Since 2008, the market place for business lending has changed dramatically. Where once there were a few, large, obvious lenders (mainly the banks), there are now an increasing raft of smaller, new niche lenders and funders in all sorts of sectors. Previously straightforward and easy, now the options are numerous, and at times confusing. The…
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About: Chris
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An Introduction to Stock Finance
Finance that directly increases turnover & profitability With old forms of finance changing, obsolete or unobtainable, one business sector is in pole position to benefit from new forms of business finance. That sector is the stock-related business, those of which exist as wholesalers, retailers (including eBay shops), importers, exporters, manufacturers or distributors. An emerging form…
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Import Finance: How to pay nothing upfront for stock purchases
Of the businesses who purchase different kinds of stock, the one area that really hampers growth is funding the purchase of stock at the outset. It’s a cash flow killer. Many firms are paying 30-50% deposits, with balances required soon afterwards, whether in the UK or abroad. As we know only too well, invoices can…
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Market Insights into UK Property Development Finance
Land and Property developers have had a tough time of it since 2008. One of the biggest business problems has been the availability of funding to a) move stalled projects, b) start new ones or c)take advantage of new opportunities quickly. The good news is there are some interesting finance products emerging in the marketplace. …
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Business Banking Series Fact 16: New niche financiers exist who do not require commercial property as security
Finance today, and particularly in an uncertain economy, is all about what the funding can be secured against. If there is something to secure it against, in many cases funding can happen. Why? It's because if the payments are not kept up, there is something in return that the lender can have. Typically the security is…
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Business Banking Fact 15: Businesses may need to use more than one bank
Loyalty has been the name of the game for eternity when it comes to banking. "They are all the same, why bother moving, it's too much hassle," etc, etc. Banks are competitive, particularly if they are your current bank and sense your business may be moving. As discussed in Fact 7, different banks have different…
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Business Banking Series Fact 14: Debt service cover is the important number a business must understand
Contrary to what most people believe, banks do not use the "computer says no" approach half as much as is accepted as true. Most lending comes down to a feel for a deal by a Senior Business Manager, based on the strength of both the management team and the business model. There is actually, only…
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Business Banking Series Fact 13: You can work out if a bank will lend to you, right now
There are two ways of doing this. The first, and by far the quickest, is to speak to a trusted commercial finance specialist, who knows your sector, LTVs, rates, and so on. The second way is to do it yourself! So for a commercial mortgage application, answer the following 3 questions: 1. Do you have…
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Business Banking Series Fact 12: Why Banks want to know your inside leg measurement, and why it’s not personal
When applying for commercial mortgages in particular, it can often seem like an arduous and overly invasive process. "They want to know everything about me!". It's not true, but lenders do want to know an awful lot. The difficult area always seems to be the personal side. "I'm after a business loan, not a personal…
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Business Banking Series Fact 11: How a change of mindset can be of great help
The world is a pretty negative place when it comes to banking these days, and with good reason. However, the commentary on banking, in my opinion, is unbalanced, and as a result of being more balanced, can help business owners develop a better mindset. In turn, this will move their business forward. The major noise…
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