No matter what the size or strength, businesses sometimes find themselves in need of a cash injection. Perhaps there is an opportunity for the business to grow? Expand the current product offering? Or there are new legislative requirements that must be met?
Whatever the reason, secured business loans are a flexible, cost-effective and efficient way for a business to achieve that essential resource.
At Accredo, we are keen to support brokers across the UK in helping their customers to access the funding and expertise needed to back their ambitions. Here, we address some common misconceptions associated with secured lending and (hopefully) offer a few ideas on how you can respond.
The application process takes an age
This couldn’t be further from the truth. We ask for no more than a page of initial information and our team of underwriters will provide options within three working hours! What’s more, we can also offer same-day payment once all documents have been received and processed.
Business people won’t give charges on their homes
20 years ago that may have been the case but with the lending landscape changing faster than ever before, most small business owners now appreciate they may have to use personal assets to secure a finance facility for their company.
The interest rates are sky high
No business owner wants to commit to a loan with an unsuitable repayment profile. For a rate to be competitive we believe it must also be appropriate to the borrower. Our rates are often lower than bank overdrafts and similar products. What is most important is a loan is compatible in term and profile for the borrowing business. With vastly more flexibility than high street lenders we pride ourselves on providing the loans our clients need rather than what a lender is prepared to offer.
The interest rate will depend on the loan size, loan term, the overall credit profile and the equity available in the property being secured against the loan.
“I’m a start-up so will not be considered”
It’s always nice, and somewhat advantageous, to be part of your customer’s journey from the very beginning so you’ll be pleased to know our specialist team will always consider lending to businesses who are just starting up. From start-up funding, finance to purchase a business, or general cash flow for stock and people, we can look at all situations.
Why do we do this when other lenders won’t? Because we look at the likely success of the business, the people behind it and their experience. All proposals are considered by experienced people and not by algorithms.
A secured business loan may affect my personal credit rating
Whilst your customer is using a personal asset to secure business borrowing, they will see no adverse information registered all the time the loan is serviced in line with its terms.
You must have a perfect credit rating
We don’t apply the strict lending criteria that many of the “big” lenders do, which means our decision to lend depends upon the circumstances of the business and will not be dictated by a less than perfect credit rating. Our underwriters review each business on a case by case basis and assess their overall risk profile. We have 20 years’ experience of tailoring loans to borrowers and pride ourselves on being as flexible as any commercial lender in the UK.
Our specialist team is always on hand to answer your queries regarding secured business loans so please do call us on 01444 255915