How to get declined for a business loan or pay way to much for business finance.
Recently we have had a spate of Company Directors, thinking the cheapest and best way for us to arrange a business loan is to go to several finance brokers and then sit back and go through the offers and choose the best deal.
Sounds good, but it is entirely the opposite.
Three businesses that did this in the last 10 days, the brokers all made multiple applications to business finance companies, to secure the deal for themselves.
First business had made 32 applications for finance, second 28 and we never found out how many were made by the third.
Each Company Director, did not tell us they had approached other brokers, we went back to tell them what had happened and they were truly shocked.
At the last stage of a business loan, it goes into Underwriting.
If the Underwriter sees several “financial footprints”, several to me is 3-5, not those crazy numbers above.
The Underwriter will think.
The business must be desperate.
If I was to approve the loan and it went bad, what would I say, when I was asked this question.
Why did you approve business finance when 30 other finance companies, passed on this?
In all walks of life there are the good and the bad, good plumber bad plumber, good accountant bad accountant, good politician bad politician, woops I will not go there.
Unfortunately, I really hate to say this, but this is also true with Finance Brokers.
Let me explain, why I am writing about this now.
Normally at this time of year, it is a peak time for businesses to seek finance( after the summer holidays). However, due to the political situation, businesses are choosing to wait before taking finance.
Hence we have desperate brokers out there, good brokers are always busy, just like your local town, there are many empty restaurants but always a full one, where everything is good.

Well you might say, I don’t need a broker, I will apply for finance myself online.
It’s so easy, the add says all welcome to apply, rates from 2.9% and same day answer.
Sounds good, but it is entirely the opposite.
This is what the finance company’s tell us.
In most cases, 70% applying direct are turned down whereas with a broker 70% are accepted, our success rate is 84%.
A good broker.
Will know which finance company out of about 100 is offering the best deal for your business sector and loan requirement, and how to present it in the right way to get you the best interest rate.
A good broker also receives, special access to senior staff and preferential rates for their clients.
Why you might ask? Because they do not waste the finance companies time with unsuitable businesses.
Why not check out are testimonials below, website and LinkedIn.
Pick up the phone and tell me what you would ideally like and then we can go out and get it for you, this will be a tailor made solution to your needs, rather than a one size fits all solution.
Where I differ from some is that with so many types of finance available, I know my limitations. I do not say I am an expert at every type of finance, but I do have someone on my team who is that expert.
It has taken me years to be able do this, but when you love what you do, you meet good people along the way.
You are always welcome to call me on my mobile 07710 466166.
Let’s talk today.
Very best wishes,
Mark
Mark Smillie
0800 612 5364 or 07710 466166
PS
If you are in the Construction sector or doing a property development
I hear a horror story about once a week, and every time, I think that could have been avoided.
PPS
Do you have an existing Invoice Finance Facility? Then you are probably paying over the odds, you really should see this short video
https://ringrosebusinessfinance.co.uk/invoice-finance/