A finance firm is in place to speed-up access to vital loans and cash support for businesses in jeopardy because of the Covid-19 pandemic.
St Asaph-based FFP Solutions is a Funding Circle Business Champion Broker and in a prime position to unlock funds for struggling firms after the fintech giant was listed among the accredited lenders for the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The original group of lenders was largely made up of high street banks, which have in past weeks been criticised for their slow response in dealing with tens of thousands of loan applications. This though has improved with the new 100% government backed 'bounce back loans' launched this week.
FFP Solutions say the addition of Funding Circle will further accelerate support and assist organisations when they need it most.
Director Richard Lloyd-Jones said: “It’s very good news that the scheme has been opened up to include Funding Circle and we are hoping that the other fintech lenders will also be accredited shortly, as the pace will now move a lot quicker, which is what companies desperately needed.
“We’ve been speaking to clients every day and for weeks they’ve been asking for this, they had been waiting and waiting and not heard anything from the banks.
“Things should really get moving now, and as a Business Champion Broker we can act quickly to offer advice and help process applications for any firm, no matter who they bank with.
“It means we will take priority when it comes to underwriting and can get decisions made either way and funds released a lot faster.
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“The majority of banks have been delaying and declining people, making it difficult, so we will do our best to help them.”
He added: “Obviously, the introduction of the Government-supported Bounce Back loan will hopefully see funds distributed quicker, but this is restricted to 25% of your turnover in the 2019 calendar year, up to a maximum of £50,000. In our opinion many businesses will require more than this to see them through the pandemic.”
FFP explained businesses will not be required to make repayments for 12 months; there are also no fees payable to take out the loan and no interest payments during that period.
All loans will have an APR (Annual Percentage Rate) below 9% and companies can borrow between £10,000 and £250,000 over a period of two to five years. No personal guarantees are required.
Richard added: “We had our first offer on Sunday morning. The application went in late on Thursday night and all that was required was the latest set of accounts and the last six months of bank statements. A loan was agreed for £250,000 at 3.37% APR.”