AR Cash Flow Launches Bridging Finance Product

 In Cash Flow, Daily Column

New Bridging Finance's truly no bull!
New Bridging Finance option…it’s truly no bull!

AR Cash Flow has launched a new bridging finance product aimed squarely at the SME market.

According to AR Cash Flow’s National Sales Manager, Daniel Dunsford  the banks inability to provide cash quickly and the high interest rates charged by caveat lenders created a product gap which he believes AR can fill.

‘The SME market has been hung out to dry for too long. The banks aren’t set-up to provide bridging finance. There’s too much red tape and they’re simply too slow.’ said Dunsford.

‘Caveat lenders have had it too easy for too long’, he continued. ‘I mean, where do you get off charging small business an annual interest rate of around 100%!” he exclaimed.

AR Cash Flow claims it will charge less than 10% interest P.A. Which leaves the question of valuations – finance companies like phone companies seem to have mastered subterfuge when it comes to product development.

Most caveat lenders err on the conservative side when establishing a valuation. Furthermore, when I called five lenders yesterday, there was a variation of about 10 points between lowest and highest with the norm at around 80%.

Dunsford claims AR Cash Flow will advance up to 95% of the valuation, which is bullish. But he went even further when he stated: ‘We (AR Cash Flow) don’t even require a valuation, we’ll base the estimate on the client’s advice.’

However, AR has put some rules in place. Dunsford says owner occupied securities are ‘out!’ Further to this, he contends clients must have a structured exit strategy to be eligible for bridging finance.

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