Why exactly has this unwillingness to invest in start-ups come about? And if you’re a small business owner with a vision for success but without the resources to achieve it, what other options are open to you? This informative blog should shine a light on these troublesome questions for the little guy looking to take their first steps into the world of business.

Common reasons for funding rejection

There are any number of reasons why a bank might refuse to provide you with the funding necessary to get your idea off the ground, and they’re becoming ever more creative in their reasoning when it comes to sitting down and talking it out with a disappointed applicant. However, the factors will contribute to their decision most commonly fall into the following categories:

• Too much risk. Banks generally look for the four Cs when assessing whether to approve a business loan: capital, collateral, capacity and character. A new business is unlikely to be able to provide much in the way of assets or historical evidence to prove their worthiness, so the most common reason for rejection is simply a fear that the money will never come back.
• Lack of preparation. In order to stand any chance of locking down a business loan, it’s vital that you approach your application well-versed in the merits of your own vision and confident in challenges you will inevitably face. Nothing says a safe investment like an airtight business plan, and failing to produce one is a sure-fire road to rejection.
• Volatile market. If there’s one thing the banking industry loves, it’s a safe bet. If you’re planning to enter a market in flux or one that could feasibly be disrupted in the near future, either by technological developments, international politics or another reason entirely, it’s likely the funding won’t materialise.
• Unwilling to invest. A bank may often ask applicants to match the funding they provide with collateral of their own. This can take the form of an up-front investment, although such a scenario is unlikely if you’re looking to them for funding in the first place, so staking any assets you have may be required. A reluctance to do so will not engender confidence.

Alternative sources of funding

If you’re running into a brick wall when going down the standard avenues of financing, there are plenty of alternatives you can try out. These include:

• P2P lending. Rather than going to a formal institution such as a bank, you can reach out to private investors via a peer-to-peer platform, who might be more open to the idea of lending you the required capital in exchange for a negotiated interest rate.
• Similar to P2P lending in that it utilises an online platform to locate investors from unlikely places, crowdfunding ranges from friends and family to fans or individuals with like-minded interests, and can generate significant sums from a multitude of smaller sources.
• Invoice financing. Much of business depends on waiting for invoices to be paid, which can often be subject to lengthy delays. If you need capital immediately to take the next step, you can sell the value of your outstanding invoices to a financier, who will front you the money in exchange for a small percentage of the total amount.

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Whether or not it’s a good idea to pursue the option of asset finance when securing a loan will depend entirely on your circumstances. What makes sense for one business may not for another, so it’s essential you weigh up the pros and cons, as well as the risk involved with regards to the market climate and your own company’s value, before plumping for a decision. Here are a few areas to consider:

• The total worth of your assets. You might think an asset is worth the price you paid for it, but a bank will value it at current market price – and as a general rule, they’re inclined to be conservative in the extreme in their estimations. Keeping detailed records of your assets’ worth over time is a good way to demonstrate its value and secure favourable terms on the loan.
• The risk involved in losing those assets. In any business venture, there is the possibility that it will turn sour – and if you stake your house or car against it, you may end up losing one or both. Make sure you’re aware of the level of risk likely to be involved in the collateral loan and consider whether you’re prepared to meet it.
• The fine print of the agreement. Even if your business does flourish, it may become strangled under the terms of an unfavourable loan. Make sure you only borrow what you’re sure you can afford to pay back and fight hard to negotiate favourable terms for yourself (if possible). In any case, make sure you understand the fine print of the agreement to avoid nasty surprises down the line.
• The alternative options on the table. It might seem like staking the house on your business is the only way forward – but that might not be the case. Aside from traditional sources of finance, you can also look into the possibilities afforded by peer-to-peer and crowdfunding, as well as invoice financing or equity financing. Educate yourself on the options before making a decision.

Here to help

Ultimately, the decision to use your assets as collateral to gain the funding your business needs is one that rests with you. As it will be your possessions and livelihood on the line, only you are able to say with certainty whether it’s the right choice for your situation.

