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Use your Panthera accountant to raise money for your company

Use your Panthera accountant to raise money for your company
Tuesday, March 05, 2019

Accountants are there to help their clients at every stage of their business from set-up to growth. Companies at different parts of their life cycle will look for external funding to either help them increase staff numbers, assist with asset or machinery purchase, or for a financial cushion when trading is going through an unexpected lull.

There’s been a proliferation in new ways for businesses to raise finance in the last few years and new lenders servicing this sector. It’s definitely easier than before. Certainly, when I think back to just how hard it was to raise money for a company even just a decade ago, the picture has totally changed.

Where have these companies come from and how do they work?

These new business finance providers are part of the wave of “fintech” companies we’ve seen emerge over the last 10 years. Although there is a large element of human intervention in the decision-making process, whether a loan is granted or not depends heavily on an algorithm.

This algorithm looks at all sorts of variables including your cash movements in and out, your VAT bills, your management accounts, credit history (as recorded at places like Creditsafe), Companies’ House filing history, and more.

This set of variables produces a score. If it’s too low, you won’t usually get the loan (although you can appeal to an underwriter who will have a degree of flexibility). If it’s a good score, it will then grant the loan and put on an interest rate commensurate with the risk it believes there is of your not being able to pay them back.

How much will they lend, over how long, and who will they lend to?

Just as with all other financial institutions, they have their own set of internal guidelines about the profile of businesses they want to lend to and those they don’t

A few firms work with companies which have a minimum of 6 months’ trading behind them. Lenders in this space will generally approve up to £200,000 (generally restricted to twice your company’s monthly revenue). Repayment times vary between 1 month and 2 years.

Most firms want 12 months’ history behind you before they’ll consider an application. They’ll advance up to £120,000, capped at whatever one month’s average turnover size is.

For much larger sums, the lenders who want two years’ minimum trading time will lend up to £500,000 between four and eighteen months.

How do the rates compare to high street banks and the like?

Rates vary from between 1.5% per month to 8% per month. To put that into context, if you borrowed £50,000 at 1.5% per month over 12 months, that you’d end up paying back £55,008 in total. That’s roughly equivalent to taking £50,000 on a credit card at 18.9% interest and paying back £4,584 a month. There’s really not much in it.

If your business is rated as particularly risky but they decide to advance you £50,000 at 8% per month over a year anyway, your total repayment would be £76,000. By anyone’s standards, that’s expensive money.

How would an accountant work with a lender’s underwriters?

Underwriters at these firms do have a degree of autonomy when it comes to the decision to grant a loan, how much for, how long over and at what rate. They speak and understand “finance” more than “business” so before and during your application, it will benefit you to have an accountant on hand.

They will want access to your bank accounts, VAT statements, management accounts and more. That sounds like a lot but it’s a lot less than your bank will need.

Before you hand over your details to the company, give your accountant the chance to prepare the latest, up-to-date picture of your business. With finance, the devil is always in the details. Your accountant will be able to present accurate, reliable numbers. Having professionally-prepared figures will make any finance company take your proposition more seriously and may very well reward you with a more favourable outcome.

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To find out more, please call 01235 768 561 or email enquiries@pantheraaccounting.com.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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