Lending For Trading Businesses – It’s Changed

The options available for businesses to raise finance are more varied and wider than they have probably ever been. The old rules no longer apply with many lenders breaking the established rules and lending:

• Up to £1m without any tangible security
• Financing quickly with start to finish inside 72 hours
• Financing one off invoices rather than full invoice discounting
• Lending on more flexible terms, over different periods and often with a more preferable cost than may be expected

The options are now more widespread and beneficial to businesses than they probably ever have been.

What Is It About?

Trading business finance falls into several categories, rarely just the one. Something that most high street lenders fail to understand.

As a result many businesses too often shoot themselves in the foot and then wonder why things went wrong; and we see the same thing happen where clients have used a broker who is not a commercial specialist.

That’s what we are, a true commercial lending specialist.

The Problem With Traditional Lenders

By traditional lenders we mean those easily accessible to everyone; typically, these are the big banks. Traditional lenders have a range of products and a set process. They will try to fit your business into how they work; you will always come second.

Ask yourself this:

• Do you want a quick decision with funds made available to you in hours not weeks?
• Are you fed up of needing to provide every bit of information under the sun and still getting a no?
• Your heart and soul go into your business, you don’t want to use your home as security for a bank loan?
• You want to talk to someone who understands and will listen to what is really going on in your business?
• The process feels complicated, and urgent, and you are confused and need clarification and you don’t know where to go?

These are all typical requirements of the businesses that we help source trading finance.

What Is Trading Finance?

It comes in many forms as you would imagine. Consider it to be anything that enables your business to trade. Some of the most popular reasons companies seek finance include general cash flow, expansion, acquisition, paying tax or simply paying suppliers.

Financing your business doesn’t have to be standalone, it can involve property or be a more inclusive conversation.

If you know you need to have finance in place, we will do the rest, just know that you have options and that good advice is there to be sought.

Here are some examples of where we have successfully sourced finance for trading businesses.

Recently Completed Finance

Getting The Right Solution

The big problem that many small and medium sized enterprises (SMEs) face has already been mentioned. Historically, the borrower has been made to fit  what shaped solution the bank can provide. This means that the solution offered is rarely ideal; it is always a ‘best fit’ with the bank dictating the terms of the agreement.

Bear in mind also that the big banks are reining in overdraft lending (it has reduced 37% in 5 years, that’s £7 billion less being made available to the SME), so having a solid solution you can rely on is more important than ever.

To get the right solution for your business we look at what you actually want to achieve. That is the difference. We have no products, no set structures, it is about you, your business and getting the right solution that fits just for you.

If you are looking to finance your business, please get in touch and let’s talk.