Clients often ask for help in finding the most appropriate funding solutions for their business and that usually means finding a lender who is prepared to provide the funding they need. But there are many lenders, from high street banks to new ‘alternative’ lenders. Finding the right finance provider for a particular need is vital to keep costs down.
However, many of you may already know that we are now partnering with Rangewell to help with this. They can search the entire lending market to help find the solutions to any funding need you may have.
And that means, when any business has a funding need, they work to provide a fast and effective answer – and, as they are independent, they always aim to get the most competitive funding from the most appropriate lender quickly and transparently.
Supporting a Business Through Lockdown
Virtually every type of business has been affected by the coronavirus crisis, including many of the SMEs we support. However, we wanted to share one example of how Rangewell was able to help a business – a festival and event crewing company – which was severely impacted by the lockdown.
The business takes care of crewing and set-up for festivals and events all over the country. Summer is normally their busiest time – but with lockdown, all the events they were booked in for were cancelled.
The owners saw the problem coming as soon as the rules on lockdown were announced and immediately set to work to reduce their costs.
“Cashflow is vital whatever business you are in. We suddenly had no income and no cashflow at all. We use a lot of subcontractors and casual workers, so we didn’t have a huge wage bill – but we still had to furlough some of our core staff. But what we were really worried about was the future. The cashflow was turned off like a tap, but it will take months to turn back on, even after lockdown is lifted.”
The business saw that the problems might not suddenly be solved when the all-clear is given and businesses can go back to work.
“We’ve missed the key spring months, and summer is going to be no better. We could have some work coming our way in early autumn if things start to improve, and we can look forward to open-air concerts and festivals again. But there are no guarantees.”
Even with costs cut to the bone, the business still faced overheads. It was vital to arrange funding in order to keep the business afloat until the crisis was over.
“We worked out that we needed at least £75,000.”
Looking for a CBILS loan
The owner’s first thought was to approach his bank for a loan and felt that, with the government’s CBILS programme in place, he would have little problem securing the cash he needed to pay the fixed costs over the next few months.
The Coronavirus Business Interruption Loan Scheme (CBILS) lets small businesses borrow sums of up to £5m, interest-free for 12 months, with the government promising to underwrite 80% of the loan. This is designed to help lenders lend – but they will only do so according to their pre-shutdown criteria.
“I approached a major bank, but they told me that they were only working with their existing clients and could not consider my application because I didn’t bank with them.”
He could demonstrate three years of
profits and had cash reserves. However, the bank had already decided on its
lending criteria and, when he applied for a government-backed CBILS loan for
cashflow support, he was rejected because of their policies.
How Rangewell Helped
When the client called the Rangewell team, he had already approached his own bank and been turned down – but this did not have to be the end of the journey.
Because the Rangewell team know all the lenders that are lending under CBILS, including those who can consider applications from businesses who are not clients, they can step in to streamline applications and help get decisions faster.
The funding experts at Rangewell looked at the client’s needs and approached the lenders who work with the construction sector, and who were most likely to agree to a loan under CBILS.
Their team helped prepare the paperwork and arrange a priority application – which was successful.
The client was able to secure a loan of £70,000 under the CBIL Scheme – allowing them to make full use of the 12-month repayment-free period and giving his business the help it needed to start getting back on its feet.
If you would like support in finding and applying for the funding your business needs, now or for the future, simply call us for further information about getting Rangewell working for you. You can call our express line on 01384 271 858 or get in touch via our get in touch page.