Send us Fan Mail

When a lender advertises or offers an interest rate, is that really the full cost of borrowing?

In this episode of Business Finance Matters, David Grosse and Trevor Pirie explore one of the most misunderstood areas of business finance, the true cost of debt finance.

Many business owners focus solely on the headline interest rate, but the actual cost of finance can include lender fees, intermediary fees, arrangement charges, and other costs that are not always obvious at first glance. The discussion examines how these charges arise, why some lenders apply them, and whether they are always fair and transparent.

David and Trevor also consider why some lenders charge fees instead of increasing the interest rate, how fees can help avoid early settlement penalties, and why pricing often reflects the risk of defaults within a lender's portfolio.

The episode asks some important questions:

• Are lenders doing enough to make the total cost of borrowing clear?
• Are intermediary fees always reasonable and proportionate?
• Should there be limits on the fees that brokers can charge?
• Is it better for intermediaries to charge clients directly for their expertise, rather than through lender commissions?

The conversation also tackles the confusing language used throughout the finance industry. What do words such as APR, yield, flat rate, and rate per £1,000 actually mean? How can business owners compare finance products when lenders use different methods of presenting their pricing? Is interest calculated daily, weekly, or monthly, and why does that matter?

As always, David and Trevor focus on helping business owners make informed decisions. They explain why understanding the full cost of finance is just as important as securing approval, and why working with an experienced business finance professional, including members of The Guild of Business Finance Professionals, can help ensure every cost is clearly explained before any agreement is signed.

If you've ever wondered what you're really paying for when you take out business finance, this is an episode you won't want to miss.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening

Send us Fan Mail

Join David and Trevor as they examine whether the relationship between lenders and homeownership remains fit for purpose, or whether the industry needs to adapt to support the next generation of UK businesses.

For decades, homeownership has often been viewed by lenders as an indicator of financial stability. For many business owners, owning a home has made it easier to access business finance, particularly where a personal guarantee is required.

However, the UK has changed over the past 20 years or so.

Homeownership continues to decline, with a growing proportion of people choosing, or having no option, to rent. In fact, the UK is moving closer to countries such as Germany and Switzerland, where renting has long been the norm rather than the exception.

So, should lenders continue to place so much emphasis on whether a business owner owns their home?

In this episode, David Grosse and Trevor Pirie explore whether traditional lending criteria still reflect today's economy. They discuss why many lenders continue to favour homeowners, whether this approach is disadvantaging new start and small business owners that are suppose to be providing the lifeblood of the UK economy, and if the lending market needs to evolve to reflect changing demographics.

The discussion also considers whether new and existing lenders have an opportunity to rethink their credit policies, particularly as more first-time entrepreneurs and small business owners enter the market without owning property.

For start-ups and SMEs, understanding how different lenders assess applications has never been more important. While some lenders still place significant weight on homeownership, others are taking a more flexible approach.

Knowing the difference can have a major impact on securing the right funding. Therefore, ensuring that business owners seek the best professional guidance, is a case in point in this episode.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening

Send us Fan Mail

In this episode, David and Trevor discuss a topic that has become a major concern to many members of The Guild of Business Finance Professionals and other industry stakeholders.

Both discuss the concern regarding the growing number of business owners that are being exposed to an increasing volume of online advertisements, emails and marketing campaigns promoting business finance debt options.

While these messages often present funding as quick, simple, and easily accessible, the reality is very often, far more complex.

They explore how aggressive digital marketing combined with modern online consumer behaviour is shaping the way businesses access finance. They discuss the concerns around misleading messaging, the use of oversimplified language and the growing number of advertisements swamping business owners every day.

Members of the The Guild of Business Finance Professionals are reporting a growing number of cases where businesses receive multiple approaches from lenders and brokers, creating confusion and increasing the risk of poor financial decision-making.

The conversation examines the impact on vulnerable business owners with limited knowledge of the funding marketplace.

Following COVID-19, concerns continue to grow for businesses entering short-term high-cost borrowing arrangements and mulitiple loan situations, from platforms that make access to debt appear effortless.

With no regulation or best practice guidance governing these marketing practices, important questions are now being asked across the sector.

How can businesses be better protected?

What role should lenders, broking intermediaries and professional advisers play?

Would clear signposting and mandatory disclaimers directing SME business owners to seek independent guidance from qualified finance professionals before taking any form of debt finance assist?

As David and Trevor discuss, there is an undoubted need for greater transparency, improved financial education and stronger support mechanisms to enable business owners make informed borrowing decisions.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening

Send us Fan Mail

What does "best practice" really mean in today's business finance landscape, and why is it more important than ever?

In this episode, David & Trevor explore the principles that should underpin every business finance journey. From understanding a business owner's objectives and financial position to identifying the most suitable funding solutions...more importantly, they examine the process that should be followed to achieve the best possible outcome for UK business owners.

They discuss why the finance process must always start with a comprehensive understanding of the business and its owners. What does "best-fit" finance look like? In their opinion, no finance application should be submitted to a lender without first carrying out a full assessment of the business's financial circumstances.

The conversation also addresses growing concerns within the market that some brokers and lenders may not be adhering to the fundamentals of best practice, potentially leaving business owners exposed to unsuitable options and poor outcomes.

Both highlight the fact that unless effective signposting is maybe available to the qualified and ethical business finance professionals, standards will contniu3d to fall across the industry.

Finally, they explain how business owners can take control of their financial journey by engaging with The Guild of Business Finance Professionals and accessing guidance from professionals committed to delivering best practice, transparency, and best outcomes for the business owners...and lenders!

