- 16 Feb
How Business Loans Compare Between Lenders
I had an interesting request recently, one of my contacts wanted my input regarding how a new business loan company was likely to fit into the marketplace, and what the existing market space was like. It prompted me to jot down a few points about business loans that others might find useful.
Demand For Business Loans
There does seem to be a growing demand for business loans at present. We have a number in the pipeline as we speak, in addition to having completed some fairly substantial c. £100K lends. I would think it highly likely that it is linked to the UK economy being reasonable at present. OK, there have been concerns over Brexit, but it feels like a growing number of UK businesses are now getting on with it, rather than procrastinating about going for growth as a result of Brexit and this potential to grow is normally the driver for borrowing to finance that growth.
How Loans Compare Between Lenders
Business loans feel like a very straightforward product, that people can easily understand i.e. you borrow a sum, and repay it in installments, over an agreed period. So the simplicity is appealing. Often other forms of funding, such as invoice finance, may be able to release more cash or extend the period for repayment, however entrepreneurs understanding of those products is far lower than their understanding of old fashioned business loans.
There seems to have been a number of providers of invoice finance, expanding their product offerings to move into the loan sector, MarketInvoice and Nucleus Commercial Finance to name just two recent examples. Several of the well known brokers have also been actively arranging company loans, and there have also been new lenders entering the sector.
The key point for me about any new loan provider would be "what is unique about their offering?". For example, this could include aspects such as:
- Low interest rates and the presence or lack of any other costs e.g setup fees.
- Length of the term, some will lend for 3 months, up to 10 years.
- Ability to repay early without penalty.
- Time to arrange, 2 days is possible at the quick end.
- Security required.
- The lender's attitude to risk taking i.e. what are their criteria for approving lending? This could include the track record required of the client and their financial criteria.
- Which sectors will they deal with?
So the degree to which the offering is unique would drive it's usefulness in helping clients that are seeking a business loan.
- 28 Jun
Cash Flow Loans
We have had enquiries recently seeking cash flow loans, and we have also seen several of the invoice finance companies extend their product portfolios to include business loans.The purpose of a cash flow loan is normally to finance the trading of a company, maybe to handle large orders or to enable the company to pursue business growth.REQUEST A QUOTEThe terms offered have varied widely. We have...
- 14 Jun
New Rates For Marketinvoice Business Loans
Marketinvoice, are members of our funding panel, and have just released new rates for their business loans.The new business loan rates are from 1% per month.Loan terms and criteria are as follows:REQUEST A CALL FROM MARKETINVOICEIn addition to loans, Marketinvoice also offer a range of different receivables financing services, including selective, full turnover options and fixed fee options.Read...
- 08 Jun
Bridging Loan Price - Updated Cost From One Of Our Panel Of Lenders
One of our panel of finance companies have just advised their new price for bridging loans.The bridging loan price is 0.91% per month, rolled up interest, with a set bullet payment at the end of the term of the loan.Bridging loans can be used to purchase commercial property in situations where rapidly agreed funding is necessary in order to make a purchase. Often, a mortgage application may be in...
- 10 Apr
Card Payment Advances From Nucleus Commercial Finance
We have just had some new literature through from Nucleus Commercial Finance regarding their Business Cash Advance product, BCA.We have previously documented their BCA offering, but below are the key details once again.The card payment advance is available to companies that take payments via a card machine. You can borrow up to 120% of your total monthly card payments, up to a maximum of...
- 05 Mar
Topping Up Invoice Finance With A Business Loan
We have had some interesting situations recently where customers are growing so fast that their need for working capital is actually outstripping the funding released by their invoice finance facility. It is great to have such potential trading volumes, but it brings with it a struggle to ensure that your cash flow can cope with the level of funding required.When a business is going through a...
- 21 Feb
Need A 100K Business Loan?
What could you do with a cash injection of £100,000 into your business?That is exaclty the kind of business loans that we have recently secured for clients, and that level of funding is far more available than you might think.You could use that money within your business for almost any purpose that you wish.£100K is a lot of money, and you could put it to good use within your company. Some of...
- 08 Nov
Business Cash Advance Against PDQ Machine Receipts
If your company takes card payments you could receive an unsecured loan that is repaid as a percentage of your future receipts through your PDQ machine (Process Data Quickly). This product has just been launched by one of our funding panel and is called Business Cash Advance (BCA).This type of cash advance against your PDQ card payments could be made available to:You can use the money that you...
- 07 Nov
Advances Against Government Funding Instalments With Education Finance
Education finance provides advances against your government funding instalments so that you don't have to wait to get paid before you make expenditure. You can use those funds immediately boosting your working capital position and ironing out the lumpy nature of cash flow in the education sector.Waiting for the Government to pay your funding instalments can cause cash flow pressures for...
- 21 Sep
Nucleus Commercial Finance Lowers Unsecured Loan Rates
Business loan rates from just 7%.We have just been advised that Nucleus Commercial Finance have lowered their unsecured business loan rates. Their interest rates now start from a 7% flat rate, to borrow up to £100K with no additional security, just a personal guarantee.The loan rate is determined according to the credit status of your company, and the term of the loan that you require. The...
- 12 Jul
"Please increase overdraft" - it sounds like a desperate plea to your bank manager!Many UK businesses use this kind of traditional bank finance, our high growth business research found fast growth businesses relying on loans (43%) and overdrafts (31%). We also found that 44% of startups that used loans or overdraft told us that they had less funding than they needed for their business.The...