Andy Munson

What kind of SMEs do you work with and why?

Andy: The beauty of being a broker, as opposed to a lender, is that we don’t have rigid, specific criteria. If you go to a single lender, they dictate the terms. For example you must have been trading for two years, your turnover needs to be £25,000 a month, or they only lend between £10k and £100k. You are very much boxed in by whether or not you meet their specific "yes/no" profile.

Because we are a brokerage working with over 300 different lenders, we don’t have those boundaries. We can help "new start" businesses; you don’t necessarily have to be a homeowner, and there isn't a strict minimum turnover. 

If you’re a limited company trading for three months with a regular turnover of £10,000, we can look at that. Even if you haven't started trading yet, aren't a homeowner, and only expect to generate £2,000 or £3,000 a month, we can still help—though the options are naturally more limited.

We differ from other brokers who might not want to put the time into the smaller end of the market. 

I look at it differently: typically, our clients will use us again and again because we’ve taken the time to get to know them, their business, and their story. Having that background is really important for lenders. 

We’ve helped clients start out when others wouldn’t, and we’ve been rewarded with that loyalty. When they grow and need funding again, they come back to us. 

So you’re basically representing the underdogs as well.

Andy: 100%. That is one of the reasons I set up Yorvik Business Finance. I’ve worked in the commercial finance industry for 15 to 20 years and I’ve seen the good, the bad, and the very ugly. I wanted Yorvik to be a "one-stop shop" where we are in the business owner's corner, fighting the battle with them regardless of the challenges.

Banks don’t really want to lend to small businesses right now; it's often just a computer saying "yes" or "no." The majority of KBB (Kitchen, Bedroom, Bathroom) SMEs won’t qualify for bank funding, so they need someone they trust to paint their story in the best possible light for lenders. 

How many retail or showroom-style businesses have you helped secure finance for?

Andy: We have helped between 2,500 and 3,000 clients over the past six years. Specifically, we’ve worked with 1,114 businesses within the construction and home renovation industries. Out of those, over 250 were either brand new or expanding into a second or third site. We are very well-versed in this sector. 

In 2026, if a small KBB independent owner wants to open or expand into a showroom, where does the money really come from? Which routes are actually funding showroom growth right now?

Andy: New ventures like this come with high costs—deposits for leases, machinery, or fit-out costs that run into the tens of thousands. Banks are quite adverse to these amounts as they deem them high risk.

Typically, we approach the "alternative lending market." In plain English, these are lenders that provide funding outside of traditional banking. The criteria aren't as high, so you're more likely to get a positive result. 

Interestingly, many of these lenders actually borrow their capital from the big banks—say, £100 million at a certain rate—and then lend it out themselves. It’s a direct agreement between you and the specific lender, and there are many products available, not just a standard term loan.

Which of these types of lenders have the highest approval rate?

Andy: In today’s market, unsecured business loans are very successful. These usually need to be backed by a personal guarantee from the director or shareholders, but "unsecured" means no business or personal assets are used as security.

Another great option is a revolving credit facility. It works like an overdraft: you only pay interest on what you’ve actually borrowed. 

If a business needs £50,000 for a fit-out but only needs £20,000 in the first month for deposits, their interest repayments stay lower because they haven’t drawn down the full amount yet. 

Unlike a loan, where you pay interest on the full £50,000 from day one, this gives you a facility to use as and when you need it and, like an overdraft, you only pay interest on the amount that you borrow. 

Which of these borrowing options is the fastest to secure in real life?

Andy: Both unsecured loans and revolving credit are the quickest. We have seen approvals and payouts happen within a single day. To set realistic expectations, that is rare; a more typical process is three to four days maximum from initial inquiry to funds being paid out, depending on how fast the client provides bank statements and accounts.

What do SME owners wrongly assume will work when it comes to borrowing for setting up or upgrading a showroom?

Andy: "Bank lending" is a big one. Banks take so long—often a minimum of weeks just to respond. I had a recent client wait 10 days without an update from his bank, while I secured him two lenders offering over £100,000 in that same time. Banks also want a lot of security, often against the business, to offer those better rates. 

