BLX is a sub-prime asset finance lender with advances ranging between £1,000 and £50,000 to customers that are small and start-up businesses needing to raise finance or funding for assets being acquired from a dealer. The typical BLX customer will normally have had a problem securing finance for a range of reasons.
Most of the company’s business introductions come from asset finance brokers and other introducers.
The asset finance sector in the UK is a multibillion-pound industry. Within this, there is a community of small businesses requiring urgent finance due to their being supported increasingly less by banks and other lenders. This need has grown significantly in successive financial downturns in the UK.
Asset finance lending services
Lenders decline many transactions, even in instances where additional security such as a second charge is offered, due to lack of funds and a more cautious approach being adopted. Furthermore, many lenders will not advance sums less than £15,000 as the transaction is often viewed as not cost-effective due to high finance company overheads.
BLX is currently benefiting from a substantial opportunity to satisfy small business needs for small ticket asset finance, while significantly reducing the risk of lending.
The company is approached either directly by a potential client, by an introducer or a dealer whose client is in need of funds.
BLX gives an immediate indication as to whether the transaction would fit its lending criteria and provides the customer with an idea of what the finance offer will consist of.
Full underwriting approval is confirmed by at least two directors within an hour. In all instances, it is made clear to the client that decisions are subject to an acceptable valuation of the property and/or assets being offered as security.
The following factors are considered by BLX before providing an approval in principle to the client:
- Can the customer afford the repayments?
- Why does the client need to raise the money?
- Does the customer own a property?
- How long has the customer been in business?
- Is the asset essential for the running of the business?
Once approval has been confirmed, the client pays an advance fee that is used by BLX to conduct a valuation of the hard asset and searches at the Land Registry, legal fees, and additional areas.
In a few cases, the company may take a charge on a property in order to approve a transaction. In cases such as this, the company will provide the client with a hire contract, following the execution of both the agreement and the forms.
With the provision of a letter from the client’s solicitor addressed to BLX confirming that they have supplied the requisite advice to the client, the transaction is paid out and BLX’s charge is registered with the Land Registry.
Key strengths of BLX
BLX has many years’ experience in asset finance lending and broking and a proven track record of delivering high returns on investment using innovative business support and management systems.
The company has established business connections with more than 2,000 existing business introducers, which all have a regular flow of small business clients requiring finance.
BLX’s services enable low-cost route-to-market, and its sophisticated systems result in low staffing levels and a minimised overhead base.
BLX has adopted a policy with the maximum term of any hire agreement is four years, which enables short-term risk and exposure periods.
Funds supplied under the hire agreements are secured via hard assets, property and other tangible assets, which minimise the risk of loss through default.
BLX was established by John Stickley, the co-founder of significantly and is dedicated to helping small business owners with their finance requirements.
The company recently secured a revolving funding facility from Conister Bank and wishes to increase its lending volumes significantly. Conister Bank is also now a 40% shareholder of BLX.