SMEs Warned Against Using Personal Finances
SMEs are being warned over the risks of using personal finances to fund their COVID cashflow recovery.
A recent survey revealed that two fifths of businesses are resorting to using their own personal monies to bail themselves out of the current pandemic. This is a dangerous precedent to set – using personal savings sees personal assets vulnerable, credit cards are not cost effective, borrowing from friends and family is risky, remortgaging is ill-advised.
Using personal finances can be misguided, and as many SMEs are finding out, unnecessary. That’s because many UK lenders are supporting SMEs in offering unsecured loans with excellent terms and superb rates; whilst other businesses are taking advantage of the Government’s CBILS scheme.
Unsecured loans offer SMEs some financial security – providing a valuable cashflow injection, especially if this can be locked in flexible terms and cost effective rates. What’s more, a business will not have to secure assets against their lending with an unsecured loan. This type of loan can offer relief when cashflow is drying up due to the pressures of lockdown. Equally, many SMEs who are thriving in lockdown conditions are using unsecured loans to assist with their increased order books, increased production costs and to ensure they have sufficient raw material and supplies.
A key part of arranging an unsecured loan is that the lender is the right match for a business borrower. As an independent broker, at Cashflow Bridge we are able to cleverly match a borrower to the most suitable lender - we are aware of all caveats and lending criteria for each lender and as a result only those lenders who we know will offer an unsecured loan will be approached.
Unsecured loan benefits include:
Our targeted approach means no refusals to damage a business’s credit score
No assets to secure against your lending.
You can find out more about the differences and benefits of an unsecured loan Vs a secured loan in one of our dedicated blog article.
Alternatively, SMEs can look at CBILS loans – the Government backed financing scheme. Here at Cashflow Bridge we are authorised to arrange CBILS loans – we arrange these with leading lenders; and whilst many SMEs are struggling to understand the complex application process, often resulting in a refusal, we have far higher success rates than the national average:
90% CBILS acceptance rates – compared to just a 50% national average
Arranged in around 36hrs
No repayments for 12 months
Rates between 3-6%
At Cashflow Bridge we promise to find you the right finance, from the right lender, at the right rate – call us today on 07917 871832 or email us on email@example.com