That’s not to say that we couldn’t all use a helping hand now and again. At Genie Lending, we have the contacts, the experience and the knowhow to help you find the right financing solution for your needs. To learn more about how we can help, get in touch with us today.

The post Should You Use Your Assets as Collateral? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Here are a handful of the ways in which automation can transform (and in some cases, already is transforming) agricultural practices for the better.

• Precision seeding

Traditional methods of planting seeds utilise a broadcast spreader, which distributes seeds as a tractor drives at a slow pace across the field. It is unreliable, inefficient and prone to wasting seeds. Precision seeding, on the other hand, analyses the soil properties of different regions of the field and determines which seeds will flourish best in each particular environment, before precisely placing them in the ground.

• Drone monitoring

The speed and facility with which drones can traverse long distances and reach inaccessible spots allows them to gather information about crop performance around the clock. Equipped with sophisticated geomapping technology and high-tech sensors, the drones can give all kinds of information about crops, such as whether they require fertilisation, irrigation, weeding, pruning or spraying with pesticides.

• Autonomous tractors

The idea of a driverless car is slowly but surely becoming less alien to us – but how about the driverless tractor? In fact, autonomous tractors can perform both tasks mentioned above with impeccable precision, all without the need for human input. While the technologies already exist for fully autonomous tractors to enter the market, concerns about the safety of unsupervised machines persists. For now, however, human-supervised driverless tractors are already available.

• Harvesting robots

A driverless combine harvester is capable of gathering durable crops such as wheat and barley, but more sensitive and fiddly specimens – like fruit and root vegetables – require more delicacy when being picked. However, the EU’s Clever Robots for Crops programme is intent on finding robotic solutions to this time-consuming and back-breaking job.

• Cattle control

As well as being used to monitor crops in the field, drones are also already being employed to round up cattle and herd sheep in some parts of the world. What’s more, robotic initiatives are also helping to streamline the milking process through the automated spraying of disinfectant and even the act of milking itself.

Don’t fall behind the curve

Not all of these technologies are market-ready, and not all of them are commercially affordable as yet, especially for smaller holdings or farms who don’t have the resources to take advantage of modern innovation. However, just because you’re a fledgling enterprise, that doesn’t necessarily mean you must miss out.

At Genie Lending, our team of experienced finance managers are well-versed in all aspects of agricultural finance and can help you locate the funding to acquire the equipment or machinery you need in order to stay competitive. To learn more about how we can help you, get in contact with us today and we’ll be happy to help.

The post Can Automation Transform Farming? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

• The “looking out for number one” philosophy. The policy of putting national interests ahead of global ones is most vocally propagated by Donald Trump and his America First mantra, but the USA is far from the only nation looking inwards at the moment. The imposition of trade tariffs and barriers in order to stimulate growth in the domestic market may work in the short-term, but further down the line this tit-for-tat approach to business relations is sure to implode.
• The magnitude of the Chinese market. Home to the second biggest economy in the world, China is still enjoying a healthy rate of growth at 6.7% of GDP per year – over three times greater than the States and more than five times that of the UK. The sheer size of China’s influence on the global economy is cause for concern itself, before its opaque practices and governmental reach are taken into account. A misstep from China could have huge ramifications for the rest of the world.
• Even the staunchest supporters of the UK’s imminent departure from the EU must recognise that it will likely entail economic hardship, at least at the outset. This could not only threaten British businesses and economies, but have a negative impact on the value of the pound worldwide. Although the UK no longer has the financial sway it once did, the pound is still a premier currency on the foreign exchange, so a major loss of faith in the currency could have a significant knock-on effect on others around the world.
• Housing collapse. Investing in property is as safe as houses, right? Well, although property values do invariably rise over time, they are not without their proclivity to plunge at will, as well. Another collapse in the housing market could come about from a number of different factors, including disinvestment from overseas powers, rising interest rates or an overall deceleration in household incomes. As the biggest influencer of economies the world over, a housing crash would necessarily cause wider ripples in the financial sector as well.

