We recently invited Scott McGregor, Commercial Broker at Mortar Finance to a webinar on the topic, ‘Funding Your Next Business Acquisition.’
Here’s what he said -
These industries are by no means exhaustive. It just highlights a few of the industries where a lot of banks have specific policies around lending to these industries. So, accounting, insurance, legal, etc. that the banks have enough exposure and comfort across these industries to design specific policies. I suppose provide a lot more guidance around how they are going to be structured, but it potentially gives us access to a higher level of funding because the bank has a certain comfort and a certain policy around these types of industries.
Anything that sort of falls outside of this, doesn't make it any easier or harder to fund, but it falls back to standard business assessment criteria, as opposed to a specific policy around these sorts of things.
Each bank we deal with has a different policy that relates to accounting industries but they all have a particular policy around how we might lend to an accounting business or a financial planner, or a doctor. They will look at those sorts of things. There are specific industries that will have certain policies. As long as we can understand the business, the repayment, and the security, then we can still put a good application together and have a good conversation with a funder around putting some facilities in place.