How to get a business loan at the best rate and with the minimum amount of hassle?
I am often asked this question, it really is not as easy as just answering an online add, where you are promised an answer in 2 to 24 hours and rates from 3%.
If it was that easy, I would not be writing this and we would not have a 100 Finance Companies out there.
Work out how much you might need.
A common mistake, is not asking for enough and then finding you need more funds.
Two problems with this.
1) A new underwriter will increase your interest rate sometimes substantially because they will be concerned, that your cashflow forecast was over optimistic on the first loan.
2) In the small print of your original loan, you might be prevented from borrowing further funds, without the permission of the original funder, this happens, more than you might think.
An alternative we might arrange, is to have an agreed limit and then draw down what you need when you need it.
Or to simply arrange a business loan and we can tell the funder we will need an increase in certain circumstances and we require no penalty for early repayment for the loan.
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 the 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.
A recent client, with a low credit score, 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,
Why not checkout are testimonials, below?
Do you have an existing Invoice Finance Facility? Then you are probably paying over the odds, you really should see this short video