Rebuildingsociety alters lending terms to attract new borrowers
REBUILDINGSOCIETY is looking to expand its range of lending opportunities by altering the financial information required from its business borrowers.
Previously, applicants have had to provide two years of filed accounts along with a summary of the three-month period before the application, known as management accounts, but now it will accept VAT returns in addition or as an alternative.
The platform said all businesses will prepare statutory accounts but there was no set format or legal obligation for management accounts, which may not provide enough information for the credit team.
“These may still be profitable and good businesses who use an external accountant to prepare their year-end accounts but do not keep internal management information of sufficient detail to enable our credit risk team to review and approve them to be presented in a standardised format to our lenders,” the platform said in a blog on its website.
“Unlike management accounts, the submission of VAT returns presents a statutory declaration upon the directors of the business to attest to the veracity of the information required.
“Furthermore, VAT returns present actual trading information about the business for that period and can often, therefore, present us with a truer and fairer view of the recent performance of the business. Previously, we could not consider applicants that did not have up-to-date management accounts in a suitable format.
“This change will mean that we can now consider these applicants by allowing them to submit their VAT returns to supplement our full assessment of the business.”
The platform is also giving lenders a boost with a four per cent cash back offer on completed bids for loans.
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