Finding suitable business finance is not always about accepting the first offer.
Sometimes, the best result comes from getting a second opinion.
That was the experience of a London-based construction company. The business had already spoken with another broker and received several funding offers. However, the directors wanted to compare those options before deciding.
They came back to SME Finance Hub.
Our team reviewed the business’s circumstances and explored alternative options through our specialist lender panel. The result was improved terms through Sigma.
Sigma approved a £20,000 business loan over 12 months.
The structure suited the company’s cash flow better than some of the other offers available. It also provided a clear repayment route, no upfront fees for the client and the option to settle early.
The client wanted a better comparison
The client had already completed an application through another broker.
This is common. Many business owners speak with more than one broker when looking for funding. It makes sense to compare the amount, term, repayment frequency and total cost before committing.
The company had received several offers. However, it wanted to understand whether more suitable terms were available.
The directors had also worked with SME Finance Hub previously, back in 2024. That existing relationship gave them confidence to return for another discussion.
We were happy to help.
An existing enquiry with another broker does not prevent us from exploring alternative options. We can still review the business and assess whether another lender may provide a better fit.
That is the benefit of a specialist finance broker. We look beyond a single lender and consider the wider options available through our panel.
Longer-term funding was not available on this occasion
The client had hoped to access longer-term funding.
However, it did not qualify for a longer-term facility on this occasion. This was due to a variety of factors relating to the application and the business’s circumstances.
That did not mean funding was unavailable.
Instead, we looked at a shorter and more practical structure. Sigma approved a £20,000 loan over 12 months.
The final option was not intended to be a long-term finance solution. It was a focused facility designed around the client’s immediate funding needs and expected cash flow.
This is an important point for business owners.
A declined application for one type of funding does not always mean every option is unavailable. Different lenders assess businesses in different ways. They also have different preferences for sectors, trading profiles, repayment structures and loan terms.
A specialist lender panel can help identify those differences.
Why the Sigma offer worked better
The client compared the Sigma offer with the other options received. Several features stood out.
No upfront lender fee
Sigma did not require an upfront fee from the client.
This meant the construction company did not need to find additional money before receiving the loan.
No upfront broker fee
There was also no upfront broker fee for the client to pay.
The lender paid our commission directly. No extra broker fee was added to the loan.
This gave the client a clearer view of the funding arrangement from the start. The amount borrowed was not increased to cover an additional upfront brokerage charge.
There are no upfront fees to apply and no obligation to proceed. We explain the relevant costs and commissions before a client commits to any facility.
Monthly repayments
The Sigma loan used monthly repayments.
This suited the client’s cash flow better than weekly or daily repayments offered elsewhere.
Repayment frequency can make a significant difference to a construction company. Project income does not always arrive evenly. A business may spend money on labour, materials and subcontractors before receiving a larger payment when work reaches an agreed stage.
Monthly repayments can make it easier to plan around that cycle.
They also provide a more predictable outgoing than daily or weekly collections. This can help the business manage other commitments, including supplier invoices, payroll and project costs.
Early settlement option
The client also had the option to settle the loan early and save on interest, subject to the agreed lender terms.
This was particularly useful for a construction company.
Construction businesses can often receive bulk payments after completing a project milestone or delivering agreed work. If the company received a significant payment earlier than expected, it had the option to consider settling the facility rather than continuing with the original schedule.
Early settlement terms should always be checked carefully. The exact saving depends on the lender’s agreement and the point at which the loan is settled.
However, having that flexibility gave the client more control over the facility.
Why construction businesses may need flexible funding
Construction companies often manage uneven cash flow.
Costs may arise well before the related income is received. A business may need to pay for:
- Materials and equipment
- Subcontractors
- Site labour
- Transport and delivery
- Insurance and compliance
- Temporary increases in staffing
- Project-related overheads
At the same time, customers may pay in stages. Larger payments can arrive after a completed phase, approved invoice or project milestone.
This can create a temporary funding gap.
A short term business loan may help an established company manage that gap. The right structure depends on the business, its trading history, affordability and the purpose of the funding.
For larger or longer-term plans, business growth loans may be more suitable. Other businesses may benefit from asset funding, invoice finance or a facility designed around tax and VAT commitments.
The key is matching the facility to the reason for borrowing.
A second opinion can be worthwhile
The client had already received funding offers elsewhere.
That did not stop SME Finance Hub from reviewing the case.
We were able to explore an alternative route and present improved terms through Sigma. The client could then compare the options based on more than the headline loan amount.
Important points included:
- The amount available
- The repayment term
- The repayment frequency
- Any upfront fees
- Whether broker fees were added to the borrowing
- Early settlement flexibility
- The total amount repayable
- Whether a personal guarantee was required
This wider comparison helped the client choose a structure that better suited its circumstances.
A lender’s decision is never guaranteed. Terms vary between businesses and applications. However, a second opinion may uncover an option that was not available through the first route.
Arranged by Andy Yates
The loan was arranged by Andy Yates, Director and Finance Broker at SME Finance Hub.
Andy worked with the client to understand its circumstances and compare the available options. The completed facility provided £20,000 over 12 months, with monthly repayments and no upfront fee for the client to pay.
The company had previously dealt with SME Finance Hub in 2024. Its return demonstrates the value of an ongoing broker relationship.
Business funding needs change over time. A company may need different products as it grows, takes on larger projects or manages changing payment cycles.
Could SME Finance Hub help you compare business finance?
SME Finance Hub helps UK businesses explore funding through a specialist lender panel.
We arrange funding from £5,000 to £500,000+, depending on the business and the lender. Options may include:
- Unsecured business loans
- Short term business loans
- Business growth loans
- Asset funding
- Invoice finance
- Merchant cash advance facilities
- Tax funding
- VAT funding
- Card terminal loans
There are no upfront fees to apply and no obligation to proceed. Where a facility completes, the lender may pay us a commission directly. Any relevant commission and costs are disclosed before you commit.
We work with UK limited companies that generally have:
- At least six months of trading history
- £10,000 or more in monthly turnover
- At least one UK resident director
- A registered UK business
Funding is subject to lender approval, affordability checks and individual circumstances. A personal guarantee may be required for some facilities.
SME Finance Hub is the consumer-facing trading style of Capital Business Loans Limited, an FCA-authorised UK business finance broker. We are rated 5/5 on Google and support businesses from their first enquiry through to funding.
If you have already spoken with another broker, you can still contact us. We are always happy to explore alternative options and present the best option we can find.
Check your eligibility for business funding or speak to the SME Finance Hub team.
You can also call 01244 906505 or email hello@smefinancehub.co.uk.
No obligation. No upfront fee to pay. Clear funding guidance from a specialist broker.
Frequently asked questions
Can I contact SME Finance Hub after speaking with another broker?
Yes. We are happy to review your circumstances and explore alternative options. Receiving an offer elsewhere does not prevent you from requesting a second opinion.
How much business funding can SME Finance Hub arrange?
Funding typically ranges from £5,000 to £500,000+, depending on the business, lender and application.
Can a construction company use a business loan for cash flow?
Potentially. Funding may help with materials, subcontractors, payroll, project costs or working capital. The lender will assess the proposed use and affordability.
Are there upfront broker fees?
There is no upfront broker fee for the client in this case. The lender paid our commission directly, with no extra fee added to the loan. Costs and commissions vary by facility and are disclosed before commitment.
Are there any upfront fees to apply?
No. There are no upfront fees to apply, and there is no obligation to proceed after an initial enquiry.
Can I settle a business loan early?
Some lenders allow early settlement. Whether you save interest depends on the specific agreement. Always review the early settlement terms before accepting an offer.
Is SME Finance Hub FCA authorised?
SME Finance Hub is the trading style of Capital Business Loans Limited, an FCA-authorised credit broker. Read more about our FCA authorisation.