SME

Around 40% of the funding agreed (£76bn) under the Project Merlin agreement was meant to be released to SME's to help them trade through the recession. Whether it's the Enterprise Finance Guarantee scheme or Project Merlin the bank's underwriters found it difficult to release funds to companies whose asset base or cashflow didn't fit with their new credit policy guidelines. 

Some businesses have utilised other types of products to help assist with their short term cashflow but that doesn't solve their long term issues. As each and every loan covenant breach or missed payment is exploited (by some banks) as an opportunity to re-price loans on low margins other lenders are taking a longer term approach. 

In a lot of cases SME businesses can easily refinance with the only burden being the new extensive information requests that tend to slow down rebanking exercises. Improved pricing and potentially a longer amortisation profile to ease short term cashflow is a possibility in the current market, it may also represent an opportunity to restructure your facilities or business. 

As many businesses continue to try to reduce their reliance on overdrafts and term debt there are still active lenders in many sectors who can offer a safe haven for the long term. Bank arrangement fees have stabilised and interest margins have only moved slightly since last year across the SME market. Amortisation profiles have shortened for some funders but others continue to offer 20 and 30 year loans. 

It's currently a fragmented and evolving market and it will continue to stay this way for the next couple of years with lenders exiting certain sectors and new lenders appearing to secure market share. We have already seen some new to market funders in 2010/2011 with the evolution of the market due to create more in 2011/2012. 

If we can help you source a competitive refinance package then please make contact for an initial discussion on what loan and repayment terms we can help you secure.  

In this space we provide advice and access to the following products: Commercial Mortgages, Asset Finance, Invoice Discounting Finance, Overdrafts, Enterprise Finance Guarantee Scheme, Equity Finance, Venture Capital and also Government backed investment funds. 

Please contact us for further information on how we can help you secure competitive products and pricing.