Commercial Broker (NACFB Magazine) May 2019  

People have been consolidating personal and business debt for many years, but now companies can use the CBILS for debt consolidation. When the UK Government introduced the Bounce Back Loan (BBL) to support businesses throughout the UK, many businesses used this as a cash injection facility. However, with the financial support being offered by the Government in the form of CBILS (now extended the end of November), UK businesses are rethinking the way they use this financial support. One of the uses of CBILS is to consolidate debts (businesses cannot have both a CBILS and a BBL and must pay back the BBL with the CBILS). Debt consolidation is when multiple debts are settled to form one overall loan. Multiple debts could be made up of credit cards, existing loans, asset finance facilities or other loan types. In past cases, many lenders loaning funds would have asked for a personal guarantee (PG) to secure their money or investment. The security would have been high value items or assets, such as property. If you have applied for a CBILS loans over £250k you may already know that in some cases a personal guarantee is still required, however, the difference is, the CBILS option will not accept a personal main residence as security. This can be a big advantage if you have taken out past debt and you have used your personal residence to secure that debt. Now, by re-financing and consolidating the loan that risk on your property would be removed. The other benefits of consolidating outstanding debt includes better terms and lower rates, saving you money overall, particularly on short-term loans. Many of our clients return to us at Grow Funding because of our professional expert knowledge. We act on your behalf as a broker. Grow Funding have strong professional relationships with personalised account managers throughout the independent lending marketing. You can rely on our knowledge and experience to get the right business finance solution for your business. We offer free advice to all UK businesses. Contact Grow Funding today on T: 01903 660091 E: expert@growfunding.co.uk W: www.growfunding.co.uk #Business #money #CBILS #BBL #Grow #Funding

The government backed Coronavirus Business Interruption Loan Scheme (CBILS) is coming to an end this month - but don’t worry, as if your CBILS application has been approved by the end of this September, the lenders still have to the end of November to pay out. However there remains much speculation from business owners about whether we are on an upward turn to the financial support needed. Business owners are communicating concerns about the financial support for the future. The UK government have stepped in by paying the interest and the lenders deferring the capital repayments for the first 12 months on all CBILS loans, but after that the businesses are expected to make these interest payments as well as the loan repayments. However, there are growing concerns that businesses are still finding it slow to recover from the coronavirus outbreak. If businesses have not recovered and need to make their loan repayments and interest charges from their CBILS arrangements, they will have to find cashflow from other sources. This could prove difficult, as lenders have already tightened up criteria to approve applications. Lenders including high street banks will usually lend to businesses with increasing turnover and proven growth and, of course, when lenders are looking to loan money to businesses, they must consider the risk factor around that. Having existing debt will lower the chances of additional borrowing and only if a business has assets that can support the risk. So maybe in the future we will see an increase in asset finance, or maybe even an increase on second charge security against property. This does leave a very big question unanswered; many business owners do not own a property and therefore if their company is not asset rich how do they support themselves through these difficult times? It is true since the launch of the Coronavirus Business Interruption Loan Scheme on the 23rd March 2020 the British Business Bank have reported to have approved 1,236,369 businesses with an estimated £53.24bn being loaned. And whereas we recently speculated that some of these businesses would have taken out finance regardless of the Coronavirus outbreak, it doses lead to concerns about the amount of financial support still needed. Sadly, we do not have the answers for these growing concerns, but here at Grow Funding, we do have strong relationships within the alternative leading market. This allows us to work on a case by case arrangement and with our expert knowledge and close relationships with the ever-changing finance market, we can overcome some decisions that could have ended in a “NO”. Grow Funding are still proud to offer a no fee application and consultation arrangement, so seeking our help will not cost UK businesses a penny. As an award-winning broker, we only charge a fee once we have successfully achieved the financial outcome. Feel free to contact our friendly team of expert today on T: 01903 660091 / E: expert@growfunding.co.uk www.growfunding.co.uk

On the 12th August 2020, the British Business Bank have accredited another lender to provide finance (CBILS) to smaller businesses with a turnover of up to £45m. As of the 11th August 2020 the government have reported just over 1.2 million of businesses have taken advantage of the lending schemes, which is believed to total just over £51.77 billion. These schemes have been broken down through different types of loans and lending, from Bounce Back Loans, Interruption Loans, and the Coronavirus Large Business Interruption Loan Scheme. With so much business lending over the year is it any wonder that the public are worried about the economic future here in Britain. What we should really consider is how many of these businesses would have taken out business lending and loans anyway. We know that small businesses have increased lending over the years, this partially was because of the fear of leaving the EU with Brexit, and then there are businesses that have used the Government Bounce Back Loans to repay older finance, on higher terms. With this in consideration the figure of £51.77 billion does not seem as scary. The UK Government made a promise to increase the amount of lending if required to Innovative businesses that have new and exciting ideas that are more likely to attract venture capital investment. This initially started out with a budget of £250 million, but the need for additional funding has grown. That is why the Future fund will be increased and finish around the end of September 2020. Just in case your business has not taken advantage of the financial support being offered there is still time to apply, as the process is very fast. Use Grow Funding the award-winning finance broker in Sussex to help you achieve the financial support you need. We take the stress out of the process and complete the application for you, so you can still focus on work. Here is a little more detail on what is the Bounce Back Loan Scheme (BBLS) • The BBLS is ideal for small and micro businesses • Loans from 2k to 25% of turnover • Maximum loan of £50k • Loan paid out within days • Completely backed by the UK Government, so no secure required • Pay back over 6 years with a fixed interest rate at 2.5% • The government pays your first year’s interest. So how does that compare to the Coronavirus Business Interruption Loan Scheme? (CBILS) • Ideal for businesses with a turnover up to £45k • Loans from £50k to £5m • The UK Government pays the first year’s interest • The Lender-levied fees under the CBILS for 12 months If you have any questions regarding finance for your business and you are located within the UK, give our friendly team a call here at Grow Funding, our experts are always available to help. T: 01903 660091 E: expert@growfunding.co.uk www.growfunding.co.uk

The CBILS loans for SME businesses are soon to come to an end! In still uncertain times with the Coronavirus, UK businesses are still trying to find a normal. The UK government set in place the CBILS (Coronavirus Business Interruption Loan Scheme) to help UK businesses in need of financial support offering loans up to 250K or 25% of the business turnover. The government secures the loan and even pays the first year’s interest! But did you know, even if your business already has one CBILS loan, it may still qualify for a second. Grow Funding have already arranged and approved £4Million in CBILS loans and have more processed and awaiting approval. It is still not to late to apply, but the deadline has been set for September. There are some talks of the CBILS being extended to the end of September, but can your business afford to take that chance? Apply today and if you are unsure call Grow Funding for free advice on Worthing 01903 660091 – Fast Business Finance when you need it. Grow Funding have over 20 years experience working with mainstream independent lenders. So if your business has struggled to get credit or high street banks have said no, Grow Funding can help. CBILS is just one government approved lending scheme, but there are other means of support available. Independent lenders offer competitive rates and terms so don't be fooled in thinking that they are more expensive. Grow funding are truly experts at business funding and we have worked with all industries such as, printers, construction, car show rooms, recruiters, training businesses and many more. For a free consultation, please get in touch via email or phone on: T: 01903 660091 E: expert@growfunding.co.uk

Grow Funding offers and supports the Covid-19 Business Interruption Loan Scheme (CBILS) Not all SMEs are aware that they may eligible to apply for a CBILS. Grow Funding has access to the alternative lending market that can help businesses struggling to get the support and assistance they need to navigate through these difficult times. It is no surprise that COVID-19 has caused financial problems for businesses throughout the UK. Some have tried to hold out to see if they can cope without the need of assistance, but without having an end date to the lockdown, the time has come for many businesses to take the cashflow help now. After talking to many of our Grow Funding clients, some have also said they have not applied because they didn’t know how to arrange it. Therefore, not only do Grow Funding have access to CBILS, they have the experts to walk you through the process. Here are some benefits of CBILS to SMEs: • No capital or interest repayment for the first 12 months • Facilities up to £250,000 and up to 60 months • No arrangement fees • Available to home and non-homeowners • Can settle loan after 12 months with no penalties To find out what financial support is available for your business get in touch for a free consultation with one of the Grow Funding experts. www.growfunding.co.uk expert@growfunding.co.uk T: 01903 660091 The Business Financial Brokers for West Sussex, A proud member of the Financial Conduct Authority.

Since the Covid 19 virus hit the UK, all businesses small, medium and large have been impacted. The uncertainty of these times makes business owners feel uneasy. The UK Government have not given clear answers to the self-employed and the help that is offering to sectors such as retail, beauty, DIY and restaurants have not been given a timeline to how long the help is on offer! If times were not hard before they certainly are now. We know these are unsettling times and we want to make the process of applying for business finance easier. When business owners are under this much stress, thinking about processes can be difficult. If you are considering a business loan to get you through these difficult times, please get in touch with us, here at Grow Funding, and we will take the stress of these processes away. We are an experienced team, helping clients in difficult situations, and even if you do not meet the Governments criteria for their business interruption scheme loans, we can offer different financial solutions. For your free business finance advice give us a call today. Our friendly team are awaiting your call. T: 01903 660091 E: expert@growfunding.co.uk www.growfunding.co.uk #business #money #loans #finance #grow #funding #worthing

