Beware when your Bank says we can not help you but we know who can.
A recurring theme we hear in private from Bank Managers, is that gone are the days when they could really help smaller businesses that have a turnover of under £20m.
In honesty they are really embarrassed, your average bank manager is a good and decent person, who wants to assist his customers.
He is embarrassed to tell a client who has been with the bank for many years that they cannot help unless the security is good enough.
But now they have a panel of lenders, who are nothing to with the Bank that they can recommend their customers to, hence they can give a sigh of relief and not feel so bad that they cannot help.
Hooray you might say, this is a good thing surely( well no actually) it sounds good, but it is a one size fits all solution.
We get Business Finance cheaper than you can get by applying direct or by being recommended to a finance house by a Bank.
The reason why is dead simple, this is our day job,
we know which Finance Company is suitable for your business, this is driven by industry sector,business credit rating and how to present the loan to the Underwriter to get the best interest rate.
Get any part of this wrong and you will pay more, a recent client went direct and was quoted 10.9% we repackaged the loan, which is a real skill, and got a new rate of 6.9%, saving the client 4% for making a telephone call.
We get bulk discounts, just like you give your best clients.We deal with decision makers and get great service, just like you offer your best clients.
The severe political uncertainty and Brexit,are making Finance Companies nervous, they are building up their financial reserves which is one of the reasons why businesses applying direct are paying more.We are getting rates of between 3.2% and under 10% for the vast majority of our clients.Apply direct or use a poor broker and you are a one off client, dealing with a computer screen or a form filler.
Please forgive me for being blunt.
But my my question to you is do you think you have more chance of getting a business loan by going direct? I know you can do your job better than me.
If your business is looking for any type of business finance, that is what we do, including property development. Why not pick up the phone and tell me what finance would ideally suit your business, let us be your Satnav helping you get there quickly and easily we work with all types of business including the construction sector (my father was a builders merchant) please click if you would like to see our new construction finance video.