Business finance questions, answered

We get a lender’s approval first, then give you figures. In our experience, many brokers quote first.

There is no fee to apply. Donnie, our in house AI agent, takes applications 24/7, not only in office hours.

A person in our team reads every application, within 24 hours. A large number of lenders let you sign online, which is simpler and quicker.

We do not lend our own money. The lender sets the price, and only once it has looked at your case.

So any figure before an approval is a guess. We get the approval first, then we tell you the figures.

There is no fee up front. So doing it properly costs you nothing extra.

In our experience, many do it to win your commitment early. The figure is not the lender’s, so it may not last.

One business owner told us it happens to them again and again. They get a low figure, then an offer of nearly double.

We think that hurts trust in our whole industry. It is why we work the other way round.

No. An approval comes from a lender, after it has looked at your business. A quote before that is only someone’s guess.

Ask any broker who quotes: "Is this approved?" A real approval has a lender’s reference number. If you are unsure, ask for the approval reference.

Rarely, and we do not like doing it. If we do, we make it very clear it is only an indication. It is not an approved figure.

Not on price alone. Price is only one part. The conditions matter, and so does the timeframe. So does how the broker has dealt with you, and there is more besides.

We never promise the lowest price in the market. We could not know that for a fact. Sometimes we may be the lowest, and other times we may not.

What we aim for is a simple process with no hassle. To help us do that, we ask for your application details, bank statements, accounts and ID.

When you do compare figures, compare approved ones. If nothing is approved, a broker could quote an impossible 0%. An unapproved 0% means as little as an unapproved 10%.

It differs from broker to broker. Some charge an engagement fee up front, which is a fee just to start work. It can vary.

It is more common with brokers who focus on property finance. They may also charge a fee based on a share of the amount borrowed. They earn commission from the lender too.

In asset finance, most brokers only earn a commission from the lender, when the finance completes.

No. We charge no engagement fee and no fee to apply. We do not charge you a share of the amount borrowed either.

We do get paid a commission by the lender. Read how we are paid.

It is a fee some brokers take up front, before they will do any work for you. This is allowed. Each brokerage or principal decides for itself.

No. We choose not to, so we are only paid by commission. That means we do not get paid up front and then disappear. And if our offer does not suit you, you have lost no money by applying to us.

No. We have decided not to charge these direct fees. Some brokers do charge one. It is often a small percentage of the amount borrowed. The client pays it directly to the broker. It comes on top of any commission the lender pays that broker.

It would be unusual, but we want to flag one case. It can come up on a refinance, where assets are spread across the country. We cannot inspect them all in one place, so an inspection can cost us a lot.

If it does, we may talk to you about a way forward. It means we do not lose out if the inspection costs a lot and you then pull out. We keep the right to discuss a fee in that case.

Any fee would be decided after a finance offer is made, and before pay out. It would be paid to our principal, not to us.

No. Mackenzie Commercial Finance Limited is not permitted to hold client funds. So if a fee were ever due, it would be paid to our principal.

Brokers have different deals with each lender. Some lenders pay a fixed share of the amount borrowed. Some pay a flat fee. Some pay a share that can vary, up to a limit the lender sets.

The amount often depends on how complex the agreement is, and on the risk.

For us, in asset finance and business loans, it is up to 10%. In many cases it is lower.

Always before you sign. We tell you once a lender has approved the finance and given the approved quote.

Regulated finance is a little different. The commission goes in a formal email that you must accept before going ahead.

For all other agreements, you sign a commission disclosure with the finance agreement.

Commission is part of what you repay. It is already inside the figures you see, and is not added on top later.

It shows in different ways. On asset finance, it is part of your total repayments.

On a loan, credit card or revolving facility, it can show as a transaction on the account, to be repaid. A revolving facility is a limit you can use and repay again. In the end it comes to the same thing.

No. We are paid when the agreement completes, but nothing is secure until it is repaid in full.

Most lenders can take back up to all the commission. That can happen if a customer settles early, misses payments or commits fraud.

