This platform was developed to correct market flaws and issues through the use of technology, and to help business owners get the product they need, quickly and hassle-free, said the financial services company in a press release emailed to PYMNTS.
“Ultimately, when a potential borrower is looking to raise capital, it is a stressful time and their hope, but often not their expectation, is that the process is simple and transparent.” Gary Hemingdirector of commercial lending at ABC Finance, said in the release.
The tool provides a way for business owners to undertake a “rapid bidding” process, according to the release. This saves time and allows lenders to make initial lending decisions based on the information provided.
A key feature of the tool is that it gives lenders the information they need and gives them the opportunity to present their best offer, the release said. This eliminates the need for multiple meetings and time-consuming negotiations, and streamlines the process for both borrowers and lenders.
The platform provides business owners with greater access to financing and allows them to easily compare different lenders and find the best deal available in the market, according to the release. It is important to note that the business owner’s contact details remain hidden until they choose to go with a specific lender.
ABC Finance’s platform includes Lloyds Bank, Skipton Business Finance, Novuna, Bibby and other lenders, according to the press release.
Generally speaking, the traditional loan conduits are filled with friction, PYMNTS reported in January. For example, small and medium-sized businesses (SMEs) may have a limited operating history, or the personal credit scores of their owners may be used as a proxy for the actual creditworthiness of the business itself.
ABC Finance’s solution comes at a time when UK SMEs are facing a surge cost of borrowing. While the increase in the cost of new SME bank debt reflects a broader trend affecting all borrowers, small businesses are particularly vulnerable to macroeconomic headwinds, given their generally lower liquidity levels and their already higher borrowing costs.