Reward Finance Group: Common sense

Nick Smith Group Managing Director Reward Finance Group

ver the next 12 months brokers and lenders are all going to have to work even closer to help SMEs survive, recover, and prosper.

It was one thing for businesses to prepare to be COVID-19 ready and get used to the new way of working. However, dealing with the financial fallout, which is looming over the horizon, will be a much more difficult hurdle to overcome.

Cash balances have been significantly depleted. In addition, pressure is mounting as deferred financial obligations become due such as VAT, PAYE, rent, rates, and invoices held back by understanding suppliers. At the same time, companies have been encouraged to unfurlough staff with the Government offering a modest £1,000 sweetener for every employee they bring back. We also had the enormously successful ‘Eat Out to Help’ out initiative which resulted in 100 million meals being claimed in August.

Many will need to borrow to ease their way through the recovery, some for the first time. And we all know how complicated that can be with an extensive choice of short term loans, long term play, interest only, capital repayments, early settlements, working capital solutions, secured, unsecured, equity investments – the list goes on.

That’s why we are strongly advising SMEs needing additional working capital to tap into broker expertise before committing themselves to a particular lender or product.

Having become a Patron of NACFB in July, we believe Reward Finance Group is quickly becoming a valued partner for its broker Members.

Although we may not be well-known throughout the UK, we’ve built an excellent reputation across the North of England for our flexibility and speed.

From our offices in Leeds and Manchester, we have enjoyed nine years’ continuous growth with last year’s income increasing by 16% from £12.8 million to £14.9 million and total lending growing by 12% to £78 million. During the year 142 deals were completed, with client numbers now standing at 276 across both offices.

These results come against a background of continued investment in a very experienced team and IT, and a strong contribution from both our regional offices. Having reached critical mass, and with money to lend, we believed the time was right to bring attention about our products to brokers nationwide with the help of NACFB.

Unlike some other lenders we are not restricted by arbitrary policies or procedures. So, rather than box-ticking, we visit each business to quickly get to know them and understand their ambitions. We then do all we can to help achieve them, whether that is to build on success or to simply navigate through these testing times, by providing the right finance, at the right time and on the right terms.

In our opinion, borrowing doesn’t need to be complicated, so we have adopted a straightforward approach that works for brokers and their clients by narrowing down our lending to two products, which are both proven to suit businesses across all sectors. Our Business Finance product enables companies to take out a loan ranging from £50,000 to £3 million for up to 24-months. Secured against assets, we charge interest monthly with no capital repayment, so they can make use of the full amount. At the end of the term they can pay off the loan or renew it under a fresh agreement.

It can be used like a traditional overdraft, enabling your clients to borrow only what is needed, with interest being charged on what is drawn down. In fact, it is like dealing with a bank without the red tape, delays and underwriting restrictions.

We also offer Invoice Finance Plus, which is more than traditional invoice finance. As well as releasing money tied up in unpaid invoices, we can look at other company assets. So, if your client needs to borrow more, we can lend more, up to £3m.

Throughout these testing times, our approach has remained unchanged and whilst new deals have been a little more difficult to complete, we have always found a way by being flexible, agile and having a ‘can do’ approach to providing the funds and supporting the clients.

Over the years we have lent to companies across most sectors including engineering, manufacturing, print and packaging, clothing and footwear, retail, leisure and hospitality, property, and care.

As for the way we work, I will leave the last word to broker Brian Snape of Mighty Oak Business Finance, who said,

“I just like Reward’s common sense and pragmatic approach towards lending. It will continue to serve the market well as we enter the ‘new normal’.”