2020 Finance - A platform for funding growth

A Platform for Funding Growth

The 2020 Finance team advise accountants and their clients on a wide range of alternative financial products and solutions designed to meet the complex financial and working capital needs of a modern day business - all at highly competitive rates.

BENEFITS OF WORKING WITH 2020 FINANCE:√ Our Finance team members are recognised industry

leaders in their own fields√ Unrivalled sector knowledge and lending relationships√ Access to niche finance products not always available

through mainstream lenders√ Our team advise at every stage in the process of

securing finance.

2020 FINANCE CAN HELP WITH:

√ Business Asset Finance√ Working Capital Finance√ Property Finance & Bridging Loans√ Unsecured Business Loans√ P2P Lending√ Finance for accountancy practices.

“Traditional forms of business lending have been more difficult to obtain in recent years as bank lending criteria has significantly tightened. This has led to increased frustration, and in some cases hardship amongst progressive businesses throughout the UK. Whilst traditional sources of funding have become more restrictive, this has resulted in the development of an array of alternative finance products which are available to SMEs and larger corporates. 2020 Innovation are now able to offer our members and their clients the most comprehensive access to these modern funding alternatives. Delivered via our new funding platform, 2020 Finance, you can be confident that your clients will be offered first class guidance, competitive rates and an overall funding package that matches their aspirations.”

Adrian ChambersHead of 2020 Finance

The 2020 Finance team advise on a wide range of alternative financial products and solutions designed to meet the complex financial and working capital needs of a modern day business - all at highly competitive rates.

MAKING AN ENQUIRY

Submit an enquiry at:www.2020Finance.co.uk

Fact Finding meeting with client and advisor

Recommendations Application Process

Finance for AccountantsMany Lenders forget in their quest to serve traditional industry, that the professional services market has its funding requirements too. There is now a range of funding options available to Accountants, for example: √ Working Capital Facility which is based on a sales ledger formula √ Personal and Commercial Tax funding √ Acquisition Finance and MBO funding options.

√ Hire Purchase: allows you to buy an asset and pay for it over a period of time, spreading the cost via an agreement with 2020 Finance. An initial deposit is payable

√ Finance Lease – a rental agreement through which an asset can be obtained for a fixed term. At the end of the initial term, the agreement can be extended, or sold with a rebate of the sale proceeds to the client.

Business Asset FinanceBusiness Asset Finance is an agreement that enables businesses to obtain the assets needed to manage and/or expand effectively, and spread the cost/outlay.

Regardless of the size of business, the decision to invest in assets is always difficult. Take a look at some of the benefits:√ A great alternative to a traditional

bank loan√ Increased tax benefits√ Payments can be budgeted according

to cash flow√ Lenders secure against the asset.

Benefits of arranging Business Asset Finance through 2020 Finance: Solutions we advise on:

Product Type Bandwidth Requirements to Progress an Enquiry

Hire Purchase √ 12 –84mths at 3%-18%

Lease Purchase √ 12 –84mths at 3%-18%

• Latest full financial accounts • 3 months bank statements• Management accounts• Rationale for purchase/provenance of proposal

P2P LendingOur P2P experts have been involved in advising businesses on the raising of funds via P2P platforms since its emergence. They have even advised some newly emerging platforms on how to construct their lending guidelines and how they should treat new borrowers.

√ P2P is very bespoke. The idea is to assess what the client needs first rather than attempting to fit them into a ‘product’. Consequently, an early informal chat through is often the best way to progress

√ 2020 Finance P2P experts will guide you through the funding process, advising you every step of the way

√ Our knowledge of the market and the lending platforms is unrivalled.

√ P2P is a relatively new concept which bypasses the banks to allow businesses to borrow money directly from ordinary people. Businesses get the funding they need, and lenders get a better rate than they would leaving their money in the bank. In between the borrower and the lender stands the P2P platform which handles the collection and distribution of loans and repayments.

Benefits of arranging P2P funding through 2020 Finance Solutions we advise on:

Product Type Bandwidth Requirements to Progress an Enquiry

P2P – bespoke loan or revolving credit facility

√ 8-15% plus arrangement fee of 4-8%

of loan value

• Last year end accounts• Latest management accounts• Forecasts• Short form overview detailing need for funds

Property FinanceOur property finance experts specialise in arranging finance for new build, conversion and refurbishment projects for property developers and investors. Our property finance experts also arrange competitive bridging loans to ‘bridge’ a timing gap between a debt coming due, or the main line of credit becoming available. Our experts can also help you to purchase your business freehold with a Commercial Mortgage tailored for you.

√ Access to highly competitive rates, arranged by a team of experts who will walk with you to completion and beyond, advising you every step of the way

√ Access to a full range of property finance products from a vast range of lenders

√ Bespoke solutions tailored to you.

√ Bridging Finance√ Development Finance√ Developer Exit Loans√ Second Charge Loans√ Property Investment Loans√ Impaired Credit Loans.

Benefits of arranging Property Finance through 2020 Finance: Solutions we advise on:

Product Type Bandwidth PurposeRequirements to Progress an Enquiry

Requirements to progress and entry for ALL ENQUIRIES: Full property address, Description of the asset, Current Market Value, Purchase or Refinance, Existing Loan details, Schedule of tenancies, Amount of loan needed, Repayment term, Interest only or amortising

Bridging √ Short term funding when time is of the essence. Ideal for auction purchases, site acquisitions, refurbishment projects, tax bills or any other business purpose where funds are needed quickly

• Rates from 0.59% per month• Interest roll-up• Typical lender fee 1.95%• No early repayment charges• Loans up to 75% LTV

• Full address of the property• Details of any refurbishment or change of use• Source and timing of repayment• Date when funds are needed

Development Finance

√ Site purchase and construction of single houses, multi unit schemes flats, student accomodation, offices mixed use and commercial units

• Rates from 3.50% over Base • Interest roll-up• Arrangement fee 1.25% / Exit fee 1.25%• Funding from 70% to 90% of total project costs• JV funding up to 100% of costs available

• Project appraisal• Planning decision notice• Brief overview of previous completed schemes

Developer Exit Loans

√ Release capital from a completed development pending sale. We can also term out the development finance onto a long-term interest-only loan if the asset is going to be held as an investment

• Rates from 0.55% per month• Interest roll up• Lender fee 2%• No early repayment charges• Loans typically 70% LTV

• Sales particulars for the property• Practical completion certificate

Second Charge Loans

√ Release equity from a residential property for any business purpose whilst retaining the existing mortgage which may be on an attractive rate√ This type of loan is often used to raise a deposit for a buy to let purchase

• Rates from 6%• Long-term facilities up to 20 years• Most loans are amortising• Low set up costs• No early repayment charges

• Full address of the property • Mortgage statement • Income details for the borrower(s)

Property Investment Loans

√ Purchase or refinance of residential, mixed use and commercial properties

• Interest only loans up to 75% LTV• Rates from 2.99% over LIBOR• Typical set up fee 1.50% • Loan terms up to 30 years• Can pay off 10% of the loan each year with no early repayment charge

• Full address of the property• Details of existing and/or proposed leases. • Estimated value of the property• Brief overview of the borrower

Impaired Credit Loans

√ Finance is available for clients where there has been a previous liquidation, CCJ, default even Bankruptcy√ We can also source finance where Banks have agreed to Debt Foregiveness√ Our lenders focus more on the property than the credit history of the client

• Rates from 0.95% per month• Interest only, which is normally retained within the gross advance• Typical set up fees 2-3%, but could be more for very challenging cases

• Full address of the property• Details of adverse credit history • Date when funds are needed• Source and timing or repayment

Unsecured Business FinanceThere are now over 40 lenders willing to lend unsecured small business loans in the UK. Whilst the majority of these will require a personal guarantee (PG) from directors, some do not. The difficulty being they all have different criteria, different application processes and different sectors they prefer lending to. A complex and time consuming task for business owners. Our experts save you time by guiding you through these processes. Our experts work quickly to understand the business and financial requirements of the applicant, introducing only those lenders who can meet those needs and who are most likely to accept the unsecured business loan application.

Subject to status:√ Whilst lenders like to see 1 years’ worth of trading,

2020 Finance can offer unsecured loans to start ups

√ Borrowers do not always need to be homeowners√ Options may be available to those with an adverse

credit history√ Funds can be made available within a matter

of hours√ Personal loans can be used by sole traders and

directors to put money into their firm.

