Finance broker Ash Mitchell from Onboard shares his perspective on navigating different funding options, understanding what sits behind a lender’s decision, and helping business owners find a way forward when the obvious route doesn’t fit.
Working primarily with business owners, Ash sees funding requirements across acquisitions, property, cash flow and growth. He works across the major banks as well as non-bank lenders, giving him a broad view of the different ways a transaction can be approached.
For Ash, having that breadth across the funding market means being able to consider a transaction from more than one angle – and match the funding approach to what the business is trying to achieve.
Ash works across the major banks as well as non-bank, cash flow and private lenders. Over the past few years, that broader funding market has become an increasingly important part of his work.
The value, as he sees it, isn’t simply having more lenders to choose from. Different funding providers have different appetites, structures and roles to play, and understanding those differences gives an adviser more ways to approach a client’s requirement.
That variety is particularly evident in business finance, where the right approach can depend as much on what the business is trying to achieve and when it needs to happen as the funding requirement itself.
For Ash, this is one of the most rewarding parts of the job.
Ash often sees the headline rate become an immediate focus when clients are considering a funding option. But his approach is to bring the conversation back to what that rate means in dollar terms – and then consider that cost within the wider commercial picture.
That becomes particularly relevant when funding is being used to acquire a business. In those situations, the cost of the finance sits within a broader commercial equation – including what the acquisition could potentially generate.
He has also noticed that the way business owners think about funding tends to evolve with experience.
For Ash, it's not about diminishing the importance of cost, it's about making sure it is understood in context – alongside the structure of the funding and the commercial opportunity it is there to support.
Having access to different parts of the funding market also means understanding why a transaction may suit one lender better than another.
Sometimes a requirement sits outside a bank’s credit policy. In other cases, the information available may not support the type of application a bank requires, or the timing of an opportunity may not align with the bank’s process.
For Ash, understanding that distinction is important. A lender’s position on a particular transaction doesn’t necessarily tell the whole story; the reason behind it can help determine whether another funding route is appropriate.
That was the case with a recent acquisition Ash worked on for an established service station operator.
The client had recently completed a transaction with his bank when another service station became available in the same area. Strategically, the acquisition made sense to him and would further establish his presence in the region.
His bank, however, wasn’t prepared to provide further funding so soon after the previous transaction. It wanted to see how that acquisition performed before extending additional capital.
So Ash considered another route.
An established service station operator had the opportunity to acquire another service station in the same area.
The client had recently completed another acquisition and his bank wanted to see how that transaction performed before providing additional funding.
Ash brought the wider commercial context to Line Capital. Line Capital provided the funding, allowing the client to complete the acquisition. The lending was subsequently refinanced back to the bank when Ash and the client determined that was the appropriate next step.
The business being acquired would bring additional cash flow, the client had a strong track record, and there was a clear commercial rationale for the acquisition.
Ash took the transaction to Line Capital and worked through that wider context with the team. Line Capital provided the funding, allowing the client to complete the acquisition.
For Ash, the transaction illustrates the role that having different funding options can play. Line Capital was able to support the acquisition at the point the opportunity arose, when the client’s bank wasn’t in a position to provide further funding.
When Ash and the client subsequently chose to refinance the lending back to the bank, Line Capital was supportive of that decision.
Ash values that flexibility.
One of the things Ash values about working with Line Capital is the ability to have a conversation when a transaction isn’t immediately straightforward.
For Ash, having access to the people involved in the credit decision is particularly useful.
As a broker, that access isn’t always available. But when a transaction sits outside more conventional parameters, being able to explain what’s behind the application can add information that isn’t necessarily evident from the numbers alone.
It doesn’t mean every transaction will work. But it does mean the circumstances surrounding it can form part of the credit conversation.
Ash is equally clear with clients when he doesn’t believe a funding request is ready to proceed.
Rather than simply leaving the conversation there, he’ll explain what is preventing it from working, what may need to change and when it could make sense to revisit the position.
He’ll often put a reminder in place to reconnect with the client at the appropriate time.
It’s another part of navigating the funding market: knowing when another lender or structure could provide the right path but also recognising when the better answer is to give the business time to get into a stronger position.
For Ash, that’s what keeps business finance interesting. There isn’t a single formula or funding path that works for every business.
There are different businesses, different opportunities and different points in the journey – and the challenge is working out the right way forward for each.
Having a wide range of funding options doesn’t mean finding a way to place every transaction.
If you have a client funding requirement that doesn't fit neatly within the obvious path, talk it through with the Line Capital team.
