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The Importance of Urgency and Understanding in Borrowing

FOLK2FOLK

In a climate of economic uncertainty, where lending criteria has become ever more stringent, brokers and borrowers are navigating a landscape fraught with challenges.

Economic headwinds have significantly buffeted the economy in recent years, emphasising the need for lenders to adapt and understand the evolving requirements of business borrowers. Brokers are on the frontline, witnessing the direct effects on loan accessibility and terms, with many business borrowers likely to be finding themselves outside the conventional risk frameworks of traditional lenders.

When speed is a factor

Understanding that for many borrowers speed of funding is essential to their plans, FOLK2FOLK has honed its processes to credit-approve loans typically within 2-4 days. Our typical funding timeframe from application to funding in about three to four weeks.

Our agility is intentionally designed to meet the funding requirements of businesses, enabling them to capitalize on opportunities with expediency.

A more considered point of view

Now more than ever, a rigid tick-box approach to lending is outdated. Fluctuating and uncertain market conditions require adaptive solutions and a more considered point of view.  FOLK2FOLK’s holistic approach to assessing borrowers, deals, and security property results in a more nuanced and flexible evaluation that benefits borrowers.

Consider, for example, a current case which illustrates FOLK2FOLK’s speed and willingness to understand and provide a solution for the unique requirements of the borrower. The borrower was seeking to complete a wedding venue development, alongside needing working capital for the business’s first few years of trading. FOLK2FOLK stepped in, where banks and other lenders would not due to a reluctance to accept a partially developed property as security. We took a comprehensive view, recognising the inherent strengths of the deal: a low loan-to-value (LTV) of 30%, the business acumen of an experienced owner, and the considerable potential of the venue and business as an attractive future onward refinance. This deal is a testament to our ability to see beyond the numbers, giving business owners a chance when others may not.

We are the UK’s largest peer to peer lending platform, having facilitated the funding of £675 million into SMEs for a myriad of business purposes. The success stories within our portfolio are  testament to our commitment to helping businesses start, grow or diversify, when conventional funding routes are either closed to them or simply not fast enough. In this example, the broker’s praise of our understanding and adaptability was a reaffirmation of our client-centric approach.

For successful funding, strong broker-lender relationships are crucial

The value of strong relationships between lenders and brokers grows exponentially in difficult economic times. As a steadfast ally for our brokers, we foster partnerships that will weather economic storms and provide stability and confidence for all parties.

We welcome brokers to reach out and discover how FOLK2FOLK can help their clients with an unparalleled sense of urgency and understanding.

FOLK2FOLK is the UK’s largest peer to peer lending platform and provides funding from £100,000 for almost any business purpose, secured against UK property.

Talk to us and see if we can help: 01566 773296 / brokers@folk2folk.com / www.folk2folk.com

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