Made sat down with Liquidity Club’s David Totney to discuss potential financial actions businesses could take to future proof their business. On top of this, he talks about the ever-changing world of finance as well as the company’s aim to produce a quick and easy application process for clients trying to access funding.
Birmingham based Liquidity Club is a finance broker working with businesses to find the right finance package for their plans and aspirations. Driven by what is right for the client, the firm works with a small selection of lenders that they know well and trust.
It is important to note that Liquidity Club does not lend money, but is all about sourcing finance for their clients. As the finance world can be very complicated, especially in today’s society, and is changing all of the time. The firm considers itself to be an interpreter in terms of knowing what type of businesses are suited to certain types of finance. Director at Liquidity Club David Totney said:
“Unlike others in our space, we don’t flood deals into the market rather we identify the one funder that’s most suited to a particular client. We then put a document together about the client and why their finance package would suit them best.”
“We really get to understand what our funders are about and then when we are talking to our client, who requires the finance, we know exactly what they are getting into. Therefore the client experience should be better all-round”
A lot of what the company does is financed against trade credit or invoices, however, in today’s world many businesses' revenue has been affected by the current climate around COVID-19. Therefore the firm’s aim is to now find finance linked to the client's strengths and to their potential, alongside using Government support where applicable.
Due to the current pandemic, many companies are looking to Government schemes such as the business interruption loan schemes. However, Liquidity Club is beginning to help businesses who have already contacted their bank and have not received the feedback they have hoped for. The firm is working on an online application process that pulls together all of the information they need from a client to approach the right lenders. David said:
“Our team are all ex-lenders, we understand what financiers are looking for so that when we put our final report together, it is much more relevant and targeted, this saves time and effort for the client. Without our services the client could be talking to multiple lenders without truly knowing which is the right choice for their business.”
Talking about what advice he would offer to manufacturers during this time, especially if they are no longer in business at the moment, David said:
“As we all recognise cash conservation and supporting vulnerable suppliers are key areas, if you haven’t already I recommend that you first talk to the revenue regarding time to pay, talk to your existing bank about available financial support and consider cash generation from R&D Tax Credits. Furloughing employees is also an option that the Government has made available in tough times. Working together we will make it to the other side of this unprecedented tough time”
If Liquidity Club could help you, get in touch today by visiting their microsite https://liquidityclub.madeinthemidlands.com/.