is a company where the Director is a discharged bankrupt.Bankruptcy is where an individual cannot pay their debts (they are insolvent) and either they petition a Court to be made bankrupt, or they are...
- 08 Mar
Help For A Roofing Contractor Declined Due To A CCJ
I wanted to share this interesting case that we are in the process of assisting. It concerns a roofing contractor, working within the construction sector, that has a low value CCJ (County Court Judgement) from several years ago.Firstly there is the issue of the company operating within the construction sector, of course not all invoice finance companies will deal with construction related...
- 10 Nov
Help When Declined For Business Finance
I was looking through some completed deals and it struck me how many had been declined for business finance before they came to us, and how many we were still able to help.In fact, we specialise in being able to help when you have been declined for business finance elsewhere. Often we have been able to assist companies who think that there are no options available to them. It is often a case of...
- 24 Oct
Examples Where We Helped Companies Declined For Business Finance
Yesterday, I posted about how we often help companies that have been declined for business Finance. These are a few examples of deals where we have been able to help in circumstances where the clients have not been able to secure the required business finance on their own.These are a few examples of the situations that we have been able to help with, each one has a link to the case study that...
- 23 Oct
We Can Help With Difficult Cases Where You Have Been Declined For Finance
We are able to help you find business finance even in difficult circumstances where you have been previously declined for finance. In fact, we specialise in helping businesses that have been unable to secure the finance that they need through other means.Some of the difficult cases that we have helped in the past include:Read some case studies with examples of where we have helped clients in...
- 01 Jun
Business Finance With Bad Credit
Getting business finance with bad credit whether its your company that has a bad credit history, or you personally, appears to be a concern for a number of businesses.I recently read an article online about how to improve the credit rating of your business, clearly production of the article had been prompted by a need that the authors had identified for companies with bad credit to raise...