A new business finance brokerage, Acceptance.co.uk, has just launched to help UK businesses find better funding deals and avoid paying more than necessary for business loans.
Founded by Daniel Tannenbaum, the business was established after recognising the continued financial pressure on small businesses in the UK, the need for affordable finance and how many companies accept the first finance offer they receive, often without realising that better rates and more flexible terms may be available elsewhere.
With some business finance products carrying interest rates of 30% to 50% or more, taking the time to explore alternatives could make a significant difference to a company’s finances. From managing cash flow to settling urgent tax bills, the cost of borrowing can have a direct impact on a business’s ability to operate and grow.
Most products featured are unsecured, meaning that customers do not need to put down any security and eligibility is based on business income, cash flows and financial accounts. Companies need to be trading for at least 12 months to be eligible.
Tannenbaum commented: “I found myself looking for business finance when upgrading our offices and funding our marketing drive last year. I was quickly lured into the biggest lenders who advertise heavily and was on the verge of proceeding. It wasn’t until I went through another broker and shopped around did I get offered significantly better terms. The lender was lesser known, but significantly more effective. Why should I be paying 30% APR when I can pay 10%?”
“Another huge issue I stumbled upon was how larger lenders do not reduce interest payments with overpayments or early exits. With so many types of personal loans and mortgages, paying off early reduces the overall balance. But a lot of large business lenders have this buried in their terms and conditions that the overall interest and balance does not reduce – and you should work with a lender that gives you this option because the potential saving is ginormous.”
The brokerage works with a select panel of specialist lenders to help UK businesses explore suitable finance options, with the aim of finding competitive rates, appropriate repayment terms and the best chance of approval for their circumstances.
Funding can be used for a wide range of business purposes, including paying HMRC liabilities, managing working capital, covering payroll, purchasing equipment, refinancing existing borrowing and financing expansion. The service also caters to specialist requirements, including finance for dentists, professional practices and small and medium-sized enterprises (SMEs).
A key part of the company’s approach is helping business owners understand that high-cost commercial borrowing is not their only potential option.
Depending on the circumstances, certain government-backed or government-supported finance schemes, like The Growth Guarantee Scheme, may offer rates below 10% APR.
“There is a criteria for these lower cost loans, your business may need to have been impacted by covid or other competing terms. The availability also depends on the scheme, lender and applicant’s eligibility.”
The online application process on Acceptance.co.uk is designed to be straightforward and free of charge. Businesses can submit an enquiry online, allowing the team to assess their requirements and explore potential options through its lender panel.
An initial assessment will usually require three to six months of business bank statements and the most recent set of company accounts, although requirements vary between lenders. Other requirements involve a minimum trading history and most business loans are subject to personal guarantees from the individual borrower as added security for the lender.
Where supported by the lender’s process, initial enquiries can be assessed without affecting the applicant’s credit score. Any subsequent credit checks will depend on the lender and the stage of the application. There is no obligation to accept an offer or proceed with any finance.
“Our aim is to give business owners more choice and help them make informed decisions before committing to borrowing,” added Tannenbaum. “Whether they need short-term funding to bridge a cash flow gap or finance to support their next stage of growth, we want to be there to help them understand what options are available and help them secure a better deal.
