Rapid Business Finance - Kelly Bridgeman-Moncrieffe

Getting funds to your business is our business!!!!

A Few Reasons Banks Do Not like to Lending to Small Businesses
1. Increased regulation: Tighter regulation standards have caused banks to be extra careful about the risk in their investment portfolios and drastically tighten up in lending. Unfortunately, small businesses are riskier than huge corporations, which makes banks hesitant about extending credit to SME's
2. Traditional banks often require collateral: Banks often require property as a collateral guarantee for busine...ss loans in case it's not repaid. This makes it hard for startups and new businesses that may not have property or valuable equipment to offer as collateral, and small business owners may be uncomfortable using their personal assets (family homes and cars) as business loan collateral. The amount a bank will lend often depends on the value of your assets. Property, cars and valuable equipment are the most common forms of collateral, but if you don’t own anything that banks view as valuable, you will have difficulty getting a small business loan.
3. Weak cash flow: Banks are very concerned that businesses have enough cash flow to make monthly loan payments in addition to covering their payroll, inventory, rent and other expenses. Unfortunately, many startups and small businesses struggle to keep enough money in their bank accounts even when they’re profitable, often because they have to pay 3rd-party suppliers upfront before they get paid for their product or services. If the margin on money going out to coming in is very slim this may cause banks to reject a loan application.
3. Less profit for banks on smaller loans. In the majority of cases, small business owners are requesting smaller business loans than large corporations. At the end of the day, small businesses are considered too expensive to underwrite, traditional bank lenders are more eager to accommodate and fund big business as It's all about what makes the banks more money.
Due to the above reasons the alternative funding market has grown rapidly over the last few years with over 15 million pounds being leant to SME's last year alone.
At Rapid Business Finance we we use over 50 lenders within the alternative funding market to find the right product to suit you.
If you are interested in finding out more please contact us.
Thinking of starting a business? Want to explain? Looking to improve? Need new premises?
Whatever your business financial needs, contact me - Kelly Bridgeman
☎️ 07958 003 961
☎️ 020 3128 7080
📧 kelly@rapidassetfinance.co.uk
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Thinking of starting a business? Want to explain? Looking to improve? Need new premises? Whatever your business financial needs, contact me.... ☎️ 07958 003 961 📧 kelly@rapidassetfinance.co.uk
See More