Brits are planning to put Christmas on their credit card this year, according to new research from uSwitch.com, the independent price comparison and switching service. Four million turkeys are being bought this way and more than half (59%) of consumers are using their credit cards for their Christmas shopping.  After another difficult year, with pay rises failing to keep up with hikes in essential living costs, Brits are turning to their flexible friend to keep up the festive cheer. According to the research, the average consumer expects to put £448 on their credit card over the season and more than one in ten (13%) would rather go further into debt than tell their nearest and dearest that they couldn't afford presents this year. Michael Ossei, personal finance expert at uSwitch.com, said: "In true British spirit, Brits are determined not to let money worries cast a shadow over the festive cheer this Christmas. Many are turning to their flexible friends to help see them through to the new year. "The last thing people want to do is scrimp at Christmas, but it's easy to get carried away and spend more than you mean to at this time of year. The high number of consumers willing to put themselves deeper in debt just to stave off the embarrassment of not giving presents sends alarm bells ringing. "If you know you can clear your balance straight away, using a credit card can be a very practical way to shop, and can even earn you money if you use a cashback card. But for those struggling to make ends meet, relying on credit to pay for Christmas can be both risky and costly - and will mean starting the new year in even more debt. "If you do need to use a credit card it's important to choose the right card to suit your spending needs and not get caught out by high interest rates. Also consider cards which offer 0% on purchases, as these can give you some breathing space and help you avoid a new year financial hangover by giving you the time to save the cash to clear the balance while avoiding interest charges." Source Business Money.

Business Loans For Any Purpose Up To £500k

We are very pleased to announce that Business Loans for any purpose, (including cash-flow, asset purchase & stock purchase) are now available:

From £5,000 to £100,000 unsecured.

From £101,000 to £500,000 with security i.e. Company Debenture (second charges are acceptable). Note that 100% LTV can be provided on fixed assets or assets to be purchased.

We can also arrange commercial finance on assets From £20,000 to £500,000 - no deposit required, up to 120% LTV

Interest Rates from 6.4% AER.

Fixed Rate, monthly repayment loans over 1, 3 or 5 years.

No Up-Front Application Fees or ERC's.

Personal Guarantees will be required for most unsecured loans and some secured loans.

Criteria:

Limited Companies & LLP's only.

A minimum of 2 years accounts must filed with Companies House.

All directors must be UK based.

No CCJ's above £250 allowed.

Minimum turnover £100k per annum.

Totally independent from your business banking, giving you the flexibility to run your business effectively.

Funds generally available to successful applicants within 17 days.

Join our extensive list of happy clients and take advantage of this outstanding product now. Don't just take our word for it!:

Recent cases

Tyre supplier looking to buy & import stock £50,000 unsecured loan= 7.8%

Computer solutions company looking to develop expand software £75,000= 7%

Rehabilitation Centre looking to consolidate finances £100,000= 9%

Contact us now.

Payday loan firms offering Buy Now pay Later retail Finance

Something that caught my eye this week was the news that Wonga have entered the market offering short term instalment plans for people buying goods online. It has generated some words of caution already;

In response to the news that Wonga has launched a new buy-now-pay-later service via retailers' websites, Michael Ossei, personal finance expert at uSwitch.com, said: "Short-term lending at rates of 7% may seem like a great way to ease the burden of a purchase, but there are cheaper ways to fund your shopping.  "As well as the overall cost of using Wonga's new service being relatively uncompetitive compared to some credit card deals on the market, there is a bigger cause for concern - what happens if consumers can't pay off their bills in time? "Unfortunately, there have been a number of worrying incidents in the past where vulnerable customers have been subject to heavy-handed debt chasing practices. The worry is that this could become more widespread as Wonga expands its offering and becomes more readily available, especially if customers aren't fully aware that it's Wonga they are borrowing from in the first place. "Although some retailers might believe the service helps their customers, by giving them another way to help pay for things, it could lead to confusion if Wonga's terms and conditions aren't clearly stated upfront. Consumers need to make sure they know exactly what they're signing up to. There is a real risk of mis-selling and unless retailers are careful, they could end up attracting the attention of the Office of Fair Trading." Source

 There may indeed be cheaper ways to pay for your goods online, straight from your bank (assuming you are not using an overdraft generating interest charges) is best. However I think the point is being missed here. There are always cheaper ways to pay for things, insure things, borrow for things but that assumes that everybody has the same credit profile, is the same age or share the same general demographic as the rest of the population.

