Fiducia talks Cash Flow Loans

In this series of #LoveLending, Fiducia will explain the different kinds of cash flow lending solutions that we specialise in and how it can be used to help your business. 
Cashflow finance can be used in many ways, including; working capital, recruitment, expansion, specific project funding and so much more.

Dependent on your business needs, how the funds will be used and how long you require the finance for will affect what type of lending suits you. We have highlighted two of the solutions we regularly source.

Unsecured business loans, this is ideal for businesses that are looking for short-term finance. We can generally look to secure up to £200,000 against the strength of the business and with no security there is no need for valuations and solicitors. This type of finance is usually arranged within 2 weeks making it ideal for quick acquisitions or working capital needs.
Invoice finance, is ideal for businesses that require cash flow assistance when customers are given time to pay their invoice. Funders will release up to 80% of the invoice value on day one allowing your business to continue to grow rather than waiting up to 90 days for payments from the customers. This type of finance is ideal for rapidly growing businesses and will help them keep up with demand.

Fiducia Success Story:
Mr V is a retail wholesaler selling clothes to retailers including New look, Debenhams, Very.co.uk, ASOS, Tesco are many more. He required £30,000 to increase his stock supplies to support the demand. Fiducia were able to arrange this loan for the client at a rate of 11.65% over 2 years. We recently contacted Mr V and he is getting on really well and the additional finance has helped him increase his stock which in turn will increase his profits.
 
If you are looking to expand your business our consultants at Fiducia Commercial Solutions can advise and organise cash flow funding for you, so give us an email or request a callback today for advice.

Fiducia talks business funding: Crowdfunding & P2P

Crowdfunding

Today’s edition for Love Lending Week is all about Crowdfunding and Peer to Peer lending (P2P) – two very different ways your idea or business can receive funding. We’ll explain what the two are and help you decide which is most appropriate. 

Firstly, if you are a start-up with a fantastic business idea and need funding, then Crowdfunding is an option for you.
Crowdfunding is about pitching your idea to potential investors and if they believe in you and your idea they’ll help fund your venture – think Dragons Den. For their investment they would receive an equity stake in your business or some other reward for example one of the products you produce, but not cash.
Here are some great tips for Crowdfunding success.

How do I prepare for Crowdfunding?

First of all, you need to have a working business plan; make sure it is as detailed as possible so that potential investors can have a better understanding of the idea and the business model. You should also include cashflow projections for the next 3 years– it’s also very important to be as accurate and realistic as possible, overvaluing could hinder your chances of securing finance. Back this up with market research if possible to build a stronger case to help you secure funding.

Peer-to-Peer Lending (P2P)

Similarly to Crowdfunding, investors will fund your lending requirement after assessing your business, these investors could be family offices, other businesses or just individuals however for their investment they get a rate of interest return. They can offer many different lending types including; unsecured business loans, mortgages, invoice finance and asset finance. The difference from traditional lending is that the investors are lending direct to you, there is no middle man (the banks).

How do I prepare for P2P? 

Make sure all your accounting information is up to date including management accounts. Have a clear idea of how you will use the funds raised and what difference this will make to your business. Generally your business will need to have traded for at least 2 years.

Fiducia P2P Success Story

Mrs Singh
· Has an established chain of fish and chip shops in Lincolnshire area
· Has purchased her 3^rd premises but requires £100,000 to convert (currently a pub)
· Raised funds through Funding Circle in 6 hours!
· As unsecured loan no valuations or solicitors were required therefore client had the funds within a week
· She is already looking to purchase a 4^th
 
Confused?
Don’t worry, our consultants at Fiducia Commercial Solutions can advise and organise this for you, so give us an email or request a callback for advice.

Fiducia talks Bank Funding

Today’s #LoveLending topic is all about bank funding and how Fiducia can help you organise finance through the banks.
There are two types of banks, high street banks such as NatWest and challenger banks such as Shawbrook. 
For a business, each type have their merits so it’s important to choose which is best for you. High street banks tend to offer the best rates on the market but have a higher coverage and will lend to fewer businesses due to risk profiles. Challenger banks have a lower coverage allowing them to offer higher lend amounts. The cost here is that rates will be typically higher than the high street banks.
The important message we would like to highlight is that there is more than the 6 banks you see on the high street. Over the last few years Challenger banks have established their place in the market and may be the right solution for your business. By speaking to Commercial Solutions team, we can make sure you obtain the best option that may not be advertised on the high street.
Bank funding can used to support a wide range of financial objectives from aiding acquisitions and mergers to purchasing any property type from retail units to farms.

Fiducia Success Stories

Mrs B
· Looking to move from her rented premises into a bigger space to expand business
· £80,000 purchase price
· 80% loan agreed
· Barclays
· This move will put her in a better position on the high street and allow her to get £6000 of stock currently held in the backroom on show
· She runs a second hand game shop

Company A
· Clients were in the process of completing the build of 3 new flats, the building was water and weather tight and needed the internals completing
· Clients wanted to raise funds from the unencumbered site to purchase more property
· Raised 70% for them through Shawbrook giving then £300,000 to keep building their business
· These funds allowed them to purchase a new investment property and also complete the development of another site quicker, speeding up their cashflow
· Once the flats were complete the clients sold and cleared their mortgage with no redemption fees

Company B

· Have portfolio of 18 properties mortgage with Lloyds, they wanted to reduce their payments and increase the lending to the maximum giving them more cash to buy more but were conscious of increasing their loan repayments as they used the surplus rental to live on  
· We were able to secure 75% LTV with Shawbrook on a 10 year interest only facility
· This gave them over £200,000 to purchase more property and didn’t increase their payments
· This meant the clients were able to increase their portfolio which in turn gave them a better income

Our consultants at Fiducia Commercial Solutions can advise and organise this for you, so give us an email or request a callback for advice.

Useful Links:
UK Government: SME Finance consultation