Did you know that Tim Westergren, founder of music streaming website Pandora, was rejected 300 times for venture capital before hitting the big time with his dream? The story just goes to show that persistence pays off in the end. Still not convinced? Here are a handful of case studies from our very own clients, which prove that the money is there to be had – if you’ll let us help you find it.

Home Counties Independent Cinema Company

With suppliers demanding immediate payment on outstanding accounts, an independent cinema in the South of England needed to find £25,000 at short notice. The problem? The company’s director suffered from a poor credit rating as a result of a messy divorce, with defaults, county court judgements and mortgage arrears staining his record.

After looking closely at the company’s accounts, our Business Finance Manager concluded that the cinema was still very much a viable business, if only it could overcome its short-term cash-flow issues. Despite suffering two further rejections, Genie Lending worked closely with the client to obtain an unsecured business loan to the value of £25,000 over a 24-month period. The funds were deposited in the company’s accounts within 48 hours and the cinema was able to keep its doors open to the public, against all the odds.

North East England Food Wholesaler

Desperate for a cash injection to improve efficiency in product sourcing and enhance their profit margins, a food wholesaler from the North of England approached Genie Lending to help them find the funds. The owner of the business had failed in his previous venture in administration, leading to county court judgements against his name and subsequent difficulties in securing the loan from a high street bank.

Notwithstanding his track record, our Business Finance Manager was able to secure a second charge commercial mortgage on the wholesaler’s warehouse. This allowed the company to access £80,000, repayable over a 15-year period, and strengthened the owner’s bargaining positioning with his suppliers. As a result, the business boomed over the Christmas months and profit margins far surpassed initial projections.

Midlands Civil Engineering Company

A civil engineering company based in Nottinghamshire enjoyed a moderate profit in their first year of trading and healthy projections in their second. Just 20 months old, they set their sights on expanding out of their old offices and upgrading their machinery inventory, but required capital to do so. Despite the positives on their balance sheets, the relatively short time they had been in business discouraged banks from granting them the loan.

Genie Lending stepped in and after confirming the financial viability of the company, were able to source an unsecured business finance loan of £50,000 over a four-year period, requiring only personal guarantees from the directors of the company. The client first approached Genie Lending on the 29^th October and received the funds in their account on the 20^th November, meaning the whole process took just 17 working days from start to finish!

Get in touch

Now that you’ve seen what Genie Lending has done for other companies, why not hear what we can do for you? If you’re in need of a commercial loan, get in touch with us today. We’re waiting to hear from you!

The post Business Loan Success Stories appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Whoever you turn to for a business loan is not going to look favourably on an investment that they can’t see a return on, so it’s your job to convince them that you have what it takes to succeed.

Criteria Lenders Look For in Your Business

In particular, here are a few criteria that lenders will be on the lookout for:

• Have you drawn up a comprehensive business plan, complete with a summary of your operations and your projected earnings and outgoings for the next two to three years? Preparation is key.
• Market awareness. Similarly, you’ll want to include a rundown of the size, demographic and growth opportunities of your target market, as well as the state of play regarding your competition. What sets your business apart? Sell yourself.
• Remember to make clear what you need the loan for and how it will affect your business. Whether you want to take on more staff, move to a bigger office location or expand your customer portfolio overseas, it’s imperative to stress the value in this transaction – for both of you.
• Credit rating. All the business acumen in the world won’t win a loan if you have a poor credit history – after all, the shiniest colander leaks just as much water as the shoddiest one. Sort out your finances before you lay out your aspirations before a lender.
• Cash flow. Again, you’ll need to show that you’ve not only managed your debt repayments in the past, but that you’re well equipped to do so again. Accurate data on your revenue and outgoings (both current and projected) is vital to breeding confidence in your business.
• If you already have substantial assets belonging to your business, a bank will be more inclined to look favourably on lending you money than otherwise. This can act as a guarantee that they can recoup their outlay in the worst-case scenario.

Tick all the boxes on this checklist and you stand an excellent chance of being approved for credit from any lender you approach. However, the economic slump of the last decade has meant that more and more people are turning to alternative finance solutions to obtain the funds they need to help their business realise its full potential.

With that in mind, just remember that there are plenty of other options out there if the traditional route doesn’t bear fruit. Asset finance, peer to peer and crowdfunding are all increasingly popular methods of alternative finance that may well be right for you… and the criteria listed above will be just as beneficial on those fronts, as well.

The post What Criteria Do Lenders Look for in a Business? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Asset finance can be a suitable solution for companies who have been refused a bank loan. The only difference between a traditional loan and asset finance, is you have to set out how you will use the money and what will be purchased. What you buy is referred to as an asset. Anything of value which a company requires to conduct business can be classed as an asset.

Here are some of the most popular examples of equipment and assets obtained using asset finance.

Vehicles

Many companies require a fleet of vehicles to operate, whether it’s company cars, trucks or transit vans for deliveries. If the business grows faster and you suddenly need more vehicles to keep up with demand, asset finance can help you manage cash flow.

Machinery or Specialist Equipment

If a company owns a warehouse or a factory, it will need a selection of specialist equipment to operate. It is a huge expense to purchase all of the machinery outright, so finance can help companies just starting out or launching a new location. Also, if equipment suddenly needs replacing, asset finance can ensure companies don’t lose too much time out of production.

Office Equipment

Most businesses rely on standard office equipment such as computers, printers and photocopiers. Finance can be used to purchase or replace these items as required.

Catering Appliances

If you run a catering business, any kitchen appliances can be counted as assets. You may also need specialist ovens or industry grade applications such as refrigerators and freezers, which can be a large outlay. In these circumstances, finance is ideal for kitting out the kitchen and work area with everything you need to run a successful operation.