Don’t let a downturn turn down your dreams

Just because storm clouds may be gathering, that doesn’t mean a downpour is guaranteed to follow – and even if it does, aspiring entrepreneurs and business owners shouldn’t view it as the end of their business ambitions. Indeed, a savvy CEO can even turn a crisis into an opportunity, especially with the right financial backing behind them.

If you are looking to make 2018 the year that you take your company to the next level, Genie Lending are here to help. With an extensive network of contacts in the finance world and the knowhow to leverage a deal that’s right for you, we can help you locate the funds you need to make your dreams a reality. To learn more, get in contact with us today and one of our friendly team will be happy to talk you through your options.

The post Is the Economy Due Another Crash? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

If you are thinking of starting a farm, or your current agricultural project needs some TLC, your first line of thinking will be funding and financing. Although some farms are eligible for rural grants and government funding, much of these are supported by the EU.

With Brexit going ahead early next year, farmers may not be able to rely on this funding for much longer and should seek information about other funding options.

Agricultural businesses can be successful when they are in the right location and offer produce which is in demand. However, these rural projects require a lot of investment to get off the ground, which can be difficult to find. If your farm needs a funding injection, or you need some capital for a new rural site, there are many alternative financing solutions you could be eligible for.

Because of the fundamental differences between commercial businesses and agricultural businesses, it makes sense that the finance market offers different funding options for farmers. After all, a farm is usually more than a business and a livelihood – it’s a home. Farmers face a multitude of challenges today, but there are many agricultural finance experts like Genie Lending to lend a hand. Here are the specific types of agricultural finance available.

What is Agricultural Finance?

One of the most suitable options is to find a lender which specialises in agricultural finance. They will understand your particular needs as a farmer, and can supply specific funding for various parts of the business. From asset finance and vehicle finance to specialised funding for green energy projects, agricultural finance is the ideal solution for rural business owners.

What about Asset Finance?

If you don’t have the cash upfront available to invest in important farming assets, you can spread the cost over an agreed period with asset finance. Use this type of funding to buy or replace milking equipment, forestry machinery or any other apparatus with a big upfront cost.

Land and Property Development Finance

If you need to renovate farm buildings or build something new, a finance broker can help. Apply for a commercial mortgage to develop your land or existing property. There is also Project Finance which you could use for barn conversions or a farm shop to try and boost revenue.

Green Energy Projects Finance

You might see potential for more income with a green energy project. Use this type of finance to develop a wind farm, solar farm or anaerobic digestion plant.

Vehicle Finance

Farming requires specialist vehicles, and if they need replacing they can be extremely expensive. Vehicle finance can help farmers acquire tractors, feed mixers and combine harvesters if they can’t afford the full amount. You can choose between hire purchase and lease agreements.

Livestock Finance

One of the most important assets of the majority of farms is livestock. If you need more animals to produce your products then you can apply for livestock finance which can be used to invest in pigs, sheep, poultry, dairy and beef.

Business Loan

Alternatively, you could apply for a short term business loan. However, with many banks halting their lending you could have to turn to an alternative finance expert. You could get all the benefits you’d get from the bank, such as a flexible overdraft and large cash sums – but without the tedious application process.

Applying for Farm Funding with Genie Lending

Whether you need to update your farm buildings, expand your livestock or invest in new machinery to update operations, Genie Lending can help. As experts in agricultural funding, we understand the financial challenges farmers face and aim to provide an alternative to bank loans.

Applying for finance is really easy. First you just need to contact one of our business finance managers, who will discuss your project with you and the different funding options available. You may need to supply some business records, the process is fast and painless compared to a bank loan application. You could have the cash you need in as little as a few days – so you can get on with running your farm.

How will Brexit affect Farming Funding options?

