A client had a requirement for some business finance. The money was to be used for Working Capital and for Business Expansion. They wanted to raise between £10,000 – £15,000 and needed the funds urgently.
Unsecured Business Loans still tend to be a niche product and remains a higher risk product for the Lenders. As a result, it is a limited market and clients do not have as many options available to them as a standard secured lending product like a mortgage.
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After the pandemic, most Lenders have been extremely cautious and want to ensure that they are supporting business whilst still lending money responsibly. This also means that the liquidity in this market is less as compared to pre-pandemic levels.
This is where we come in as a Specialist Commercial Finance Broker. We understand our Lending Partner requirements and ensure that we meet our clients’ requirements to them. As an example, a business may be looking for a Business Loan for equipment or for a machinery purchase. A standard / traditional Business Loan may be too expensive for the business, but we would look at offering them an asset finance facility in this instance. This gives the customer the equipment they need and essentially the Lender the security they require.
As a result, with this client, we identified that the client had a high turnover business. For businesses such as off-licences, corner shops, newsagents etc, the turnover tends to be high. Therefore, we were able to arrange a £12,500 turnover-based loan which was to be repaid in a mid – short term period.
This was good for the client as they wouldn’t have to be drawn out into long winded finance and using the power of their turnover, they will be able to repay the loan in 5 months. The client was also delighted as they received the funds in 24 hours of their initial enquiry to us. Our role was key in being able to work to the clients’ requirements and pace. There are multiple other options we would have been able to explore with business in a different position.
Both Secured and Unsecured Business Loans are accessible to businesses of all shapes and sizes – working with a Business Loan Broker like ourselves we will search the whole market for you to find the best Lender and Rates for your particular business. Additionally, we shall present the loan application to the Lenders in the format and language they wish to see, which in doing so, will significantly improve your chances of being approved for a Business Loan.
For full details on the types of Business Loans available please visit our Business Loans page.
To know more and speak to one of our Business Finance Brokers for a FREE Quotation and Advice, call us now on 03303 112 646. You can also fill in this short online form to get started. Our team of Business Finance Brokers will get back to you straight away.