In rare cases, a broker could even have to pay the debt. Some lenders pay the commission in instalments instead.

No. Commission is turnover, not profit. A £1,000 commission is not £1,000 in a broker’s back pocket.

Our principal takes a share first. Then come office costs, staff, travel and the other costs of running a business.

And that is before HMRC gets involved.

Because income is not a dirty word. We look for businesses that can show they can run a business. A broker should be able to do the same.

We are not a charity. We would rather tell you how it works than have you guess.

Donnie, our in house AI agent, takes your application 24 hours a day, 7 days a week. It is free and takes under 5 minutes. You can also phone or email us.

A person in our team reads every application. We send your consent form within 24 hours, and normally much faster.

Then we do the credit checks and send your case to lenders, who do their own checks. We come back to you with approved figures.

Our team answers within 24 hours. A lender can then take anything from an instant decision to a number of days.

A decline, or an approval with poor terms, can make it take longer to get the approval that works best. We keep you updated all the way.

It depends on the lender and the seller. Once you sign, the lender pays when it has a correct invoice and its conditions are met. The fastest has been the same day, for a simple case. Hard cases can take a few weeks.

Applying to us does not touch your credit score. To go ahead, you sign our consent form.

Then we run a light credit check on the company, often known as a soft search. Each lender then does its own check, soft or hard.

Often not. A large number of lenders let you sign online. You sign through the lender, or an e-sign service that lenders have approved.

That makes it simpler and quicker for you.

Not usually. Most of it is done by phone, video call and signing online. Regulated finance, in the IV postcode area, is face to face. If you want to meet, ask us. Our team travels across the UK.

You owe us nothing, unless you have agreed the rare inspection fee explained under fees. Saying no is always fine, and you are always welcome back. We only ask that you tell us, even in a line.

Donnie is our in house AI agent. He takes applications and answers questions at any time. Your AI assistant can ask him too. Read more about Donnie.

All types. We arrange regulated and unregulated finance. That covers limited companies and LLPs, sole traders and small partnerships, for asset finance and business loans. An LLP is a limited liability partnership, a kind of company.

A sole trader or a small partnership, of up to 3 partners. A limited company or an LLP is not a regulated customer.

It is a hire purchase agreement made under the Consumer Credit Act. It applies to a sole trader or small partnership borrowing £25,000 or less.

The rules give the customer extra protection, and the documents are more formal. Hire purchase for a limited company or an LLP is not regulated.

It depends on who is borrowing and how much. Most asset finance for limited companies and LLPs is not regulated. Larger agreements with sole traders and small partnerships usually are not either.

Not for sole traders and small partnerships. For them, we only arrange regulated agreements in the IV postcode area, in the North of Scotland. We could do it UK wide, and we choose not to.

This is our own business decision. The amounts are small, our costs are higher and the commission is limited. So it does not work for us across the UK.

Car finance for a private individual has its own limits, set out in the answer on personal finance.

For asset finance and business loans, we focus on £15,000 and over for a limited company or LLP. For a sole trader or small partnership, it is over £25,000, anywhere in the UK.

Need less, or something other than asset finance or a business loan? Please speak to us.

Yes, for over £25,000, anywhere in the UK. For £25,000 or less, it is regulated, so we arrange it only in the IV postcode area.

Business is our main work. We also arrange car finance for private individuals, and we focus on larger amounts. The car must come from a UK car dealer.

Where you live sets what we can do. For £25,000 or less, we only arrange it in the IV postcode area. For over £25,000 and under £40,000, it is Scotland only. For £40,000 and over, it is anywhere in the UK.

It is regulated, and the lenders’ criteria are stricter. We do not arrange home mortgages.

Yes. We have a number of lenders who specialise in classic and prestige cars for private individuals. Limits on where we arrange it are in the answer on personal finance.

Very likely. Business loans can apply to any type of business. Asset finance covers everything down to cars and IT equipment. So it could apply to almost any business working in the UK.

In most cases, yes, if its plan makes sense to a lender. Fewer lenders take a new business. Our free business plan template helps.

