How using a broker for your finance needs could help your business
FINANCE
State of play – Marlin MD Paul Griffiths looks at the current state of business finance .
MONEY MATTERS
How using a broker for your finance needs could help your business
PICTURE : JAMES HIND
With many property investors and businesses on high rates taken over the last couple of years , or previously low long-term deals coming to an end , now ’ s the time to review those arrangements and look at refinancing options .
Marlin Corporate Finance has operated from Teesside for 11 years , and its advisors have more than 200 years ’ combined experience .
The firm has remained wholly independent and continues to work with businesses at all stages , from conception through to company sale , with a presence across the North-East , Cumbria and London .
Here , founder Paul Griffiths takes a look at the current situation in business finance and explains what firms like Marlin can offer …
Over the last few years , several key issues have affected the commercial finance markets . Firstly Brexit , which created problems for lenders and SMEs . Some lenders were hit by having their funding lines cut due to the uncertainty around how the UK economy would work fully , with many “ offshore ” banking roles affected . Businesses also saw pain in logistics , planning , and general red-tape compliance , resulting in delays with receiving products , regulations and staffing issues .
We then had the world-wide issues brought by the pandemic . Stock markets crumbled , travel was a non-starter and accessing capital was a major concern . The UK government made it “ easier ” than ever for businesses to access capital via government-backed loans . Normal requirements were swept aside , meaning almost any business could quickly access loans . The problems this has brought later are still being felt due to the lack of understanding and compliance when these loans were taken out . Some businesses are still suffering cash-flow issues because of the loans taken out and the subsequent lack of assistance available from lenders . Others have been forced to close , with many jobs lost , despite being able to trade confidently in some cases for over 100 years beforehand .
Between December 2021 to August 2023 , the Bank of England has issued consecutive rises to its base rate , from 0.10 % to 5.25 %. As we reach summer 2024 , it is widely predicted these rates will start to decrease , with GDP finally showing growth and inflation rates reduced .
A big advantage of working closely with a finance broker is the time and money they can save clients . Brokers can access a wide range of banks and lenders and by knowing the current product offerings , clients don ’ t have to spend hours searching for solutions themselves and can concentrate on running their businesses .
Experienced brokers can often negotiate bespoke terms and rates , resulting in significant cost savings . Specialist finance options not available via traditional banks are sometimes only available via accepted panel-approved brokers and can be crucial for deals where time is of the essence .
Many SMEs have fallen victim to some High Street banks ’ decisions to cut local bank managers and close town centre and village branches . The support and guidance previously available from the local bank manager is not as freely available to small businesses now and is mainly reserved for clients with higher revenues . At Marlin Corporate Finance , however , our advisors are vastly experienced industry professionals , with a strong banking background . With a panel exceeding 200 lenders , coupled with this experience and contacts , Marlin is keen to support those businesses that usually become long-term clients .
Another key benefit of working with Marlin is that the customer receives at least one dedicated point of contact who can provide personalised advice throughout the process . This has proven beneficial for recently started businesses who may be unfamiliar with the financing process . With many lenders withdrawing their High Street presence , commercial finance brokers have stepped into the role of an “ independent bank manager ” with the bonus for the client of offering an array of funding solutions fit for the client ’ s requirements .
Working with an FCA-regulated broker can also provide clients with further peace of mind , knowing that the firm adheres to the highest professional standards and ethics .
Visit marlincorporatefinance . co . uk
The voice of business in the Tees region | 127