Character counts in B2B lending relationships

At some point, most small to medium businesses need access to capital. Whether it’s to build their business, help with cash flow, grow their inventory or boost their marketing, sooner or later, companies need some kind of financing solution. 

During the COVID-19 outbreak, this need became even greater, with many companies being forced to take on debt just to survive (one report found that 70% of business owners had to take on debt to cope with the impacts of the pandemic).

The financing needs of small and medium-sized companies are very different from those of individual consumers. They need a variety of financing solutions so that they can choose the one that best suits their unique situation, and a financing partner who understands their unique needs.

The challenges facing companies in search of financing

One of the main challenges for small and medium-sized companies is securing access to the financing they need, when they need it. In a US bank study, cash flow problems were a key reason for failure for over 80% of companies that went under.

The big banks and other major financial institutions are often limited by very strict lending criteria. This can bring about a considerable gap between the financing needs of small and medium-sized businesses and the funds available to them from major financial institutions.

In fact, a report by SME Finance Forum found that there was a $5 trillion gap between what small and medium businesses needed in funding and what the banks were able to provide. Not surprisingly, this gap has led many businesses to seek out alternative lenders that are able to offer more flexible loans and more innovative financing solutions.

What to look for in an ideal alternative financing partner

There are two key traits businesses need from their financing partner: the right variety of available financing options and the right attitude.

Businesses have a huge range of financing needs and having a partner that has more flexible lending criteria while being able to meet all of those needs is essential for any business to succeed. They also need a lender with the right attitude and determination to see them through to success.

The kind of character and attitude to expect from a good financing partner

Traditional commercial lenders and banking partners need go-to alternative lenders they can trust and rely upon. Small and medium-sized businesses need a financing partner that is on their side. A lender that is available whenever they need them and able to pull out all the stops to help them get the right kind of financing for their situation.

Our team works hard to do the right thing for our partners and clients every day. We work hard to instill this in our complete operations, from first phone call or email through to long-term relationship support.

For any financing partner relationship, we view a number of character traits as essential. Businesses need a partner who has these qualities:

  • Hard-working, persistent and committed to offering the right loan
  • A never-say-die attitude and willingness to be creative in finding solutions
  • Able to underwrite deals quickly and give fast decisions
  • An understanding of the challenges of small and medium-sized business owners
  • Total, uncompromising commitment to each company’s success
  • Able to cut through red tape and deliver as promised

Garrington’s commitment to its clients

“We’re a team of entrepreneur-to-entrepreneur problem-solvers,” says Garrington Capital Managing Director, Bob Colgan. “We understand our clients’ challenges because we’ve been there. Plus, we have years of experience in B2B lending, both traditional and alternative, so we know every kind of financing available.”

“We’re uniquely placed to find the most effective financing option for a very wide range of companies, whether that’s helping our fellow funding partners with their own client needs, or working directly with a business owner or CFO,” Colgan explains of the Garrington difference.

Garringtonis committed to helping its clients take advantage of business opportunities by providing them with the lending options that they need, when they need them. With a large range of flexible options, Garrington is able to quickly deliver financing to many companies that are unable to get it from traditional financial institutions.

“We are 100% committed to our clients’ success,” Bob continues. “And we’ll do everything in our power to make it happen.”

To find out more about how character counts at Garrington, and how we could be an ideal financing partner, please contact us here today.

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