computer says no

WHAT’S THE SCORE WITH CREDIT RATINGS?

Business owners who believe they have a ‘bad’ or ‘low’ credit rating can be understandably reticent in applying for essential funding. Perhaps they base this on the knowledge their personal credit report is weak, or they suspect their trading performance isn’t perfect.

 

However, although it is fair to say that UK businesses and consumers have experienced a tightening in lending from the high street banks, here at PFC we take a slightly different approach and principally look at the fundamental parts of the finance proposal: purpose, amount, length of time trading, number of owners and the term required.

 

It’s the combination of these factors that create a proposal and when they make ‘sense’ (the purpose is valid and will aid the business, the amount requested is reasonable considering the monthly revenue income for the company, historic trading patterns, number of equity owners to reduce the lend/risk ratio, and finally a repayment term that is sensible and matches the purpose) they can outweigh the credit scoring condition.

 

Unlike many lenders who use faceless algorithms to make lending decisions, at PFC we work with a panel of more than 30 lenders and examine what are a company’s or individual’s needs and what information do we need to help us make an informed decision.

 

We also speak directly with our clients to get an understanding of their personal situation and explore many different routes to finance that will match their needs and circumstances.  For example, a client may come in asking for a loan as they are needing money to expand their business or to help with cash flow at certain times of the financial year.

 

By having an understanding of a client’s business or their circumstances helps us find alternative routes to finance for them. As such, we may be able to secure finance against an unpaid purchase order or even existing assets within a business that could help release capital for growth rather than just take a traditional ‘business loan’ route.

 

Working with the information we have from the business or individual we are then able to approach our panel of lenders and find the right package for them, pulling in specialist finance houses when required.

 

So, if you are looking to access finance but are worried your credit score isn’t good enough, why not try PFC and see what we can do for you?

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply