Securing Finance for your business: the benefits of a fast “No” or a reasonably timed “Yes

 In SME

As the general economy continues to improve demand for working capital and acquisitions for businesses (equipment, premises etc.) continue to grow. When a number of Business Banks ceased providing new funding during the recession, this gap in the market was filled by new alternative finance companies offering competing products and services. These providers have continued to grow and extend their product ranges as demand and the economy improves. These providers offer clear understanding of the type of loans and quality of businesses they are willing to fund, and most importantly, they know what they will not fund and can tell you within a short space of time from initial assessment.

The process for sourcing funds can be lengthy, time consuming and bureaucratic in some instances. This is somewhat due to the amount of regulations now in place. This has been employed in an effort to deliver fair processes for businesses looking to raise finance, this has also added layers of bureaucracy to a system already struggling to cope with demand.

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If Business Owners identify an opportunity, they need to move fast to ensure they secure it and minimise the amount of time spent applying for finance. This allows them concentrate on managing the day to day running of their business.

Alternative finance providers offer a real choice to the pillar Banks in providing clear and fast decisions. A fast “No” allows the next most suitable option be explored and deliver the much needed finance need of the business. A lot of time can be wasted moving through the application and underwriting process with lenders, seeking more and more information only to decline the application at the end of the process. The business will only then try and explore other options to source finance or admit defeat potentially resulting in the business being starved of cash and missing potential opportunities.

Typical Finance Products on Offer:

  • Leasing, Asset Finance and Hire Purchase of machinery and equipment for business purposes
  • Trade Finance – Using your invoices & orders to release funds to your business earlier in the collections process to allow much needed cashflow to buy new stock or fund growth. This can be completed on specific invoices rather than whole debtor books allowing you to tailor the most suitable packages
  • Property Loans – Acquiring properties for business or investment purposes
  • Term Loans – typically 1- 2 years for specific requirements

Why Use First Choice:

First Choice Financial Services have a team of 14 staff with 5 in Banking Consultancy who are all fully qualified ex-bankers and understand business affordability, cashflow needs, fundraising policies & procedures and finance structures. The advantages of using First Choice for your fundraising needs are:

  • We can simplify what can be a complicated process and do all of the “leg work” on your behalf
  • We offer an insiders view of how to raise finance. We are dealing with Banks and finance companies on a daily basis
  • We have agency agreements with several alternative finance companies. This provides a range of possible products that might suit, can offer comparisons of value, and best fit where multiple approvals can be secured
  • We are external credit assessors for finance companies. We are reviewing businesses and completing credit assessments on a regular basis
  • We hold a Senior Credit Review Office Role. We understand bank policies & procedures and find different solutions to provide finance to viable business
  • Professional and transparent service
  • Full range of other financial services available that can save you money (Mortgages, Life and Serious Illness cover, Retirement Planning, Debt Management, Personal Insolvency, Health Insurance, Savings & Investments, Deposits)
  • If you are not finance ready now, we can give you pointers on how to get there

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Typical clients will have at least one set of financial statements completed to allow an understanding of business performance. Personal or business credit issues in the past, while not ideal, are not insurmountable and are an area of our expertise. We will be posting other blogs in the near future that will be helpful for businesses looking to raise finance but in the meantime if you would like to discuss your business finance needs please give a call to our Banking Consultancy team today in our Limerick (061- 317260) or Dublin (01-6931330) offices.

Pat Fitzgerald (QFA & Regulated Debt Manager)

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