So, I’ve been thinking, where do our SME clients find all these lenders? Which is the right lender for them? Where are they going to find the time to shop around when they need cash so quickly?
As many as 90% of UK SMEs still go straight to the high street banks. This may be the best thing to do for businesses with a two year trading history, two sets of filed accounts, a strong balance sheet and time to wait around, but as 70% of these SMEs hold less than £10,000 in their bank account, I think It’s time to explore an alternative way of lending.
Capitalise have partnered up with us and other accountants all over the UK to provide a platform to search over 100 lenders in as little as 3 minutes. Following the entry of a few details about a business, (don’t worry! Capitalise run electronic checks to validate information provided at the company level and do not leave any trace or footprint on the business’ credit history. Capitalise will never undertake a consumer credit check) their funding search tool presents a range of lenders and products matching the business’ profile:
The Lenders
As well as some well-known banks, funding circle and Iwoca, there are also alternative independent lenders who do not have the same restrictions as high street banks, which allows them to offer more agreeable terms. Some of the lenders available even fund start-ups with no revenue, as long as there is a business plan, and provide financing to businesses with monthly subscriptions using a formula that assesses new customers versus lost customers.
The Products
• Asset Finance
Where assets used in the business, like motor vehicles, computer equipment and even inventory can serve as collateral.
• Merchant Cash Advance
Where pretty much any business with a credit card machine can use their future cash flow to fund up to 150% of their prospective receipts.
• Invoice Finance
Where invoices which have been issued, whether to single or multiple suppliers can act as security for releasing 90% of it’s value to the business.
Once we have the tailored options in front of us, we can then collaborate with our clients to assess and compare each option to make sure we select the funding that fits.
The technology also allows us as accountants to quickly and easily upload information on behalf of our client and submit and track a single application to multiple lenders, which would usually take ages.
Capitalise actually increases the chances of our clients securing the funding they need, (loan applications are 4 times more successful with an adviser) saves them valuable time and comes at no extra cost until they have successfully secured the money they need so, if you are an SME short on cash or going for growth, why not give us a call?