The shock Brexit vote earlier this year has plummeted the future into uncertainty – and perhaps no industry more so than the farming sector. The EU supplements farmers through its Common Agriculture Policy, so without EU funding, the agriculture sector could face a blow.The Minister for Agriculture Michael Creed has said that the UK’s exit from the European Union is likely to have a significant negative impact on the CAP, particularly from 2021 onwards.
Funding for farmers is not the only problem brought about by Brexit. Without the single market which allows free trade between member states, the future of trading produce is also at risk. There could be additional costs for farmers who wish to trade abroad, and there will now be different standards for EU and UK produce.

Regardless of whether you wanted to stay or to leave, the effects of Brexit on agriculture will be far ranging. We advise farmers to get their finances prepared ahead of Article 50 being invoked – and Genie Lending is here to help.

Farm Finance Options

Currently, EU subsidies currently make up between 50%-60% of incomes on UK farms. It is not yet clear what support will be made available by the government beyond 2020, so the future of farm funding is very unstable. This instability is heightened by the fact that farmers may have to pay additional trade costs, and don’t know who they will be selling to in the future so can’t estimate their long term income.

High street banks are unwilling to lend to businesses which ae facing uncertainty. It is difficult to get approved for a business loan without years of trading history and accounts, and some banks also ask for a minimum monthly turnover. Many agricultural businesses will not be able to guarantee an allocated turnover for the next few years.

Luckily, there are now a variety of alternative financing options which are designed with farmers in mind. Rural businesses can apply for agricultural finance, peer to peer lending or asset finance to keep things turning over. Here at Genie Lending, we understand the modern challenges faced by farmers, and can recommend the best solution. Whether you need a cash injection to aid cash flow, invest in new machinery or repair outbuildings, we have the right alternative finance solution for you.

Whether it’s a new farming projects or you just need a little help to get you through a tough season, agricultural finance can help. Give us a call to speak to an agricultural finance specialist today.

UPDATED: JUNE 2018

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Gone are the days of going cap in hand to the business banker clutching armfuls of finger in the air financial projections produced, at cost, by your accountant.  Gone also are the days of waiting interminable amounts of time jumping through endless banking hoops whilst our “local” banker presents funding cases to far flung decision makers.  Gone are the days of being forced to proffer more and more personal security to support the funding requests of a growing company.

With the SME denied the help of traditional banks, largely due to the outcome of the 2008 crash and the impact of the Basle Accords on bank liquidity ratios, but with demand for vital sources of working capital still there, the number of alternative finance providers ready to plug funding gaps has grown apace.

Businesses come in all shapes, sizes and hues and, as a consequence, every business has its own unique funding requirements.  Alternative finance providers have emerged to focus on specific segments within the SME funding mix.  This is great news for the SME exploring its funding options, but the myriad of potential solutions does create its own challenges and the plethora of new players delivering multiple options can make it somewhat overwhelming for the uninitiated to tread a well planned path through the maze of new finance providers.

In an unstable economic climate banks are less likely to lend – especially to risky business investments. In today’s unpredictable financial market, it is becoming more and more difficult to get approved for a bank loan, which is why the trend for alternative finance solutions keeps on growing. Without these alternative funding options, many businesses would have ceased trading or would-be successful property investors wouldn’t have been able to buy a second property.

In 2014, a record £1.74 billion was raised through alternative finance models. So isn’t it time you found out more about it?

Advantages of Alternative Finance

Many alternative finance solutions are ideal for SMEs or start-ups, not just because they will struggle to receive traditional funding, but because they can also benefit from better terms.

• Ease of application
• More chance of guaranteed acceptance
• Flexible funding and repayment options
• More favourable terms for the business

Read on for a comprehensive guide of the commercial finance services available.

Types of Alternative Finance

There are many different variations of alternative finance, and it’s crucial to choose the right model for your business. There’s also hundreds of different platforms to apply for alternative finance depending on which specialist funding you choose. Some brokers will specialise in all types of alternative finance. Here is a basic rundown of some of the most popular alternative finance solutions.

