This could be for a number of reasons such as better pricing via the broker route or that their existing bank is no longer in the market for that particular type of lending (property or development funding being one of the main angles).
This is particularly pertinent for business owners seeking commercial mortgage facilities or looking at new purchases of commercial property.
In addition a number of lenders are now withdrawing from certain sectors and are forcing customers to re-bank.
Whilst this does cause pressure on the client all is not lost as there are still funders out there who will rebank the client ....it’s all about finding the right lender and that where 2XL Commercial has had a number of wins so far
It is clear that lending is still difficult and the appetite is nowhere near as strong as it should be and that is evident with lending down by a staggering 44% at the peak of the market this may well be down to clients consolidating or waiting for a improvement in the general economy.
Adam Tyler, chief executive of the NACFB, stated:
“Around 90% of small businesses bank with the four main high street banks; when it comes to borrowing SMEs are now reaching out to a wider variety of lenders. NACFB members have access to 68 different providers of business finance for their clients. Businesses do want to borrow; they do want to grow.
"A recent survey of SMEs showed that only 16% had applied to their banks for borrowing, of which one third were rejected.
"These businesses need to feel confident when they are considering borrowing, and the
NACFB now receives ever increasing numbers of introductions for new business from a plethora of different SME trade bodies.
"Our members are now sourcing new lines of funding and this is helping the SME’s in the UK to grow and invest”
D P Willoughby, Director , 2XL Commercial, said:
"These alternative funding lines have proved very popular with a large increase of bridging funding enquiries at 2XL Commercial with over 8 deals placed this year – highlights include several property purchases at undervalue where clients have been able to add value to the property quickly and then subsequently turn at a substantial profit or refinance once tenants are in situ.
"We have also seen clients look to switch to interest only facilities ; whilst these are still difficult to come by there is the option to still do this at slightly higher margins but at a low LTV .
"In addition asset finance and invoice finance/ factoring have continued to increase as clients look to raise money from alternative sources whether by refinancing assets or re-engineering the debtor book.
"Also clients who are looking to purchase machinery or vehicles are now looking to take on a longer term basis in order to increase cash flow and reduce capital outlay - 2XL Commercial have a wide access to all these types of funders and more so please feel free to pick up the telephone or email any of your clients requirements."
