State of play – Marlin MD Paul Griffiths looks at the current state of business finance.
With many property investors and businesses on high rates taken over the last couple of years, or previously low long-term deals coming to an end, now’s the time to review those arrangements and look at refinancing options.
Marlin Corporate Finance has operated from Teesside for 11 years, and its advisors have more than 200 years’ combined experience.
The firm has remained wholly independent and continues to work with businesses at all stages, from conception through to company sale, with a presence across the North-East, Cumbria and London.
Here, founder Paul Griffiths takes a look at the current situation in business finance and explains what firms like Marlin can offer…
Over the last few years, several key issues have affected the commercial finance markets. Firstly Brexit, which created problems for lenders and SMEs. Some lenders were hit by having their funding lines cut due to the uncertainty around how the UK economy would work fully, with many “offshore” banking roles affected. Businesses also saw pain in logistics, planning, and general red-tape compliance, resulting in delays with receiving products, regulations and staffing issues.
We then had the world-wide issues brought by the pandemic. Stock markets crumbled, travel was a non-starter and accessing capital was a major concern. The UK government made it “easier” than ever for businesses to access capital via government-backed loans. Normal requirements were swept aside, meaning almost any business could quickly access loans. The problems this has brought later are still being felt due to the lack of understanding and compliance when these loans were taken out. Some businesses are still suffering cash-flow issues because of the loans taken out and the subsequent lack of assistance available from lenders. Others have been forced to close, with many jobs lost, despite being able to trade confidently in some cases for over 100 years beforehand.
Between December 2021 to August 2023, the Bank of England has issued consecutive rises to its base rate, from 0.10% to 5.25%. As we reach summer 2024, it is widely predicted these rates will start to decrease, with GDP finally showing growth and inflation rates reduced.
A big advantage of working closely with a finance broker is the time and money they can save clients. Brokers can access a wide range of banks and lenders and by knowing the current product offerings, clients don’t have to spend hours searching for solutions themselves and can concentrate on running their businesses.
Experienced brokers can often negotiate bespoke terms and rates, resulting in significant cost savings. Specialist finance options not available via traditional banks are sometimes only available via accepted panel-approved brokers and can be crucial for deals where time is of the essence.
Many SMEs have fallen victim to some High Street banks’ decisions to cut local bank managers and close town centre and village branches. The support and guidance previously available from the local bank manager is not as freely available to small businesses now and is mainly reserved for clients with higher revenues. At Marlin Corporate Finance, however, our advisors are vastly experienced industry professionals, with a strong banking background. With a panel exceeding 200 lenders, coupled with this experience and contacts, Marlin is keen to support those businesses that usually become long-term clients.
Another key benefit of working with Marlin is that the customer receives at least one dedicated point of contact who can provide personalised advice throughout the process. This has proven beneficial for recently started businesses who may be unfamiliar with the financing process. With many lenders withdrawing their High Street presence, commercial finance brokers have stepped into the role of an “independent bank manager” with the bonus for the client of offering an array of funding solutions fit for the client’s requirements.
Working with an FCA-regulated broker can also provide clients with further peace of mind, knowing that the firm adheres to the highest professional standards and ethics.
