The UK seems to be heading into a period of unprecedented turmoil and change – a month or so behind mainland Europe and beyond. This is a cause for concern for sole traders, limited liability partnerships and small limited businesses depending on a good economy and consumer spending. Worryingly this does not look to be the case for the short-to-mid-term future.

The rapidly-changing position is likely to require the Government to step-in with significant support measures for the small business – and the Bank of England is likely to continue to take steps to try and improve the economic prosperity of the country. Whilst these steps may help, they may not be sufficient for business owners who are seeing cancelled projects, delayed decisions and customer instability – let alone the disruption and risk across their supply chain.

These business owners are now having to look at taking the tough, hard steps required to defend their business. This extends to personal and business assets that could be mobilised to sustain the viability of their hard-fought business that they’ve sweated blood and tears on to get to where it is today.

What are the best lenders for self-employed and small business?

So, what routes are open to these businesses? Fortunately quite a few. We have relationships with the business lenders that have more flexible and business-relevant lending models than the high-street banks and building societies. These lenders appreciate the complexity and ups-and-downs of the typical SME, and are equipped with different assessment criteria. Many of these lenders have operating models and shareholder constitutions that vary significantly from the ‘corporate’ household names banks – and are more nimble and capable of serving a finance portfolio to the average SME. With these vendors, it’s less a case of ‘Computer says no’. 

What criteria do they look for in a small business?

Any business requiring funding – whether it’s to plug a short-term cashflow issue or mid-term investment requirement – has to prove it’s longer term viability beyond the COVID-19 period we find ourselves in now. Businesses with good prospects, strong management and proven revenue streams are clearly looked-on more favourably than those without.

However, all lenders will require the following essentials in considering any new case or application;

  • The business must have been operating for at least 2 years
  • The accounts for the last year must be able to demonstrate a profit
  • The business must be Limited Company Business

Businesses that can demonstrate the above criteria – even though they may be suffering in the current downturn – have been able to achieve the following;

  • Obtained loans to continue with medium-term project builds where customer income is still some months away
  • Raise money for company tax settlements – even though the Government has deferred some taxes, they will still require paying at some point
  • Achieve cash investment through unsecured loan to purchase the business of sole trader competitor

Flex Business Finance is available with fast-track video appointments to support small business owners. Whether WhatsApp, Skype or Facetime, Flex Business Finance is there to help discover the right finance solution to your situation.

Telephone 020 8133 6698 to speak to someone at Flex Business Finance or Flex Financial.

Flex Business Finance is an independent business to Flex Financial Limited. Neither Flex Financial Ltd nor PRIMIS Mortgage Network are responsible for the advice and service received by Flex Business Finance Ltd.  

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The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. Based on our research, the content contained within this article is accurate as of the most recent time of publishing. Lenders and providers criteria and policies change regularly, so it is important you seek tailored financial advice.The views published in these articles are those of Flex Financial Ltd and no not represent those of others or external companies.
Flex Financial Ltd is an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of Personal Touch Financial Services which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. Flex Financial FCA Number: 915575.

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