It depends on the lender. Many ask for 1 or 2 years. Some will look at less, and a few set no minimum at all.

Most established businesses do not. A new business often does, as it has no accounts to show yet. Our free business plan template helps.

Often, yes. It often depends on how we explain your business to the lender. We never promise a yes.

There is no one set score. Each lender has its own rules, and good credit helps. There are lenders for good and poor credit.

No. Every lender does its own check before it lends.

Often, yes. We quite often see CCJs in a business. A CCJ can mean bad credit, but it need not stop you, if there is a reasonable explanation.

Tell us the circumstances before we approach a lender, so it does not come as a surprise. Then we can go to a lender that may take a fair view.

Because it is better to answer a problem before an underwriter asks. An underwriter is the person at the lender who reviews your case. If they find it first, they grow sceptical. Then they dig harder for more concerns. We want to work with the credit teams, not against them.

A CCJ is a county court judgment. It is a formal court decision that you owe money, used in England and Wales. GOV.UK says records are kept for 6 years, unless you pay in full within a month.

It is called a decree. It is a formal court order saying you must pay money to a creditor, says mygov.scot. It is noted on your credit file for 6 years from the judgment date. It is marked as satisfied once paid.

It is a money judgment, made if you fail to repay money owed to a claimant. The Enforcement of Judgments Office enforces these judgments in Northern Ireland. Registry Trust says it stays on the public register for 6 years, unless cancelled or set aside.

It is a formal process for a person who cannot pay their debts. A trustee or official takes control of their finances, to repay the people they owe as far as possible. Most debts are then wiped out.

In Scotland, it is called sequestration. Citizens Advice Scotland says it usually ends after 12 months, or 6 months on the simplest route. It affects a credit rating for 6 years.

It is a voluntary agreement between a person and the people they owe. They pay a set amount towards their debts, and the rest is written off at the end. A licensed insolvency practitioner, an expert in debt law, acts as trustee.

Citizens Advice Scotland says it usually ends after 4 years, and affects a credit rating for 6 years. We do not give debt advice.

One no is not the end. Each lender has its own rules. We find out why, then ask a lender that may take a different view.

Yes. We work with businesses across England, Scotland, Wales and Northern Ireland. Our office is in Scotland, and our team travels across the UK.

We set no top limit of our own. For asset finance and business loans, our smallest is £15,000 for a limited company or LLP. Most lenders lend business loans from £25,000, and some from £15,000.

A business loan runs from 3 months to 10 years. Asset finance runs from 1 to 7 years, most often 2 to 5.

Not always. No deposit is possible. For asset finance, most lenders look for 5 to 10%.

We explain it to you before the completed documents go to the lender. Every agreement shows the total repayments, plus any fees.

So you have all the facts before you commit to anything. Our free calculator helps you see the sums.

On a fixed rate hire purchase agreement, yes. The payment stays the same, and most agreements are fixed rate.

Fewer lenders offer a variable rate agreement. Its payments go up or down with the Bank of England base rate.

Lenders often ask for one. A director promises to pay if the business cannot. That could put their home at risk. We tell you before you sign.

Not always. Some lenders insist on it, some do not, and others look at the case.

Yes. The asset itself is the security. That is why a lender can take it back if payments stop. A business loan may be unsecured or secured.

Tell the lender as soon as you can. A missed payment can hurt your credit, and fees may apply. Read your agreement.

Talk to the lender early. If payments stop, the lender can take the asset back. A free adviser such as Business Debtline can help too. We do not give debt advice.

On hire purchase, you can pay it at the start, or some lenders pay it for now. On a finance lease, it is added to each rental.

It depends on the type. We are not tax advisers, so ask your accountant.

Often, yes. The lender adds up the repayments left. In some cases, it may take some off the fees.

Hire purchase is built as a fixed term, not a flexible one. If you need something flexible, we have other kinds of business finance.

In most cases, no, unless it was agreed at the start. Ask us before you sign if this matters to you.

No. Lenders want insurance taken off the invoice, so you pay for it yourself.

