Broking not banking: the simple way to source finance

Finance 4 Business is widely recognised as one of the UK’s leading finance brokerages. Being whole of market and truly independent, it is able to provide a very succinct appraisal of the market. The resounding message is that lenders are lending, availability to alternative finance providers is on the increase, and there is probably more choice of products and lenders available now than at any previous time.

F4BRussell Martin, director of Finance 4 Business, is very bullish. He says: “Availability to finance options is at its highest level since 2008. In fact, some may argue that there are more options available now as new lenders have sought to provide solutions to fill the gaps left by the banks’ retraction from the market. Some sectors of finance are becoming crowded as lenders fight to find space, and as a result we have recently seen downward pressure on pricing.

“The biggest dilemma for clients now is ensuring they can find the right product and, perhaps most importantly, the right lender to partner with. This is where the services of an experienced, independent and whole-of-market brokerage will be invaluable.”

Many data sources highlight that if a client has been declined a request for finance from their bank, well over half would not approach another lender for fear of further rejection. Many clients are still not aware quite how large the alternative finance sector is and what it has to offer.

Finance 4 Business is completing loans worth millions with high street banks. Moreover, it is completing deals daily with alternative lenders, and this is where the real growth is being enjoyed. Martin highlights some of the nuances that specialist lenders were able to offer, that clients may not know are available:

Commercial mortgages

  • Up to 80 per cent loan-to-value
  • Rates from 2 per cent over the bank base rate
  • Terms up to 30 years
  • Interest-only payments available

Residential investment mortgages/BTL’s

  • Portfolio loans
  • BTL rates from 1.99 per cent (as at 31/10/14)
  • Availability for ex-pats and foreign nationals

Development finance

  • Up to 90 per cent loan-to-cost on a senior debt basis
  • Residential and mixed-use schemes
  • Mezzanine Finance arranged

Bridging loans

  • Up to 100 per cent of purchase price
  • Interest rates from 0.64 per cent per month
  • Funds can be available in less than one week

Peer to peer loans

  • Unsecured loans of up to £250,000
  • Terms of up to five years
  • Funds available in two weeks

Other facilities available

  • Invoice finance
  • Factoring
  • Asset finance
  • Regulated mortgages

Martin advises clients to use a broker and not a “dealer”. Many brokers in reality are the latter, placing deals to selective lenders on a restricted panel, as opposed to a whole-of-market and independent brokerage that has all the tools available to find the right solution. Many brokers rely on upfront fees to fund their business and these are the ones to avoid. Multi-award winning Finance 4 Business does not charge upfront fees and relieson providing excellent service and completing deals in line with their clients’ expectations.

Russell Martin is Director of Finance 4 Business
01827 230 045


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