Need Finance But Lack Security?

"No security - No deal" can often be a frustration...but it needn't be this way  

Do you have a viable business proposition but lack collateral to raise the finance that you need ?

Most banks and traditional financial institutions lend against the security of freehold property or other assets and are not really in the business of taking risks. Unsecured funding is often only available to the very largest companies with extensive track records, but that is not always the case.

As with any financial requirement for any trading business it is basically a matching process – matching the right lender to each situation. Spiral can assist in sourcing the most appropriate package to cater for your particular needs, often without needing security.

Some examples of what would typically be called ‘unsecured finance’ are:

• Low level or start up funding  -  some institutions may advance up to £50,000 if the management team is strong and the business idea sound without taking formal security. A reasonable cash contribution is generally required and sometimes unsupported Guarantees but without tangible collateral.
• Small Firms Loan Guarantee Scheme – a Government backed initiative aimed specifically at situations where the business proposition is sound, apart from absence of security. The DTI will provide a Guarantee to the Bank of 75% of the advance to bridge the security gap. Spiral can advise on whether you will qualify.
• Short leasehold finance  -  most lenders do not consider leasehold premises to be acceptable as security unless the unexpired term is in excess of 35 years, sometimes more. But not everyone, some lenders will advance against shorter leases. Let Spiral help you find them.
• Equity based or venture capital funding  -  often for more complex or rapidly growing concerns, sometimes for more speculative ventures. Rather than offering security the business will allocate some shares so the lender becomes an investor taking a stake in the business itself. Many alternatives available but help is at hand.

Contact us now to discuss your needs, free of charge and without obligation