√ Unsecured business loans – lenders do not take a legal charge over any specific asset. The lender does, however, seek a personal guarantee from the borrower*

√ Merchant Cash Advance - allows you to raise finance based on your credit card turnover. Your proven average monthly turnover is typically the amount you can receive a merchant advance loan for.

*In the event of default the lender would seek to recover outstanding liability from the guarantor

Benefits of arranging Unsecured Business Finance through 2020 Finance Solutions we advise on:

Product Type Bandwidth Requirements to Progress an Enquiry

Unsecured Business Loans

√ 7-15%* plus arrangement fee

• Last full filed accounts• Management accounts from then to now if available• Last 3 months’ bank statements for the business• Details of each Director or Owner with more than 25% equity concerning if they are a home owner or not and, if so, the property value and mortgage outstanding on it• Permission from the applicant to have credit searches done on them

Merchant Cash Advance

√ A one off fixed cost of 20-35% of the advance taken

• Up to 12 months’ merchant statements from the business (just the front page of each month is required as long as it shows the total value of transactions done that month) • Copy of ID for the business principle(s)• Proof of address for the business principle(s)• A copy of a voided cheque or paying in slip for the business bank account

VAT Loans √ 7-15%* plus arrangement fee

• Last full filed accounts and Management accounts from then to now if available• Last 3 months’ bank statements for the business• Details of each Director or Owner with more than 25% equity concerning if they are a home owner or not and, if so, the property value and mortgage outstanding on it• Details of the VAT outstanding and how long it has been owed (i.e. ideally a VAT Statement of Account from HMRC)• Permission from the applicant to have credit searches done on them.

Personal Loans √ 5-10%* AER plus arrangement fee

• Full name, date of birth, 3 years’ address history• 3 years’ Employment details including role, employer name and address• Income details for the applicant plus the total income for the household• Details of the loan purpose• Permission from the applicant to have credit searches done on them.

* subject to status

Working Capital FinanceWorking capital finance solutions offer businesses the opportunity to improve cash flow. The world of commercial finance and asset based lending is complex and expansive with products, terminology and contractual interpretation varying from lender-to-lender. Our working capital finance experts have many years of experience and success in advising business across a wide range of sectors in obtaining working capital finance solutions.

√ Up to 90% of outstanding invoice value can be advanced within 24 hours

√ Flexible lending – funding increases in line with your growth (UK and Export)

√ Confidentiality – lenders can offer a completely confidential service – your clients need not know you have a facility in place

√ Control – sophisticated online tools from lenders allow you to manage your funding at all times

√ Sector-specific finance available for the construction and recruitment sectors

√ Structured ABL – funding for management buy-outs/management buy-ins

√ Trade Finance & Supply Chain Finance√ Working Capital options for Accountants.

√ Invoice Finance - an effective way of quickly accessing a proportion of the value (up to 90%) of your invoices. Effectively a business ‘sells’ its invoices to the lender in return for accessing cash at the point products and services are sold. Specific sector based offerings are available, as is the ability to arrange finance for selected invoices only

√ Structured ABL - generate a higher level of funding by unlocking the maximum value tied up in the combined assets within your business, including: Debtors, Inventory, Plant & Machinery and Property. Additional forms of funding can be structured in addition to this, such as top up loans in order to drive growth

√ Trade Finance - supply chain finance with various options, enabling the purchasing of goods from overseas where you are otherwise unable to obtain credit from suppliers.

Benefits of arranging Working Capital Finance through 2020 Finance: Solutions we advise on:

Invoice Finance

Trade Finance

Structured ABL

*charges based on transaction or annualised turnover, the cost of which can vary dependent on size of business, and type and mix of finance required

√ POA*

Product Type Bandwidth Requirements to Progress an Enquiry

• Current management accounts• Current debtors• Current creditors

GET IN TOUCHIf you or your clients are considering finance options, or have an immediate funding requirement, regardless of where you are in the process, get in touch for a free of charge consultation with one of our highly experienced team.

+44 (0) 121 314 2020

To find out more about 2020 Finance email: adrian.chambers@the2020group.com or call: