In contrast, a fair few have experienced growth. However, they have lacked working capital to accommodate increasing demand. At Newable, we know this and work with our borrowers to find appropriate solutions. Today, I spoke with Mamadou Ferrand, Underwriting Manager, and Chris Oram, Broker Development Manager, about what happens when one of our customers has already received a loan from us, but requires top up finance further down the line to continue to aid their growth.
I received a loan from Newable previously and I’m currently six months into my repayments. Am I eligible for top up finance?
Yes, depending on your circumstances. We will review your current situation and assess what has changed since the last loan.
It’s important for our underwriters to understand what prompted the need for additional funding, and it is important for you, the business owner, to provide a clear rationale as to why extra finance is required.
What makes a good top up finance application?
Again, it all depends on the applicants circumstances. I would say that if there is a clear rationale that is actually a good sign of an application that we would support.
For instance, if you have just won a new contract, and are looking for ways to fund working capital, a clear purpose is usually a good marker for a top up loan.
However, do keep in mind that we would need to undertake an up to date credit search on the business owners that could affect your credit score. Therefore, understanding your business’s needs for a top up loan is necessary.
How easy is it to apply for a top up loan?
It would be another credit application and as such consist of a similar process to when your first loan was sanctioned. I would say however, that since you were successful the first time around the process would be easier, since you are an existing customer.
As a reminder, we would need access to your most up to date statutory and / or management accounts, most recent 6 months bank statements and your latest VAT position.
How long does the process take?
All loan applications receive a decision from our Underwriting Team within 5 working days, once all supporting information is with us. As an existing client, we may be able to provide an answer well within these timescales.
Is there an arrangement fee?
A 4% arrangement fee applies to all Newable Finance loans, which are submitted to us via a broker.
Will I get a more preferable interest rate?
We have in place what we call a risk based pricing model. Which assesses your credit risk depending on your circumstances, looking at variables such as affordability, credit history and several other industry indicators.
Our model is designed to give you the most competitive and affordable rates according to your risk profile.
By Carolene Thompson, Chris Oram and Mamadou Ferrand