Much hype has been made in recent press articles about some short terms lenders entering the business finance market and offering short loans up to £10,000. The rates charged are pretty high. We don’t believe that there is a real reason why business people need to borrow at those rates. Yes banks are difficult and apply restrictive lending criteria. But very often with a little effort a transaction can be restructured and with some strategic planning the loan requirements can be presented in a way so that they meet the criteria of a reputable lender. So yes to a degree one could blame the main banks for driving business to lenders who charge such interest rates. But I don’t think this is entirely fair.
There is business finance around and with the right professional help business people can get the right finance with sensible terms. In fact we have been arranging more business finance in 2012 than the previous year and our clients don’t need to consider interest rates referred to above!
So if borrowers are prepared to take up a loan at interest rates of up to 4,000% can I perhaps suggest that they should take a deep breath and before they rush into this, they contact their professional advisors to see what alternatives are available.