The process is short. You tell us what you want to buy and what it costs, we gather some basic information about your business, and we put the case to the lenders on our panel most likely to fit it. You get an indicative decision, then sign the lender’s documents, and the lender pays your supplier.
In practice there are five stages:
1. Initial conversation. What the asset is, roughly what it costs, how long you want to spread the cost over, and whether you want to own it at the end. 2. Information gathering. Business details, trading history, and identity verification for the people behind the business. Lenders may also ask for accounts or bank statements, and many will run a credit search. 3. Placing the case. We approach suitable lenders rather than every lender, which helps limit the number of credit searches recorded against you. 4. Decision and documents. If a lender agrees terms, you receive the agreement setting out the payments, the term and any charges. Read it in full before you sign — the agreement, not our summary, is what binds you. 5. Payout. The lender settles with the supplier and your payment schedule begins.
Applying does not guarantee that finance will be offered, and a lender may decline or offer different terms to those first discussed. Credit searches can be visible to other lenders and may affect future applications.
Most agreements are secured on the asset, and many lenders ask directors for a personal guarantee. Both mean there is something at risk if payments are not maintained, so make sure you understand what you are signing.