‘flatpack’ finance

Business Owners Warned About Rise of ‘Bandwagon Lenders’

Business Owners Warned About Rise of ‘Bandwagon Lenders’

UK small businesses have been warned about the rising number of ‘bandwagon lenders’ and ‘flatpack’ finance providers entering the market in a report from the National Association of Commercial Finance Brokers (NACFB) published this week. The NACFB has turned down 40 lenders for membership over the past two years, an eightfold increase on the five or so lenders it rejected two years previous to that. The reasons for refused membership were varied with 60% of the rejections said to be due to the lender lacking sufficient experience of the principals of lending. 30% of these ‘bandwagon lenders’ were found to offer excessively high interest rates to small businesses while the NACFB rejected a further 10% due to offering a low quality product. Adam Tyler, chief executive... »