Latest News on Business Funding (March 2021)
Graham Jones at Mendip Business Finance says :-
Without a doubt the UK has seldom had to face two such major events as the Coronavirus and our final exit from the EU simultaneously which created so much uncertainty in our economy. During 2020 lenders in the UK were preoccupied with dealing with the impact on their existing business customers and the huge number of Covid related support loans (CBILS) and consequently had less resource to cope with any other new lending. Despite this, some lenders remained open for business and Mendip Business Finance continued to place deals but the suspension of the Small Firms Loan Guarantee Scheme effectively prevented a significant number of business acquisitions from taking place.
Historically the commercial finance market has been dominated by the High Street Banks who still have the largest market share in providing funds for straightforward deals involving going concern businesses. Over the past few years, however, we have witnessed a welcome rise both in the number of Non High Street lenders who are competing in the same market but also in smaller more bespoke lenders providing asset / mezzanine finance. Because they are relative newcomers on the scene they rely on the broker market for introductions and value our professional input.
Mendip Business Finance has experience in raising finance under the Government’s “Enterprise Finance Guarantee Scheme” which provides participating lenders with the comfort of security when this is the missing ingredient in an otherwise acceptable proposition. Although the list of authorised lenders is extensive the appetite to get involved is very variable, consequently knowing which Bank to approach for the most positive response is essential.
|Stop Press : As of May 2020 the Enterprise Finance Guarantee Scheme has been temporarily replaced by CBILS (Coronavirus Business Interruption Loan Scheme) which is only available to existing business owners so cannot consequently be used in support of a business acquisition.|
Certain fundamentals never change, this includes a thorough understanding of the lenders borrowing criteria and the need to pay careful attention to providing them with a well thought out and fully documented proposal including a business plan and financial projections both of which we help to prepare. “Getting it right first time” is a key element in gaining the confidence of any commercial lender from the very outset as this clearly presents the applicant in the best possible light.
Graham Jones ACIB CeMAP of Mendip Business Finance has decades of experience working closely with lenders, accountants, solicitors and business transfer agents and has consequently built up an enviable reputation within the finance sector. Before becoming a commercial finance broker he worked in the banking sector as a professionally qualified senior business manager dealing directly with an extensive cross section of business owners. If you are considering a business purchase then you would be well advised to consult a professional first so that you are fully in the picture. Simply call or email Graham Jones for a free consultation.
Tel: 01761 241144
E-mail : firstname.lastname@example.org
Authorised by The Financial Conduct Authority : FRN 651835