Written by Adam Fulcher, Commercial Finance Specialist
The cost-of-living crisis isn’t just impacting consumers. Businesses too face a huge increase in energy prices, the impact of which is exacerbated for those businesses that use a lot of power. It’s a sad reality that some businesses will be forced to close as a result of increased costs, but most will survive and be positioned to thrive in the future when the economic fog lifts.
For the moment though, cashflow will be vital for all businesses, and for some, releasing capital from property or other assets may be a good way of ensuring they are well placed to weather the storm and invest for the future.
Banks and specialist lenders still have an appetite to lend to businesses, but many are rightly taking a more stringent approach to underwriting, and we have seen some lenders ask specific questions about a commercial applicant’s strategy to overcome rising costs.
In this environment, it’s more important than ever for brokers to have a deep understanding of lender criteria and underwriting requirements. It also puts more emphasis on good relationships with lenders, where cases can be discussed, and solutions identified. For brokers who engage with the commercial market infrequently, this can make life harder, and, more importantly, it could also result in failing to secure the best outcome for the client.
Fortunately, at Brightstar, we are on hand to work in partnership with brokers to help them find a solution for their clients with commercial finance requirements. We have an in-depth knowledge of the market as we are immersed in it every day. This also means we have strong relationships with lenders that could benefit you and your clients.
You may not engage with this sector currently, but you are sure to have self-employed clients who may have an appetite to secure funding for their business. So, it’s always worth asking the question, and it’s always worth partnering with an expert, like Brightstar.