I am not championing Wonga though I suspect if it was AN Other bank or credit provider and not the high profile Payday loan providing guest star of Watchdog there would be little of no fuss. I am merely saying that a lot of people like the convenience of instalment based payment schemes that soften the blow of paying for goods and services and give them the comfort of knowing that the balance will be settled within a pre-determined timescale. How many people for example use catalogues for example? The typical APR here is usually circa 30% on longer credit terms and although interest free terms are offered over 20 - 52 weeks the cost of the products more than allows for this service. 

Take the iPod Touch - available to buy from one popular catalogue for £219 with interest free terms of up to 12 months. Sounds good? Not when you consider you can buy the same iPod for £150 elsewhere which even if you allow for a chargeable APR of 30% you are still far better off buying it this way than putting it on your catalogue account. The catalogue however offers payment terms of 12 months and this it what appeals to people, being able to pay £4 or so a week. The equivalent APR when comparing the cost of buying the iPod online and paying catalogue terms is actually around 100%

People need to read the terms of any credit agreement and I wouldn't suggest anything else in this case either but I do think that people need to take a broader view. The new Wonga product is is merely a niche lending product that will suit some and not others, if you fear you won't be able to afford it then seriously consider why you are looking to borrow it in the first place. These are the same guidelines for any personal loan or finance scheme.

Short term finance and Bridging Loans

Another new offering from Money Solutions Uk 

Please find attached some more information on our Commercial and residential Bridging Loans.

We can offer finance in the whole of England, Scotland and Wales with LTV Of up to 60 %.

The suitable property deals that we can offer short term finance on are:

1. Unfinished new Build Developments.

2. Structurally Impaired Houses

3. Renovating Derelict Houses

4. Non Mortgage Structures

5. Land with detailed Planning Consent for up to 6 houses.

We can add value with this offer with the following unique selling points:

1. We deal with the Principle Lenders who are privately financed

2. We will receive direct communication from the Directors of the business

3. We can arrange funding for people with adverse Credit.

4. We can offer second charges on residential Properties and also Commercial properties.

We are also interested in the following loan proposals:

1. Taking out existing Bridges

2. Taking out trustee in bankruptcy and IVA

3. Commercial Property.

4. 2^nd Charge with heavy adverse

For more information about this and other commercial mortgage offers contact us via the website or email

Looking for a loan but not with a full credit check

As I have blogged before there are one or two lenders around that will offer you a no credit check loan so long as you can meet certain criteria. There are asset backed facilities where to borrow money you will need to put up your luxury car, piece of fine art or watch for example. You can can borrow up to £1,000,000 in this way.

For smaller personal loans or between £500 and £7500 with no credit check then a guarantor loan is likely to be the only viable option . You simply need to provide the added security of a guarantor who gives the lender comfort that the loan will be repaid if you default. This can be especially useful if you have little credit history or indeed a rather tarnished one. 

These loans can be processed very quickly and can be useful to perhaps consolidate other loans at higher rates such as payday loans. Granted a loan like this with an APR of circa 50% may sound high to some but if you have payday loan borrowings and aren't clearing them every month you will inevitably be paying APR's of 1000 plus. If you can find a guarantor and have not been made bankrupt or are in an IVA then a no credit check loan or guarantor loan may well be the answer.

We helped a customer on limited verifiable income and with adverse credit get a car loan paid out yesterday on an application she made only the day before. This shows precisely how swiftly the application can be processed if you have a suitable guarantor to help you with getting a loan.

For more information visit our site page dedicated to loans with no credit check 

Guarantor loans - A possible solution for people with a poor credit history

Guarantor Loans are a solution for customers who have never had credit in the past or have got a history of bad credit. There are 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. privilege.

Customers who have a lower credit score, whatever the reason are generally perceived to be a higher risk to banks and finance houses many lenders are therefore simply unwilling or unable to take on this type of financial liability. 

If you apply for a guarantor loan then you are effectively “guaranteeing” that your loan will be repaid to the lender. The lender is able to protect their exposure by allowing a guarantor to cosign the agreement so that if you, the applicant fails to pay your loan back to the lender they’ll be able to pursue your guarantor also for payment. It gives them a way of mitigating their potential losses so offering loans with a guarantor allows them to lend money to those who normally wouldn't qualify for such services.

