Mark Smillie is back again with another post! This time, he’s taking a look at 2 types of finance, and their hidden dangers. Read on now and see how this could apply to your business!
“Most people think applying for Business Finance is as easy as Climbing a Ladder.
Did you know that around 48,000 people attend Accident and Emergency Departments in UK hospitals, through ladder accidents?????
These are two types of finance in particular, where I normally hear a weekly Horror Story.
One is from people who have taken out Secured Loans, Short term Bridging loans or Property Development Loans.
Common Problems being experienced;
- A last minute let down despite promised money.
- A Big Fee and Interest Hike on the day of drawdown, take it or leave it attitude
- A hidden Bumper Fee to get the Charge released, when you have repaid the loan
- Constantly being asked for more information, that you have previously supplied and then been turned down after 12 weeks.
There is one finance company who is all over the Internet, who are being sued by 100’s of unhappy clients.
One of the biggest issues, is the size of the exit fees at the end of the loan period.
You want to settle an expensive Bridging Loan, and you’re asked for £15,000 to have the Charge removed. Can you imagine the anger and frustration you’d feel?
Or the frustration you would feel when you approached a finance company to re finance your loan and they said they were not interested in helping you, because your existing finance company was to difficult to deal with and it was a “Nightmare” to get the Charge lifted.
“This finance company make it so difficult, you end up staying with them and paying far more than you should”
Or you could make life easy for yourself and do the same as the client did who we write about later in this email.
The second type of Finance is as easy to get as Climbing Up a Ladder but can be as painful as falling of a ladder
Invoice Finance or Factoring
Can be such a good way of financing a growing business, or being able to take on as much business as you wish to, knowing that you have the finance in place to pay for it.
I think at the last count there were over 70 finance companies that would lend you money on your invoices.
The problem is they are all different and if you choose the wrong one, you could find yourself in one of these common areas of complaint.
- I am constantly being hit with “Hidden Charges”, my fees are twice what I expected
- I have made a terrible mistake and I can’t get out
- My account manager keeps on changing and they don’t understand my business
- I choose the wrong company because I did not know there was another finance company offering exactly what I wanted
I have just moved one of my Elite Club (these are clients that we have provided finance for previously) from one Invoice Finance company to another these are 2 of 8 added benefits they now enjoy.
- Instant online access to funds on the day of the Invoice being raised in real terms it gives them another 15% funding availability.
- The system Auto Reconciles, which means it saves your accounts team, a day a month and makes everything so easy.
Or how about this for an attractive offer and YES if you are in the Construction Sector you are totally welcome
The Finance company isn’t bothered about your Company Credit Rating, nor whether you are a homeowner, or your companies turnover and how long you have been in business.
Nor is there any binding contract, you can use the service as and when you choose to.
The one thing they care about is the client that you have issued your invoice to, good to pay the money in 30 to 90 days
AND to make life easy for you
“There are NO Personal Guarantees”
This what our clients say about us in our Named Testimonials page on our website.
Why not pick up the phone and tell me what type of finance would really add value to your business and let me serve it to you A La Carte as opposed to you going self service?
You are welcome to call me on my mobile 07710 466166
Look forward to serving you.
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