Alternative Lender Market – It Pays to Have an Adviser in Your Corner

Since the wake of the financial crisis, the alternative lender market has been an increasingly popular choice of funding for SMEs. The growth in the alternative market has certainly increased the options available to business owners, which can only be a good thing. However, many lenders continue to be surprised at the number of owners who believe that raising funding can be achieved without the support of experienced corporate finance advisers, whose role is to guide and back owners and thus put them ahead of the curve in terms of completing a successful deal.

So, what can we do to help you get your deal over the line? As outlined below, we can provide guidance to you in many areas, all of which will add real value to the funding process:

  • Summarise the alternative types of funding that are available to you and that are most suited to your business strategy;
  • Talk you through the advantages and disadvantages of the different options available;
  • Assist you with the preparation and presentation of the information that funders will need to see;
  • Provide prospective lenders with the information in a presentation format which will attract their attention;
  • Arrange and attend initial meetings with interested funders;
  • Deal with queries and issues that arise post initial meetings, thus enabling you to remain focused on running your business;
  • Ensure the deal moves forward efficiently, thus reducing the potential for bottlenecks which may cause lenders to pull out and the deal to fall over;
  • Minimise the risk of potential tensions between you and the lender which can often arise as the pressure to complete the deal within the agreed timescale rises.

The above highlights the key considerations and shows how we can work with you to smooth the funding process. We believe that the main focus of a business owner should be to run their business. We do not believe that a business owner should be expected to keep track of relevant developments in the lender market and know how to initiate a funding assignment. We believe that our role is to do this for you and that this will be vital to your success.

It is important to note that business owners are being urged by many voices in the lending industry to engage with experienced advisors who can not only add value in the early stages, but can also bridge any expectation gaps between borrower and lender at the back end of the process. There is clear evidence to show that this advice will prove its worth and more than pay for itself.

As Nick Fenn recently stated in Corporate Financier Magazine:

“An unadvised client is more likely to end up with a failed process, resulting in a significant amount of time wasted for everyone involved.”

If you have any questions or would like to speak to us about funding options, your M&A strategy, succession planning or a business valuation, please contact Hannah Farmborough or call on 0207 429 4147 to be put in touch with one of the members of our Corporate Finance team.

This article originally appeared on the blog of our member firm, MHA MacIntyre Hudson.