Guarantor loans are most likely not for customers who may have a poor credit history but 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.

You can borrow from £500 to £7500 and can find out more about this type of loan by visiting us HERE

Alternatives to payday loans

So, Derbyshire Building Society have just launched an incredibly low personal loan product  5.5% APR Representative for loans of £7,500 to £14,999 for up to 5 years. If you "Only" want to borrow £5000 then the rate jumps to a still excellent 7.2%. By comparison Payday loan lenders are regularly seen advertising APR's that run into the 1000's. Of course the APR's are skewed by the short term nature of the loan and comparatively processing costs also have a greater impact but none the less here you have the two ends of the personal loan spectrum. 

In between these poles is a broad range of lenders that will advance anything from £500 to £50,000 on an unsecured basis subject to your credit profile and affordability measuring up. Now, not everyone will be eligible for a loan at 5.5% because to be frank this will only be available to customers with an excellent credit profile, stable employment and fully traceable residency history. It's fair to say as well that many customers are only looking to borrow lesser sums and simply don't want £7,500. There are still though plenty of other lenders whose rates for example start at 12.9% for borrowings of at least £2000 that are worth considering.

If you can get a loan from your own bank then my advice as a broker is often to take it. We can offer a competitive rate of 7.9% for unsecured homeowner loans over £5000 but quite often your own bank or one of the major high street lenders will do a better deal on larger loans assuming again that your have good credit history.

The options for tenants or those with a weaker or bad credit profile become more limited. Guarantor loans though expensive at circa 50% APR are still a snip if you have run up and rolled over a couple of payday loans at 2000%. So long as you have someone who trusts you to repay the loan and is happy therefore to stand guarantor then you can borrow form £500 to £7500 if required.  

Ultimately you want to try and get the best rate you can and the most manageable monthly payment - so shop around, use a broker (ideally one not charging up front fees) like moneysolutionsuk and think before you apply.

Commercial Asset Finance solutions

 

Following the announcement of ING Lease UK to wind down their asset finance lending as of November, we can now offer a new hire purchase loan for values of £20,000 and over.

We can arrange funding up to 120% of the purchase price by funding the VAT if required. Qualifying assets for a hire purchase loan include any assets with a high resale value such as wheeled items, oil dripping assets, plant, machinery, equipment and more. The existing credit assessment simply requires two years of filed accounts and demonstration of affordability of the loan.
Don't forget we can also lend for any asset purchase up to £100,000 using our unsecured loan. Contact us today with your enquiry.

What is bad credit?

Loan providers in the Uk all work differently when it comes to their credit 'score' or 'rating' that they use to decide whether to accept you for a loan. They will use not only the public information available to them via the main credit bureaus like Experian or Equifax but a score card based on their attitude to lending and the risk they are prepared to take. If you have a tarnished credit history then the likelihood is that most mainstream lenders will turn you down when you apply to borrow money leading people to question their credit status.

There is no blacklist file as often suggested that people find themselves on however clearly having 'Bad  Credit' will impact your ability to borrow money, on a mortgage or personal loan. 

If you fail to keep to the terms of previous or existing credit agreement then information about this will appear on your credit file. For example, making credit card or loan repayments late, or missing them altogether, will impede your ability to borrow in future.

If you declared bankrupt, entering into an Individual Voluntary Arrangement (IVA) or having a County Court Judgement (CCJ) registered against you this will badly affect your credit rating and the choice of finance options available to you.

To a lesser degree your credit file can be affected if you just make the minimum repayment on your credit card each month, as it may lead lenders to assume you are struggling to clear your debts.

Other factors that can influence a lenders decision can be

1.  home ownership status - lenders often prefer to lend to home owners rather than tenants and younger customers living with parents.
2.  Employment - Being employed rather than self employed is preferred by some lenders. Also having a stable job history with not too many changes will mean you could be scored more highly.
3. Other credit balances available - If you have unused credit cards then consider closing the account as having large unused credit and potential to borrow may be seen as a potential risk to new lenders. 
4. Pay all bills on time - more and more businesses and agencies including council tax could share your payment history
5. Register on the voters roll - It doesn't mean you have to vote! It could certainly help though and means you are traceable for specific lenders

If you have bad credit then the types of loan available are likely to be restricted to specialist providers who will look to mitigate their risk and exposure whilst charging in some cases a higher rate of interest than the big banks for example who as alluded to above are looking to cherry pick the type of customer they lend to.