Agricultural Machinery

Farms require a range of essential equipment and machinery, such as tractors, milking robots and crop machinery. When farmers need to replace equipment, finance is often the best solution.

Want to find out more about asset finance and if your project is eligible? Get in touch with our experienced asset finance advisors to discuss the options available.

The post What can Asset Finance be Used for? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

We’ve put together this useful short guide to the pros and cons of alternative finance options and traditional bank loans.

Alternative finance options

Because there are so many different types of alternative finance available, it is hard to group them all together and differentiate the pros and cons. However here are some general points to note:

• Speed and efficiency – applying for an alternative finance loan is quick and efficient compared to the long process at high street banks. If time is not on your side, an alternative finance provider can help
• Specialised providers – while national banks work with a wide variety of businesses, many alternative finance providers have specialisms. This means they will understand your business model and needs better than a general financial institution
• Tailored options – banks offer standard loans and commercial mortgages, while the alternative finance sector provides a range of solutions for all types of SMEs. Find something ideal for your finance needs, from asset finance to a merchant cash advance. You may also be able to benefit from flexible repayment options.

The main downside to using this type of funding is the higher level of risk. Instead of borrowing from a large financial institution which is fully regulated and protected, you will be lending from individual investors or a group. Also, the risk is high on the side of the investors which means interest rates can be higher with some products.

Bank loan options

• Safe and predictable – a bank is the first point of call for many people to apply for a loan. It’s a safe place and you know the financial institution is accountable and credible.
• Fixed interest rates – banks have the power to offer slightly lower interest rates than other lenders for certain products, and fixed interest for the loan term. Some alternative finance providers will try and match the interest rates of the banks but it’s not always possible as it’s down to individual lenders.

While a bank loan seems like a great choice, the main con is that the majority of SMEs and start-ups will not be eligible to apply. There is a long application process with lengthy paperwork, and businesses usually have to be established and profitable with the support of historical accounts. To get a business bank loan you’ll probably also need strong credit and capital to secure the loan.

Want to find out more about your alternative finance options? Contact our commercial finance brokers today.

The post The Pros and Cons of Bank Loans & Alternative Finance appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Some businesses are set back after being rejected from a bank, and give up on finding the funding they require. Nevertheless others keep trying, and many have found suitable financial solutions from the alternative finance market. Non-bank loans are gaining popularity firstly because SMEs are being pushed into this type of lending by the banks who refuse to lend to them. Secondly, alternative finance providers can provide a wider range of finance and sometimes match the interest rates of high street banks.

What are the reasons for SMEs being refused a bank loan?

In the Close Brothers report ‘Banking on Growth: Closing the SME Funding Gap’ which is based on a survey of 1,000 financial decision makers in UK SMEs, the main reasons these small enterprises were refused finance were:

• Cash flow not strong enough
• Banks not lending to SMEs at all at this time
• Not enough capital
• Business plan not strong enough

With many high street banks not even considering SMEs for loans, or having extremely strict criteria, it is easy to see why other forms of lending have grown in popularity.

Non-bank loans: challenging traditional lending

Thankfully for start-ups and SMEs, new products have become available on the alternative finance market. Peer to peer lending, crowdfunding and asset finance allow small businesses to access vital capital in order to grow and succeed. These “non-bank loans” and unconventional forms of finance are acting as a lifeline to British start-ups which wouldn’t be able to trade without a significant cash injection.

But it’s not just snubbed SMEs who are turning to alternative finance – the market is thriving and supporting a range of businesses, investors and individuals. In 2015, it grew 84% according to Nesta, to £3.2 billion. Many alternative finance providers offer a multitude of advantages to small businesses in addition to being more accessible. The SME-friendly loans are forms of fast cash – sometimes applications can be approved and the money transferred the same day. Some forms of finance can also offer lower interest rates and more flexible repayment terms because you’re not tied to a bank.

Want to find out more about non-bank loans? Speak to our experts at Genie Lending today.

The post Why are non-Bank Loans Gaining Popularity? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Additionally, the European Investment Fund (EIF) has shifted its focus away from the UK after the Brexit vote, leaving UK tech firms cut off from Europe’s largest source of capital venture funding. This is a huge blow to Great Britain’s tech start-up scene which is currently one of the largest in the world.

When the current EU funding pot runs out in 2021, it is essential that the government invests in local businesses – but that seems unlikely when they haven’t planned for it and have so many other pressing Brexit issues to deal with. So who or what will plug the funding gap? One thing is for sure – it won’t be the banks bailing us out.

Alternative finance solutions

The reality is that many small businesses and start-ups won’t have access to free business support and investment. We predict there will be a rise in personal investors, such as ‘Dragons’ or ‘Angel investors’ and many entrepreneurs will have to look for other ways of funding their business ideas. Business loans from the bank are rarely available to start-ups and the majority of individuals wouldn’t meet the strict criteria, leaving them little option when it comes to financing a business.

The alternative finance market has been providing non-conventional borrowing for businesses for years now, and the responsibility of post-Brexit business funding may fall there. Offering crowdfunding solutions, peer to peer funding, asset finance and unsecured business loans, these alternative finance providers could be the answer for SMEs, start-ups, businesses looking to achieve growth and entrepreneurs alike.

Because alternative finance solutions are tailored, a specialist finance broker can help identify the right financial product for each business. Although they will have to pay the loan back with interest on top, this type of finance is usually more favourable than the bank’s interest rates and the cash is often delivered a lot faster.

Do you worry about how your business will thrive without EU funding? See how Genie Lending can help.

The post How Alternative Finance Could Plug the Funding Gap Post Brexit appeared first on Genie Lending: Business Loan Alternative Finance Specialists.