As UK PLC continues riding the roller coaster of economic uncertainty and rising interest rates and costs. The UK SME owner managers are finding themselves having to make daily decisions based on a changing landscape.

Navigate Business Finance are seeing more pressure on short term cash with many SME’s servicing Government Backed Covid loans and HMRC payment plans. This has become more troublesome with many loan providers changing their risk profile and terms on there product to reflect short-term borrowing at high interest rates.

All loan companies are looking for Personal Guarantees from directors and the majority will expect the director to have ample equity in UK property to cover the guarantee liability. The days of non-personal guarantees funding is no more and even the new Recovery Loan Scheme which has 70% government backing requires personal guarantees.

We will see more directors looking to secure funding against fixed assets, property and receivables to enable businesses to grow and service demand. It will be vital that directors model rolling 12-week cashflows to spot any future issues well in advance.

Recovery Loan version 3 accreditations have been slow and feeling is there will be less funders offering this as an option. We are back to Business as Usual credit policies and directors need to ensure they are seeking advice from an independent broker/consultant to source the correct solution.

If your business needs support in reviewing working capital both on a short term and medium term basis please get in touch with our MD Mark Riches who has 30 years business funding experience for more information.