How to Get a Loan and Save Money
Back in 2016, Gerry Edwards, along with a bunch of his mates from the Royal Electrical and Mechanical Engineers, was at a loss about how to make a living. They had been in the army for 10 years, and life as a civilian posed more than a few problems in England.
The economic downturn of 2008 had meant that jobs were scarce. The group decided to pool their resources and came up with a plan to buy Gerry’s grandfather’s garage. The team knew about hard work, and soon everyone was stuck in; fixing the place up, recover the business on track and build a clientele to match their high spirits.
REME Automotive soon had a thriving service going for the nearby residents of the small midlands town. They found that they not only had cars to mend but could offer much more services to the people.
Acorns grow into Oaks, but money doesn’t grow on trees!
Everything was running well, but the lads could see that there were areas where they could fulfill more needs for more customers. What they needed was a cash injection!
After getting together with their accountant, Gerry decided to approach his local bank for a loan and found that the door was firmly shut for small entrepreneurs, no matter how long they had been banking with the firm, or how well their business was doing.
In fact, one of the people from the bank even told them that they should look at Alternative Lending as a source.
Alternative Lenders are those businesses who have taken over from the lending arm of traditional banking services. After the 2008 economic bust, these lenders have made headway in the economy by lending to small and medium-sized business in a variety of funding schemes.
How to Get the Best Loan for your Business
The burgeoning entrepreneurs from REME now had a business plan with a cash flow, but nowhere to pitch for money. After a few days mulling over the pros-and-cons of what type of loan, the team heard about other small companies getting loans and turned to Finimpact.com.
After filling out the short questionnaire with Finimpact, Gerry was pointed in the direction of a Lender who could offer them an Unsecured Loan to take care of the bridging finance they needed. The rates were better than expected. The first loan was approved and the cash made available within a few weeks.
How big and how fast should a new business grow?
With monthly payments easy to make and the clientele growing, it was time to assess the future. The question, “should we take out more loans to grow even bigger because there is room for expansion”?
This is always one of the trickiest issues to answer. Luckily Gerry’s grandfather had a sound business head and explained to the group that it would be best to have their first loans paid off. He said if they had more money going out on loans, it would quickly cripple their healthy cash flow.
The monthly overheads including their current loan repayments were £2000, and by taking out a second loan, the expenses would jump to £5000. This would leave very little for operating their daily business. However, with Lease Finance, they could get the second delivery vehicle for a smaller monthly payment and would save $3000 a month on outgoings