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Out of adversity comes opportunity

Running out of cash is a danger that can strike and wipe out a business at any moment. One day conditions seem benign; the next day apocalyptic. Cashflow, or the lack of it, has seen the end of too many good businesses. In fact, according to the FSB, around 50,000 are buried each year. Many brokers and advisers will have seen this first hand with their clients. Perhaps equally as many were desperate to support their clients but were unable to do so.

This problem is endemic. It is estimated that £23bn is owed to small businesses as a result of late payments. This figure is over and above those that are obliged to operate under extended payment terms of up to 120 days imposed by their clients and customers. Despite much talk, there has been precious little action aimed at resolving this issue and the situation seems to be only getting worse.

Of course, cashflow pinch points are not just the result of late payments. Cash available to a business can take a hit from lumpy rent and VAT quarterly payments, corporation tax settlements, or simply a piece of vital equipment suddenly deciding to give up.

It is undoubtedly true that many SMEs would benefit from insights and tips that could help them with this issue. Newable Business Finance has prepared several guides that may be helpful to your clients here. However, when it comes down to it, sometimes the overwhelming need is simply to access funds.

At the same time, it has been well documented that mainstream high street banks are withdrawing their support for small businesses. Those that still do, offer facilities that, frankly, are too small to make a difference or else table requirements for security that business owners are either not able nor prepared to provide.

To help your clients navigate these dangers, Newable Cashflow Business Loans are now available to eligible limited companies that have been trading for 12 months or more. The key features are:

  • Flexible facilities of up to £25,000 agreed for 12 months.
  • Competitive interest rates.
  • Cash can be requested anytime in full or in parts.
  • Quick underwriting process.
  • No arrangement fees.
  • Drawdowns are repayable over terms of 90-200 days.
  • Repayments made daily via fixed direct debits.

One of the main benefits of the product is that it is there when your clients need it. Helping to keep your clients in business is a business opportunity for you. Research from the FSB shows that almost 40% of all successful finance applications from SMEs in the last quarter of 2019, were to manage their day to day finances. Brokers introducing successful Cashflow Loan applications will be rewarded with a 15% share of interest income collected for the lifetime of all up to date facilities introduced.

We would recommend that you review your client base to identify companies for whom this product might be especially useful.

Please don’t hesitate to contact our Broker Manager Chris Oram for further information.

We would love to help you help your clients.