Editor's comment for Mid-March 2020

Like it or loathe it, borrowing money is a fact of life and it fuels our economy.

Whether it’s buying a new car, house extensions, holidays or taking the plunge on that new lounge jacuzzi you’ve been promising yourself for years, if you haven’t got the reddies available to hand you’ll need to borrow the funds. Fortunately there’s plenty of options available.

And that’s certainly the case in the manufacturing sector. Machine tool companies in particular have found in recent years that helping customers with the financial side of a transaction is every bit as important as the specification of the machine itself. It’s all part of the package and part of the service.

We all expect ‘simple’ payment terms and in some cases, for the buyer, how he or she is going to pay for their latest investment can be a dealbreaker. This is why many capital equipment providers have evolved to become really efficient and flexible in this regard. Bespoke, customised payment plans are commonplace in this modern manufacturing age.

Related: Specialist lender set to deliver Coronavirus Business Interruption Loan Scheme

Visiting finance companies is not something I do every day, but I must say I was very impressed with Compass Business Finance who I caught up with recently. So much so in fact, that they’re the subject of this month’s cover story.

You can get all the lowdown in my article, but three things really stood out for me about Compass. The first is that this is a finance company that’s well-versed in manufacturing matters – practically all its customers are manufacturing companies.

The second thing is that Compass is not only a brokering service – it can also lend from its own funds. For me that sends out positive signals that this is a financially secure, reliable and stable business. It likes to build longstanding relationships with its customers – acting as a much needed ally to articulate the growth plans of a business to a potential lender. They’ll fight your corner basically.

The third thing is a real differentiator and that’s its work with the British Business Bank to bring the Enterprise Finance Guarantee (EFG) to the marketplace. Essentially, this enables Compass to provide facilities to smaller businesses that perhaps wouldn’t previously have had sufficient security to access the finance they require. It’s a government-backed insurance policy at the end of the day – and Compass are one of only six asset finance providers accredited to offer EFG.

So if you’re looking to invest, but have some concerns about how to raise the finance, I’d certainly recommend you take a look at the article. Compass just might be able to provide the financial flexibility you’re looking for!