Yes, financial advisor loans can be funded by utilising an SBA or conventional structure.
A full range of financial solutions for IFAs
We can help you find the funds to support your own business plans - and help you arrange lending for your clients, giving you a new source of incomeSpeak to one of our experts020 4525 5312
Setting up up your practice
- Acquire your premises
- Commercial mortgages from 2% over base rate
- Asset finance - HP up to 60months
- Asset finance - leasing with no capital costs
Running your practice
- Running your practice
- Tax loans
- Growth finance
- Cashflow support
Providing additional income
- Lending for your clients
- No charge for our services
- Additional income source for you
- All types of funding
Financial Advisor Loans
We can help you find the funds to grow your business - and help you provide a source of finance for your clients
The outlook for Independent Financial Advisors is exciting. There are growing numbers of people - both private individuals and business owners - who realise that it is essential to get professional advice to reach their financial goals.
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IFA business owners are now starting to look at ways to grow. Of course, there are new challenges that might make that growth harder to achieve.
Meeting those demands and challenges is essential for your future. With the growth of large practices with advisors that cover the country, the need to invest in your business has never been greater. Many IFAs have found themselves unable to find the funds they need and have been forced to become restricted.
At Rangewell we believe that the work of IFAs is essential, and Rangewell works with IFAs across the country to help them find the finance they need to preserve their independence and to grow. We help you find the financial solutions that you need.
Understanding your funding options
You may need to find the right type of funding option to allow you to:
- Set up your business
- Acquire premises
- Acquire equipment and assets
- Finance growth
- Deal with tax
- Provide funding for your clients
How Rangewell can help you help your clients
As an IFA, you will have a growing number of clients who will be in need of business funding. At Rangewell, we can work with you to help your business clients find the funding they need.
By acting as an introducer you can provide a valuable extra service for your clients, and call on all the expertise of the Rangewell team. That means, whatever business funding need your clients face, you can help them find an answer.
You retain full control of your client relationship. We make no charge for our services - but we ensure that acting as an introducer in this way can help your practice create an important additional source of revenue for you.
Find out more about acting as an introducer.
The challenges you may face
Setting up as an IFA
Setting up as an Independent Financial Advisor can be achieved with very little investment - but building up your list of clients could take years. If you are going to set up, you will certainly need to invest in marketing. A website and social media campaign may be essential.
Your bank may not be able to help if you’re starting up a new business venture. An overdraft used to be the solution, but these may be increasingly difficult to arrange with your bank
Revolving Credit Facilities may, however, be a versatile alternative. They provide a line of credit with an agreed limit that you can call on when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds if you need them.
Working Capital Finance is another solution. Working Capital Finance is often used to provide cash to pay staff and suppliers while business is slow during the early weeks and months of a new practice, or during a period of growth. It is usually designed to be repaid in the short- to medium-term, once the practice is fully on its feet.
Funding your premises
Premises can represent a major investment for any business. A serviced office will require an upfront payment while renting an office will mean acquiring everything from a desk and chair to a computer. The cost will depend on your location and the square footage you need - it may be best to take on more space than might be strictly necessary to allow you to take on assistants or a partner in the future. There may be service charges and business rates on top of the bare lease. You may need upfront funding to secure the agreement - we can provide a number of solutions to help you.
However, renting means ongoing costs and puts your practice at risk of rent increases. Buying your premises with a Commercial Mortgage could actually decrease your monthly outgoings and provide your business with a valuable asset for the future. Commercial Mortgages can help you buy your premises or even an existing practice, however, it is usually uneconomical to borrow less than £50,000, and some lenders have a minimum of £75,000 or more, but there is no set upper limit.
Remember, if you already own your premises, a Commercial Mortgage might be a cost-effective way to raise funds to use elsewhere in your business.
Commercial Property Finance is arranged on an individual basis - which is why it is important to have expert support to secure the most competitive deal.
Funding for your equipment
Whether you are starting up, buying into an existing business, or ready to move your current operation on, you will need office equipment. Your IT setup, computers and printer will be expensive items, and you may need specialised software with operating licenses and renewals, training and maintenance. You will also need to furnish your office.
At Rangewell we can help you find the most appropriate Asset Funding solutions for your needs, with both HP and lease agreements, together with business contract hire for your vehicles.
We can also help with a number of specialised loan products:
You know how to minimise your tax obligations, but a large quarterly VAT or annual tax demand may still be coming your way. It can cause problems with your cash flow, particularly when it falls at the same time as other costs. Tax Loans help you to spread the cost of your tax demands into affordable monthly payments, meaning:
- Better control of cash flow
- Fixed monthly payments
- Quick and simple to arrange
- Avoids issues with HMRC, potential penalties and professional liabilities
Providing financial advice is a people-intensive industry. Growth means taking on more staff. Firms can take on trainees and support their professional development. Alternatively, you can bring in experienced hires from competitor firms - or even buy entire businesses.
Large-scale finance can be vital if you have major plans such as acquiring a competitor. Growth Finance is designed to provide a cost-effective solution. Lenders may require an established trading history and record of profits, but it may be possible to arrange Growth Finance based on your profit projections, rather than on your trading history.
Get our help finding the most appropriate lending for your needs, including Growth Finance.
Should you consider alternative business funding?
Many businesses now consider alternative business funding. Crowdfunding and Venture Capital have become more popular particularly for businesses looking at the costs of setting up - but at Rangewell we believe that these can have major drawbacks. Costs can be high, raising the funds you need can mean long delays or even fail altogether, and there is the risk of loss of control. Fortunately, we can help you find better alternatives, with the new generation of lenders who have a more flexible approach than traditional funding sources.
How we help you capitalise your IFA business
At Rangewell, our expertise works to bring you the financial solutions you need to capitalise your advisory business - from financial advisors to insurance and pensions advisors - whether you want to fund capital expenses, working capital or growth.
We know the lenders who can offer the most competitive rates we find solutions for all types of finance including unsecured and secured loans, invoice finance, asset finance, commercial mortgages, growth finance and more.
Whether you have a straightforward finance need or require a complicated ‘jigsaw’ funding plan made up of a combination of products, we can work with you to find the answers that are right for your needs.
Call us now to get our experts working for you and your clients.
REAL EXAMPLES OF WHAT WE CAN DO
Find the most competitive loan to let an new IFA acquire premises
Help a find finance for a new partnership to maintain the business for the first two years of operation while they become established.
Source a commercial mortgage to allow an IFA to buy the freehold of her office premises
Provide an important extra income stream by helping IFAs find a full range of funding for their clients
Help a arrange ‘jigsaw’ funding for an IFA to buy out their business when its owner was ready to retire
Last update: 17 August 2023
Frequently asked questions
Have a question?
Any small business with 500 or fewer employees may be eligible for a PPP loan. This includes small businesses, S corporations, C corporations, LLCs, private nonprofits. Independent contractors and sole proprietors are also eligible.
Typically, the credit scores need for a business loan is 680 or higher for traditional bank or SBA loans, 630 for business lines of credit or equipment financing, 600 for short-term funding, and 550 for merchant cash advances.
Download Rangewell’s free and detailed guide to finance for IFAs
What types of business finance are there for independent financial advisers?
Why not all providers are equal - finding the one that’s right for you
how you could potentially create an additional revenue stream from your financial advice
The downsides to finance - and how to avoid them
How to arrange finance, including what paperwork you need