As you know, the Government’s Covid-19 Business Interruption Lending Scheme is now live and one of our independent partners is an accredited lender, and as such we can use the scheme to make loans available to businesses such as yourselves impacted by Covid-19. Please find the details of these loans outlined below: Business Loan - highlights: • Up to £250k max loan • No repayments for first 12 months • No Interest paid in the first 12 month, paid by the Government • Loan terms 1-5 years • No Personal Guarantee required • Non homeowner can apply for up to £50k and up to £250k for homeowners • Only for LTD businesses • Existing customer of FC customer can take a loan to max of £250k including their existing loan The high-level eligibility criteria: Be UK-based in its business activity, with annual turnover of no more than £45m Have a borrowing proposal which, were it not for the current pandemic, would be considered viable by the lender, and for which the lender believes the provision of finance will enable the business to trade out of any short-to-medium term difficulty The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools; Employer, professional, religious or political membership organisation or trade unions As you know, the Government is covering a client’s interest repayments for the first year as part of the CBILS scheme. As such, the client will be required to pay the monthly principal repayment in year 1, and from year 2 onwards the repayments will increase to include interest and principal. Application requirements Application form completed as attached (please include all directors/majority shareholders) Documents required: 6 months recent business bank statements (on pdf) Last two years statutory filed accounts Recent MI/Management accounts Any other supporting information It is useful to include any additional information that may aid the underwriters when they are assessing the application. For example, detail surrounding the impact caused by Covid-19, detail on use of funds, explanation for any anomalies or anything that you feel is relevant to the application that isn’t included within the standard questions. https://www.growfunding.co.uk/Covid/19ApplicationForm www.growfunding.co.uk T: 01903 660091 E: expert@growfunding.co.uk

43 major retailers closed in 2019, protect your business Business funding and cash flow have been at the forefront of all major retails in the UK. Let’s look at 2019… it is sad to report that 43 major retails closed their doors to the public and in total 46,506 jobs were affected. This is a consistent number as we also saw another 43 big retailers close their doors in 2018 along with 44 the year before. It is true to say that retail is struggling! We ask a question, could these companies have done more? And could they have been more reactive? Businesses can make changes and with the UK’s government supporting more SME’s then before it is true that the UK wants to see high street shops and businesses still exist. Each year the independent financial market is growing with more funding solutions being offered. But still when we talk to business owners, we find there is a knowledge gap of these products. We have also found that there are more financial solutions for B2B customers than B2C. Here at Grow funding we specialise in finance for all business sectors. We hope in time with more marketing, presentations and exposure that the funding solutions available to SME businesses will become more widely known. The benefits of the independent finance market are here to help with cash flow and to support UK businesses move with the ever-changing economy and habits of consumers. But to do this business owners need to become more active in their business plans. Which brings us back to the two questions originally asked: Could these companies have done more? And could they have been more reactive? Being reactive can bring many benefits to a business. Planning properly can grow businesses but also make them more cost efficient. We hear from many business owners that they have goals and plans for the feature but hold them off because they do not have the cash flow (Business finance) or because they simply do not have the time or the skills. What if they used a finance facility to plug that gap, invested in the skills needed and raised the funding they need through the many independent finance solutions offered, where would that businesses be then. Commercial cash flow can help businesses improve by having the latest technology to keep up with demand! Attract more customers with marketing campaigns and advertising but also by growing their skilled work force. It’s important for any business to take time out and review and put together business strategies, our advice to business owners holding back because of a lack of funding is don’t. Look at what you stand to gain if you invest and then weigh up your options. Business finance is available to almost any business that needs to move forward especially businesses in the UK that have been trading for more then 3 years and can show they are making some form of profit. Struggling businesses still stand a chance of support and that is where the help of our experts here at Grow Funding can help. We are proud to offer a free friendly advice service to any UK business looking for commercial finance. We specialise in all the comprehensive solutions from invoice finance, business loans, merchant cash advance and much more. As a business owner we do not expect you to know what all these funding solutions mean, that is why Grow Funding does. Let’s change the figures for 2020 and be more reactive to business, lets invest the money, create and review more business plans. www.growfunding.co.uk 01903 660091 Stats used in this blog where taken from https://www.retailresearch.org/whos-gone-bust-retail.html

Company TAX bill due? Finance it! and free up cash flow. It has come to that time of year when company tax bills are due! But let’s be honest most companies would prefer to take that money and invest it back into growing their business. When I talk about growing, I don’t mean grow as in getting bigger, although it could mean this. I mean grow as in, increasing turnover or ordering different stock lines. Whatever grow means to your business available cash flow is always needed. That is why there are many financial products around to support businesses and if your business has a trading history, the options get even bigger. We understand at Grow Funding that all businesses have good and bad times. It could be the type of business and sector that dictates this, or simply a change in the economical climate. Whatever is happening in your business, companies are always looking to support themselves for the unexpected changes that the unpredictable future holds. More and more companies are looking to commercial finance to support the dip in cash flow or lose of turnover. However other companies use business funding to take on more work to support the commercial framework. If your business is looking for a commercial business loan, asset finance or even a supply chain facility Grow Funding can help. We help all UK businesses even businesses with a bad credit history. The commercial finance world can be a difficult one to understand, which regular changes in products and criteria, so let us be the specialist in that, so we can use our knowledge to help your business. We offer long- and short-term solutions. Don’t lose sleep worrying about that Tax bill around the corner, contact us at Grow Funding to put a suitable finance solution in place. We offer a free advice service, so go ahead and contact us on 01903 660091 Expert@growfunding.co.uk Get your free advice on: 01903 660091 www.growfunding.co.uk FCA regulated. #grow #funding & #tax #Problems 01903 660091 www.growfunding.co.uk Get your free advice on: 01903 660091 www.growfunding.co.uk FCA regulated. #grow #funding & #tax #Problems 01903 660091 www.growfunding.co.uk