Here’s why you should consider Secured Interest-Only Loans
By Paul Fenton, Managing Director of Structured Finance
Running a business is never easy but can be especially challenging in the middle of a global pandemic. The key to a business succeeding or failing is having the correct finances in place for working capital, growth, and unseen financial circumstances.
4Syte as a group has been supporting businesses across the UK since 2016, offering a wide range of funding solutions. Our appetite to lend and common-sense underwriting approach coupled with fast, responsive credit decisions are the reasons we have continued to stay busy providing cashflow solutions to SMEs.
We are proud that 4Syte Structured Finance has continued to provide SMEs with secured business loans throughout the pandemic, supporting their survival and ultimate success whilst others may have halted lending for a period.
One 4Syte product that has been extremely popular over the last 18 months is our 2-year interest-only business loan. It is a simple loan with agreed low monthly repayments and a bullet payment due at the end of the signed facility. There are many benefits to an SME taking an interest-only loan instead of being tied into a long-term facility elsewhere, if they can even obtain one that is.
Here are a few advantages of a 4Syte interest-only loan:
- The monthly repayment. This will typically be lower, benefitting the client’s monthly cashflow situation. A lower repayment is always an advantage and even more so during a distressed period such as a global pandemic.
- The 2-year term we offer enables businesses to grow and fulfil their sales plans in this period, thus it is putting the client in a position where they can potentially refinance the 4Syte bullet payment due at the end of the term with a high street bank or similar.
- 4Syte is always happy to consider refinancing the bullet payment due into one of our in-house flexible term loans to give the client peace of mind, should they not be able to refinance with a third-party lender.
- Should a client be in the position where they have surplus liquidity, they can pay 4Syte above and beyond the agreed monthly repayments in order to reduce the bullet payment debt.
4Syte Structured Finance offers interest-only loans backed by residential or commercial properties to SMEs in all sectors, to established businesses and start-ups alike. We provide facilities from £26,000 up to £550,000, with fast credit decisions based on the strength and story of your customers. An interest-only loan is well suited for both a start-up and an established company where there is a satisfactory exit strategy.
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If you would like some more information about our secured interest-only loans, then please get in touch.