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It is a widely held misconception because interest rates remain high, and perhaps business profit margin and cash flow have been somewhat hindered by inflationary pressures, existing debt and financial support – such as loans taken during the pandemic – that finance or mortgage options are not available. This isn’t correct. Appetite for trading businesses in all forms remains competitive across both loan to value options and rates available; the key is understanding the market, the lenders available and of course, the business itself.

We continue to receive a high volume of enquiries where existing support loans weigh down on a company cash flow. At the time, this was a lifeline for many, but the repayments are now adding considerable pressure. When you add inflation and rising utility costs, these hikes are biting and hitting businesses’ cash needed to service loans. There are financial options however, especially where there is an asset in the background such as a home, investment property or other business property, lenders are receptive.

How we help

The beauty of working with an established commercial finance broker like Omega is our access to rates and terms not available elsewhere, whether that be the high street or other transactional, or perhaps niche lender. We can facilitate these favourable options through our skilled professional team who bring a broad range of financial experience and long-standing relationships with lenders.

Competitive terms available

We have a new lender launching into the owner-occupied trading businesses market. This non-high street lender can offer 75% on rates and fees superior to those being offered in the same sectors from many high street banks.

New rates launched:

6.3% on a 5-year fixed offering

6.69% on a 5-year fixed offering

Subject to the sector and specific commercial asset type.

Another lender recently increased the LTV ratio to 80% across most trading business sectors demonstrating that competitive terms remain available for the right business or business owner. These terms are available up to 25 years, meaning existing debt can be refinanced, releasing capital for cash flow, working capital or reinvestment whilst spreading the terms over a 25-year repayment profile, sometimes meaning the monthly commitment can be lower than existing debt agreements.

A large growth area for Omega across the owner occupied sector is that where a property consists of mixed-use, for example, there is a trading business on the ground floor and residential above, this often comes with a lower interest rate available but also gives the added benefit of supplementing cash flow through receipt of residential income from the upper parts.

Refinancing and extending terms

Through refinancing many businesses can spread this cost over an extended term and in doing so also raise funds to support the ongoing business. Other clients are opting for a straight refinance and consolidation of debts into a manageable term and repayment strategy.

The Omega team and the lenders we work with are committed to generating finance solutions that makes the lives of our clients easier and enables them to trade and do business with the financial freedom they need. If your business has an asset of any kind, please get in touch so that we can help improve your cash flow.