Conister business loan review: Rates & eligibility

Established in 1935, Conister is an independent bank based in the Isle of Man. It was originally known as Conister Trust before being rebranded as Conister Bank in 2009.

The bank offers both personal and commercial banking services and is a subsidiary of Manx Financial Group. This review looks at the different business funding options available from Conister.

An overview of Conister business loans

Conister Bank offers a variety of flexible funding options for a range of different business types. Some of these business finance solutions include:

Unsecured business loans

Conister provides several different types of business loans to help your business grow. No upfront fees are charged, and you borrow a lump sum of cash over a fixed term with fixed repayments.

As well as traditional business loans that could help you buy stock or equipment, Conister offers professional indemnity premium funding, helping your business to spread the cost of annual insurance without impacting your cash flow. There’s also an option to apply for funding to cover practice and membership fees for professional businesses such as law firms and medical practices.

In addition, Conister provides a fertiliser finance scheme for agricultural businesses to spread the cost of fertiliser, feeds and inputs over a maximum of 12 months, as well as funding for equine activity. This can include horse boxes, horses, ponies and saddlery, as well as help with veterinary bills.

Asset finance

If your business needs to invest in essential equipment, machinery or vehicles, Conister provides asset finance to help you acquire these items without the need to pay for them upfront. Instead, businesses can spread the payments over an agreed period of time (with added interest), to make the process more financially manageable.

Conister funds all types of agricultural machinery, as well as commercial vehicles and plant and equipment.

Structured finance

Under this section, businesses can apply for a block discounting facility with Conister. This allows Conister to buy the rights to future instalments from a block of your finance agreements, and in return, you receive an immediate lump sum of capital.

In addition, Conister offers a revolving credit facility that enables you to draw on funds up to your credit limit as needed and this is secured against assigned receivables (unpaid invoices). This allows businesses to access immediate cash flow based on future customer payments.

An Integrated Wholesale Funding Agreement (IWFA) is also available. This is a secured lending structure that allows a business to obtain capital by transferring the legal rights to its underlying customer agreements to a Special Purpose Vehicle (SPV), which are then secured by Conister Bank.

What is Conister’s typical interest rate?

The amount of interest you pay with Conister depends on the type of finance you apply for. Secured loans are likely to have more competitive interest rates than unsecured, simply because the collateral provided lowers the risk for the lender.

However, factors that also affect the interest rate include the size of the loan, your business’s trading history and its credit rating.

How much can I borrow with a Conister business loan?

The amount you can borrow depends on the type of loan you apply for and, in the case of asset finance, the value of the asset.

For most finance options, you can typically borrow between £5,000 and £250,000.

However, both revolving credit facilities and block discounting can give you access to funds of between £0.5 million and £9 million, while integrated wholesale funding agreements can enable you to borrow between £9 million and £50 million.

Borrowing amounts also depend on factors such as your business’s credit history and financial standing.

What is the acceptance rate for a Conister business loan?

Conister Bank doesn’t publish its acceptance rates, but you are more likely to get accepted if you meet the eligibility criteria, your business has a strong credit history, and you can prove you can comfortably afford to meet the repayments.

Eligibility criteria and whether you qualify

It’s best to get in touch with Conister Bank for full eligibility criteria, but you will usually need to be a UK-registered business, and applicants must be over the age of 18. There may be minimum trading and annual turnover requirements to meet.

Additional information

Before applying for business finance with Conister, you should read through the terms and conditions carefully, paying attention to the following:

Early repayment fees

Certain finance options may charge an early repayment fee if you pay back your loan before the end of the agreed term, so be sure to check. Often these charges are a percentage of the amount outstanding.

How long does it take to get approved?

The length of time it takes to get approved will likely depend on the type of finance you’ve applied for, as well as whether you’ve provided the correct information and documentation as requested. If you are applying for secured finance, the asset will usually need to be assessed before approval can be granted.

Estimated time to receive funds

Once approved for business finance, you can typically expect to receive your funds within a few days, but this may take longer in some cases.

Can a loan be repaid early?

Whether a loan can be repaid early depends on the type of finance you’ve applied for. It’s best to check the terms of your agreement or contact Conister Bank to find out more.

Is security required?

Security may be required depending on the type of finance you’ve applied for. Asset finance and structured finance agreements are typically secured loans and will require security. This may be at risk if you fail to repay your loan.

What documentation is required

When applying for business finance, you’ll need to provide certain information and documentation.

Business information

You’ll generally be asked to provide information such as the name and address of your business, and its company registration number. You may also be asked for business bank statements, financial accounts and a business plan.

Business owner information

You’ll need to provide your personal details, including your name, address and contact details, as well as those for any other business owners.

Funding requirement

You will need to state how much you wish to borrow and what you want to use the funds for.

How to apply for a Conister business loan

For most types of business finance, you can apply online through the Conister website. You will need to fill in the short application form, supplying the necessary details, including the amount you want to borrow, over what term and what for.

If you want to apply for structured finance, you must fill in a short contact form, and someone will get back to you to discuss your options.

Is the application process different to other lenders?

As you can apply directly online for most funding requirements, the process is similar to that of other lenders. However, if you wish to discuss your options in more detail, it’s best to contact Conister Bank directly. You can do this by calling the team on 01624 694694 Monday to Friday 9am to 5pm or by emailing info@conisterbank.co.im Alternatively, you can fill in the callback form on the website.

How to improve your chances of getting funded

You may find it easier to get funding if your business has been trading for a number of years, has a strong financial track record and a healthy credit score. Answering application form questions honestly and accurately can also help, as can supplying the required documentation when asked.

Pros & cons of a Conister business loan

Pros

Variety of business finance options available
Supports a wide range of industries
You can apply for many finance options online

Cons

Fees may apply, depending on the product
Your assets could be at risk if you fail to repay the loan
You’ll need to contact Conister Bank to find out exact eligibility criteria

Alternative funding options for different lenders

If the above business finance options aren’t quite the right fit for your business, there’s a range of alternative options available from other lenders. These include:

Why use a finance broker?

Using a finance broker can save you time and effort when looking for the right business funding. Brokers have access to a wide range of lenders and can point you towards those most likely to approve your application, which is particularly useful if your business is new, has a poor credit score, or a history of debt.

A good broker will explain any finance fees clearly and guide you through the application process. Keep in mind that some brokers charge for their services, so always confirm costs before proceeding.

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Our team at Swoop would be happy to discuss your business funding requirements with you to help you find the right deal to support your application and help your business grow.

Conister business loan review: Interest rates, eligibility, and the application process