Insights from our underwriting team

Welcome to our bi-weekly newsletter. In this issue you'll learn more about our loans product, find out the story behind our deal of the week, and see how you can take part in our Annual Broker Survey .

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Insight into... Loans

Our loan product is widely used by many of our brokers. For those of you less familiar with it here are some bullet point features:

• Minimum size for a stand-alone loan is ￡75,000, and maximum size is ￡1million. We can sometimes do smaller loans where they form part of a facility which includes a lease.
• As with our lease and HP facilities, the minimum term for a loan is 3 years and the maximum is 5 years.
• The purpose of the loan must be linked to the term i.e. we cannot provide term loans for short term cash raising to pay e.g. a tax bill or to finance stock. However we can be fairly flexible in our interpretation so please ask Katie Dowse if you are uncertain.
• We charge a relatively modest 1% arrangement fee on all loans. This can be rolled into the loan balance rather than paid up front.
• We offer only a small 3% discount where loans are early terminated. Therefore our loan product is NOT suitable for a situation where the customer has expressed an intention to early settle the loan. Indeed in the early the stages of the loan the magic of compounding interest can lead them to owe more than the actual advance.
• In certain circumstances we may seek to pay the loan proceeds to a third party lawyer rather than directly to the customer e.g. business purchase.

Speak to Katie Dowse to find out more information on how this product could benefit your customers.

Deal of the Week | ￡1.2million | Drinks Bottling Line

Read on for the story behind this deal…

When a sustainable drinks company spotted an emerging market trend, they knew it was something they could capitalise on.

To make it work they needed ￡1.2million for a drinks bottling line. But when the approval process was going too slowly through the banks, Black and White Asset Finance knew Asset Advantage were the funders who could turn this around quickly.

And they were right – we went from receiving the proposal to payout in under two weeks.

This shows the benefit of working with small, nimble funders when you want to get your financing moved quickly from proposal to payout, and help your customer react quickly to market trends.

Did you know we lend from ￡15,000 to ￡1million? Contact Katie Dowse to discuss your next deal with us.

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Feedback from the NACFB Conference and Asset Finance Connect Conference

Live events are a great way to meet our brokers in person, and hear about the latest developments in the market. In amongst the lively catch ups, two things stuck out for us:

1.???Our brokers appreciate that we listen well. We spend a lot of time researching industry sectors and carry out customer site visits so that we can understand how the businesses work. This helps us interpret proposals and leads to swifter, more positive decisions, which was appreciated by our broker panel.

2.???In a rapidly changing market place, our brokers valued our consistency and the fact that we’ve been applying the same approach to SME finance since 2007 - the consistent and efficient application of common sense.

We work really hard to put ourselves in your position, appreciating that selling finance into SMEs is not straightforward. This means only asking for further information on proposals when we really need it and setting approval conditions that reflect the strength of the credit covenant.

If you would like to join our broker panel – please contact Business Development Manager, Katie Dowse .

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And finally… Tell us your thoughts!

It is time for our Annual Broker Survey - this is your chance to tell us what issues are most crucial to you in reaching a deal for your customers. Take part in our survey here - the survey closes on 30 June, and we're looking forward to sharing the results.