As we herald the arrival of 2016 you probably have great plans for your business! As everyone around us making New Year Resolutions, it’s the ideal time to look ahead with confidence and take some positive steps to making things happen the way you want them to. Newspapers, magazines and blogs are full of encouraging words about seizing the day and making your own luck . . . but sadly that optimism can be so easily crushed by the confusing and hostile world of small business funding.
In our last blog we looked at some of the ways in which Fair Business Loans is positively different from many of the other mainstream lenders. Another area in which we differ is that we are empathetic towards diverse groups in society that – through no fault of their own – may sometimes find it more difficult than others to obtain a small business loan. Let’s look at five of these groups now:
Bad Credit: You may have a brilliant business idea that you are confident could really work but either you have a poor credit record or due to circumstances beyond your control you are seen as some kind of financial risk. At Fair Business Loans we treat every case on its merit and do not use rigid algorithms on which to base lending decisions.
Loan Security needed: Many mainstream financial institutions base their lending decisions on the kind of rigid algorithm mentioned above. If you are not judged to be a good risk then the lender may insist on some kind of security - for example, your home - to underpin the loan. Given that this means you could lose your home if you miss payments on that loan, this is not an ideal basis on which to build your business! At Fair Business Loans if we lend to you as an individual or as a sole trader then NO security is required.
Sole Traders: Over 62% of small businesses in the UK are sole traders and, of the 333,000 new businesses started in 2014, 197,000 were thought to be sole traders. Whilst it is clear from such statistics that sole traders play a key role in driving forward the UK economy. Yet as a sole trader it can sometimes be very difficult to find appropriate support and business funding.
In fact some financial institutions seem not to take you that seriously! Especially if a business trades from home rather than business premises, there can be a sense of isolation and not knowing where to start looking for additional small business funding. At Fair Business Loans we empathise with the specific needs of sole traders and will do our utmost to find a solution for your growing business.
Women: It seems crazy to include women as a group that sometimes finds it difficult to obtain small business finance! Around 17% of small business owners in the UK are women, and businesses run by women make an estimated £50-70 billion annual contribution to the economy (GDP).
At Fair Business Loans we understand that women often start businesses for different reasons from men and that women-led businesses can also grow differently from those run by men. We are 100% committed to supporting women in business and - in the event of you being given the runaround by other lenders - come and talk to us at Fair Business Loans for a refreshingly different approach!
English as a second language: As our name implies, fair underpins the way we do business. However, sometimes life is not fair and businesses have undeserved difficulty accessing mainstream finance. This can be for a variety of reasons or complex personal circumstances - and sometimes even language barriers can preclude meeting all the requirements for a standard small business loan.
At Fair Business Loans our passion is to help businesses grow and, by so doing, to bring employment and needed services to local communities. By doing this, we know that we are helping to build local economies and create wealth and prosperity.
For all your small business funding needs, whether or not you are in one of the above groups, do get in touch with us at Fair Business Loans. We promise to treat you fairly and make our lending decision on the basis of merit alone rather than whether you fit any kind of pre-determined criteria. Fair Business Loans: small business loans with a difference!