< p>A new lender has launched a fresh commercial product replicating the features of a traditional bank overdraft.
 
Just Cashflow (JCF) Plc, a new patron of the NACFB, has launched a product that in many ways embodies the benefits of a traditional bank overdraft.

Managing Director John McLellan, who has experience in The Royal Bank of Scotland Group, said that it is clear many UK businesses are currently starved of “good old-fashioned working capital”.

 The former director of the Credit Services Association states this is either because of their lack of maturity as a business or the lack of tangible assets within that business.
 
“When I first started working in banking, some 20 years ago, our main underwriting focus was based around the business model itself, which was thereafter underpinned by the directors behind the business. We have used these traditional values as the building blocks in creating a new approach to underwriting our lending facilities.
 
“This new model is called the ‘blended behavioural propensity model’, which means that we look at the likelihood of the success of the business and the directors themselves, and is a combination of both rules-based underwriting and behaviour modelling.
 
“The facility itself does not compete with the standard funding solutions such as invoice discounting, asset-backed lending, bridging, and more recently crowd funding.  In fact the opposite is true, as it complements them. 

“In recent weeks we have been able to successfully provide funding on a shortfall of a commercial purchase due to the principal lender placing a retention on the facility.

 “The flexible nature of the short-term finance provided by JCF enabled the customer to complete the outstanding works and fulfil his obligation to the principal lender without undue interruption thereby avoiding a default event.”  
 
The new lender has expressed a keenness to tap into the commercial finance broker community. It are exhibiting at the June NACFB Expo.

The management team’s experience in building successful partnership programs with introducers has led them to creating an incentive package that provides up-front fees and also allows for an on-going source of income for the broker.