A bigger last payment on an agreement. It makes each monthly payment lower. You still have to pay it at the end.

Once every payment and the option to purchase fee are paid, the asset belongs to your business.

You normally keep using the asset, on a small yearly rental, until it is sold to someone else or scrapped.

Pay off the finance first. Then it is yours to sell. We can help you get the settlement figure from the lender. That is what it costs to clear the finance.

It varies a lot, as lenders set different limits. Some stop at £500,000 or lower. Others go over £1 million. A few have no hard limit at all. That is one of the benefits of a wide panel of lenders.

No. That is one of the benefits of using a broker. Each lender has its own top limit, and we are not capped by any one of them.

Yes. We can arrange large finance for corporate clients. That includes restructuring large scale asset finance, and funding long term projects. Each case still needs a lender’s approval.

Yes, it can be done. An entrepreneur can use borrowing to buy a business that is already trading, with debt funding the purchase. Each case still needs a lender’s approval.

Tell us about the business and your plans.

Sometimes, but usually direct from a dealer, not through a broker. These deals are mostly on brand new assets, with a subsidy behind them. You often see them on new machines.

They are there to win the sale. There is often a trade off, as you get less discount on the price.

No broker can offer 0% unless it is part of one of these programmes.

It means a lender approves your finance before you have chosen the asset. You then know what you can spend when you go looking.

Yes, and it is a good idea. You go in knowing you are approved. You also have the freedom to buy the asset where you want.

Confirm that the seller will accept your broker approved finance, and will raise the invoice to the finance company. Do that before you commit to the asset.

Not directly. We cannot arrange the asset, or order something in specifically. But we can speak to a number of industry contacts and make introductions. We are happy to use our contacts once we have a line of credit in place for you.

Yes. You can run an HPI check yourself, which is an online check for finance owed. And every lender does one before it pays out.

It is up to the dealer or supplier to make sure the asset is free of finance. We ask them to clear it before they invoice.

Quite often they do not, and that causes a delay at pay out. The broker and lender cannot control that.

Yes. Fewer lenders do it, as they check more. Read more about private sale finance.

It is possible with some lenders, but it is not common. Tell us what you are buying and where from.

Sometimes, mostly on a private sale. The lender may inspect it itself, by video, or ask us or the seller to send pictures.

Many big dealers only invoice their own finance partner, or take cash. Unless the asset is one of a kind, find another dealer.

Yes. Any business can finance a van, new or used. Read more about van finance.

Yes, very much so. Accountants, dealers, suppliers, other brokers and bank staff all pass clients to us. We pass clients on too.

When you have been unable to get an approval through your own finance. We know finance commission is one of your main sources of income on a sale. You have targets to meet with your lenders too. So we know you will not hand over everything.

If you are struggling to place something, we would be delighted to look at it. It does not matter where you are in the UK. We can also talk about paying for introductions, if it will be regular and we can agree terms.

Many solicitors have clients who need to raise money through a business. They may need to buy out a business partner. They may need to buy an ex-husband or ex-wife out of a business, as part of a divorce. Or there may be a family dispute after a member of a family business has passed away.

Borrowing through the business could be part of a resolution. We can also talk about paying for introductions, if it will be regular and we can agree terms.

Yes, even if you are a commercial finance broker. We focus on a certain area of finance. Others focus on areas such as property or bridging finance. We actively want good relations with them, to find the right answers for our clients. We can also talk about paying for introductions, if it will be regular and we can agree terms.

Yes, we are interested to speak to you. We can also talk about paying for introductions, if it will be regular and we can agree terms.

We are keen to speak to you, to see if there are ways to work together.

No. We are not authorised to make introductions for a residential mortgage, which is a mortgage on a home. It is a complete no, and we will not go there.

Yes, for regular introducers. Any payment is always shown in full to the client.

It is easy. Speak to Alana, our Business Development Director, on 07719 006 400 or at alana@mackenziecf.co.uk.

She can talk accountants, dealers, suppliers, solicitors and brokers through what we offer.