There are for example loans that have no full credit check or guarantor loans that are assessed mainly on the strength of a personal guarantor that will be stipulated. A No credit check loan is available to customers who can provide a guarantor so long as they themselves are not bankrupt or in an IVA and the guarantor has a clean credit history, an income and is a home owner.

Secured loans or home loans are another way that lenders will mitigate their exposure but of course need to be considered very carefully. Like a mortgage you are borrowing money against the value and security of your property so naturally you will want to be confident in your ability to service the loan being that your home could be at risk if payments aren't maintained.

Secured loans are also available on personal assets such as art at higher interest rates but no credit check. Sometimes referred to as posh pawnbroking they are loans secured against an agreed valuable asset that is stored securely and returned to you once the loan has been settled.

To find out more visit us at Money Solutions Uk

Unsecured Business Loans

Unsecured Business Loans £5k - £100k

Looking to expand? Need some working capital? Buying some machinery, equipment or vehicles? 

We can find you unsecured and secured business finance quickly. No business plans, forecasts or lengthy applications needed. 

We are pleased to announce we now have access to an innovative provider of business loans from £5,000 to £500,000. Simple, quick and flexible, this provider connects you with multiple individuals who want to lend money at competitive rates.

Loans can be for any purpose (except property development): unsecured loans from £5,000 - £100,000, secured loans from £100,000 - £500,000 and large asset finance loans from £50,000 - £500,000

Highly competitive rates – from 6.4% AER
initial Pre-Approval in seconds

Fixed rate, monthly repayment loans 

over 1, 3 or 5 years
No application fees – only pay on acceptance
No early repayment charges, settle any time
No large business plans or forecasts needed, just a short case for the funds required.

What can the loan be used for?

•Working capital

•Asset purchase

•Liability payments

•Expansion and growth

•Any purpose 

Does my business qualify?

Is your business a Limited Company or a Limited Liability Partnership?

Does your company have at least two years of filed accounts with Companies House?

Is your business stable and creditworthy?

Do you have a UK resident Director?

If YES to the above, apply for an unsecured business loan today! 

Click HERE To Enquire

What is a consignment loan?

Consignment loans are specially tailored for clients looking to sell personal assets at auction or through private treaty.
If you are waiting for the appropriate auction or buyer then naturally this can involve a lengthy wait until you are able to release the liquid funds tied up in your vauable asset.


A consignment loan enables you to access up to 70% of the estimated sale price in advance of the sale, allowing you to get your hands on your funds quickly to put to use maximising other personal or business opportunities, while waiting for the sale to take place.
So to reiterate the details, a consignment loan is a loan secured against personal valuable assets in advance of their managed sale at auction or through private treaty. It means an individual can borrow up to 70% of the asset value whilst the lender manages the sale of the assets on their behalf. 
Once the asset has been sold the customer will receive the balance, after the lender has recouped the cost of the loan, any outstanding interest plus any sale transaction fees.



Consignment loans can be arranged against a range of high-value assets such as fine art, antiques, prestige & classic cars, diamond jewellery, luxury watches, fine wine and many more subject to underwriter approval. 

So long as the asset has a minimum value of £50,000 it is possible to borrow up to £1,000,000 at a maximum loan to value of 70% of the estimated sale price. 

The difference therefore between this process and a standard personal asset loan is that a consignment loan is in effect a managed sale with money provided in advance of the transaction taking place whereas a personal asset loan allows you to borrow money against  your assets without selling them. At the end of the loan period your assets are returned to you once the loan and interest due is settled.

Click HERE for more details on arranging a consignment loan

Growth in consumer borrowing in July

Consumer lending in July grew in almost all areas of high street consumer credit. The Finance & Leasing Association has urged the government to ensure that any new regulatory regime for consumer credit supports high street shoppers. July saw overall growth of 10% in the consumer credit provided by FLA members, compared with the same month in 2011. Store installment credit grew by 33%, car finance by 28% (by value), second-charge mortgages by 11%, and credit cards and personal loans by 2% during the same period. Spending in the store card market fell. Fiona Hoyle, head of consumer finance at the FLA, told Business Money news: “These figures show the importance of high street credit, whether provided by large retail chains or smaller independent stores, in helping consumers access the goods and services they require. The government will soon be taking decisions on a proposed new regulatory regime for consumer credit, and must ensure that high street businesses can grow and deliver consumer choice.” Interesting to see that retail finance has grown by such a significant amount compared to other unsecured forms of borrowing like credit cards and personal loans. Store cards which typically have a much higher APR than credit cards and instore retail credit offers dropped, not perhaps that surprising as customers become more aware of how they pay for goods.

