Demand for SME finance outside of traditional bank lending products continues to grow. As a result, Reach Commercial Finance ‐ a division of Leonard Curtis Business Solutions Group, providers of the Lifecycle network ‐ is working with an increasing number of accountants, their SME owner clients and lenders, sourcing the most comprehensive funding solutions to help them to grow.
Products such as invoice finance, asset finance, property finance and cashflow loans support SMEs and their accountant advisers to overcome critical commercial hurdles. And the advice and support it provides to businesses in their early stages also brings with it many more benefits than simply capital investment.
Lifecycle, through the team at Reach, has recently provided funding advice for two very different clients after being approached by accountant members.
Foundations for financial success One was a specialist commercial flooring designer and installer looking for a 12‐month business loan to help with cash flow and to pay off an existing creditor. The reasons for borrowing funds were discussed in depth ‐ taking into account the company’s excellent credit rating ‐ before Reach recommended an unsecured loan for a larger amount than originally planned with a more manageable monthly rate of interest.
Reach worked with a peer‐to‐peer lender to secure the loan less than two weeks after the initial accountant’s approach. Around half was used for the cash flow, the rest to pay off the existing commitment.
Funding for fish company growth The other Lifecycle member client was a fresh fish and seafood supplier. Now two years old, the bank that provides it with basic services was unwilling to support its growth plans with additional funding.
Its accountant recommended Reach, which advised a combination of factoring and asset finance. Despite the client’s initial reservations about the factoring process, the team at Reach explained the available options and reassured them that it was the way to go for the business as they would be delivering goods and then waiting to be paid. Factoring helps thousands of businesses in these circumstances turn unpaid invoices into cash in the bank. It’s a well‐established way of providing finance that directly grows in proportion to turnover.
The company took out a £30,000 invoice factoring facility to help get the business up and running. They also needed further finance to invest in a new delivery vehicle but worried about not being able to secure it after a few personal credit issues. By being honest about that, the Reach team were able to introduce them to a funder that understood their situation, respected the transparent approach and delivered £14,000 in asset finance to support the vehicle purchase.
Gary Cain, Director at Reach Commercial Finance, said: “Our approach is what makes us a particularly popular funding partner amongst Lifecycle members. We recognise the importance of relationships between lenders and clients and, with our vastly experienced team, we’ve built a leading specialist brokerage business on the back of it and the trust that it engenders.
“By thoroughly analysing client and accountant requirements ‐ and being a trusted connection between borrowers and lenders ‐ we always ensure that the best links are made between all parties. That’s how we have completed over 500 transactions and raised more than £250 million in finance over the last three years alone.”