There was a time when banks and conventional lending institutions cornered the market on providing financial services for small businesses. Those days are long gone, as new choices have provided a massive amount of available capital. A good finance broker can help a business sift through the many alternative funding sources to capitalize on the best funding solutions. In other words, business owners shouldn’t look at brokers as someone that is costing them money. Rather, a properly trained and motivated broker can save tremendous amounts of time and money for the client.
From a strong economy to a major recession, the need for capital is constant. Capital is needed for equipment, vehicles, inventory, and premises. A good financial broker should be able to help owners access a wide range of lessors, commercial mortgage sources, and providers of working capital. They will also know the various strengths and weaknesses of each funding source, which will help provide the best “fit” for the borrower.
Here are some of the ways a broker can benefit a company wishing to acquire capital:
· A properly packaged loan or lease application is essential for qualification. A broker can help package and present the application on the borrower’s behalf
· The broker will negotiate with lenders to get the best deal for the borrower
· The deal is managed and expedited from beginning to end
· Independence insures that the focus is on the borrower’s needs rather than that of a single lender
· Broker is not constrained by a single company’s policy
· In cases where cash is needed quickly, brokers know which sources can provided fast closings, sometimes in as little as 48 hours
· Competition among lenders usually leads to better terms and mitigates the temptation for a single lender to take advantage of the borrower
· Can bring a number of partners to the table to get the job done
· The broker is motivated because compensation is based on the successful delivery of a credit facility.
All of these advantages should be taken into account when the borrower desires funding, whether it is from an equipment lease, commercial mortgage, or any other type of credit facility. The 1 to 2 point fee that is paid to the broker can be more than justified in terms of time and cost savings.
By: Kent Harlan
Archive for October, 2009
Using a Finance Broker Saves Time and Money
October 30th, 2009UK Finance from Venture Capitalists
October 30th, 2009
Any new startup would require proper funding and without that it is difficult to be successful in their business venture. Choosing your UK finance partner is an important step in setting up your business. The venture capital firm should be able to understand your business clearly and provide proper funding at the right time to make you successful. Hence it is important to select to UK finance partner.
For startups and new companies in the life science biomedical companies there is a venture capital firm called Abingworth. They specialize in funding biomedical companies. They understand the biomedical industry clearly and have experience in funding such startups. They need to maintain a close relationship with the management of the startup to make them successful. You can approach Abingworth if you are looking for UK finance for biomedical startups or new companies in that field. They fund companies that develop products and also which work on specific ailment areas.
Finance in UK is provided by venture capitalist firms only if they are interested in the area of business that they are funding. The potential for commercial success should be prominent. Most of the companies look at the management which is running the company. The main criteria for them should be a strong management and the idea of business should be novel. You business could also be the current technology but they look at how different you are going to do it. Your approach has to be different to be successful commercially. Some of the UK finance firms also help you to get the right management team in place.
There are very few venture capital firms that fund the early stage technology in UK. Finance for such new start ups are difficult to get if you are not approaching the right kind of venture capitalist firm. ‘Pond Venture Partners’ is one such company that funds the early stage start ups. If you feel that you business is not growing then you have to approach companies like this in UK for finance. They have vast experience in funding the technology startups and they know the difficulties that the start ups face. They even help you write your business plan and build your team if you have the right kind of idea that would click globally. If your business has the potential to make an impact globally then you can approach Pond venture partners right away for finance in UK.
To get your funding you may not know which venture capital firm to approach. This is the case for most of the start ups. They may not know who will provide them finance in UK. Under such circumstances it is better to approach a Venture Catalyst who will help you to be in touch with the right kind of venture capitalist. Companies like Sturgeon Ventures provide such venture catalyst services. They help you to get in touch with the right kind of VC firms and they also help you throughout your business. They do not provide you the necessary capital but they help you to link with those who might be interested to fund your venture.
By: Jeff Lakie
The Current Lending Attitude For Development Finance
October 29th, 2009
Banks and lenders in the UK and other parts of Europe are said to have been changing their attitude to lending. Development finance experts have noted the change due to credit crunch. Some lenders do not allow speculative development lending anymore contrary to more liberated lending practices in the mid-2007. Others are only offering development finance UK to more experienced developers at the right location. Most of the lenders became more stringent in their conditions to lending. Generally, they have become more cautious and diligent compared last year.
These notable changes may be evident in this year’s lending for residential or commercial development finance. Others may find it hard to get 100% development finance because of stiff conditions from lenders. However, it shouldn’t alarm developers at all. The credit crunch is worth the note but not the worry. The property market is changing and has been volatile than ever. Nevertheless, it shouldn’t stop developers to continue to meet the high demand for property development. If there are demands then by all means there is potential for feasibility and high returns. Appropriate location, feasibility and right project planning and projection are still the key to successful property development. And this has always been the key even during liberated times on development finance UK.
In other words, banks and lenders are just responding to the change in environment of the property development. Once the environment changes, everything involved in the industry changes and that includes the lending attitudes. Frank Maertens, EMEA Managing Director Debt Advisory, CB Richard Ellis do not even attribute the shift entirely on the credit crunch. He said that banks were cautious ever since; only that the credit crunch has triggered it to be more cautious. Besides, there are various responses of lenders in different locations. What developers have to do is simply deal with individual lenders and ensure that their projects are feasible and worth the time and effort for development finance UK.
By: Cherry Lynn Bonachita