Business loans

Whether you need a short term cash injection to cover the costs of staff wages and stock, or you’re investing in a new business premises, a business loan could help. An alternative finance provider can raise finance for business owners without the traditional application process at the bank which can take weeks to approve.

Bridging finance

Need to raise some capital at short notice? With bridging finance you can have the cash in your bank at very short notice, to buy a property at auction or solve your cash flow problems before a large payment is to be made. Bridging loans can be up to £20 million but need to be repaid within 12 months so this is a short term option.

Invoice finance & invoice trading

Many SMEs have a cash flow problem because invoices take too long to be paid and there are constant outgoings to pay. With the help of invoice finance, businesses can release the cash straight away to be used elsewhere and keep money running through the organisation. This type of finance is fairly low risk because you won’t be borrowing any more money than you’ll have coming in.

The time when a company was obliged to hand over the whole of its debtor book to a factor or invoice discounter is long gone as is the time of restrictive contracts from which it is prohibitively expensive to escape.  For companies trading on credit terms with their customers, it is now possible to sell invoices on in a selective manner, entirely at the SME’s discretion, to a pool of individuals or institutions again through a funding platform. Funds are then received immediately to a pre defined percentage of the invoice’s value with the balance less fees being received at invoice collection delivering instant cashflow from working capital tied up in unpaid invoices.  Structures also exist that enable 2 or 3 year loan arrangements, either fully amortising or bullet repayment, driven by the value of the SME’s debtor book.

Peer to peer lending & crowdfunding

Peer to peer lending is an attractive alternative finance solution for commercial borrowers. In most cases you’ll receive a better interest rate and it works the same as a traditional loan – the only difference is you’re lending from individual investors rather than a financial institution. Banks aren’t the only financial institutions with large sums of money to lend. Wealthy individuals can be matched with small businesses to offer an alternative source of funding with more flexible terms.

Debt transactions between individuals and/or institutions facilitated by a platform.  Many individual contributors make up the sum ultimately borrowed with terms between 6 months and 5 years typical. Interest rates can vary from as low as 9% or as high as 18-20%, dependent on the quality of the proposal.  Funds can be delivered in a matter of a week or so in some instances with potentially very little in the way of business plans/budgets being required.  With many platforms in the market, it is essential to work with a platform that will accept the credit risk of your business and present your funding proposal to potential lenders.  If going down this route, do your homework as the character of each platform is very different…

As implied, the sale of a proportion of your business to a number of individual and/or institutional investors in return for investment.  Again, there are a number of platforms who facilitate these types of transaction and they each are different in nature and what type of deal they are looking to propose to their investor base.

Asset finance

There are many different types of asset finance, and this solution works well for industries such as farming where businesses have expensive equipment to purchase and maintain. Business owners can free up cash in their assets to use elsewhere, or spread the cost of machinery over a length of time. Secure a comfortable loan by lending against company assets such as machinery, vehicles or equipment. It is a way to release cash tied up in business assets for you to use elsewhere.

Pension Led Funding

A good pension is a valuable asset which can be used to secure an alternative business loan. Mechanisms which allow SME owners to use their pension funds to invest in their own businesses within a HMRC approved and potentially tax efficient environment.

Merchant Cash Advance

Take card payments as part of your sales? If so, you could benefit from a merchant cash advance. This is an innovative funding solution which is related to your monthly turnover in card payments. You repay the funder through a percentage of your daily card receipts so it a short term solution reducing the chance of long term debt.

Interested in the benefits of alternative finance solutions but not sure which lending option is right for your business? Well you’ve come to the right place. Here at Genie Lending we specialise in a variety of alternative finance options which can be tailored to your business needs. From short term and long term loans, secured and unsecured business loans to commercial and buy to let mortgages, we’re guaranteed to have a suitable option.

