Commercial finance specialists should broaden their lender panels now
The Financial Intermediary & Broker Association (FIBA) is asking members and non- members to heed the warnings in the Bank of England’s latest quarterly credit conditions survey about lenders cutting access to funding in Q4 and beyond.
The BoE survey points to a deteriorating funding situation for businesses, including SMEs, with a deteriorating economic climate being the main cause.
According to FIBA Executive Chairman, Adam Tyler, pictured, finance specialists need to consider positive moves they can make to offset any loss of funding via their favoured lenders.
“The BoE warning should not be taken as a guarantee that funding will become tighter, but we are urging our members to look beyond the lenders they tend to favour at the wider range of funding options that are available on our panel, which was highlighted in my report to the Treasury Select Committee on Access to Finance. We have a growing number of specialist lenders keen to do business and I would urge members and non-members to explore options outside their traditional sources.
Tightening of lending criteria tends to be one of the first indications that lenders are looking to reduce new business levels and the requirement for personal guarantees can make it more difficult for SME owners, particularly with unsecured funding.
Spotcap, one of FIBA’s panel lenders, has now extended its unsecured loan offering with no personal guarantee (PG) to also include a full or partial PG and corporate guarantee. The loan amount ranges from £50k-£350k, for a duration of up to 24 months, and is often used to manage cashflow or for other working capital reasons.
Kevin Vendel, Spotcap’s Head of Sales, commented:
“The change is a reflection of partners and their clients demanding more choice. By offering different guarantee options, we can now support more businesses looking for a swift and flexible loan without any securities required.”
“Spotcap is just one example of looking beyond the obvious first choices. Seeking new funding sources today and understanding what they can do, can make all the difference if traditional sources begin to pull back.”