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.

So how do you apply for a business loan? We’ve put together this informative and concise guide to tell business owners and entrepreneurs everything they need to know about loans. From covering a short term cost to investing in your next location, business loans can be a great tool for growth if used in the right way.

What can I use a business loan for?

You may have to disclose what you’re using the cash for, and the reason for the business loan could actually change the type of finance you’re applying for. For example, if you need some funding for a refurbishment or to buy a second commercial property, then it could be more beneficial to take out a commercial mortgage than a regular business loan.

Business loans can typically be used to fund:

Business expansion

Business acquisition

Property renovation

Tax liability

Consolidation

Wages, stock or other cash flow issues

Unsecured and secured business loans

Business loans have many different names, depending on how much you wish to borrow and what you’ll be using the loan for. From invoice finance to commercial mortgages, it can get pretty confusing deciding on the best loan for you and your business. It’s always best to speak to a financial advisor and a range of brokers and different lenders before making your final choice.

The main difference between the different types of business loans is if they are secured or unsecured. The majority of all loans are a secured loan, which means that the money is secured against a personal asset – usually a residential property. If you fail to make repayments, the lender could take away your home.

However there are now many other options, including unsecured business loans. These involve more risk for the lender, and therefore this is usually a short term option for commercial borrowers who can repay faster than most.

The application process

Applying for business finance will be completely different depending on your lender. Go to a high street bank and you’ll have a long, arduous process and you’ll also have to meet very strict criteria. With alternative finance providers such as Genie Lending, the application process is quicker and you could arrange a loan in as little as four hours.

Always ensure you receive fair information and consider all options before committing to a specific loan. Remember that if you’ve been refused a business loan from a bank, there are still plenty of other options for commercial finance.

The post How Business Loans Work appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

If you need a business loan, there is now a variety of options to choose from, many of which offer more attractive terms than a traditional lender. Here are the four biggest reasons why the old fashioned loan is out of date.

1. The application process is far too long

Banks are notorious for having strict regulations and procedures, so it feels like it takes years to get anything done. You’ll have to give your life story in your application, along with a few years proof of income, trading history and financial planning. Not only does the application process take ages, you’ll also then be left waiting to see whether it’s been approved, then you’ll face another wait before you receive the money. In the digital age, applying for a business loan shouldn’t be this hard.

2. They can’t compete in the growing marketplace

There was once a time when the only place you could secure a loan was a bank, unless you knew a kind nobleman willing to lend his personal savings. However, now there is much more competition in the lending market, from crowdfunding platforms, mortgage brokers and peer to peer lending streams. You’d think that financial institutions would adapt their traditional loans in line with this competition, but they haven’t – and therefore cannot compete.

3. Traditional business loans usually require security

Loans offered by banks are typically secured loans, which means the borrower has to offer their assets as security. This could be their property, their car etc. Why would somebody choose to sign such an agreement when they can get the same cash as an unsecured loan elsewhere?

4. Most people aren’t eligible

The fact is, traditional lenders are tightening their belts and their strict criteria means most applications are rejected. Most banks won’t lend to start-ups because there is too much risk involved, and you may have to own your home or meet other conditions before they even consider lending to you. The old fashioned lending system simply doesn’t work for the modern business world.

Find out about your other lending options on our website.

The post 4 Reasons Traditional Business Loans are Dead appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

• To start up a business from scratch – a business loan could secure a premises, help with marketing costs and buy stock
• To expand – businesses need upfront cash for expansion plans
• One-off business expenses – a company could have to replace large machinery or get hit with a significant fine or tax bill they are unprepared for
• To pay employees – some months businesses might not have enough income to pay staff wages
• To manage cash flow – if bills and invoices are piling up, a small business loan can help bridge the gaps

If you are struggling with the day to day running finances, then it could be time to apply for a business loan. However, once you’ve decided you need to apply, actually being approved for the business loan is a different matter.

Bank Business Loans

Getting a business loan from a bank is notoriously difficult. In these uncertain economic times, banks are reducing their lending which is bad news for companies trying to keep afloat. To be accepted for a bank loan, you may need a minimum monthly turnover and have at least two years’ trading history and filed accounts. This isn’t feasible for many modern businesses who are in need of a loan.

Peer to Peer Business Loans

Pioneers in finance have come up with a solution – peer to peer business loans. This type of lending is almost identical to a bank loan, except you are borrowing off individuals rather than banks. They are equally as flexible in terms of the amount you need to borrow and the period to pay back, but they are much easier to secure.

Whether you need an unsecured business loan or a peer to peer lending agreement, our finance experts can help.

The post Should I Apply for a Business Loan? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.