accessfunds assists businesses in finding the right financial solutions – fast.
We see a wide range of applicants from all kinds of industries looking for anything from a quick cash injection, a property development fund, or even long-term restructuring finance. No two cases are the same, and the choice of products and lenders can make finding funding seem far more complicated than it is.
Applying for finance to a bank or business lender can be a lengthy and at times difficult process. Engaging a specialist broker provides you with a single point of contact and outsources the process so that you can get on with running your business while we get on with the finance search.
Here are our tips that will help you gain the business funding you need.
Know what you need and why.
If you are paying a bill, buying stock or injecting working cash, make sure you are able to explain clearly why you need this, and how it will bring value to the business. If you are just looking to “prop up” the business, the lender will examine your balance sheet and question your business plans more deeply. If you are a property investor or developer, know your key cost factors and determine the GDV. Explain the time-frame and how you will make profit and in what time. Know how much you can afford.
You might not need a detailed business plan – but you need to know how you are going to make money!
Decide on the best product and terms.
You may be looking for unsecured short-term funds (up to say 5 years/£500k); a bridging loan; or a longer-term secured (which can be a mortgage or debenture) facility. Each comes with its own merits and needs to be considered.
- Unsecured loans can be arranged quickly, with minimal fuss, and usually completed in a day or two. The rates of interest reflect the higher risk, but lenders also tend to only charge interest for the borrowing, with no exit penalties, adding to the flexibility of repayment.
- Bridging and other forms of secured lending will take longer, is likely to carry additional setup costs and exit fees, but will probably charge a lower monthly rate reflecting the risk profile.
- Some lenders will be prepared to offer secured loans to consolidate business finance – taking security on business assets or those offered personally by directors or shareholders.
- For retailers, the facility to discount future card sales (commonly called Merchant Cash Advance – or MCA) is another quick way to raise cash, with payments usually taken directly from your sales transactions.
Have appropriate documentation available. Remember, these lenders do not know you as well as your bank. But maybe unlike your bank, they are keen to serve your financial needs!
- Typically, if you are an established business looking for short-term facilities, be prepared to provide your full accounts and business bank statements at the very minimum.
- Retailers looking for an MCA need to have at least 6 months of card acquirer statements to support the advance (which will be calculated as a multiple of the average monthly sales).
- Property investors need to know their numbers, particularly if they are looking to add value through a change of use and light refurbishment. Look to demonstrate the uplift in value of at least 20% in any transaction, and know your exit and back-up exit plans.
Remember that lenders do want to lend you money – but they have to satisfy themselves that your business can support the facility and manage the repayment of the debt.
accessfunds are delighted to work for you and ease this process. Our panel of lenders are in business to help find you the best-suited solutions.