A new player has emerged within the UK’s short term business lending space.
New business lending platform Wirefund launches today, touting what it perceives to be a simpler and smoother funding solution for cash flow quandaries. The company will lend between £1k and £25k to small businesses at a fixed rate of 19%, to be repaid in daily instalments. Wirefund sees its daily repayment structure and the ability to offer interest rate certainty as key strategic advantages.
The platform will not require businesses to provide personal guarantees or indeed any kind of security against loans. Applications are completed online in seven quick steps, a process which is said to take a matter of minutes. However, Wirefund will also consider each and every application individually, with a focus on the business owner, meaning that applicants are not evaluated solely via algorithm.
Wirefund enters into the same market segment as the likes of Growth Street, Liberis, Just Cash Flow PLC and Fleximize. The 19% flat fee is broadly in line with market rates in this space, where rates tend to be higher than those carried by traditional term loans.
Amit Sankey (pictured above), Founder and CEO of the new platform, offered comment: “Small business is the growth engine of the British economy and finance is the fuel. We want to empower SMEs to achieve their ambitions – without the confusing jargon, endless forms and weeks of waiting typically involved in securing a loan.”
“Almost half of all small businesses have to close their doors within their first four years of operating, with almost 90% failing because of cash flow issues. This is a shocking reality that we have set-up to put a stop to. By providing quick, simple and understandable loans, we will support the millions of overlooked small businesses that are central to Britain’s economic success, especially during this current period of uncertainty.”