Updated: May 2018

The post A Guide to Commercial Alternative Finance appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Many companies opt for a commercial bridging loan because they can be arranged in a very short amount of time compared to other types of finance. They are also available up to very large amounts – up to £20 million from private and flexible lenders. Short term bridging loans are available to individuals or businesses, but are generally used for the same purpose.

In today’s uncertain economic market, it is likely that most small businesses will experience hardship at some point. Cash flow is a major concern, as sometimes bills are going out before your clients have paid their invoices. It’s difficult to balance the books, and to keep the business going you may need to consider applying for finance.

Lots of companies depend on loans and other alternative finance solutions to keep them afloat. Most of the time it’s their only option to stop the business going bust or to keep up crucial payments. Sometimes these difficult times are out of the control of the business, it is often external factors which influence their position. However, you need a good back up financial plan to get you out of the red and into a safe place while the market improves. A bridging loan could be the answer.

What is a Bridging Loan?

The name of this loan is based on imagery – think of a bridging loan as a temporary financial bridge, to keep the borrower out of water until they can pay the money back. Bridging finance is a short term loan, up to millions of pounds, which is usually secured by against property.

What are the Advantages?

As a secured, short term loan, bridging finance can be arranged very quickly. This makes it ideal for property investors or anybody looking to buy a property at auction or looking to renovate a property for resale.  Bridging loans are typically paid back between one and 12 months, which is why they are often used in buying and selling property.

However, businesses can also benefit from bridging finance if they need help with cash flow and are expecting a large chunk of income in the next year. For example, businesses with a seasonal sales fluctuation may require some extra cash in the winter, but know they will be able to pay it back in the summer when sales increase.

Bridging loans are a simple way to take advantage of short term opportunities. They are also relatively easy to be accepted for, as they are a quick loan with no credit checks – often a logical choice for lenders who have been refused for other types of loans. However, you must make sure you have a strong repayment plan in place as it can become difficult to repay the loan in such a short amount of time.

What can a bridging loan be used for?

Generally, because bridging loans are a short term finance option which needs to be repaid within 12 months, they are used for property development or purchases. For example, if you want a quick sale of a property or need urgent funds for repairs or renovations, a bridging loan could help. Most people don’t have large sums of money saved up for property investment, but taking out a traditional loan can take too long in the property chain. To take advantage of investment opportunities, sometimes bridging finance is needed.

Bridging loans are a great option at auctions and lots of buyers complete purchases with bridging finance. A typical loan from a traditional lender would probably take too long for someone who wants to snap up a property at an auction.

Another option is property investment for a quick resale. If a buyer wants to make minor improvements and then put the property back on the market to sell within 12 months, a bridging loan can assist with the initial purchase.

What happens at the end of the term?

Before taking out a bridging loan, it’s important to understand the implications of such a short term loan. The finance term usually ranges from one to 12 months, and there will be security set up on the loan if you don’t repay it in time. There will also be a lump sum of interest added at the end of the loan to take into account.

There is another option – at the end of the loan, you can convert the bridging finance to a commercial mortgage if you have used the cash for a business property. This gives borrowers even more opportunities for repayments and further investments.

If you’d like to find out more about bridging finance and how it could help you, speak to our professional brokers.

Updated: 3rd April 2018

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So without the help of a bank loan, how can a start-up get off the ground? Start-up finance is a niche and can be a difficult uphill struggle, but there are a range of investment options to explore as a new business. Securing the funding is a vital step to launching your business idea – here are some ways to finance a start-up business.

Government backed loan

Believe it or not, the government has noticed how difficult it is for start-ups to be approved for finance, and has launched some initiatives to keep new businesses forming. A government-backed start up loan lets you borrow up to £25,000 at a low interest rate, while offering free business support. You might also be eligible for local funding depending on your location and the type of business you plan to launch.

