New Funding Products at the Finance Professional Show

I was at the Finance Professional Show at Olympia last week.

It’s an opportunity to meet lenders – old and new, and also to find out about any new lending products that are being introduced to help and support the small business owner.

As I spoke to various lenders during the day, what became clear is that there is a huge variety of funding options available to the small business owner and that arguably there has never been a better time for small businesses to be able to raise the funds they need to grow and develop.

Whilst the main high street lenders continue to offer finance to the small business owner, there are now many other lenders offering funding options that even 2-3 years ago simply didn’t exist.

Peer-to-peer lenders, specialist cashflow lenders, private equity finance – all offering a range of funding solutions designed to help you, the small business owner, and provide you with options other than your own bank.

Let me give you an example:

One of the lenders I spoke to offers funding from £3,000 up to £500,000 on the following basis:

• Approval decision within 24 hours
• Funding available in as little as 2-5 days
• Funding up to 110% of turnover
• Loan terms of 1-5 years

Many lenders require minimal paperwork to make a lending decision which makes the process even easier.

For instance, on loans of up to £75,000, very often a lender will only require proof of identification and your last 3 months business bank statements.

On loans above £75,000, you may also need to provide your last 1-2 years accounts.

Once the application goes in, a decision to lend is often made within 24-48 hours, the paperwork is then processed, and funds are available within 2-5 days.

Funding can be raised for virtually any purpose including:

• Improve cashflow
• Purchase new equipment
• Buy stock
• Carry out a refurbishment of your premises
• New marketing campaign
• Recruit new staff
• Working capital

Unsecured business loans are suitable for sole-traders, partnerships, limited company’s and limited liability partnerships.

As I say, whilst the high street banks continue to lend to small businesses, very often through the traditional overdraft, they are no longer your only option and there are now numerous options that exist including:

• Unsecured business loans
• Spot invoice discounting – no contract required – raise cash against a single invoice
• Merchant cash advances against debit/credit card takings

Arguably, access to capital has never been easier, with more funding options available to the small business owner than ever before.

I came away from the show having “caught up with some old faces”, but also having spoken to many new lenders who are offering great products and have a real appetite to lend.

Whilst there are many benefits offered by these new lenders, I think two of the key benefits they offer are flexibility and speed.

Certainly, the days when all that was available to a small business was an overdraft from a high street lender have long gone, and now, many more funding options exist to help the small business owner to grow and expand.

So, if your business requires an injection of cash for whatever reason why not email us or give us a call, we’d love to chat through your funding requirements and the solutions that exist.

Get in contact at keith.park@fundingtrack.com or alternatively give us a call on 020 8949 2122.