Commercial Broking -
Alternative sources of finance
UPDATE - November 2006
We have drawn your attention to the growing
market for alternative sources of finance and which prompted
our move into Commercial Broking to provide support for
independent accountants when assisting their clients. Best
estimates a year or so ago was that 20% of all new lending
requirements were now passing through brokers, rather than
traditional forms of finance – the banks – and
that there was an indication that it would move to 40%
in the short term.
Research recently released confirms this fact, and reports that 78% of accountants
and brokers have recommended invoice finance to their SME clients as a means
of funding business in the past year – a 20% increase on the 2005 figures.
Despite the popularity of invoice finance among finance professionals a large
proportion of their clients struggle to break tradition and opt for a ‘non
bank’ facility – indicating that SME’s have negative perceptions
of a credible form of financing that often is much more flexible that bank
overdraft lending.
Half of the accountants and brokers in the survey felt that owner and managers
lack an understanding how factoring and invoice discounting can benefit their
business- and have concerns about high fees and that those on the brink of
disaster only use it – and which is simply not the case.
The P&A Broking Department are able provide a wide range of alternative
finance for business clients of accountants for - business expansion, working
capital, commercial mortgages, stock, ‘turning the corner’, financial
reconstructions, start ups and asset purchases, through a large panel of
lenders. This gives the busy client a level of choice and convenience, and
unlike some brokers we do not charge up-front fees.
In the past 6 months we have handled just over 150 cases with a mix of financing
requirements, including factoring, invoice discounting, major asset purchases,
trade finance, stock loans and commercial premises, as well as a number of
clients seeking to rebank. Supporting our view that we can provide accountants
and their clients with an efficient service that gives a level of convenience
and a range of options that may not have otherwise been considered.
We have strengthened our team in our Commercial Broking Department with 2
appointments to expand our operations -
Richard Pinder joins the team as a Lender Services Executive from the Corporate
Banking Division of HSBC. He has specific responsibilities to develop and
maintain relationships with the Lender Services panel of lenders. With a
degree in Law, Financial Services and associate membership of the Chartered
Institute of Bankers he is uniquely placed to support the growth of the company.
David Yule joins the Lender Services team as a Collateral Analyst from Barclays
Sales Finance, prior to which he trained with a Midlands Accountancy practice
as a Chartered Certified Accountant. He works in Mike Sanderson’s team
of specialists that provides a range of outsourced services across the UK
and Europe for major UK and US based Asset Based Lenders.
These three appointments support our determination to be a major player in
a growing market for new and alternative sources of finance. They all bring
a wealth of complimentary skills that enable us to help business- new and
old- to grow, whether that’s by providing a fresh source of working
capital, finding a new banker, getting a commercial mortgage or maybe to
find funds when the business has been going through a difficult period. Importantly
it enables our Business Rescue Practice – The P&A Partnership – to
find a whole range of solutions for companies with emerging financial problems,
and that’s a service you won’t get from most Insolvency Practices!
If you would like more information about our range of services that may assist
your client speak to-
Richard Pinder on 0114 278 8868
or Steve Dunwell on 0791 776 1341
There is more information about the P&A Group activities at
www.thepandagroup.co.uk
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