ACORN Commercial Finance, of Clifton Moor, one of the largest independent finance brokers in the UK, has introduced a new service to offer a lifeline to Northern companies with adverse credit or defaults in their credit history.

The company claims to be helping the one in four adults who now have some kind of default on their credit rating, making it impossible to secure finance to turn their business dreams into reality.

Would-be entrepreneurs are finding major barriers to securing a loan from banks due to past credit history.

The new service allows clients with adverse or difficult credit history to apply for a commercial loan, almost at standard interest rates.

Whereas the majority of lenders in this market will offer interest rates of between 18 per cent and 36 per cent, Acorn Commercial Finance claims to offer a dramatic saving at a start rate of only 3.75 per cent above base rate.

The amount clients can sensibly borrow is therefore greatly increased, says Acorn. It also opens up credit services to all business sectors, from pubs and wine bars to farms and factories.

The new service also carries a direct knock on benefit to accountants and solicitors whose clients have had problems obtaining finance from high street banks.

Paul Thompson. One of the Acorn Partners said: "We are in the business of fulfilment, and our latest service will make sure that many more are in a position to buy the business they have always dreamed of.

"Clients will be able to secure a commercial loan for up to 75 per cent of the property value. Repayment terms can be spread over 30 years which will help to ease cash flow - especially important to those who might have had cash flow problems in the past."

Updated: 09:22 Tuesday, March 25, 2003