SME’s are the lifeblood of the economy. So, affordable and fast finance is crucial for companies wanting to grow their business. But when a company goes through a change of directorship, it’s not always easy to get a business loan as The Personnel People recently discovered.
The Personnel People was established some 25 years ago but changed ownership in 2010 when Su Harvey and Donna Howlett took control. As one of East Anglia’s leading independent recruitment agencies, the business required finance to purchase £10,000 worth of computers and server equipment to improve its operations.
However, because Su was a new director, she was seen as high risk and found it difficult to get credit, adding; “Finance companies were making it difficult for us by giving us lots of stipulations.” But, using credit underwriting expertise, Credo Asset Finance was able to secure a lease for the equipment that arrived only a few days later.
Su adds: “When we felt we weren’t able to get a loan, we were going to buy the IT equipment outright but this would have severely affected our cash flow as we may need this money in the future for working capital.”
We were advised of the benefits of leasing, including that funding would not be withdrawn unlike an overdraft or a loan. In the end, we saved £500 and had an ownership clause added so the equipment belongs to us after three years.”
Simon Gray, Managing Director of Credo Asset Finance adds; “leasing is better than a loan or using cash because the business still has working capital left and there’s no requirement to show affordability.”
He finishes: “So many businesses are refused finance or offered extortionate rates and it’s completely unnecessary.”
Su concludes; “Without access to fast and affordable finance, businesses are being held back so it’s really important to get it right and not drain cash flow. Credo Asset Finance is a genuine company and I felt they really wanted to help our business.”