by Adrian Foster
SECURING finance in the retail sector has been perceived to be challenging over the last few years, but we have certainly seen that situation change over the course of 2014. All leading lenders are much more willing than before to consider supporting good existing operators, as well as new entrants into the sector.
But you don’t have to be considering a new project to be interested in new funding.
With the Bank of England base rate at a historic low, existing operators are also recognising that it’s a great time to review existing finance facilities and to look into refinancing existing debt.
Over the last few months we have received an increasing number of calls from operators who are looking for help in reviewing their existing finances, recognising the benefit of using an intermediary who will approach a wide range of lenders to secure a funding package to meet their requirements.
The main reasons to refinance include:
• Breakdowns in clients’ relationships with current banks
Traditionally operators remained with their bank as they felt this would provide a degree of loyalty. However over the last few years some have felt that they haven’t received the support they deserve and have decided that now may be the time to move their business.
• Client support
A number of operators have realised that, as the market improves, now may be a great time to undertake to refurbish or expand their current business. When these operators have approached their current banks to discuss their plans they haven’t necessarily been provided with the support that they require.
Rates have never been so low and with the introduction of various Government schemes and initiatives some operators have realised that it could be prudent to negotiate better terms.
As well as helping many people to purchase businesses we have also assisted numerous clients who find themselves in one of the situations above, by securing funding for them on competitive terms.