In the rapidly evolving landscape of small businesses, financing emerges as a critical stepping stone towards longevity and growth. Yet, the mere mention of financing can evoke images of the daunting paperwork, lengthy processes and restrictive eligibility criteria of traditional banks.

It doesn’t have to be so hard. In fact, the unique model of leading small-to-medium enterprise lender Bizcap makes obtaining a business loan simple, as it offers fast access to flexible loans to businesses deterred by other lending institutions.

The Challenge

Traditional banks may occur as the first point of call for brokers seeking loans for their small business clients. Their household brand names accompanied by strong reputations and competitive rates appeal to SME clients.

The challenge for business owners, though, is that banks have stringent requirements for approval, including high credit scores, collateral and extensive financial history. These can be insurmountable hurdles for new or smaller businesses.

In fact, only 42 percent of SME bank loan applications get approved, according to a recent study by BVA BDRC, following a steady decline from a peak of 88 percent in 2019.

Two key reasons for SME loan applications being declined in that period were a lack of track record and poor credit issues. What’s more, the smaller the business, the less likely it was to secure a facility.

Added to the challenge of eligibility are lengthy and complicated application processes, characterised by piles of paperwork and long wait periods for loan approval. This can significantly drain the business owner’s time and resources, and ultimately cause them to miss out on timely opportunities. Though some banks do offer “fast” loans, they tend to only fund these for top-tier clients.

If small business owners have the time and resources to apply for a bank loan, and if they meet their eligibility criteria, they should take advantage of the competitive rates offered by those institutions. However, if they need capital fast, or if they cannot secure their desired amount, other options exist.

This is widely recognised among UK small businesses: 52 percent of SME loan applications are not made with a main bank, according to the BVA BDRC study. This follows a trend in SMEs shunning main banks, with borrowing events at main banks down to their lowest levels since 2019.

In this case, one might look to non-bank lenders, known for their quicker and easier application processes. However, not all non-bank lenders can offer the necessary respite, with limits placed on the industries they service, the amounts they lend and criteria such as minimum credit scores.

So, who can small businesses and their brokers turn to for open-minded lending and fast access to flexible funding solutions?

The Solution

Bizcap makes getting a business loan simple. The SME lender, who entered the UK market this year after experiencing rapid growth in Australia and New Zealand, is proving to be a game-changer for local businesses and brokers.

Bizcap’s Chief Commercial Officer Rhys Cunnah and Co-CEO Zalman Blachman

Unlike other lenders who inherently look for reasons to decline a deal, Bizcap actively seeks out ways to support viable businesses in achieving their goals.

Whereas other lenders may reject loan applications based on a rigid set of criteria, Bizcap’s unique credit assessment model takes into account both qualitative and quantitative factors to gain a holistic view of each customer’s financial situation and business opportunities to take a risk-assessed approach to lending.

This holistic approach to credit assessment allows Bizcap to say “yes” more often to SMEs across a wide range of industries and risk levels, including those with existing debt and past judgments. It is also why 76 per cent of eligible Bizcap loan applications get approved.

The lender understands that running a business is hard, so it does not get deterred by bumps in the road; if its team of expert credit professionals believes a business faces a viable opportunity, Bizcap will actively seek out a way to support it.

That was the case for Jake S.*, the owner of a plumbing business that services large commercial projects. He was unable to secure funding from both his bank and another non-bank lender, as operating in the construction industry and having a degree of existing debt, his risk profile did not match their requirements. Bizcap, however, saw that he had a long-standing business with relatively good cash flow and account conduct, as well as a healthy credit score.

With the support of Bizcap’s loans, Jake covered the costs of wages and supplies during a period of delayed income, and repaid his loan once his next major project got underway. “The speed, the personable approach, [and] the willingness to listen to the business owner rather than just the financials,” Jake said, were all aspects of Bizcap’s service that he valued.

“We probably wouldn’t still be around if it wasn’t for the loans and help we got from Bizcap,” he added.

Bizcap’s Co-CEO Zalman Blachman says it’s the lender’s holistic approach to credit assessment that allows it to make judgement calls like these.

“When assessing a small business’ loan application, we focus on their current cash flow and, though we do take their history into account, we don’t let past blemishes like defaults or low credit scores automatically disqualify them,” he says. “Instead, we assess real-time potential, and believe in giving businesses a chance to rebuild.”

Bizcap also cuts through the lending landscape with its turnaround times. Through streamlined end-to-end processes, Bizcap can approve loans in as little as 3 hours – with minimal documentation and without upfront credit checks – then fund them that day. This efficiency allows brokers to quickly deliver decisions and funds to their clients, and empowers SMEs to seize timely opportunities and get on with business.

One such business was a developer who needed funds quickly to purchase a new property. He reached out to Bizcap at 9 o’clock one morning and by 2pm had £420,000 in his bank account. Without those funds, he would have missed out on purchasing the property. “Bizcap is quick and convenient,” said Michael M., the small business owner. “They understand what I need.”

In a world where small businesses often face hurdles in securing financing, Bizcap stands out as uniquely supportive. By prioritising flexibility, speed, and a holistic assessment of each business’s potential, Bizcap empowers small businesses to overcome financial hurdles and seize opportunities that drive growth. Where time is money, Bizcap ensures entrepreneurs have both on their side.

*Not his real name. The name of the plumbing business owner has been changed to protect his privacy.