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Cometh the hour

Stepping-up for your clients will help see them through

Chirag Shah ChiefExecutiveOfficer Nucleus Commercial Finance

During a crisis like the one we currently find ourselves in, change suddenly becomes a non-negotiable partof everyday life and helping to protect your clients from the implications that arise is and has always been our top consideration.

According to data from Startups, more than 85% of small businesses are worried about their operations during COVID-19, and the vast majority of companies have two main concerns right now… how to survive the present and how to best prepare for the future.

Listen when no one else will

Most SMEs find themselves in limbo, with no clear guidance about when the lockdown will end or when normality will resume. The here and now demands they make tough decisions about addressing their furlough situation, and for some, potentially making unwanted but forced redundancies.

Worrying about what their business will look like post-lockdown is the main concern for your clients, so helping to alleviate the challenges they may face once restrictions are lifted is the best way to support them in the current economic climate.

For those of us offering financial services to businesses, we need to communicate effectively with our customers – and often. We must listen, understand their problems, and identify viable solutions for what the business picture will look like once the lockdown is fully lifted. Sticking to the status quo will not help your client during this tumultuous situation, so consider alternative lenders alongside the banks, rather than just as an afterthought

Cast a wider net to pinpoint every opportunity

Cash flow will be a point of contention for almost all of your clients, as recent data found that over a third of businesses are concerned about their day-to-day cash flow, and a further 47% are worried about a drop in sales. But not all funding was made equal…

Working with lenders that offer multiple products will help provide the exact type of finance your clients need, as bespoke funding tailored precisely to their business needs means you can help tick every box.

It is important to allow enough time to get funding in place, so apply for both CBILS loans and non-CBILS loans simultaneously to reduce delays in accessing desperately needed funds. Sticking to the status quo will not help your client during this tumultuous situation, so consider alternative lenders alongside the banks, rather than just as an afterthought.

Using technology to combat the virus

Innovation through technology has played and will continue to play a massive role in the success of businesses, which means that both your business and clients need to invest to avoid being left behind.

With the majority of businesses having to adjust to fully remote working, it is likely that organisations have already started to adopt additional digital processes. Technology has proven to be key for lenders, with true fintechs finding the transition a lot smoother than their less technologically advanced counterparts.

At Nucleus, we comfortably adapted to working from home, and this is undoubtedly due to the focus we have put on becoming a real fintech player in recent years. The role of technology is almost unfathomable at a time like this, but what we can be sure about is that businesses armed with the right technology stand a much better chance at survival emerging from this pandemic. Time is of the essence right now, and the ability to find and secure finance at speed for your clients is imperative during such a turbulent period.

Open Banking is a fundamental part of business lending right now, and both lenders and brokers should embrace this process as it enables far quicker decisions. Additionally, digital documents should be implemented wherever possible as that is a crucial requirement during times like these.

KYC screening is a critical step in the lending process for brokers and lenders alike. Regulation compliance and preventing fraud should be at the forefront of every broker’s mind, and despite the lockdown rules, due diligence must still be performed. Nucleus is among the many lenders who already use e-KYC, and the process takes minutes to complete.

No one was truly prepared for such an economic downturn in 2020, but with the right resources and finance in place, businesses are likely to face a more optimistic future.

“The role of technology is almost unfathomable at a time like this, but what we can be sure about is that businesses armed with the right technology stand a much better chance at survival emerging from this pandemic