Each week, our Managing Director, Mark Smillie, sends out an interesting communication to our audience, detailing his views of life as a finance broker, as well as valuable insights into the business finance process.

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“Dear Business Community,

Before lockdown, I was attending a dinner with friends and new acquaintances. A gentleman I had met that evening ran a large family business. During conversation, he turned to me and in a slightly loud and certainly aggressive manor, asked:

“Tell me something I don’t know about finance?”

Now 10 years ago I would have met fire with fire, and probably looked an idiot but on this occasion, I simply said:

“A good fisherman will have grown up learning about what they do, they have an understanding that no once a year fisherman could possibly have.” 

Fishing for a business loan…

Like a river, the loan books of finance companies will ebb and flow. Their shapes are dictated by time and circumstance – for example, their economic forecasts and of course, their own profitability. Remember, they set parameters on their lending exposures, a balance that suits them.

Now let me tell you something you might not know…

The balance they set is also often dependent on how much they have lent in certain sectors too. So ideally, you want to approach a finance company which has a low level of funding in your business’s exact sector! Did you know that? Most non-brokers don’t, which is why we have more success than individuals, even often seasoned business people.

3 things to consider when selecting the finance company for you…

Industry Sector: Probably never more so than now, they will not want over exposure in certain sectors. If your business falls into one of those, you will have to locate a specialist.

Business Credit Rating: Finance companies are now looking more closely at affordability.

IMPORTANT NOTE: Underwriting teams are asking whether applicants can afford new loans on top of their HMRC Payment Plans, Government Loans and how businesses treated any finance companies that they owed money to when they went into lockdown. Please consider this in our current credit hungry climate.

Loan size and purpose of loan: I have seen many loans turned down (right at the stage of payment), when an Underwriter innocuously asks a company director what they are really going to do with the money… they are looking for a valid, legitimate reason. Why? Well, a finance company needs to have faith that the finance asked for, will be enough and more will not be needed, or that the business is not going into something new without enough thought and research.

A seasoned pro…

Casting (pardon the pun) our minds back, our lifelong fisherman friend (unlike the weekend fisherman), knows where the best place is to stand and what bait to use.

Equally, my team of experts know which finance company to approach who will look favourably at a business say, in Construction (sector) with a Credit Score of 39 (rating), looking for a loan to start a development (purpose).

They also understand the right way to get a positive bite from the finance company, ensuring that the fears and concerns the credit team are going to look at, are covered in the application in the first instance, putting the finance company at ease from the beginning, speeding things up and ensuring their catch of the day!

So how do you tell a good finance ‘fisherman’ from a bad one?

Simple! You could check their named testimonials!

If you have any questions, then please contact me.

Why not pick up the phone and tell me about your business. I can be your be your finance Satnav, I’ll help you get to the funding you need quickly and stress free.

At Ringrose, we work with all types of business, all credit ratings; The Good, The Bad and The Ugly (Now, that would be a good film title…)

It is a beautiful day here, how about making mine and giving me a call. You are very welcome to call me direct on my mobile 07710 466166.

I absolutely love what I do.

Best wishes,

Mark Smillie”