I always recommend that if you are going to your bank, don't put all your eggs in one basket; speak to a broker as well in case the bank says "no" after three weeks.

Asset finance is also currently difficult because rates aren't significantly better than unsecured loans, and lenders typically want a minimum 10% deposit upfront. For a business owner trying to keep costs down while building a showroom, paying a large deposit isn't ideal. 

For a viable independent opening or upgrading a showroom, what funding size and interest rates do you most commonly see?

Andy: For new showrooms, funding sizes are usually anything between £10,000 and £100,000. And very broadly, the best unsecured loans start from around 6%. 

However, every business funding application is underwritten on its own merits. Our job is to go out and find the best solution for the client.

Between time, cost, or conditions, what do most owners underestimate?

Andy: They probably underestimate costs the most. Because we can turn things around in three to four days, speed is usually fine. Regarding conditions, with unsecured lenders, there generally aren't any beyond the director's guarantee.

Borrowers are often surprised that business finance is considerably more expensive than personal finance. It is worthwhile noting two key things – firstly, personal finance is usually capped at £25k per person and secondly, it is often added into the T&C’s of any personal borrowing that it cannot be used for business purposes.

Of the applications you personally consider viable, what percentage get approved, and what is the main reason for rejection?

Andy: Our latest figures show an 85% approval rate. The caveat is that we don’t always get the full amount requested. 

If a business turns over £100,000 a year, the likelihood of borrowing more than £50,000 or £60,000 is slim, because it's a proportion of their revenue.

The number one reason for rejection is adverse personal credit, like CCJs or defaults. That’s the biggest stumbling block right now. 

The second is cash flow, where a lender isn't comfortable that the business can afford the repayments over the term. 

But because we work with hundreds of lenders, it’s perfectly common for five of them to refuse and then another five to come back and make a formal offer of funding.

What do owners usually get wrong when they are at the point of opening a showroom?

Andy: Not accurately predicting all the costs, particularly fit-out costs. We’ve had instances where a client asks for £50,000, we source it, and then they realise two weeks later they need more.

I also see issues with revenue forecasting. I suggest doing your forecasts on a worst-case scenario—hope for the best, prepare for the worst. If you think a showroom will generate £10,000 a month, forecast for £7,000 or £8,000. That way, you’ve accounted for wiggle room.

The government says it's easier and faster for SMEs to secure finance. In practice, what have you seen?

Andy: I haven’t really seen the government do anything directly to make funding easier. 

There is a lot of miscommunication, especially around the Growth Guarantee Scheme (GGS). For example, the "70% guarantee" is to benefit the lenders, not the client. If you borrow through the GGS, you are still 100% liable for the debt; the 70% just protects the lender if the business fails.

There is a British Business Bank portal for banks to refer clients to other lenders, but most banks I work with either don't know it exists or just don't use it. 

The ideas might be good, but the practice and the lack of information fall far short.

When someone is waiting for a finance decision and it's taking weeks, what should they be doing?

Andy: If you went directly to a lender, you need to follow up and ask for realistic timeframes. If you used a broker, it’s our job to do that legwork. At Yorvik Business Finance, we update our clients at least three or four times a week, if not daily. 

Don’t just take a "no" or silence as an acceptable outcome. If it’s been anything more than a week without a word, you need to be on the phone.

Before submitting an application, what is the single most important thing to get right?

Andy: Transparency. Give us a full, "warts and all" insight into your situation.

Clients often try to hide adverse credit but, due to the due diligence undertaken between us and our lenders, we will find out anyway. If a lender finds something we didn't divulge, they start wondering what else we aren't telling them, which puts the whole application in a negative spin.

Lenders talk to each other, so stay honest about what the money is for and what your history looks like. 

If KBB owners want a trusted partner with a bespoke, personal approach—one that’s earned us five-star reviews from nearly 100 clients—that’s what Yorvik Business Finance provide.