Whether you're a business owner seeking funding, a finance professional, or simply interested in raising standards within the industry, this episode provides valuable insight into what good practice looks like and why it matters.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening

Send us Fan Mail

In this episode, hosts David and Trevor explore why the lending market is packed with so many different lenders, and why each one operates with its own approach to underwriting and risk.

They discuss the growing challenges business owners face when applying directly to lenders, or working with the wrong brokers, and how this can often create more setbacks than solutions.

For example, some businesses, such as those owned by non-homeowners, may struggle to access certain funding options simply because not all lenders are willing to support them.

David and Trevor break down how lenders assess risk, what “responsible lending” really looks like, and why the market is becoming increasingly risk-averse as confidence drops in an uncertain economy.

With insights from a members of the Guild of Business Finance Professionals, the episode offers a clearer understanding of lender expectations, decision-making, and realistic timescales. They also highlight why knowing when to say no to debt is just as important as securing funding, and why applications should never be submitted if they are unsuitable or unaffordable.

Finally, they discuss how early-stage lending decisions are shaped by key factors, and why greater transparency from lenders could lead to better outcomes for both businesses and the finance industry.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening

Send us Fan Mail

Starting a business has never been more challenging. From an initial idea to an ambitious start up, the country continues to try and promote a nation that is wanting more entrepreneurs and small business owners. But turning an idea into a sustainable business often comes down to one critical factor, funding.

In this episode, David & Trevor explore how new and growing businesses can find the right type of finance without overpaying or choosing the wrong option. Raising capital is not just about securing money, it is about finding finance that fits the business properly and can support it’s early stages of growth.

They discuss why many new business owners still lack awareness of the different types of debt finance available to them, including Director loans such as those offered by the British Business Bank and initiatives like the Growth Guarantee Scheme. Understanding these options together with who the best lenders are, can make a significant difference when considering the best-fit funding strategy.

They also talk about the importance of start up capital. Ideally, many early costs should be covered by funds introduced by the business owners themselves, or through support from friends and family maybe. Having some initial capital in place can strengthen a business before seeking external debt finance.

A realistic and well structured business plan is also essential. It should clearly outline capital needs, projected cash flow, and the overall financial path of the business. With a strong plan in hand, the next step is presenting it to experienced business finance professionals who can help guide the process.

Unfortunately, signposting across the finance landscape remains poor for both start ups and established businesses. That is why seeking guidance from a member of The Guild of Finance Professionals can be invaluable. Before searching online, approaching lenders directly, or rushing into a funding decision, getting independent guidance first could save time, money, and costly mistakes.

Do not search the internet. Do not contact a lender directly. Do not pass GO without contacting a Guild member at the very least.

If you are starting a business, or looking to grow one, this episode highlights the steps to take before pursuing finance and why speaking to the right professionals early can make all the difference.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening

Send us Fan Mail

In this episode, David and Trevor take a closer look at how the relationship between banks and small businesses has changed over time, and whether things might finally be shifting again.

They reflect on the fallout from the 2008 financial crisis and how it marked the end of the traditional bank manager relationship, once seen as a trusted partner in a business’s growth and development. What used to be a personal, supportive connection has, for the majority of business owners, turned into something distant and non-transactional.

The conversation explores how today’s banks often feel disengaged, especially for businesses with turnover under c.£5 million, many of which now operate with little to no meaningful contact from their bank. David and Trevor also discuss the lingering issue of security held against businesses, sometimes tied to lending that is largely reduce or repaid.

But it’s not all negative. There are early signs of change. Drawing on insights from member of The Guild of Business Finance Professionals, they talk about a renewed appetite among some banks to support smaller businesses, especially when the right match is found on both sides.

They wrap up by asking the big question: could we see a return to trust, stronger relationships, and better access to funding via the high street banks again? And if so, what would that mean for the future of small businesses and the wider UK economy?

A thoughtful discussion for any business owner wondering where they stand with their bank today.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening

Send us Fan Mail

Short-term business funding is becoming more common, and more visible across the market. In this episode, David and Trevor look at the rise of non-bank lenders offering 12 to 24 month business loans, and why so many businesses are turning to them.

These products are typically fintech-driven, quick to apply for, and funds can often land in a business account within days. For companies dealing with immediate pressures, such as unpaid invoices, VAT bills, or a short-term cashflow gap, that speed can be a lifeline. Many of these facilities are also designed to be repaid quickly and often come with no early repayment penalties.

But convenience comes at a cost. Interest rates can be high, and personal guarantees are typically required, which means business owners carry personal risk. The key question becomes...is this type of funding the best fit, and can the business realistically repay the loan over a short period?

The conversation also explores some of the risks that are starting to appear in the market. Multiple applications through different brokers, stacked loans from several lenders, and decisions made too quickly because the process can be so easy. When speed and convenience take centre stage, careful decision-making can sometimes fall behind.

This episode also looks at when short-term funding works well and, more importantly, when it doesn’t…and why guidance from experienced business finance professionals can make a real difference before committing to any form of debt finance.

Support the show

To access our visual channel please click here https://linktr.ee/bfmpodcast

Please subscribe and follow us on LinkedIn, Instagram, YouTube and Twitter/X. Just search for 'Business Finance Matters'.

To listen to the Podcast, all episodes can be found on all the major platforms including Spotify, Apple, Amazon and YouTube and https://bfm.buzzsprout.com/

All comments are welcomed and may be discussed on future episodes.

Thanks for listening