" Roughly one in seven of your clients are likely to run their own business. But what if their business is one of the thousands that are struggling financially? "
Judgments against businesses in England and Wales jumped by nearly a third during the third quarter of this year compared with the same period in 2017, according to figures by Registry Trust, which registers judgements, orders and fines in England and Wales on behalf of the Ministry of Justice.
Registry Trust says that during Q3 2018, there were 32,629 CCJs against businesses in England and Wales, which was 32% more than in Q3 2017.
The rise of self-employment to more than 15% of the UK workforce and the response of lenders to provide more appropriate products and processes for business owners has been one of the defining factors of the intermediary mortgage market in recent years.
It means that roughly one in seven of your clients are likely to run their own business. But what if their business is one of the thousands that are struggling financially? How is this likely to impact their personal finances?
The finances of your self-employed clients will depend on the stability of their business and this will often depend on its liquidity and cash flow position.
The good news is that you could help to improve the financial position of your client’s business and therefore strengthen their personal finances. An increasing number of commercial lenders are able to provide funding to business, even if those business have experienced financial difficulty. These lenders are often off of the beaten track, specialist providers that could provide the cash injection that your client’s business needs.
If you are not experienced in commercial lending, you could refer your client to an expert that is. Partnering with a specialist commercial broker could help your clients when they need it most, provide you with a stream of referral income and, if the right commercial loan helps your client’s financial position, it could even increase their appetite for further mortgage funding in the future.