Business Banking and Bank-Based Lending

Businesses seek daily banking partners for a variety of reasons:

  • New start businesses seeking a 1st time partner
  • Dissatisfaction with existing bank products and services available
  • Dissatisfaction with people relationships, or the long trusted bank manager moves or retires
  • Significant additional or specialist support is required for a specific project where the partner bank is uncompetitive or cannot accommodate
  • Lack of ongoing and increased financial support to fund ‘growth startegy’.
  • Stand alone products such as a new, additional or re-financed property mortgages, Invoice Finance and EFG loans where outside banks may legitimately tender
  • Growing pressure to reduce borrowings. Indeed sometimes the bank may even have its own customer exit strategy.

Enterprise Finance Guarantee (EFG)

In the current climate, businesses are finding it increasingly hard to access the finance they need, particularly working capital.

This is not because the business has suddenly transformed from a success to a failure; but because the current economic conditions have made a significant impact on the availability of capital as the banks change their approach to risk and tighten lending conditions.

Under the Enterprise Finance Guarantee, the Government will guarantee lending to viable businesses to ensure that they can get the working capital and investment that they need.

This £1.3bn scheme is designed to support bank lending to UK businesses with a turnover of up to £25 million who are currently not easily able to access the finance they need. It will enable them to secure loans of between £1,000 and £1 million through the Government guarantee and is available up to 31 March 2010.

The guarantee can be used to support new loans, to refinance existing loans where the loan is at risk due to deteriorating quality of security and also to allow lenders to restructure a borrower’s debt where appropriate,or to convert an existing overdraft into a loan to release capacity to meet working capital requirements.

The Enterprise Finance Guarantee is available now through 27 lenders.

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Find out more about Business Banking and Bank-Based Lending

Call 01508 494 345 or email us

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Our process includes:

  • Visiting our clients to review and understand your needs and demands
  • Securing all the financial, banking and background information we know the banks will want
  • Structuring a ‘headline’ presentation to potential banking partners
  • Inviting interested banks to visit you at your convenience for discussion and additional, mutual information gathering.
  • Manage further feedback and enquiries, and collate bank Facility ‘Heads of Terms’ before mutually discussing your best options with you.
  • Negotiating any realistic improvements to Features & Benefits offered by available funders
  • Overseeing the final progress to completion

Funding for Lending Scheme (FLS)

The Bank of England and HM Treasury launched the Funding for Lending Scheme (FLS) on 13 July 2012. 

It is designed to boost lending to households and businesses and works by allowing banks and building societies to borrow from the Bank of England at discounted rates for up to 4 years. As security against that lending, banks will provide assets, such as business or mortgage loans, to the Bank of England. 

Banks will be able to borrow during the 18 months from 1 August 2012 until January 2014. Banks will have strong incentives to boost lending, by lowering interest rates and increasing the availability of business loans and mortgages.

The more that they lend, the more they can borrow from the Bank of England. Banks that are increasing their lending will pay the lowest fee on their borrowing while those that reduce their lending they will pay a higher fee.

Whilst the cost of accessing FFL will be linked to banks’ lending performance, but they will not be obliged to pass on lower interest rates, as they were under the outgoing NLGS, which achieved about £2.5bn lending. It had been designed to stimulate up to £20bn of lending.

The Bank of England publishes data on the usage of the FLS along with lending data from the participants on a quarterly basis.

Further information on the Funding for Lending Scheme is available on the Bank of England website.

Whatever the reason, we may be able to help?

  • Appoint us to take care of the ‘hard yards’ and we’ll go to market to identify those lenders best suited to partner you
  • We will package and present your business to attract the banks and raise any funding requirements including EFG loans.
  • Then we will manage any banks to deliver daily banking and ongoing funding support
  • And try to ensure that at least two are in competition for your business to drive your costs down.
Find out more about Business Banking and Bank-Based Lending

Call 01508 494 345 or email us

What our customers say...

"I am extremely pleased that the staff of B2B have been very much at the forefront of the smaller but very important funding facilities we use for our short term leasing business which Dovetails well with the larger asset finance providers."
Group Finance Director - Sema Lease UK Ltd