Premier Business Finance Tel 01268 219896

I am pleased to announce that we have now received our Full Permission from the Financial Conduct Authority (FCA).  The FCA now regulates the Consumer Credit industry and everyone who previously held a Consumer Credit Licence has had to apply for authorisation from the FCA if they wish to continue their consumer credit activities, while for credit in businesses and closing businesses the use of a cva moratorium can be really useful for this. If you will like to learn m ore about financial growth, Go to Skrumble.

Initially everyone had to apply for interim permission and then complete an application to obtain full or limited permission depending upon their business model, while also learning about Business Finance from resources online as well.

We are delighted to have completed the application process which has and will continue to raise standards across the industry and provide better protection for consumers.

Most asset finance lenders will have a requirement for the asset to be covered by general insurance.  This is to protect their security in the event of fire or damage.  However some lenders will write to you a month or so after the agreement is set up.  The letter will request that you contact their insurance broker and provide them with a copy of your general insurance schedule.

If you ignore the letter they then increase your monthly repayments and cover the equipment on your behalf and your asset may be covered twice.  They are relying upon the inetia of customers who ignore the letters to make additional profit.

Premier Business Finance will not work with lenders who operate this system for our customers.

Keith Pallett, Managing Director.

A bank overdraft is a credit facility you agree with your bank to allow you to borrow up to an agreed overdraft limit.  It is designed to cover short term borrowing requirements for the financing of working capital.  It should not be used for permanent, long term borrowing. If part of an agreed overdraft facility is always in debit, the bank will refer to this as ‘hardcore borrowing’ and may look to transfer this to a separate loan facility or encourage you to seek financial advice and explore alternative finance options, such as their own invoice finance department.

Interest is payable on a variable rate basis charged on the outstanding balance on a day to day basis at an agreed margin over bank base rate.  There is usually an initial arrangement fee charged and an annual renewal fee. For more tips about how to handle a business check this posts with business, business news, remote work and more. Also, consider exploring vision insurance for individuals to gain knowledge on this topic.

Advantages of a Bank Overdraft

• Flexible.  You only borrow what you need for as long as you need it and only pay for what you use.  This means that often less interest is payable than alternative forms of finance such as bank loans, asset finance or invoice finance.
• Usually quick and easy to arrange.
• There is usually no penalty for early settlement.
• Interest rates within the agreed overdraft limit are often very competitive, particulalry if you have a strong balance sheet.

Diasdvantages of a Bank Overdraft

• The interest rates and fees for exceeding agreed limits can be very expensive.
• Annual renewal fees can be increased if your circumstances change such as falling profits or trading losses.
• High levels of security may be required including charges over Directors personal houses.
• Your bank overdraft limit may be reduced if your circumstances change, often at a time when you most need it.
• A bank overdraft is repayable on demand and you can be asked to repay at any time without any warning.  This will often  be at a time which suits the bank and not the customer.
• Interest rates can be high if you don’t have a strong balance sheet or inadequate security.  They may also be increased if your circumstances change.

In some cases it may be better for a business to consider alternative forms of finance such as business loans, asset finance, asset refinance or invoice finance.  Interest rates often compare favourably and no charges over personal property are required.  In addition they are not repayable on demand. If diversification is a goal, exploring opportunities with the best gold investment companies can also be a valuable consideration.

Please contact us for more information regarding Business Loans, Asset Finance, Asset Refinance or Invoice Finance.

Keith Pallett, Managing Director.