FOR many years the banks were the go to place for any SME business when owners/directors were looking for funding to support their business. However, if this was still the case why are there so many different funding options in the marketplace for SME businesses.
In fact, the British Business Bank [BBB], set up with Government support to provide funding targeted at SMEs, in most cases does not lend directly to these businesses but through around 90 Funders acting as distribution channels. These include the major banks, challenger banks, invoice and asset finance companies, short-term loan providers, crowd funding platforms, trade finance companies and many others. The question is which offers a particular borrower the best option?
A further recognition by the Government that the major banks are not the fix all for SMEs is that since November 2016 the banks are required to abide by their Funding Referral Scheme. Essentially, the banks are required to refer any loan applications they reject through the referral scheme which is represented by three approved funding platforms which are essentially online brokers.
So how about Google?
It is a modern day phenomenon that information can be obtained at the click of a button via the internet including funding. Search for business funding, and a myriad of funders will appear. But guess what – those who appear on the first pages are not necessarily the most appropriate solutions but are funders who have extensive pay-per-click budgets or are well versed in the art of search engine optimisation.
Then when you do click on a funding page the websites are trying to sell the SME their funding without understanding what is the most appropriate solution
So why a Business Finance Broker?
At Business Finance Services [BFS] we see it as our role to have a grasp on what funding facilities are available in the marketplace and what criteria the funders are looking for. We understand where poor credit scores, historical losses, CCJs etc. will be a no go for some funders but were others may be more understanding and where such issues are not deal breakers.
At BFS we are constantly striving to keep on top of what is going on in the SME funding space in order that we can help our clients find the best funding solutions.
In the last few weeks:
* We have signed an introducer agreement with a short term funding provider Reparo Finance who have already signed up a £75k loan for a company that had no assets but had a director prepared to back the facility with a PG.
* We have also signed an introducer agreement with a new entrant to the trade finance/ supply chain finance sector Growcap Finance Ltd who are very keen to support good-quality SMEs with their supplier purchases whether imported or supplied in the UK
* We recently hosted another crowdfunding/P2P seminar where leading platforms Crowdcube, Thincats and ArchOver presented to over 70 business owners and professionals.
An initial conversation with BFS costs nothing more than your time. We will be honest with you about the chances of finding the required funding solution. We take time to fully understand a business and its requirements, the funding options available in the market place and put together the best solution all delivered with a personal service.
To find out more contact us on 01327 349779 or email to
We look forward to hearing from you.