Sounds simple enough. Take a business loan and secure it against an asset, typically secured by your property.
Over the last few years secured business loans have become a little more difficult as lenders move toward straight affordability checks based on previous historic accounts.
All pretty sound principles to adopt. However, when the commercial marketplace is crying out for funding and directors have appreciating property values then the chasm between solid affordability checks and customer demand starts to widen.
For a lot of businesses this is pretty much where we are today. Asset rich but cash poor.
At a time when the economy is starting to grow, ambitious businesses are seeing opportunities. They have come through the recession and are now looking at growth and potential for the next 3-5 years.
The biggest obstacle we have come across is funding this new growth.
The challenge is that past performance of many SME businesses is not so great. The last few years have (on the whole) been hard and the financial accounts are not showing huge net profit figures to justify what they can afford.
This brings us to today, where we have;
- Businesses who want to borrow and grow
- Business owners who have security and appreciating asset values
- SMEs with not so great financial histories
- Lenders who want past financial accounts before they lend, regardless of what security is available
In other words, we have a big divide.
Secured Business Loans
In response to this, Lime Consultancy have worked at getting an alternative solution in place. The secured business loans available now are looked at based on future affordability and so long as we can show decent security cover then an option is likely to exist.
The easy answer is to talk to us, give us some basic details and we should be able to get an answer and proposal to you within 24 hours. Try getting that speed on the high street…
As with any form of credit, think about it carefully. We will take you through all of this before you do anything, but if we can provide you with a solution to growing your business then that has to be a good thing.
Get in touch on 01293 541333, add your comments above, or contact us via the website for more details.
By Dave Farmer