HOLD THE FRONT PAGE: The alternative to banks are here
In our role, we are often engaged to source finance for companies. I guess this goes with the territory of being a Corporate Finance Advisor!
The finance may be to fund: Growth, a buy-out, an acquisition, refinance an expensive facility, cash-out, a working capital shortfall - the reasons are many and varied.
What isn't as varied is the response one receives or rather doesn't receive, from the main banks, high street lenders, or whatever we call them.
Before the credit crunch, we could call a lender, and the phone would be answered with;
"The answer is yes, now what is the question."
Okay, this response was arguably a sign of things to come that surely did when the financial world fell off a cliff, but since this time, save for a lucky few, the phone was answered
"No, we are restricted. Go away."
Sure the mega million businesses had no problem borrowing. Indeed many stories exist of banks providing huge credit lines/overdrafts to those that didn't need it (a sceptic might say it was so that they could fulfil the lending targets given to them by the government…who am I to say...).
Step forward challenger banks, challenger funders, alternative funders - the brave souls that have shaken off the heavy overcoat of capital reserves, capital adequacy and reducing risk in realising that great British businesses need funding to help the economy survive and prosper. We are a nation of shopkeepers after all.
Just last week, for the first time ever, we have scoped a potential funding deal for a company, which includes both asset finance and cash flow term debt, and in doing so, we have not spoken to a single high street bank!
We know we can now deliver the deal, so we may test the appetite of one or two high street banks, but there is a true feeling that at long last a real alternative exists. The questions, processes and costs are not dissimilar - heck some / many of the people are the same – it’s just the answer that is different. These aren't loan sharks or gung-ho cowboys but sensible lenders that want to get money - and lots of it - to businesses. All within the right parameters you understand.
Talk to us about your businesses funding requirements by calling us on 0116 344 0443 or email firstname.lastname@example.org