August 2014 - First 4 Commercial

Business Loans

What you need to ask when applying for a business loan

Business loans can often be complex and very daunting. There is so much information to take in and some of it you may not know about. Before applying for a business loan, it is recommended to prepare a few questions to ask, just to make the process a lot easier.

  • The Specific Terms of the Loan

Before finally agreeing on the price, it can be easy for both parties to misunderstand the final terms. Ask for a recap of the terms, how long you will have until you need to pay it back, minimal payments and exact dates of these payments. Also find out if you can set up an automatic payment from your business account. Ensuring you have these basic details defined and understood will save you hassle.

  •  Likelihood of Approval

Understanding how the bank approves loans is always an advantage. Once you find out the requirements, you can prepare yourself in the eventuality of being questioned about credit scores.


  • Does business experience factor into the risk equation?

Business experience can help in the credit decision. In the end, the decision will lie on your credit score, collateral and cash flow. If you do not have any of these, then the experience will not make a difference.

  • What happens if a default occurs?

Knowing the ramifications if a default occurs will help you prepare in the event that situation happens. Emphasise that you do not foresee a problem, but it is better to know how long a payment can be overdue before the bank starts to collect. Ask them what happens in the event of a missed payment.

  •   Who do I contact for further questions?

This is always important to know. The representatives selling you the loan might not be your point of contact. Get the contact details for future questions.

For more help and useful information go to


T: 01277 620083 F: 01277 658900 E:

A: 5 Alyssum Walk, Billericay Essex CM12 0SS


NACFB Compliance Service Facility

New Compliance Service Facility unveiled by NACFB at Commercial Finance Expo

On June 25th, the NACFB revealed a new service that is available to its 1200 members. The aim of the service is to provide support through the Financial Conduct Authority (FCA) applications and regulations process around the new Consumer Credit Act.

Adam Taylor, NACFB Chief Executive has said “The new service to members is being offered below the normal cost and will include a full application assistance package”

The service will offer several seminars and workshops aimed to help assist commercial brokers with their FCA applications and to ensure that during the interim period, they do not break any FCA rules.

“It is important that we help members comply with the new FCA regulations” said a spokesperson for the NACFB.

Other services will include an audit and will be supported by the NACFBs four patrons; Shawbrook Bank, Investec, Aldermore and Close Brothers Asset Finance.
The process will begin with seminars in which members of the NACFB can attend for free but requires for non-members to sign up for the NACFB  to get the package.
The association has already provided the first presentation of new software at the NACFB Commercial Expo that was held on the June 25th. Members also had the opportunity to meet and discuss with experts what lies in store for the future.
The service will continue to run workshops from July to August and is the first step in providing support for NACFB members. The event will continue to be held at Birmingham’s NEC.

For more help and useful information go to


T: 01277 620083 F: 01277 658900 E:

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

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