Why brokers are giving great feedback on Rivers’ reliable financing

At the start of this year I joined the team at independent lender, Rivers Finance Group PLC as Business Development Manager – Corporate Loans.?

The company was established in 2010 and is exclusively involved in running its own lending book, offering? a suite of finance products and corporate loan facilities, available for different amounts and time frames up to five years, including secured loans, low start loans and asset finance.

Having worked in business finance for more than 30 years, and having had a particular focus on short-term lending and alternative finance since 2017, what I find really exciting at Rivers is their storybook lending approach. That breadth of product availability allows the company to meet the needs of businesses at different stages of their maturity, but also their preference for human underwriting and careful due diligence is put to work in the best way possible - by making sure the loan is not only responsible, but actually helps businesses to thrive. That's something a computer algorithm simply cannot offer.

Lending that aligns with business needs

It seems to me that responsible and purposeful lending is more important for SMEs than ever. Funding and finance options have always been important for businesses in order to help facilitate sensible cash flow. However, with the various challenges that have hit the economy since the pandemic, it's become even more essential to not only have access to funding, but access to responsible lenders who work in a timely manner and deliver products that align with business needs.?

In November, Asset Finance International reported that one in 10 SMEs that had struggled to access funding eventually folded, while 72% had experienced difficulties accessing funding.? The Federation of Small Businesses (FSB) also reported a tightening credit environment for SMEs, with only 53% of credit applications successful in Q4 2023, a decrease from 62% in the previous quarter. They said that the primary reason for seeking finance has shifted to cash flow concerns, representing 55% of applications, up from 26% in Q4 2022. The other main drivers of finance applications were to expand businesses (19%) and to upgrade equipment (15%).

Meanwhile, setting the stage for all this, The Bank of England has kept interest rates on hold for the fourth consecutive meeting, albeit at a 15-year high of 5.25%, with many thinking they are more likely to reduce bank rates than increase them further in the year. Either way, Rivers operates a fixed interest rate policy on loans, so as soon as a transaction is agreed, you know where you stand and what your repayments will be each month.?

Experienced, human underwriting?

So far, what has been apparent in my work at Rivers, is that the brokers I am speaking to are pleased with the experienced, human underwriting process that we use, rather than basing everything on a computer algorithm. That decision was intentional because not only do people learn to play the system on portals, but the customer service is typically sub par.?

We want to know the whole person and the whole situation - why someone wants a loan and what they want it for so we can help them get the right amount and the right term. Often you find that people ask for less than they really need because they think they're more likely to get it, but if the loan amount doesn't fulfil the requirement then it won't help them grow or thrive. We want to make the borrowing work in terms of the amount and the affordability, which we can do thanks to our portfolio of products. For some it might be best to have a loan for 12 months, while for others it's better if it's spread over five years.

Furthermore, we make decisions quickly and the money can be in your account the same day as approval if needed. For Rivers it's about understanding the realistic needs of businesses and delivering a product and service that meets them, rather than providing a loan at any cost. Rivers is in the business of lending - they want to lend and as a team we will always try to find a way to work with customers, but ethics have to be at the heart of it. We choose brokers with the same attitude - the ones who want to deliver sensible cash flow, and so far I’m very much enjoying working with old contacts and new, to deliver a service that I think the market really needs right now.

If you would like to find out more, please do not hesitate to get in touch with me via email ([email protected] ) or messaging me on LinkedIn.