ACCESS TO FINANCE
AIMS
To offer a package across various stages of enterprise: pre-start, start-up, existing and growing businesses. This package is geared towards businesses who are unable to access finance from traditional lenders.
HOW IT WILL BE DONE
- By providing commercial loans of £3,000 to £50,000 repayable over 1-5 years.
- With no credit scoring - the application is judged solely on its business merits, the chances of success, growth and potential and any jobs likely to be created.
- BFS is also a fully accredited Small Firms Loan Guarantee Scheme (SFLG) lender for eligible applicants, and further to the current economic situation is now accredited under the new Small Business Finance Scheme (subject to review by BERR) that will deliver the Enterprise Finance Guarantee.
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The process involves a full appraisal by a Loan Manager, and depending upon the value required, review by a credit committee prior to an investment decision.
COST SAVING
Obtaining finance via the above method can save the business money by providing:
- An alternative to unauthorised overdrafts, often at higher interest rates
- An alternative to utilising business or even personal credit cards at higher interest rates
- Funding for equipment that could save time and therefore cut costs
- Funding to purchase stock in bulk and save on cost of sales.
SALES GROWTH
Finance via the above routes can be used for many purposes which could increase sales, for example:
- Recruiting sales staff
- Marketing and Advertising
- Business vehicle - to reach more customers
- Purchase of specialist customer databases appropriate to particular sector
- Funding purchase of business assets that could reduce cost of sales and therefore be more competitive on price.
Case Study
A limited company garden centre trading for 9 months and employing 3 staff needed £50,000 to expand into the wholesale market. Due partly to the current economic condition and the fact that they had only been trading a short time, their business bank deemed it too high risk to provide a loan for the construction, stock purchase and working capital associated with this expansion.
BFS were pleased to assist, and the business has now been able to take on several local employees as a result.