Offering Retail Finance to your customers

Based on our recent experiences in the market and client discussion it is clear there are businesses in the market offering a "retail finance solution" who either don't know what true retail finance is or are deliberately misleading potential clients. I'll come back to this in a minute.

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. We can and will where appropriate recommend  a direct lender option to you if we believe that your business will qualify for such an offer. If you can afford to offer your customer interest free credit or subsidised rates on interest bearing credit AND get paid directly by a lender then frankly why wouldn't you? 

Interest free finance is by far the most attractive payment proposition in the market. It is widely used by retailers in many markets from computers to clothes, kitchens to furniture. Granted lenders will credit score each arrangement quite carefully being that they are, after all usually lending on an unsecured basis but you will none the less still find a significant uplift in sales conversions by offering finance to customers.

Retail Finance Solutions

Available to retailers who sell online as well as in store, we can offer businesses a full range of retail finance solutions including traditional point of sale Interest free credit or interest bearing options. Traditional retail credit products such as interest free credit or buy now pay later enable retailers to improve their sales by giving customers choice in how they pay for goods and services. The figures generally banded about are that you will see a 20% uplift in sales, both in terms of average transaction values and incremental sales.

Moneysolutionsuk can also help businesses all over the UK who perhaps can't get a relationship with the mainstream retail finance companies to offer credit or loans as a supplement or alternative to cash or credit card purchases. Now as someone who has  struggled to sell something to businesses he doesn't believe in or agree with I have no issues in saying that should  you be looking at a broker based alternative to retail finance then please be careful about parting with a large up front fee or regular fees, in my opinion you are simply not getting value for money.

For more information on retail finance visit our website and drop us a line or even give us a call - we'll be as straight with you as possibly can be.

What is a homeowner loan?

A homeowner loan is usually a secured loan that offers you the potential to borrow larger sums than a traditional unsecured personal loan. You will generally find that you will get a lower interest rate than with unsecured borrowing but you are usually required to use your home as a guarantee on your repayments. 

There are several secured loan providers in the Uk each of whom will have different approaches to how they treat the credit history of potential borrowers. The general rule of thumb is the poorer your credit profile the more equity will be required in your property against which to secure against. It is likely also that the APR of the loan in these cases will be higher. Rates on secured loans usually start at around 7% for loans of £20,000 or more to customers with a good credit profile and go up to circa 30% for poorer credit loans.   

Homeowner loans can be useful for many different reasons and lenders typically take a more flexible stance on what they will allow you to use the loan proceeds for because they have ultimate security in your property. It may be for consolidating smaller debts into a single affordable loan with one monthly repayment, home improvements or even to inject funds into your business.

You should always think carefully before taking out a homeowner loan as you risk losing your home if you cannot meet your payments, no different in this case to not paying your mortgage. Make sure also if you are looking for a sum of between £5,000 and £15,000 that you have already considered the unsecured loan options available to you in the marketplace. It is also likely in some cases that your mortgage company could be the answer to your fund raising requirements so do look at this option as well.

The credit crunch with its Bad debt levels and rising money costs have impacted on the unsecured market over recent times but we are seeing a gradual shift. One or two lenders are looking at offering niche unsecured products geared specifically towards home owners. These products will be aimed at home owners with a good credit profile and will enable them to borrow on an unsecured basis but at much higher levels than the mainstream institutions work at. The loans could be used for topping up a house purchase for example where little or negative equity exists.

As with all borrowing be sure to weigh up what you require the money for, how much you actually need and then whether you can afford the repayments. Make sure you have researched the market fully and beware the brokers who charge high up front fees. We only work with reputable lenders and do not charge up front fees on our homeowner loans. 

Exclusive Unsecured House Purchase Product

Today we launch a new unsecured loan product designed for for homeowners who are moving job or need extra space for a growing family and want to move home but are finding it difficult due to having negative or limited equity in their existing property.

