BUSINESS REPORT
Lending has been government focused from the first lockdown back in March last year, with the CBILS and Bounce Back Loan lending £60.64bn in 2020 alone. The view at Century is that when these government loans finish on the 31st of March, commercial lending will take the forefront of how businesses thrive moving forward. Over the past 12 months they have worked with a large number of businesses that have used their unsecured loans specifically and now have a platform to push through these tough times.
Considering, lending will not be the same as what people are used to after being so spoilt over the last 12 months with no payments for a year and interest rates that simply would have not been an option ever, even before Covid-19.
Lending has changed, similar to everything in the world at the moment. The risk for lenders is higher, naturally, so lending periods are looking at being slightly shorter. However, it is not all doom and gloom, Century has seen many lenders ‘re-open their doors’ so to speak, meaning the avenues to source funds are getting bigger and bigger. Options have been minimal over the past 12 months, 2021 is looking like there will be plenty more roads open to travel. While businesses look to the future,
Century’s years of experience offer a meaningful solution to all commercial needs, they urge companies to discuss needs so that their specialists can help, not push organisations in to making decisions that do not need to be taken.
Personal guarantees are a huge talking point within the lending world currently as customers are unsure what this entirely means. A personal guarantee is, essentially, a promise to the organisation that they are borrowing from that if the business fails to pay then they will pay this back personally if they can.
As mentioned beforehand, the risk involved for lenders at the moment is at the highest it may have ever been.
If you believe that Century Business Finance can help you with any of the points
raised above, or if you would like to discuss anything further, please do contact us: T: 01604 434343 E:
info@centurybusinessfinance.co.uk
14 inbusiness FEBRUARY/MARCH 2021
Personal guarantees, within the close future at least, are going to have to be part of the furniture, without a doubt. The label of a personal guarantee sounds a lot scarier down to the wording, however this is part and parcel of any loan that has been and always will be.
There is no question that 2020 has been tough, for everyone, but with that in mind, Century sees a bright future for lending in 2021.
The inevitable conclusion of the Covid-19 vaccine pushes thoughts of a more normal (if not tainted) future.
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