The Financial Intermediary & Broker Association (FIBA) is asking members to consider the Bank of England’s (BoE’s) warning about lenders cutting access to funding in Q4 and throughout.
The BoE survey highlights a ‘deteriorating’ funding situation for businesses, including small and medium-sized enterprises (SMEs), mainly caused by a declining economic climate.
According to Adam Tyler, executive chairmen of FIBA, finance specialists need to consider positive moves they can make to offset any loss of funding via their preferred lenders.
He comments: “The BoE warning should not be taken as a guarantee that funding will become tighter, but we are urging our members to look beyond the lenders they tend to favour at the wider range of funding options.”
“We have a growing number of specialist lenders keen to do business and I would urge members and non-members to explore options outside their traditional sources.”
FIBA says the tightening of lending criteria tends to be one of the first signs that lenders are looking to reduce new business levels and the requirement for personal guarantees can make it more difficult for SME owners – particularly with unsecured funding.
Spotcap, one of FIBA’s panel lenders, has now extended its unsecured loan offering with no personal guarantee (PG) to also include a full or partial PG and corporate guarantee. The loan amount ranges from £50,000-£350,000 for a duration of up to 24 months.
Tyler concludes: “Spotcap is just one example of looking beyond the obvious first choices. Seeking new funding sources today and understanding what they can do, can make all the difference if traditional sources begin to pull back.”