There has been little chance for a break for the Newable Business Finance loans team over the past month as loan application volumes have continued to remain very strong – thanks to all of our valued introducers for the continued high quality of propositions we are receiving at the present time.
You spoke, we listened
Following feedback received from some of our introducers, we are making some changes to our application process from Monday, 2nd September.
From this date, it will no longer be mandatory for VAT information to be provided at the time the deal is submitted. However, should Newable have a potential appetite for funding an application, confirmation of a client’s VAT position will subsequently be requested. No formal offer or indicative terms will be provided prior to the VAT information being submitted to us.
This information can, of course still be provided at the time the case is submitted along with other information that our Underwriting Team may find useful such as personal Asset and Liability statements from the applicants.
We believe these changes will allow our introducers to submit cases to us quicker and avoid any initial delays that may be caused whilst the VAT information is awaited from the client.
Another change that we are making following feedback is to ensure that all introducers receive an email confirming when a deal is passed to our Underwriting Team. At present when this occurs, the status of an application changes to “pending approval” on the Broker Portal and this remains another way of checking the current status of any of your cases with us.
Newable’s broker incentive will enter its final month in September so don’t forget to maximise your chances of being rewarded through this scheme.
Just to remind you, every broker which introduces a minimum of 5 loans to Newable Business Finance which are paid out between 1st July and 30th September 2019 will receive a bonus payment equating to £250 for each loan paid out between these dates.
We are keen that as many of our introducer partners as possible are rewarded by this incentive so please do keep the applications coming! Incentive payments due under the scheme will be made in October 2019.
Deal of the Month
Each month, we take a look back at a recent successful loan application. We would love to have the opportunity to assist other quality businesses who may be looking for growth funding, so please do get in touch should this be the case.
We were recently in receipt of an application from one of our introducers which was on behalf of a global supplier of electronic manufacturing services. The company has a successful track record of over 10 years and operate from trading premises comprising of over 15,000 square feet which houses top of the range equipment to service their international client base.
We were being asked to support a loan request of £150,000 over 60 months to support the company by providing additional working capital to support their ongoing growth strategies. These included the recent substantial investment which the business made in an additional production line which significantly increased sales capacity.
The most recent set of company accounts revealed revenues of around £6.5m with EBITDA showing in excess of £300k. The true figure was actually considered larger because of an exceptional item within the previous year’s trading and this was factored into our calculations when assessing the affordability of this request.
The company extensively uses an invoice finance facility and a small overdraft on their trading current account which is rarely used. The statements provided in support of the application showed five figure credit balances for the majority of the period reviewed. The statements showed numerous other finance providers and all of the facilities were being serviced without issue.
The directors are property owners and good personal credit files were observed.
Our overall assessment was that were pleased to sanction the loan request over a reduced term of 36 months subject to directors Guarantees and the support of the Enterprise Finance Guarantee.