If you or any clients of yours have a need for such a product then please see the outline criteria below

• Maximum Loan £100,000
• Minimum Loan £5,000
• Fixed Interest Rate 14.9%APR ( irrespective of loan amount )
• No Early Repayment Charges
• No Penalty for Overpayments (reduces the loan term)
• Prime homeowners only (not tenants)
• Fixed Repayment Term 15 years
• No current or historical adverse
• Employed:- permanent employment for at least 1 Year
• Self-Employed:- must have up to date “Certified Accounts”
• Surplus monthly income of at least £250 needed
• Bank statements required to prove customer affordability
• Loan to be completed in conjunction with a regulated 1st Mortgage
• Fixed Fee Conveyancing Package included 

To find out more initially just complete our basic home loan application form and we'll get someone to call you back to discuss your requirements in more detail.

Money Solutions Uk and being transparent with customers

Having worked for a business that didn't often put transparency and honesty too high up the agenda when dealing with its business introducers I felt it key when developing the various services offered by Money Solutions Uk that we'd aim to be as transparent as possible. Many of the services on offer are quite often outsourced to carefully chosen partners in both commercial finance and consumer lending. 

If a business client is looking to offer their customers the option of paying for goods on finance then we have ties  with a well known retail finance business that can offer a facility to a broad spectrum of retailers whether they be SME's turning over £100,000 a year or national companies turning over millions. The process works to for customers buying instore or online and is totally paperless. It doesn't get much better than that based on my personal experience! If the business falls outside of traditional lender criteria then we aim to present viable alternatives.

We have been working closely with a commercial asset finance business for a number of years now, a company local to us with national coverage that has over 50 years combined commercial lending experience. Frankly what they don't know about structuring a leasing or asset finance deal isn't worth knowing.

Our payday or wageday loan process is also an outsourced broker model and is not beholding to one lender. We use a panel of lenders to maximise customer conversions and lending options for potential customers. 

Other services such as residential or commercial mortgages are available, we have a wide range of insurance comparison products online, a mobile phone service, commercial factoring, car finance and a large panel of personal and homeowner loan lenders such as guarantor loans or loans secured on property. These are all considered quite mainstream products but for businesses or individuals looking to raise funds quickly then we also have some niche lending products. 

If you are in possession of a valuable piece of art, a luxury car or boat, designer watch or gold and even an expensive wine collection you can use this as collateral against a short term loan that involves no credit search and can be paid out to you in a couple of days! For loans secured against art and the various other niche products just visit the web page for more information.

If you are a shop, restaurant or hotel owner and looking to borrow money for any purpose whether it be cashflow injection or buying stock or equipment then again we may have the solution for you. Merchant Cash Advance suits businesses who run at least one pdq machine for the majority of their transactions, usually at least £4,000 per month and can be turned around within a matter of weeks.

We constantly strive to add more financial products and offerings to our business and consumer customers and equally have no qualms in dropping a commercial relationship if it doesn't sit comfortably with our ethos of trying to tell customers the truth, even if in some cases it means not doing a particular deal. Having been a "firefighter" dealing with retailer complaints it's a lot easier to work in such a way as to not generate complaints in the first place, much better for your health and your conscience too! 

More information on all our services at Money Solutions Uk

Accessing funding for small businesses

Far too many Small businesses are unable to access funding and are relying on unsustainable forms of finance, such as personal loans from families and friends, according to new research from one of our commercial funding partners.

Their findings revealed that fewer and fewer Small businesses are now applying for external funding – just 31% did so in the past 12 months, which suggests a greater variety of commercial funding options are needed to help support businesses.

With this in mind, Bibby Financial Services has launched Flexidraft, a new flexible funding facility for businesses with a turnover of up to £1m. Flexidraft will act as a viable alternative to the bank overdraft, providing firms with quick access to the cash they need.

Andrew Dixon, Bibby’s new product director, said: “Businesses’ reliance on the banks for finance has reached crisis point, as they are finding their ability to survive and grow severely restricted by a lack of funding.

“SMEs need more and faster support from traditional and alternative lenders. The government’s newly-launched Funding for Lending scheme will hopefully lead to an increase in bank lending to small businesses, but ultimately it still fails to address the issue that SMEs have become too reliant on the banks.

“New solutions, such as Flexidraft, will be vital to ease the pressure on the banks and traditional lending methods.”

