A truncated week as a relatives wedding bells are ringing on Friday. The remaining four days saw minimal progress with a number of invoice finance deals limping towards a conclusion.
Notable in business finance terms was an approach to me by another new, non-bank, lender, offering term loans (up to 2 years) to businesses (established at least a year) with decisions in minutes and money available shortly thereafter. All businesses considered across all sectors. Personal Guarantees from Directors/Proprietors are needed.
Costs are transparent with monthly repayments clear and there are no penalties for early settlement. Rates are high, as would be expected and I would also expect expensive additional charges for late or missed payments.
Keeping to terms means costs are known and if manageable this represents a quick, if expensive, form of additional finance. It extends the range of business finance available and broadens further the choices presented to any business and reinforces the need and importance of impartial advice.
The type of relationship created between a lender such as the one referred to and the business borrowing the money is unlikely to be a long term one but there may be moments in a businesses life when this type of funding is necessary.
Invoice financiers, on the other hand, can partner businesses for many years and all the major factoring companies will have a number of 20 year plus client relationships. These long term, mutually beneficial and rewarding relationships display invoice finance in its most positive light.