Posted: Tuesday, 17 October 2023 @ 09:36
Dependability is one of the most valuable qualities, in work and in life. It might not be the glitziest of assets, but knowing you can trust those you work alongside to do what they say they're going to do is fundamental to running a business. It's those partnerships that are worth their weight in gold.
At Rivers we have always striven for reliability. We're interested in good, long-term, mutually beneficial relationships, and we do what we can to create the right environment for that. In the last couple of years, with rising inflation and interest rates, that dependability has become more important than ever for businesses looking to grow and prosper.
A fluctuating market
In this climate, dependability hinges enormously on knowing the probability of a funding application being successful, and having security in what the rates are going to be.
As a company, we're still lending where lots of other non-banks are minimising their output. It's not that they're not lending, it's just that it's become a lot harder to borrow from them. The rationale behind those restrictions is entirely reasonable, but it presents a challenge for SMEs seeking funding to grow.
In addition, many non-banks are changing their rates on a daily, or even hourly basis, meaning that businesses and brokers don't know with certainty whether a deal will be funded and at what rate. This not only creates uncertainty on the deal as a whole, but on a broker’s commission, which impacts their business as well as their client’s.
Creating certainty for clients
The reasons for these volatile fluctuations are entirely understandable, but that doesn't make the reality of the situation any easier. While the state of the economy has to be accounted for, how that’s done makes a big difference when it comes to business planning.
At Rivers we have sought to address that in two ways:
- We do increase our rates, but this is usually around a month after the Bank of England, and not by as much.
- If we have made a formal offer to a broker or client for a loan at a particular rate, then we will honour that rate as long as it's taken up within a 60-day validity period, because we want to create certainty for both the borrower and the broker.
At Rivers, dependability is a value that we chose to build our business on from the start. That's not the same business model for everyone, and different things will suit different people. As an SME ourselves, we know that it's not always the most important thing to find the cheapest loan, but to know where you stand - to know what you can borrow, when and at what rate so you can plan ahead. That’s the kind of service we strive to provide.
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