Three mistakes to avoid when applying for Business Finance

We work with small, medium and national companies all credit ratings catered for

“The biggest myth out there is that all Finance Companies are the same; this truly is not the case” 

If this were the case we would have a handful as opposed to over a 100 finance companies all with their own sweet spot.

Mistake 1 

Applying to the Right Finance Company and getting a last minute turndown

About once a week I am told, well I did apply to this Company but we were unexpectedly turned down at the very last moment.

I am left thinking to myself, they actually went to the right Company, but it was turned down by the underwriters, because they did not fully understand the proposal and it was not presented in the right way.

We would have got this deal through, because we can speak to the decision makers direct and cover anything that could adversely affect the application.It is entirely normal we get an agreement in principle before putting the application forward formally.

Mistake 2 

Leaving a needless Financial Footprint

By going to the wrong type of Finance Company or not correctly knowing what that particular underwriter needs to see to approve Finance at the best rate.

You will leave a Financial Footprint, the worst outcome would be for a Credit Application to be turned down, because the underwriter thinks well if they turned them down they must know something I don’t, better not risk it.

Mistake 3 

Not using a Finance Broker

You are probably thinking, he would say that wouldn’t he?

Well your expertise might be in Construction, Building, Manufacturing or Hospitality, you know how to do what you do through your knowledge and experience of that marketplace.

How would you know which Finance Company to approach, most have acceptance preferences in the following areas.

Company Turnover

Industry Sector

Credit Rating

Purpose of Loan

Size of loan and the length of the loan (some finance companies prefer short term loans 6-12 months, others prefer 2-5 years).

If you get any of the above wrong, with the finance company you apply to, you will end up paying more than you should, sometimes twice as much.

Finance changes

With all the uncertainty over Brexit and the political situation at present, we are finding a big increase in our clients asking us for a flexible finance facility, which is in place as and they need it;

Why don’t you ask us to put this finance in place for you?

works just like an old fashioned overdraft: the finance company gives you a credit limit, you can draw down funds and make repayments as often as you like in any given month.

The business just has to pay the service charge each month

0.4% (only payable, if you use the facility) and the Interest.

Capital repayments are made when you wish to or just roll it.

The credit limit is normally assessed on the following, up to 66% of average book debts, 35% of Stock Value and they also will value WIP.

Loan size £25k to £3m.

Very best wishes and I look forward to listening to your requirements, you are very welcome to just pick up the phone and dial my mobile.


Mark Smillie
0800 612 5364 or 07710 466166
Do you have an existing Invoice Finance Facility? Then you are probably paying over the odds, you really should see this short video

Happy customers

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