As the No 1 finance broker in the UK we are constantly receiving information from lenders and the government on how business finance will play its part in the rebuilding of the economy.

Here at Portman Asset Finance we feel it’s our duty to keep our customers informed on the current state of play, not only with business finance but what can be expected over the coming months and the post-CBILS (Coronavirus Business Interruption Loan Scheme) landscape.

Reopening of the economy

The Prime Minister, Boris Johnson, announced during parliament on the 23rd of June 2020 that the UK was in a position to implement further easing of lockdown restrictions, with Pubs, hotels, hairdressers, and similar businesses allowed to open from the 4th of July.

It is the next step in the long-term plan to rebuild the UK economy and attempt to bounce back into the “new normal” as it is often referred to.

So, the questions that remain:

  • How will businesses cope with reopening?
  • Will there be sufficient demand for products?
  • How can businesses begin to plan for the future?

Whilst we might not know the answers to some of these questions in the immediate, it’s worth remembering that business finance is still available to those who need it for a variety of reasons.

How will businesses access finance?

Currently (24th June) the demand for emergency finance continues to dominate the market and we would encourage that anyone who is in the need of assistance to get in touch with us via our eligibility checker for CBILS.

As for the coming months, we are being contacted by suppliers asking the question of “What happens next?”. Portman Asset Finance is well established with a strong history of providing a variety of finance solutions, thus we can be in a position to help businesses access the finance they need when the government-backed funding schemes have expired.

Firstly, we are encouraging businesses who are selling goods/services to offer finance to their customers as a payment option, which we can help you with this here.

Secondly, here are two examples of potential scenarios and what the best access to finance route could be:

Businesses who may need to invest in machinery, vehicles, stock or more

If your business belongs to this scenario then asset finance, in the forms of hire purchase and leasing, is the best finance solution to apply for.

Securing finance on an asset is often appealing to lenders as there is a valuation on the product and the customer has a specific plan for the funding. There are also tax benefits and flexible facility terms.

You may only need the equipment for a set period of its working life so getting a lease agreement may prove to be the valuable option compared to other finance offerings. Alternatively, your business may want to take ownership of that asset once the finance agreement is concluded so hire purchase would be the best solution.

Asset finance allows a business a more specialised approach to their financial agreements such as:

  • Release equity for cashflow
  • Minimise cash flow impact
  • Lower rates of interest
  • Avoid deprecation of the asset
  • No security required

We believe asset finance is a great finance product available for businesses as we begin the next phase of reopening the economy and will be an incredibly popular useful solution to thousands of SMEs.

Businesses that seeks working capital, or cash flow

If your business belongs to this scenario then your options are unsecured and secured loan facilities, or  more commonly known as business loans.

A loan agreement gives the business the flexibility to spend the money as they wish within the business, which is definitely appealing to many owners. As the government-backed funding schemes come to an end we expect many lenders to return these finance offerings, and we will provide an update on this as information gets announced.

We would still recommend at this time to consider taking out a CBILS loan facility whilst this product is still available.

What business finance options will be available?

  1. Asset Finance
  2. Unsecured Loans
  3. Secured Loans
  4. Refinance

Our opinion at this current time is as the economy begins to restart there will be a higher demand for asset finance solutions to protect business cash flow and offer more flexibility with agreements. Unsecured and secured business loans will return to the market when the  government schemes expire. We are in constant dialogue with lenders to find out what kind of products will be available.

Do not miss out on affordable business finance while it is still available

It’s important to remember as the economy begins its restart, that the government backed CBILS funding will not last forever. It is currently speculated that the scheme is due to end in September which we will continue to track developments and deliver updates as new information is announced.

The CBILS is the most affordable and highly subsidised finance product that has ever been available in the UK. If you are thinking you might wait to obtain funding for your business later in the year, it is worth considering getting a CBILS loan facility now to make the most of all the benefits the scheme offers.

Check your eligibility here

How can Portman Asset Finance help?

We are here to help businesses access the CBILS for emergency funding throughout this situation.

If you are a limited company who has been trading 3+ years with 150K annual turnover check your eligibility for CBILS today!

Benefits of CBILS business loans:

  1. Application Proposal to multiple CBILS lenders
  2. Lower rate of interest
  3. Higher acceptance rate
  4. Dedicated account manager
  5. First 12 months interest paid by the government
  6. Faster Process
  7. Spread cost of monthly repayments over 5 years
  8. No personal guarantees for facilities under 250k

Disclaimer: We do not have direct control on acceptance for interruption loans. The decision is made by the lender.

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Portman Asset Finance