Small Business funding update

One of our commercial funding partners Bibby Financial Services has launched the Small Business Cash Access funding facility, aimed specifically at start-ups and small and micro businesses with a turnover of £300,000 per annum or less. The facility has been launched specifically to support those smaller businesses most in need and entrepreneurs looking to start a new venture. Andy Tait, executive director at Bibby has recently said: “We have always recognised how tough it is for businesses of all sizes to succeed, but it is particularly difficult for those at the smaller end of the scale or those starting out who are trying to grow in a negative climate. “The recession led to a wave of new businesses and entrepreneurship as many people found themselves with the opportunity or little choice but to go it alone. Now those businesses are starting to mature, taking on staff and moving into bigger premises. But they are not getting the support they need financially, because they are considered as too much of a risk by some funders.” Research from Bibby carried out during Q1 for the Business Factors Index shows that just 4% of SMEs have applied for funding from initiatives such as the National Loan Guarantee Scheme. Andy added: “Our research has revealed that many smaller businesses are relying on their inflexible overdrafts or dipping into personal savings as a way to finance their companies, which are in no way sustainable because, quite simply, those pots of money have a limit.” The new facility from Bibby advances 90% of the value of the invoices raised to customers by the business and releases the remaining 10%, minus a small single fee once the customer settles the invoice. “The aim is to allow people who have not considered invoice finance before to try this credible form of flexible funding and reap the rewards it can bring,” explained Andy.

How can I get a loan with no credit check?

A question often asked is how can you possibly get a loan without being credit checked. The short answer is that without some sort of additional security being offered you can't! Any lender offering you an unsecured loan will conduct a credit check on you whether you be using the loan to buy furniture, a holiday or a car. 

There are however one or two lenders around that will offer you a no credit check loan so long as you can meet certain criteria. One way to borrow money with no check is to put up something tangible as security, for example a car or a piece of art. Loans secured in this way are becoming ever more popular for the asset rich cash poor demographic as a means of raising funds quickly (usually cash in the bank within 48 hours) with minimal fuss. The lender simply securely stores the asset until the loan has been repaid, typically within 3 - 6 months. This can therefore be used as an excellent bridging facility or for commercial purposes such as the dreaded VAT bill and you can can borrow up to £1,000,000 in this way.

For smaller personal loans with no credit check then a guarantor loan is an option if you are needing to borrow up to £5000. 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. 


Google them - They can be called poor credit loans, bad credit loans, no credit check loans amongst many other things but they all generally refer to a guarantor loan. Don't be misled though, there is no easy way to get a loan if you have had issues in the recent past or don't meet the criteria of the big banks. For the select few who can get a guarantor to help then getting a no credit check loan is a reality.



  

Who really likes banks?

I think by now there is hardly any business person or entrepreneur who would answer this question with a yes. Bank bashing continues in full swing but we don’t believe that this is the solution – it may just help us to get things off our chest.

Yes, banks are still operating with extremely confusing and restrictive lending criteria; on the other hand nobody wants to go back to the days of 2005 or 2006 when money was thrown at anybody and anything without any prudence. So the upshot of it all is that organising business finance remains a painful prospect destined for one rejection after the other. We can only advise one thing: “if something hurts – stop doing it”. Organising business finance is something we specialise in and we will take all the hassle and pain away from your clients so that they can concentrate on running and developing their business.

In the meantime if you or indeed any of your clients require any business finance discuss their proposal with us – remember that you can always contact me without any obligation on your part.

The Bank of mum and dad

Typically for those people who can't get a loan through their bank or from one of the many prime lending institutions (think big banks, supermarket chains etc) the options are relatively limited. Historically how many of us when younger had to ask, nay beg our parents for some help to get that car finance we needed or a loan towards the deposit on a rented flat. 

In these austere times many parents haven't perhaps got the funds readily available to help out their children. Their ISA maybe has been plundered already, the credit card up to it's limit or the bank account suffering from a drop off in quarterly bonus rewards.

One of our personal loan products may be beneficial as an alternative to the bank of Mum and Dad as it allows them to help their offspring raise the money they require in the form of a loan but without them having to put their hand in their own pocket.

Often referred to as No credit check loans or Guarantor loans  the customer gets the benefit of borrowing the money in their own name and controlling the monthly payments on a typical advance of up to £5000. The parent or though it can equally be another family member or friend simply to stand behind you and guarantee that the payments will be met if the customer falls behind on the payments themselves.

To get a guarantor loan you will need to have a guarantor who is happy with your credit worthiness and is willing to back your guarantor loan. They will need to be between 18 and 75, a homeowner with a Uk bank account and steady income. If they trust you then our lenders trust you and therefore your credit rating is not so important.

So if you are the banker at the local branch of Mum and Dad then maybe you could consider this next time you are asked for help with a loan.