Posted: Thursday, 1 August 2024 @ 09:20
Following the arrival of Ian Mills as Business Development Manager – Corporate Loans at the start of the year, Rivers has further extended its portfolio of business loan services this year to include a short-term business loan facility specifically designed to support healthy working capital requirements in SMEs.
Designed for sensible cash flow and realistic capital management
Having begun with a soft launch offering loans between £10,000 and £75,000, the new facility was introduced to bridge a gap in funding requirements of small and medium-sized businesses. It joins a suite of finance products and corporate loan facilities, available for different amounts and time frames from three months up to five years, including secured loans, low start loans and asset finance.
The new face of short-term business loans
Unlike other lenders typically associated with this space, as an experienced niche funder, our short-term loan product is designed with the same ethics as our other services in mind. Understanding the rigours of SME development, we know that sometimes short-term loans are necessary as a mechanism for sensible cash flow and growth.
As a result, the product follows the same protocols and due diligence as all our medium-term loan options. These include a credit assessment, experienced, human underwriting processes to ensure affordability and sensibility, and fast decision making, ensuring this is the correct service for each client who applies.
By adding this capacity to our portfolio of business loan services, it also gives clients the option to move into medium-term loans and other services if it's better suited or preferable down the line.
Positive feedback from brokers so far
Within that scope, we have taken the unusual step of pricing these loans in line with tier 2 lending, which has been praised and acknowledged by our brokers so far as a fairly priced product for proper working capital.
The launch of this product comes at a time when SMEs are finding it harder to find funding through the traditional high street banks, and alternative lenders like Rivers are filling the gap. Business Money reported this month:
"30% of the small business directors and owners said they plan to seek secure new finance for their business in 2024 and 32% of those seeking finance will need it to support cash flow rather than for investment in business equipment or growth."
Ian Mills, Business Development Manager – Corporate Loans, said: "This is a unique offering in the market and one I have wanted to see for a long time in the lending space. Short-term loans are often associated with poor practice and figures that go well beyond the realms commensurate with sensible cash flow requirements. What we're offering at Rivers is true working capital. We work closely with companies to make sure we understand their needs and ensure this is the right product for them at the right amount and the right time. So far, it’s been met with great positivity and I'm looking forward to further conversations as the year goes on."
Rivers Chairman, Ratan Daryani, says: "The addition of our short-term loan facility means that we are now able to offer customers the full spectrum of financing requirements in our space, which is essential to our objective of supporting SMEs through sensible finance. As an SME ourselves, we know the realities of operating and growing a business, and we view this offering as a fundamental part of enabling companies to matriculate to the next level of their lifecycle."
If you would like to find out more about Rivers short-term loans please contact us via the website.
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