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Moneytech’s Chief Commercial Officer Mark Cameron answers some of the biggest finance questions facing small and medium business owners.  

My bank is so slow to respond to my requests – how can I access finance and credit faster? 

Exploring non-bank finance is a great alternative for small and medium businesses. Usually non-bank is more responsive and easier to set up.  They more likely to take a pragmatic approach to advancing the business money without the need for security.

At Moneytech we focus very much on fast approval, fast access to funds at reasonable prices so that our customers can get stock on their shelves when they need it, as this is what small businesses have told us they need.

I don’t have a mortgage or other security, will this prevent me getting credit?
Moneytech doesn’t need a mortgage or other security, so it certainly won’t prevent you getting credit!

What are my options when seeking capital quickly to get stock on shelves?

Your supplier is always your first and cheapest option to get stock onto your shelves by offering you trading terms.  
But, if during busy seasons you need additional support, non-bank funders are the quickest option for immediately getting stock onto shelves.

Moneytech’s facilities can be set up within 48 hours and allow immediate payment to be made for stock.

What are lenders looking for in a credit application?

Lenders usually are looking for correct, complete information. Obtaining correct information from customers has the biggest impact in slowing down our facility approvals.

Hiding information perceived to be negative will usually jeopardise chances of approval – not improve them.

I haven’t been in business for long – will this affect my chances of getting credit? 

Unfortunately, most businesses which fail do so within the first two years, so most financiers – including Moneytech -look at business tenure as one aspect of the application.  But importantly for us, it’s just one aspect we factor in, and we accept and approve applications for both new businesses and those which have been around for a long time.

What is a small business line of credit and how is it different from a small business loan?

A line of credit is used to stock your shelves with stock. Once it’s paid back, it can be reused, and the balance fluctuates up and down as your business needs change. A business loan can usually be used for any purpose (e.g. you can pay wages) but often requires giving the bank security, and may not be large enough to cover you for the busy periods.

How do I maintain and grow a healthy business credit score?

Try as hard as you can to keep all of your suppliers up to date – pay them on time whenever you can. Be careful about the financing partner you choose, and make sure it’s one you want to work with, as ‘shopping around’ with different financiers to look for the best offering can negatively affect your score.
If you’re a director of the business, make sure your personal affairs AND your business affairs are in order.

The bank is so slow to respond to me that I’ve lost confidence in their service, what can I do?

There are now many viable ‘non-bank’ alternatives to business finance, such as Moneytech. We focus very much on giving businesses access to funds when the banks are slow, unreasonable or difficult to deal with.

Increasingly in our experience the banks are only supporting businesses where there’s security available, and are not able to react rapidly to small business needs.