The biggest thing Finance Houses and Banks hate is uncertainty, the problem is their uncertainty affects us, especially businesses turning over under £50m and particularly the £250k to £10m bracket.
Uncertainty leads to caution, reducing their risk and adding interest on your borrowing rate.
Everyone I speak to in Business Finance seems to say the same thing and that is unusual!
As one said to me “Mark as every businessman knows you don’t go into a negotiating meeting, with the other side knowing you have no power and you are weak, it is a recipe for a very poor deal”
There is uncertainty over Brexit and the possibility of a Corbyn/Union run Government. “Will the Country’s income be able to support the amount of money they will be spending?”
You might ask what has this got to do with me?
Uncertainty leads to caution and protecting the money they lend, meaning, going direct for finance and getting the application form slightly wrong, as the underwriter views it, and you could pay an extra 1-10% in interest (but how would you know what that underwriter was looking for today, to offer a better rate?).
It is for you to decide, whether you should look for finance now or later.
Finance Companies seem to be asking themselves, how much could interest rates go up in the next 3-12 months?
As one old sage said “Most people are too young to know that in November 1979 interest rates hit a high of 17%, could history repeat itself?”
Well you might say again
Mark what has this got to do with me right now?
Over the last week several finance brokers have told me there is already a “hardening of keeping a finance offer open”.
When a finance company makes an offer to a business, it is only for a fixed period of time, and it expires if it is not taken up.
One of our clients has an offer which is just about to expire, and the finance company have made it very clear they do not wish to extend any offers of finance.
Directors tend to think, well I have had an offer, I will just go back again and get another,
I am afraid that is blue sky thinking. The entire process might have to start again.They could re access current exposure in their industry sector, credit rating and a number of other factors including do they want their time wasted again?
In truth neither you nor I will have any influence, over what happens, but you might wish to consider making sure your business has sufficient finance in place to be as successful as possible and please try not to leave arranging finance until the last minute.
Making sure you have sufficient finance to fund growth and your future orders and have reserves for bad debt or any potential issues you might face (we can arrange a facility, where you can draw down only when and if you wish to).
If you are looking for any type of business finance either now or in the near future, please call me now on 07710 466166.
You might ask yourself the question are you more likely to get finance applying direct, or by using me?
Well I tend to be lucky.
It helps when you love what you do and you have over 20 years experience, and have great relationships with decision makers and you know how to package an application in a way the underwriter wants to see it to get the best rate out of them.
Later in the week another new testimonial is going on the website where a seasoned company director, expected his rate would be in double figures, and could not believe we got him a rate of just over 5%.
Why not check out what our clients say about us in the yellow box below?
You are very welcome to call me on my mobile 07710 466166 and discuss any future finance needs, you might have.
PS Please do not delay looking for finance, if you know you are going to need it, particularly if it will put any strain on your cashflow. Almost certainly you will be asked for your last 3 months bank statements, and if it shows a slight deterioration, you will be charged more in interest.