Ezbob, the online short term commercial lender, is looking to attract further numbers of mortgage brokers to start adding SME businesses as clients.
Sharone Perlstein, director at Ezbob, said while longer term finance continues to be difficult to source and see through to successful completion, the same cannot be said for short term commercial finance.
He said: “I am appealing directly to every adviser regardless of whether they have commercial loan experience or not. Many SMEs are using personal credit cards to provide cashflow support or to buy new equipment. With interest rates of between 18 and 35% pa, clearly there is a huge demand if business owners are prepared to pay the interest rates on credit cards to meet their funding needs.
“Imagine what you could do, if you were able to offer funding of up to £50000, with a yes or no within hours of an online application, which took only 10 minutes to complete. The client’s online banking and VAT payment data is uploaded securely and funds can usually be drawn on the same day that the online offer is made and accepted.”
Ezbob pays 5% of the loan balance as a commission fee to the introducing broker on the day that the funds are released to the client.
Perlstein added: “What is there not to like? We provide a facility which many SMEs have been without since the credit crunch. The kind of temporary finance that banks would routinely offer to business clients is now available through Ezbob. With lending decisions within a few hours and funds in place soon after and all without any paperwork, just a 10 minute application online and the uploading of client banking and VAT data to our secure servers.
“We have brokers who are not traditional commercial finance brokers doing between 15 and 20 deals per month with us and every client has been more than happy with the Ezbob service. On top of that some of these brokers are earning some very lucrative procuration fee cheques as well.”