While the banking industry are meeting with leading business groups to ‘issue emergency Brexit advice to small and medium-sized companies’, Reward Finance Group is already in a position to provide finance should there be a ‘no deal’ exit from the EU.
Banks, business advisers, and groups such as the Federation of Small Businesses, the British Chambers of Commerce and the CBI believes there could be a significant increase in demand for loans, including those who have not used a lender previously.
Delays at ports and breaking away from the EU have been cited as potential causes of short-term cash flow problems for businesses, with the FSB estimating that one in seven SMEs have no plans in place for a no-deal Brexit.
While it has been reported that major banks have been asked to ‘consider’ offering pre-approved overdrafts and to outline other options such as invoice finance, Reward Finance Group is already set up to help out businesses which may be affected.
Reward is already seeing increased demand as it continues to break its monthly lending records, as more businesses turn to alternative finance, and it is therefore well-placed to meet additional funding needs if the reports of a surge in demand for finance from SMEs materialises.
Reward’s Business Finance and Invoice Finance Plus funding products are well proven and in big demand with companies who require short term finance or want to advance money against invoices. Both offer funding between £50k and £3m, with SMEs able to take out a loan of up to two years with Business Finance.
Where it also has an advantage over other lenders is through its speed of decision making and flexibility.
Commenting on the banking industry’s preparations, Nick Smith of Reward Finance Group, said,
“The reports I have read about lenders having to discuss funding options to help SMEs with temporary cash flow problems has left the team at Reward rather surprised, as that is how we have built a successful business.
“I am also somewhat sceptical about whether anything will come to fruition from the major banks after they have ‘considered’ various funding options to help SMEs. As we all know, banks were advised to lend to businesses after they had been bailed out but that didn’t materialise and they are still reluctant to lend. Therefore what is the chance they will make lending to companies affected by a ‘no-deal’ Brexit a priority?
“We would like to reassure all companies, whether they have plans for a ‘no-deal’ Brexit or not, that Reward is ready for any eventuality, as we have the money to lend and are in a position to provide funding within a few days, rather than having to wait the several weeks it may take traditional banks to approve the loan.”