Alternative finance solutions

A traditional loan isn’t the only way start-ups can access finance. Thanks to the rise in alternative finance solutions, businesses can apply for peer to peer lending and other specific products which can be tailored to fir each individual business. Of course, start-ups can also take their idea to the worldwide web on platforms such as Kickstarter, or search for angel investors. If you’re determined enough, you’ll find a provider or investor to approve your finance.

Business overdraft

If you don’t need a large sum of money to get the business started, it might be worthwhile using a bank overdraft. However it’s always important to work out how much you will be charged for using the overdraft facility, and how long you’ll rely on it before turning a profit. Overdrafts are put in place for short term lending, and can be very expensive if you stay in the red for a long period of time.

Borrowing cash as a start-up is risky business, but be persistent and you should be able to secure finance from somewhere, or someone. If you need help exploring the options give the Genie Lending finance experts a call.

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The conventional banking system simply isn’t working for most of us. Without alternative finance providers offering solutions such as peer-to-peer lending, crowdfunding and asset finance, most businesses wouldn’t be here today. These alternative finance specialists are plugging the gap the banks can’t fill, and giving a boost to the economy.

The problem with banks

Why is it so much harder to get a business loan from the high street these days? Financial crashes and economic uncertainty has led to most traditional banks being extremely cautious about lending. The terms on which businesses can secure credit from financial institutions are becoming increasingly unfavourable, so only the biggest and most established companies are approved. This creates a huge problem for start-ups and SMEs, who can’t get their businesses off the ground without a cash injection from the beginning.

In addition, lending from the big banks is also very expensive. The cost of borrowing – if you actually pass the application stage – could make it difficult to repay in the future.

The Alternative Finance option

Thankfully, if you’ve been rejected by traditional financial institutions then there is a way to beat the banks. There are now a wide range of funding sources to explore, allowing entrepreneurs to finance their great ideas. While the banks have been busy failing to give credit to small businesses, private investors and finance experts have seized the opportunity to offer alternative finance solutions. You can lend the same amount of money as you would from a bank using these different methods.

P2P/ Crowdfunding

Peer to peer lending is basically borrowing money off individual investors rather than a financial institution. Crowdfunding usually involves a number of investors. This type of lending is suitable for all types of businesses and is much easier to secure than a bank loan.

Asset Finance

If you have a fledgling business which needs expensive machinery or equipment in order to grow, asset finance could be the solution. It allows you to spread to upfront cost of the equipment over time, so you don’t need to worry about finding large amounts of money for necessary business assets.

Want to find out more about how businesses are beating the big banks? Take a look at Genie Lending’s case studies.

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It can seem like a never ending maze, but help is at hand. Here are some ways to ensure you find the perfect business loan.

Impartial Advice

First of all you shouldn’t seek advice from a business or organisation which is offering any type of lending service. While they may be experts in the financial market, they could try and persuade you into a decision which benefits them instead of you. There are plenty of places where you can get impartial advice which is tailored to your personal situation and business. Government organisations such as the Money Advice Service has lots of online resources and offers free advice. You could also hire a financial advisor to help you make important decisions.

Define the Purpose

It’s really important that you define the purpose of the loan before going any further. Business loans differ from personal loans because you will have to state exactly how the finance will be used. The purpose of the loan could also dictate the type of loan you apply for, for example a commercial mortgage is specifically for property investment, while asset finance must be used for purchasing business assets. Make sure you have done some research and know exactly how much you need to borrow.

Finance Broker

Once you have a better understanding of the range of business loans available, it’s time to find the right lender. A commercial finance broker can act as a matchmaker, pairing you up with the ideal lender. Not only could you benefit from their market expertise, but a broker will save you a lot of time searching the web and making phone calls to a number of different lenders. When it comes to loan matching, brokers know best.

When it comes to commercial finance, there are so many options and it’s easy to feel overwhelmed. It is possible to find the perfect loan for your business, just be sure to do lots of research and don’t rush into any decisions.

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