CFIp9-11_diversify.qxd 27/2/09 11:30 Page 21
Diversification | 9
Key to
success
With diversification seen to be key to survival
these days, we take a look at what some
companies and individuals are doing in order
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to keep business rolling in
Case study 1: business in whatever sector, to access much that there are no penalties for late or slow
Unsecured lending
needed funds. This unsecured funding facility repayment – the funder gets paid when you
is available to businesses that have credit/debit get paid. The repayment amount and the per-
card sales as part of their business. Businesses centage of daily credit/debit card takings
David Vieira is the director of Business as diverse as Licensed Premises, Garden directed to the funder are fixed for the life of
Finance Bureaux, a commercial broker in Centres, Garages, Florist and even Hotels can the contract. The fixed percentage taken by
Cardiff. The company has launched a service now take advantage of simple, fast, cash. With the funder means repayment mirrors the busi-
offering unsecured lending for UK SME’s, no need to put up any property as security, ness’s cash flow.
after they discovered a provider who did provide accounts or bank statements, it is
actually want to lend! Vieira explains proving very attractive to the small business Fast
With the commercial sector becoming ever owner. Money advanced can be utilised for Applicants are typically receiving funds within
more difficult and the ability to place a deal - most aspects of the client’s business - property 15-18 working days of submitting a simple 2
that 18 months ago would have flown through improvements, tax bills, expansion, or even page application with 12 month’s credit/debit
- frustrating commercial brokers up and down cash flow. card statements.
the country, we at BFB thought it was time to Additional staff have been recruited and
look in the market place and see who actually How it works trained to meet the increased levels of
wants to lend. If you’ve experienced the red The funder will advance the business money enquiries from brokers and SME’s across the
tape and complexity of arranging a commer- based on its average monthly volume of cred- country. Approximately 70 per cent of busi-
cial mortgage in the past you’ll appreciate the it/debit card transactions. A merchant can nesses that have already taken advantage of
time and effort it takes to put a commercial expect to receive a lump sum roughly equiva- this funding have returned for further monies,
deal to together. It takes experience and skill, lent to one month’s average. Repayment is proving its popularity and availability. The
and above all knowledge of the lenders out then fully automated through the Lloyds TSB unsecured product is further complimented
there. This has become evermore difficult with Cardnet card processing system. This is done by payroll funding, in which the business
sometime daily changes to lenders’ criteria. We by a pre-agreed percentage of the merchant’s owner can be helped by having there payroll
are now seeing good business struggling to daily takings on credit and debit cards being funded for a period of 2 months again helping
pay VAT bills, stock or even survive due to the directed to the funder. This process continues cash flow.
economic down turn. from the day of funding until the funder has It’s refreshing in the current climate to hear
We have sourced a simple, fast, flexible recouped all the receivables purchased by the of a lender who is actually looking to lend. We
unsecured business product for brokers to advance made. know there is a huge gap in the market at the
help their clients in small-to-medium sized One of the key benefits to the business is moment and Business Finance Bureaux is
www.mortgageintroducer.com MArch 2009 Commercial finance Introducer
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