Lenders set for increase in enquiries from graduates
By Tom WrightCharles Haresnape of Aldermore has said the lending industry is moving away from the idea of 'the average customer'...
Charles Haresnape, Group Director, mortgages at Aldermore has said the lending industry is moving away from the idea of 'the average customer'...
A report from Direct Line for Business showed that 15% of undergraduates are planning to start their own business when they finish university.
To cater for the younger borrower, Aldermore Bank recently announced a reduction in the minimum age for its bridging products from 25 to 21.
Charles told Bridging & Commercial: “We are increasingly moving away from the idea of ‘the average customer’ and looking to offer more bespoke financing options to match customers with the appropriate solution for their needs.”
“As the way people work changes, and with a rise in non-standard applications such as those from individuals who may not have many assets due to their age, are self-employed or have multiple sources of income, this approach is more necessary now than ever.
“Plans from the Government to help match SMEs rejected for finance with alternative lenders will encourage competition and growth in alterative finance options on offer and the market will invariable move to fill the gaps in access to finance for small businesses.
“The result should be that it will ultimately become easier for them, and the younger borrowers who will be the next generation of business owners, to get the capital they need.”
However, Just Cash Flow PLC has warned that young entrepreneurs will need more than just financing for their business to succeed – a knowledge of business planning and budgeting is equally important.
Speaking to Bridging & Commercial, John Davies, Director at Just Cashflow, said: “I strongly believe that some form of formal education is necessary for directors before they set up in business as this would help address the shocking statistic that around one-half of all new businesses fail in the first five years.“
Age is not a deciding factor for Just Cashflow, but the borrower does need to display a knowledge of the market they are working in.
John added: “When we receive finance applications, we are looking for how well thought out and concise the business plan is, how well the numbers and key metrics are understood and clarity about why finance is needed and how it will be used.
“It doesn't matter if you are a graduate or someone with years of business experience - if your answers inspire confidence - you have a very good chance of getting the finance you are looking for.”
Earlier this year Bridging & Commercial reported on research the SME lender conducted that showed 63% of SME owners believed less businesses would fail if they had been better educated.
Keywords: sme lenders, direct line, direct line for business, aldermore, just cash flow plc, just cashflow, charles haresnape, john davies, Medianett, bridging and commercial,