Where there’s a will…
Posted on 27th November 2021 at 16:41
It’s an unfortunate fact of life, in finance, that when the going’s good everyone falls over themselves to hand over cash for anything businesses have in mind. However, when things take a turn south, that generosity is soon withdrawn.
The financial markets have suffered so many shocks over the last 20 years, their appetite for risk is now practically non-existent.
Knowing all of which doesn’t really help in the slightest when you’re a business struggling to rebuild post-COVID or – having weathered this latest storm well – keen to seize the new opportunities the pandemic has brought while you can.
And there are lots of businesses in just that position, according to Peacock finance Founder and Director, Darren Peacock.
Which is where alternative forms of funding are coming into their own: “We’re seeing lots of instances where not only are the major banks not in a position to provide businesses with the funding they need to rebuild, many of them are struggling to find the time to even discuss their requirements.
“You’re talking viable businesses that have come through the COVID-related economic crisis in good shape and, in many instances, built new revenue streams on the back of it.
“We had one, highly successful, Beverley-based business approach us because their landlord had offered them the opportunity to buy their premises for a £150,000 discount on its market value, but they couldn’t get a mortgage from their bank.
“We used bridging finance to get them over the line within a few weeks, without which they’d have missed out on a huge opportunity.”
So, why is this?
“Most savvy businesses accessed the government funding that was available, including the CBILS scheme, but many traditional lenders like banks are no longer prepared to consider those that have done so.
“Banks have also been left a huge administrative backlog. It’s taking businesses four-to-six weeks to even get to talk to someone and they just can’t afford to wait.”
It’s not all bad news though – Darren explained some of the ‘quick-response’ funding alternatives that exist.
1. Bridging finance: “This enables businesses to secure fast funding for things like property and then refinance when the bank loan comes through in the future,” said Darren.
2. Cash flow facilities: “These help businesses maintain adequate cash availability in a market where many suppliers are shortening their payment windows and extending their time-to-pay with suppliers. Usually covered by bank overdrafts, second and third-tier funders, like commercial banks and IWOCA (instant working capital) providers are stepping in.
“Time is of the essence for businesses, now more than ever, and we can source the best type of funding for each individual business’s needs. Often not the cheapest at the moment, unfortunately, it can help them achieve their goals.”
If Darren could help you overcome a funding issue, contact him via 0845 5197104 or visit our contact page
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