Unfortunately this is set against a backdrop of continued banking restrictions, particularly on overdraft funding.
In reality (and without getting over-technical), BASEL Banking Accord makes overdrafts deeply unpopular within the banking sector.
Most people are familiar with longer term options such as term loans, hire purchase, leasing and factoring.
Less well known is a wide range of short term or 'Buffer' product available from both private and crowd sources.
Whilst overdrafts were widely abused (by both lenders and borrowers), the need for a facility to use 'as and when' is absolute - there is little point taking out a 3 year loan if you only need cash twice a year!
Buffer products typically advance money or between one and 3 months and can be re-visited as often as required.
Whilst nominal rates will appear higher then the term equivalents, the true cost of borrowing can be significantly less. Additionally, if the need becomes consistent it will be far easier to commute the facility to a longer terms one - nothing makes a lender happier than proven ability to repay!
Buffer facilities currently available include:
- Short term loan (unsecured)
- Borrow against credit card receipts.
- Borrow against Outstanding (B2) invoices.
- Borrow against personal assets.
- Borrow against Freehold property.
- Confirmed orders.
There are no absolute rules, thought the rule of thumb would be that the first transaction carries admin & set up fees - so the cost and admin reduce with re-use.
To find out more, why not call me - Mark directly on 07932 075754, or email me?
No comments:
Post a Comment