In today’s post, I thought I’d cover one of my most frequently asked questions:
“How can I get the best business finance rates?”
Well, the short and easy answer is – give me a call on 07710 466166, since we regularly save our clients 5-50% on their finance.
On the other hand, here are three things you might wish to consider:
1. Apply early – before you even begin needing it
Finance companies look very closely at your last 3 months bank statements, but with COVID, this has crept to your previous eight-months statements.
They will be looking to see how much pressure your Cash Flow is under and whether you are on an upward or downward curve, this can be the difference between you paying 3.5 or 7%.
2. Consider your serviceability
Underwriting will look at your serviceability and your COVID history, e.g. whether there is enough money left over to make future repayments after any postponed liabilities, HMRC, Government Loans and existing loans.
They will also look at how you dealt with payments during the COVID period, e.g. did the business just stop paying finance companies when they had cash available to do so?
Knowing the Underwriters are going to look at this, it would be very helpful to explain anything you think is relevant. Your favourite broker has access to senior “can-do people” and will do this at the beginning.
3. Share the whole story
These days the finance companies have far more access to financial information than in the past; some might say more information than they should, but we live in the real world, and that is the way it is.
If there have been past issues, company failures, CCJ’s, missed payments to finance companies or poor personal credit, you should assume it will come out at the last stage in underwriting. Hence last-minute turndowns.
Tell your broker everything; otherwise, they will go to the wrong finance company, and an unnecessary financial footprint will be left behind, adding to the issue.
Out of the 100 odd finance companies, there are still finance companies that look at the business and see whether they like it or not; these are less concerned about past issues, and instead, just look at whether their payments can be made or an agreed exit route.
A good broker will know which finance company is most likely to offer finance at the best rate.
And, before approaching a broker, do a personal credit check; it is so easy to do on Google and find out what your credit score is and let them know.
Bonus tip: Check reviews from your broker
Finance brokers are the same as everyone else, plumber, solicitor or accountant. They vary in competence. I’m not sure about you, but when I am looking at someone, I look at their testimonials.
I look at whether they are named as opposed to just ‘Jack in Derbyshire’.
So, to get started, why not check out a selection of our named testimonials here:
Or simply pick up the phone and say hi; you are always welcome to call me on my personal mobile: 07710466166