Read This Before Using The Bank Of Mum & Dad…
SMEs have had it tough over the last year or so due to the global pandemic. However, what will make it worse is using the Bank of Mum and Dad.
Borrowing money from parents, even friends and family, has huge risks that just aren’t necessary when there is a huge range of SME finance available at pre-pandemic rates and terms, and often even better!
During the pandemic just over a 3rd of SMEs asked for financial parental support, despite the fact there were many Government backed finance schemes.
In a recent survey, 46% of 500 SMEs polled revealed they asked family for financial support, 35% asking parents specifically, only 40% actually contacted their bank.
Borrowing from parents is a risky business. Borrowing from friends and family can be hugely damaging to your personal life and relationships.
Once invested in your business, whether that’s for expansion or a bail out, you could be subjected to:
- Unwelcomed advice or interference on how to run your business.
- Parents or family members thinking they had a right to get involved as they had loaned your business money.
- What if they suddenly need their cash back, and quickly?
Having family and friends financially involved in your business will only lead to trouble, we’ve seen it happen many times.
Self-funding isn’t ideal either… credit cards are hugely expensive and re-mortgaging is ill advised.
Both of these methods are completely unnecessary in today’s SME finance market. Tailored, specific finance – both traditional and alternative – is available, including:
- Short and long term loans
- Secured and unsecured lending
- Asset finance
- Stock finance
- Same day lending
- Export finance
- Invoice finance
With access to the entire UK lending market, here at Cashflow Bridge, we ensure we find each SME the right finance, from the right lender, at the right rate, even if you’ve been refused credit in the past or have a bad credit rating.
We carefully, and cleverly, match your business with the most suitable lender and lending option from the myriad of options available.
Our independent broker status also means we are not bound by any targets, contracts or bonuses in arranging your finance to ensure we only offer 100% honest and impartial finance advice. What’s more, there are no charges or fees made by us, or attached to your lending, to arrange the finance for your SME, as we are renumerated directly by the lender.
Cut your family ties with the bank of mum and dad – instead engage in a professional finance agreement with a suitable UK bank, traditional lender, modern dynamic lender or alternative finance provider. Call our Managing Director, Kevin Weaver, directly today - 07917 871832 or email his team at email@example.com
Survey carried out by Liberis.