The difference between a traditional bank and a boutique lender can be likened to a cargo ship and a speedboat. Both will get you from A to B, but if for any reason you need to change course quickly, the speedboat is more agile than the cargo ship, and therefore your best option. Be it to hedge risks or take advantage of an opportunity, financial agility is crucial in a volatile market.
Shadow banking = banking, plus
When it comes to agility, the bottom line is that a traditional bank just cannot be as flexible as a boutique lender.
As deposit taking institutions, the banks are governed by robust rules and regulations. “At Cullinan Financial Services (CFS), we are not governed by the same red tape,” says Michael Barr, Chairman of CFS. “We use shadow banking, which means that we can do whatever the banks can do, but we can do that plus.”
Flexible finance for entrepreneurial opportunities
According to Barr, whenever there’s turmoil or a crisis in the markets, there are always opportunities. “If you’re an entrepreneur, you can take advantage of the market, but you need to have money available when these opportunities arise. We have a facility to back the entrepreneur, to allow him to take advantage of future opportunities without charging him for an unutilised facility.”
This flexibility is one of the key advantages that sets CFS apart from traditional financial institutions. If the same entrepreneur had to approach a traditional bank for a facility to take advantage of a future opportunity (ie: not use the money immediately), he would be charged for the unutilised facility.
“Because we are more flexible and because our internal structure is different, it allows us to be more bespoke as opposed to vanilla. We can be more creative and therefore believe we are more entrepreneurial.”
If you require flexible, bespoke finance which will allow you the agility to take advantage of opportunities in the market, contact Cullinan Financial Services today.