TSL Express Daily News
The Secured Lender
SFNet's 40 Under 40 Awards Issue
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Top 5 Apps for Organizing
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The Importance of Stretching
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SFNet's 40 Under 40 Award Winners Panel Recap
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SFNet's Inaugural YoPro Leadership Summit
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It’s a Marathon, Not a Sprint
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It’s Not Too Late – Five Member Benefits to Cash In On Now
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It’s Time To Break Up With Your Phone
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Lien Management – What You Need to Know
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Potential Impacts of Blockchain on Commercial Lending
Jan 15, 2018By Raja Sengupta, Executive Vice President and General Manager, Wolters Kluwer’s Lien Solutions When it comes to the rising importance…
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How to be a Good Leader
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Fintech and Due Diligence – Disruptors and Established Firms Evolve
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A Commercial Banker’s Tickler Transition Plan
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Understanding and Developing Your Personal Brand: Four Steps to a More Intentional Career Progression
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Selecting a Technology Vendor: 3 Questions to Ask
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Why Back-Office Lending Automation Enhances Customer Satisfaction
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The Lost Art of the Loan Purchase
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Audit Prep: Why a Paperless Approach Makes Sense
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Back Office Support Services: Helping you approve more clients
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“All Assets” is the Key When Drafting UCC-1 Financing Statement Collateral Descriptions
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Paper Loan Files: Does Your Bank Know the True Cost?
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June 25, 2024
Source: Business Money
Specialist commercial finance provider Reparo Finance has launched a new revolving credit facility to support SMEs with cashflow to fund growth. It plugs a gap in the market for flexible access to £25k-£75k over the course of a financial year.
Reparo’s commercial director, Steve Richardson, explains: “We know it’s not easy running a business in today’s climate. SMEs with a sub-£1m turnover are often overlooked in the market. There’s a real need there for something different.”
“From conversations with business owners and brokers, we found that £50k was often the ‘magic number’ for working capital for many businesses. When using standard unsecured loans to meet this need, businesses risk becoming over-leveraged, taking out £100,000s in loans over the course of a year simply because they needed £50k of working capital on several occasions. Our new facility offers them something more suited to this scenario.”
Compared to repayments on a fixed term loan, the revolving credit facility is often a cheaper alternative for businesses, if used as intended – drawing down funds as needed and paying funds back incrementally, before the 12-month term ends.
Reparo’s revolving credit facility is a pre-agreed facility that offers businesses the flexibility to draw down funds as needed with up to 12-month terms. Its key features are:
- Minimum first drawdown of £25k.
- Further drawdowns as needed (up to 2 per month)
- No non-utilisation fee.
- Payments are interest-only. This is calculated daily and paid monthly for the interest accrued over that month.
The revolving credit facility is ideal for SMEs with an ongoing cash requirement to fund growth, whether that’s new hires, new premises, new equipment or simply working capital to pay suppliers or fulfil a big contract.
Steve concludes: “The new revolving credit facility offers SMEs the funds to fulfil large contracts, expand their team or open a new site – whatever they need to grow.
“Having the funds on tap to draw down as needed allows businesses to react quickly and grab growth opportunities with both hands.”
In parallel, Reparo has shifted its larger, secured interest-only loans into revolving credit facilities, allowing SMEs to access funding from £100k – £1m, whilst being able to draw and re-pay over a period of up to 24 months. These facilities still require security but can be more cost effective for an SME than a loan.
