Many Banks and Finance Companies have reviewed their lending strategy recently.
The severe political uncertainty and Brexit (the prospect of a far left Government seems to be more of a worry than a hard Brexit,is what we are hearing in the City).
Finance Companies are nervous as they do not know what is happening.
They are building up their financial reserves which is one of the reasons why businesses applying direct are paying more.
We are regularly seeing Businesses being quoted 2-6% higher rates by going direct.
These are recent examples
Going direct 10.9% through our team 5.6%
2 recent cases, clients were expecting 6% we achieved 3.2%, they were staggered.
We are also doing some excellent deals on MBO’s, rather than a Director going through the trials and tribulations of trying to sell a business, sell it to the Management Team.
Apologies I digress, why are we getting cheaper rates?
Apply direct and you are a one off client. But Good Brokers who deal with finance companies every day are still getting great deals.
Its the same with your business,your best clients will get the best service and deals.
To get the best rate do these 2 key things correctly.
1. Package the loan correctly, here experience counts for everything, as each finance company has different lending criteria’s, get one small thing wrong like purpose of loan and you will pay more.
It also helps that we can speak to a decision maker direct and can explain any issues upfront, that might cause a last minute turn down in Underwriting.
Will you be dealing with a computer screen or a decision maker if you went direct?
2. The real secret is applying to the right company, that want to deal with your business sector, credit rating and company turnover, right now at this precise moment.
Do you know which Finance Company is offering the best rates for your type of borrowing requirements?
Why would you it’s not your job, but it is ours. Go to the wrong company and you will pay to much.
Recent client was offered a short term loan (12 months) at 23% we arranged a loan at 9% over 2 years but with no penalty for early repayments.
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,
PS A Quick Tip
Make things easy for yourself, do not leave your business finance to the last minute(If your bank statements show your cashflow is tightening your interest rate will go up)
Why not checkout are testimonials, below?