If you were looking for finance for your business, would you just approach your own bank?
Many business owners automatically assume that their bank is the only place to go to borrow money for their business. Your bank may well offer you a great deal but in the same way as when you look to build that extension at home or buy that new kitchen, it’s never wise to only get the one quote.
Here at THP Chartered Accountants we work with an experienced Commercial Finance Broker, Paul Rogers.
Paul operates under the banner of Synergy Commercial Finance and has access to over 150 different lenders.
Did you even know there were that many lenders in the market place….?!
Paul was a commercial manager with NatWest Bank for 38 years before leaving to set up his own Commercial Brokerage under the Synergy Banner.
Now, instead of being able to promote just the one source of finance, Paul works with a whole raft of lenders and can put you first by obtaining the best deal.
Synergy Finance itself is a member of the NACFB (National Association of Commercial Finance Brokers) and naturally is fully FCA approved. Synergy is also on the panel of Commercial Brokers for Legal and General.
The number and types of finance Paul can arrange is extensive.
Here are just a few of the areas in which he is able to help:-
1 Asset Finance
This is probably the most popular funding requirement for any business and can be used to buy new assets or refinance existing assets for your business.
Have you got valuable cash tied up in your assets? Funds could be released from these assets to support your working capital requirements. You can use the funds raised to purchase plant and machinery, cars, vans, tractors, IT – the list goes on……..
The borrowing can be arranged over an appropriate period so you can retain cash in your business to support your ongoing plans.
2 Commercial Mortgages
This comes into play in situations where you are looking to purchase, refinance or renovate business premises. Paul’s extensive panel of funders offers a wide range of products and flexibility.
Whether you are looking for a long term commitment, an interest only arrangement or the ability to pay down the borrowing without early repayment penalties, Paul can help to get the right arrangement in place.
3 Unsecured Borrowing
Paul has access to over 20 lenders who operate in the unsecured market.
These lenders may require a director’s guarantee but won’t seek tangible security to cover the loan. They will need evidence that the borrowing can be repaid by looking at your recent business accounts but potentially they can lend up to £500k (or possibly more) repayable over a maximum term of 5 years.
4 Credit/Debit Card Factoring – also known as a Business Cash Advance
This borrowing facility is based on the estimated future income stream from credit/debit card machines and is a quick option to obtain a lump sum of cash to support your businesses working capital requirements.
Repayments on this borrowing are based upon an agreed percentage of your card receipts rather than requiring a fixed amount to be repaid each month over the agreed term.
So, if you have a month of slow sales you pay less back and in the better months you repay more. This arrangement fits especially well for businesses in the retail and hospitality sectors.
With a customer’s active cooperation it is possible for funds to be in their bank account within 24 hours of their request.
5 Factoring/Invoice Finance
By using this type of arrangement you can boost cash flow within your business by unlocking cash tied up in invoices which your customers haven’t yet paid.
As the turnover of your business increases, the working capital requirements to keep your business running are likely to also rise.
As the turnover/level of invoices increases the factoring company will lend you an increased amount based upon a percentage of your total debtors.
This type of borrowing is very popular in the Recruitment sector.
6 Selective/Spot Factoring
Factoring/Invoice Finance (5 above) is for businesses that need to borrow continually against their debtor book.
But what if you only have the odd large invoice against which you would like to raise money?
By using this facility you have the ability to unlock funds tied up in just one invoice or invoices for one particular customer. There are no ongoing costs with this service – you are just charged a one off fee for borrowing against the one invoice.
If you never use the service again there is nothing further to pay although a business will typically use this service on a number of occasions throughout the year.
7 Funding for Property Development
This is perhaps the most expensive and hardest type of funding to obtain in today’s economic climate.
Each property development is unique and funders are really looking for past experience.
Paul has access to lenders who are happy to look at both commercial and residential property developments.
Paul even has one lender who would look at providing 100% funding on a complete project!
8 Investment Property Mortgages
Whether you are looking to buy an investment property in your private name or a company name Paul has access to lenders who will be able to support you.
You can be aged up to 80 at the date of application and the loan can be arranged for a maximum term of 35 years.
Some funders will lend on an interest only basis for the whole term of the borrowing allowing you to retain more of your rental income.
The lenders Paul uses are able to accept both new enquiries and applications to refinance existing investment properties whether they are residential, commercial or semi-commercial properties. Paul also has access to specialist lenders who will provide support with HMO acquisitions, Student accommodation, and holiday lets, etc.
Whether you are looking to purchase one property or looking to refinance a multi-million pound portfolio, he can help.
He can also assist with Bridging Finance arrangements if you need to complete on that property purchase urgently or if the original funder let you down at the last moment.
Even if there is a problem with the property which needs to be resolved before taking the proposition to another lender, Paul has access to over 20 Bridging Finance lenders who will look to provide finance within a matter of days.
9 Pension Led Funding
As the owner of a business, did you know that your pension fund could be used as a way to inject capital into your business?
You do not need to cash in your pension for this.
You can even set the rate at which interest is charged on the loan from your pension fund to your business. Yes, you set the rate!
Why not let Paul show you how this would compare to the return your pension is currently achieving?
10 Contract Finance
Do you operate in a sector where you provide goods or services under a contract?
Paul works with lenders who will advance funds against contractual billing with money being advanced against staged invoices.
11 Construction finance for contractors
Are you a contractor/sub-contractor operating in construction?
Do you have a lot of cash tied up in each the project?
Paul has access to lenders who specialise in providing funds against Uncertified Applications for payments/staged invoices.
12 Residential 2nd charges
If you need a loan for business purposes and are prepared to offer a 2nd charge over your matrimonial home Paul has lenders who will assist on a quirky repayment basis.
This can be a term loan or arranged on a bridging loan basis and can be interest only.
It is even possible to have the interest rolled up.
Loans can generally be obtained even if your credit history isn’t as strong as you would like.
13 Tax Loans/VAT Loans/PI cover
Aimed more at the professional sector such as Solicitors, Doctors, Dentists etc. but nonetheless there are still lenders looking to support businesses with these short term borrowing needs.
These are just some of the more common situations where Paul can help - the list of possible borrowing opportunities really does go on and on.
Paul Says…
“Now that I no longer work for a bank, the vast range of finance opportunities which are potentially available to help both individuals and businesses has surprised even me!
Adverse credit history or CCJs? – I can probably still find a lender that will assist..
Ex-pat or Non UK National? – Again I can finder lenders..
Want to purchase land with no planning permission or have some quirky security? – Yes, I can assist!
Have an uninhabitable property? Want a hunting licence to buy property? Need an open-ended bridging loan? – Just leave it to me to find the best lenders!”
“I recently had a client who had banked with a High Street bank for over 40 years.
His bank agreed to help him to purchase his own commercial freehold premises.
By using my contacts I managed to locate a lender who was willing to let him keep more of his own cash by agreeing a higher Loan to Value than his own bank.
In comparison with the offer from his bank, the arrangement I secured for him would have saved him over £179,000 over the proposed 20 year term.”
“I have recently helped a customer to secure a £150k loan backed only be a directors guarantee.
The loan was agreed by the lender on a Friday afternoon and the funds were in the clients bank account the following Tuesday.
The directors guarantee and loan agreement were executed electronically.
And had my client been a bit more IT literate he could have had the funds even faster!”
