Small to medium-sized businesses (SMEs) continue to complain that they are being refused credit or it is available at too high a cost from traditional lenders. This confirms that banks are still cautious about providing much-needed funds for SMEs.
Oxygen
The Funding for Lending scheme was designed to encourage banks to lend, but it does not seem to be providing results. Similarly, some thought the Enterprise Finance Guarantee would provide some oxygen. For a variety of reasons neither of these initiatives seems to have helped the SME sector.
So are there solutions to the dilemma facing many entrepreneurs and managers?
Adviser
Wherever you are based in the UK – either looking for a business finance broker in Gloucestershire, such as that found at http://www.choicecommercialfinance.co.uk/, or based in the City of London – the answer to your problem may involve checking the benefits of such an adviser.
1.   Price: Once you are on board with a business advice broker one of the benefits he should be able to bring to the table is cost savings. Given the volume of business the broker negotiates with his finance providers, it is highly likely that they will be able to reduce borrowing costs for their clients. Certainly, rate reductions are more likely to be available under these circumstances.
2.   Products: Given traditional lenders’ positions, alternative funding is an important option which many business owners may be unaware of. Brokers will be able to advise on these possibilities, which represent a range of products across the financial landscape, including not only borrowing options but also the availability of grants.
3.   Flexibility: Brokers will have a long-term relationship with potential lenders and may be able to adopt a more flexible approach given that experience in a demanding environment. Some may be members of the NACFB.
4.   Service: Developing a relationship with a broker will ensure the kind of service which business owners aim to provide themselves for their own customers.
5.   Terminology: In comparison with the limited face-to-face contact which the company’s banker may provide, a commercial broker should be able to spend more time with the client and offer help about the terminology of the loan conditions which may apply when borrowing. Terms and conditions can often be complex and confusing, and so professional advice may well save time when dealing with problems arising at a later stage.