If you want more information on this scheme or on other forms of commercial finance please contact us today.

What is an IVA?

An Individual Voluntary Arrangement “IVA” is a formal arrangement governed by The Insolvency Act and Rules which allows an individual to offer a payment plan to their creditors. The payment plan is usually over 5 years. The reason it is 5 years is that creditors believe that most individuals will agree to take a loan over 5 years and as such they consider a 5 year term as reasonable. The average debt level for IVA’s is around £30,000 but it is possible to do IVA’s with debt levels as low as £10,000 to £12,000 although the decision to enter into a formal payment plan over 5 years to clear this low level of debt certainly needs careful consideration. The reason for this is that it may be possible to clear the debt sooner anyway and also debt management plans can sometimes provide a better alternative – they can help reduce debt payments whilst the individual is struggling and debt payments can then increase as finances recover. It is also possible to settle the debt at a discount, once an individual has been on a plan for a period, via a Full and Final Settlement. An IVA really becomes an extremely helpful rescue tool when an individual has a serious level of debts that they simply cannot afford to repay over a five year period. For example, a debt management plan with contributions of £200 would take in excess of 25 years to clear but 5/6 years in an IVA.  There is a protocol which governs particularly what level of investigation insolvency practitioners should undertake before firstly recommending an IVA plus the work that they need to do whilst drafting the IVA proposals. The protocol was negotiated during 2008 by working parties made up of insolvency professionals, creditors, debt charities and was headed up by The Insolvency Service. The protocol also considered issues such as how an IVA deals with equity in a residential property. Bearing in mind that an IVA does cover what happens to an individual’s assets and property, the most important stage of an IVA is the consultation by the Insolvency practitioner. Again protocol covers the extent to which an individual must be counselled. It is so important to understand the various stages of IVA and how it will work over the 5 year period or if shorter, the term of the IVA. The proposals must include details of all assets and this includes funds that could possibly be raised out of pension schemes (only relevant if of pensionable age). Normal household items are excluded as are(reasonably priced) cars and life policies.  It is possible to exclude assets but instead offer a 3rd party sum. Creditors will normally expect investment properties to be sold with the net proceeds paid into the IVA or alternatively for sums in lieu of the equity in investment properties being introduced into the IVA. The IVA procedure really does lend itself to self employed individuals who may end up with a combination of debts including business debt, arrears of PAYE/NIC, self assessment tax, credit card debts and loans, personal guarantees, etc. It is also possible to get agreement to a full and final settlement IVA. Instead of offering contributions over 5 years, a 3rd party sum of money is offered instead. These type of IVA’s generally are appropriate if you can demonstrate that you have little or no surplus income but a friend or family is able and prepared to offer a lump sum into the IVA to settle your debts. For more information please visit Full and Final IVA. All debt solutions should be very carefully considered. If it’s appropriate for us to charge fees we detail this in our consultations with clients. For further information on fees, please see the FAQ section of the different solutions available. Our IVA experts -  The Debt Advisor complies with the Consumer Credit Act and always offers a cooling off period of 7 days. The Debt Advisor and The Business Debt Advisor are regulated by both DEMSA (Debt Managers Standards Association) and DRF (Debt Resolution Forum). This means they adhere to their codes of conduct.

Do your business customers think you are a bank?

Does the following sound familiar?

You run a small business, a successful and expanding business. Unfortunately some of your customers tend to think of you as more of a bank and don’t always pay their invoices as quickly as they should – most likely because their banks were cutting their working capital and overdraft. This caused problems. You didn’t want to upset your customers by putting too much pressure on them, but providing them with credit was upsetting your bank which, in line with what is happening in the market, asked you to reduce the balance on your overdraft!

We can agree that this is a bit of a nonsense scenario, but unfortunately one that is happening all the time throughout the country. Here you have a successful business which is expanding despite the recessionary climate and which needs intelligent support and a structure which enables them to work with their clients so that they can continue to expand their business!

Fortunately the client contacted us and we were able to arrange an attractive and intelligent solution via our commercial funding partners. Whilst we focus on arranging the right finance for your Business, you can focus on operating and developing their business.

Your Bank Manager may have disappeared, but we are still here. Whatever your commercial finance needs – to acquire a business, to expand a business, or to re-structure existing arrangements - speak to us in the first instance – there is no obligation whatsoever on your part.