This platform was developed to fix the flaws and pain points in the market via the use of technology, and to help business owners get the product they need, quickly and without hassle, the financial services company said in a press release emailed to PYMNTS.
“Ultimately, when a potential borrower is looking to raise finance, it is a stressful time and their hope, but often not their expectation, is that the process is made simple and transparent,” Gary Hemming, commercial lending director at ABC Finance, said in the release.
The tool offers business owners a way to undertake a “rapid tender” process, according to the release. This saves time and enables 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 allows them one opportunity to present their best deal, 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 gives business owners better access to funding and allows them to easily compare different lenders and find the best available deal in the market, per the release. Importantly, the business owner’s contact details remain hidden until they choose to engage 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, traditional lending conduits are filled with friction, PYMNTS reported in January. For example, small- to medium-sized businesses (SMBs) may have limited operating histories, or their owners’ personal credit scores may be used as proxies for the actual creditworthiness of the operation itself.
ABC Finance’s solution comes at a time when SMBs in the United Kingdom have been coping with a rising cost of borrowing. While the increase in cost of new SMB bank debt maps a broader pattern affecting all borrowers, smaller businesses are especially at the mercy of macroeconomic headwinds, given their typically lower levels of liquidity and already higher cost of borrowing.