For small businesses, securing finance can prove to be a frustrating, time-consuming and tough ordeal – especially when looking towards traditional sources of funding. One concern that many business owners encounter is the time it takes to obtain the necessary funding from a bank.
In May 2017, secured bank lender Borro revealed slow bank lending was restricting the growth of small businesses. That situation isn’t improving either. Bridging Trends data for 2018 found the average bridging completion time for UK loans was 45 days, up from 43 days in 2017.
As bridging loans are meant to be short-term funding solutions to “bridge” gaps in cash flow or debt, waiting more than 6 weeks for a small business loan simply isn’t practical for many SMEs.
It can be difficult to obtain traditional bank funding if your business has a less-than-ideal credit score too. Not only is any application subject to a stringent credit check, but a small business with a low credit score will have to pay high interest rates – if the application is accepted in the first place. No business can afford such uncertainty, which is why Liberis provides an alternative solution.