multifi updates flexible credit solution to provide transparency to SMEs
multifi, the specialist lender providing flexible cashflow solutions to UK SMEs, has extended the standard repayment term on its Flexi Credit facility from 6 to 12 months, giving UK businesses greater visibility over their borrowing costs and monthly cashflow commitments.
As SMEs in the UK tackle a challenging economic environment and shifting policies impacting the cost of doing business, managing cashflow has become a critical issue for business growth. Multifi’s enhanced Flexi Credit solution is now provided on a 12-month term as standard representing a shift from the previous 6-month term, which is still available for certain businesses.
Interest is charged on the drawn, reducing balance, from 1.99% a month, and there are no arrangement, service, or non-utilisation fees. Facilities run from £10,000 to £350,000, with a decision usually the same day through Open Banking. On a £50,000 facility at 2.99% a month over twelve months, that’s £61,213, or about £4,852 a month after a 60-day interest-only start.
The expansion of the Flexi Credit solution is aimed at giving borrowers longer-term visibility on their cash flow and brings the product in line with other lending options, enabling customers to easily compare flexible credit solutions to existing quotes. The lender is committed to offering customers visibility of the real cost of credit, beyond the usual comparison of a headline rate.
Rob Keown-Boyd, CEO of business lending platform multifi, said: “The shift in payment terms is less about our product and more about giving the borrower transparency on the real cost of borrowing. At a time when every pound matters for SMEs, it’s important that businesses have full visibility of how much their borrowing is going to cost.
“This is not always the case in the industry with costs being pushed up by additional fees or flat-rate interest payments. We are confident that our Flexi Credit solution is one of the best options on the market for businesses who see credit as a useful tool rather than a last resort.”