How To Pick The Right Lender For Your Business

Posted by Martin Collins on Feb 17, 2020 2:00:00 PM
Martin Collins
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How To Pick The Right Lender For Your Business

Business finance is sometimes a necessity for many small to medium enterprises and is no easy task in today’s climate - simply doing an online search will produce a plethora of financial products, services options and instruments.

The reasons for finance can vary from company to company and selecting the right product depends on the company objective. Whether the need is for business expansion or to improve cash flow, every business should be aware of the range of finance options available - keeping in mind whether they are looking at a short-, medium- or long-term objective. Many lenders offer business finance, so it can be daunting to research every provider. Knowing the facts – and working through an independent broker - can save you making a potentially costly mistake.

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Bank Overdrafts

Many businesses opt to use their banking overdraft for short term cash flow requirements. It's true that this is a straightforward option from a trusted provider. Depending on the interest rates and arrangement fees, however, it might not be the best option.



The bank might offer more competitive interest rates on a business loan than on an overdraft. Approach with caution. A loan might be a long-term solution to what turns out to be a short-term cash flow problem. SME’s that are expanding fast can find it challenging to predict cash flow needs in advance. Taking out a loan over a repayment term of years can lock the business into an expensive repayment plan. The business may even borrow more money than was ever needed.

There is a way to make sure that business finance works better for your company’s needs. With specialist knowledge and alternative finance solutions, an independent finance broker can help save you both time and money.


Risk Averse

Banks can be averse to lending to certain business sectors. They can also be reluctant to lend to start-ups or those with limited turnover. This limits a company when it is trying to grow. Whichever sector your business works in, an independent broker may be able to help. A reputable broker will be able to source not only a business finance solution, but the one that is the most suitable. They will highlight options you may not have considered, such as invoice financing or asset finance.


Advantages Of Working With An Independent Finance Broker

Working with a broker like Business Finance Solutions (UK) Ltd offers SMEs from every sector tailored business finance options. A good finance broker will spend time getting to know your business. They can then make the best recommendations to meet any finance requirements based on your business needs. This relationship-based approach means your business finance model can flex and grow with the company. The expertise and experience of your independent broker will make sure the business can access the right deal from the market.


Speak To Us

Business Finance Solutions (UK) Ltd is a trusted company that has been operating in this space for many years. With a client focus and relationship-led brokerage model, we take a whole market approach to business financing. We can guide you to the right business finance product from a variety of lenders. And we don’t stop there - we can also provide a tailored ongoing business support package should you decide you require ongoing support.

Business Finance Solutions (UK) Ltd is authorised and regulated by the Financial Conduct Authority and can offer a free consultation to discuss your finance needs. Get in touch today to find out more.

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Image source: Unsplash

Topics: Business Loans, Bank Overdrafts

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