Commercial Finance

Commercial Finance
Short Form Consultants was Established in 2016 by Nigel Whitfield who has 20+ years Banking experience and more importantly 10+ years of Commercial Finance experience covering the period following the financial crisis. Nigel has an in-depth knowledge and understanding of the demands placed on businesses and the need for a professional presentation of a funding proposal to meet the demands of funding providers.

Areas of specialty include Commercial Mortgages, Invoice Finance, Invoice Factoring, Asset Finance, and Working Capital Solutions.

Here at Short Form Consultants we believe in responsible lending advice and guidance. We make this pledge of transparency as we think business owners deserve to be treated fairly and with respect.

We follow some core principles when helping clients with Commercial Finance.

Transparent and Fair Terms

It’s your right as the customer to see any terms and costs of financing you are offered in writing and in a format, that is clear and accurate.

For lenders, we will seek –

Transparent Rates – We want to see a clear annual interest rate or APR.

No Hidden Charges – Full disclosure of any advance and scheduled charges.

Plain English – We want to see all the loan terms in an easy to read understand manner. This includes the loan amount, frequency of payments and any collateral that may be required to secure it.

A Clear Comparison – A pricing presentation that states all key points, terms and pricing to the borrower when the loan is summarised.

Non-Abusive products only!

We do not want you to end up with a commercial finance product designed to trap you in the expensive re borrow cycle. We believe that the profitability should come from the success of your efforts, not being unable to repay the loan in line with its original terms.

For lenders, we will seek –

No Debt Traps – In the event the borrower cannot repay the loan we only want to see credit extended if a due diligence process confirms that the borrower has a credible recovery plan in place.

No Double Standards – If you refinance we don’t want to see ‘new’ fixed charges added to the principle agreement.

No Pressure – We want our clients to be able to consider their lending options without the hassle of pressure sales and timelines.

Responsible Underwriting.

You want to work will lenders who will support a successful outcome. Not a failure.

Many lenders will accept high loss rate as ‘a business reality’ whereby they pass the cost back to you in the form of high interest and closure fees.

We don’t accept this.

For lenders, we will seek –

Belief in the Borrower – This means that in the event of an offer they make a confident one. Sure that you can repay the entire balance and meet the obligations without default.

Interest Alignment – Some lenders will use a portion the borrower’s gross sales as a form of repayment. Particularly with Invoice Finance. Still through various indicators the lender should confirm that the business can remain profitable or is on a credible path to profitability.

Financing for the Right Amount – At Short Form Consultants we offer a bespoke approach whereby we want to finance to the client’s needs, rather than simply offering the most they qualify for.

Credit Reporting done right – Reporting to credit agencies provides the necessary information for lenders to make informed decisions on whether an applicant can repay. Lenders should not do this for underwriting though. Only in certain circumstances (like after a default) should the repayment performance of a borrower be reported back to a credit agency.

Dealing with a Commercial Finance Broker

We are fortunate enough to work with some of the most reputable NACFB Commercial Finance Brokers in the business.

We passionately believe in fair treatment from Brokers.

We require honesty and integrity at all time, also impartiality and transparency to the need of your proposal.

For any Lenders and Brokers we seek –

Transparent Loan Options – We require all loan options that the borrower Is eligible for to have the lowest APR emphasised to them. We also ask that the finance broker discloses all the lenders who have been approached on the client’s behalf.

Transparent Broker Fees – This means full disclosure of what the broker gets as a commission. Either directly or indirectly, paid in advance or as part of the loan.

Empowering the Borrower – Inform the client on the different loan options and reasonable ensure that this is understood. Brokers should always be open and forward with APR’s and Loan calculators. This ensures clients can shop around easily.

No Conflict of Interest – These should always be disclosed by the Broker. Weather this is to do with an incentive to sell a business loan or a more favourable fee structure they should always be acting in the borrower’s interest.

Non-Discriminatory Lending

This may seem obvious but we believe in the principles behind fair lending laws and legislation. This includes the Equality Act 2010, which aims to prevent discrimination against those seeking credit and Commercial Finance.

Fair Collection Practices

In the event a client has payment difficulties we believe in fair and respectful treatment. Loan defaults should not be collected on until this has been discussed properly with the client and all other options exhausted.

For lenders, we seek –

A Fair Treatment – All lenders should be working within the Fair Debt Collection Practices Act 1977. It states requirements that debt collectors and lenders should adhere to. It also provides consumers with protections and methods to dispute or validate debt information.

Oversight Responsibility – Due diligence in vetting and overseeing the collection methods of both debt collectors and buyers. A lender should not be working with firms who do not provide fair treatment.

Information Accuracy – All information should be recorder and transmitted accurately to any third parties involved.