Reviewing the options
Possible solutions that could be explored include; providing more short term cash support to give the business more time to make changes; introducing professional interim support to the existing management; considering a merger, or the sale or closure of a loss making division. This is not an exhaustive list by any means, and one increasingly preferred option is to refinance the existing lender’s position to another provider. This is especially the case where the client relationship has declined or perhaps where the trust between client and lender has been eroded.
Executing the chosen option
If the decision to exit is chosen, it is crucial that this is done quickly and efficiently. It is unlikely that a client, who is in some form of distress, will have either the time or the knowledge to review the current market of 35-40 providers, create a shortlist of suppliers who would have the appetite for the opportunity and compare multiple offers. This is where an experienced adviser can be of real value, one who is familiar with the market and has the time and skills to extract the right deal.
Empowering clients to move forward with confidence
My colleagues in our invoice finance and asset based lending team have all worked directly in the invoice finance and asset based lending marketplace. Importantly when working with clients, they do not take introductory commissions; this ensures a client gets a net rate from a new provider without brokerage commissions loaded into the process.
Nationally, they keep a contemporary view of each lender’s market appetite and can compare and contrast formal or informal offers to assist a client. They will always keep the incumbent lender up to date with the process, which helps with your risk reporting.
If you have a client whose refinance would be beneficial to you both, you can contact the team directly: