Category: Asset Finance Companies (page 6 of 7)

Farmers – Are You Exploiting This Tax Allowance?

8th February 2019 / admin / Comments Off

It may not be all good news for farmers this year but there is one particular piece of news that every farmer should be aware of and that relates to an opportunity to take advantage of machine purchases with the help of the government.

Farm machinery is often a major purchase with tractors alone costing in excess of £100,000 so if these savings can be offset it has to be good news. Fortunately, the government stepped in to help farmers with a change to the Annual Investment Allowance that will go a long way towards helping farm businesses make some big investments in farm machinery.

The fact that the move isn’t permanent should alert farmers to take advantage before 2021. The AIA threshold was £200,000 in 2018 and this has temporarily risen to £1million for the next 2 years.

With a lot of uncertainty at present and for the future of some farms in the UK this allowance could make a difference. Specialist finance could help ease costs further for farm businesses and enable more investment to improve efficiency and explore new opportunities for farm business development in the future.

If you would like to find out more about farm finance contact one of our advisors today who will be able to help.

How To Avoid The Business Funding Post Code Lottery

30th January 2019 / admin / Comments Off

According to recent reports, where a small business is located can have a big impact on how likely it will receive funding. While some areas offer excellent prospects for funding others are virtually feeding of scraps according to statistics.

Figures from 2016 show that businesses that benefitted from the Bank Referral Scheme totalled only 900 out of the 19,000 that had been referred after failing to secure loans from high street lenders. Looking deeper into the stats just 75 of these companies was located in in the North West.

Looking at more recent figures from UK Finance, things haven’t changed much when it comes to loan approvals by UK region. All regions saw a year on year fall in loan approvals in the final quarter of 2017 apart from Wales which saw a 55% increase compared to 7.6% decline for England.

The statistics show banks still a have a long way to go before they have sufficient trust in lending to small businesses throughout the UK with the exception of Wales.

To get around this problem, businesses should consider alternative forms of business finance to support ambitious growth plans such as asset financing.

Asset Finance New Business Rises 9%

5th January 2019 / admin / Comments Off

According to the most recent figures released by Finance & Leasing Association (FLA) new business in the asset finance sector increased by 9% year on year in the month of October. This indicates that Brexit uncertainty hasn’t put off firms looking to use asset finance to grow and develop their businesses.

With asset finance covering several sectors, some areas have shown even more spectacular growth than the overall figure suggests. Machinery finance for example showed growth of 16% compared to October 2017 while business equipment finance was up 29% which is nearly one third up. The commercial vehicle sector also saw an increase of 23%.

These figures represent a strong end to the 2018 which began with similarly positive increases in new business in the construction and agricultural asset finance sectors. The asset finance sector is on course for another record-breaking year which will come as welcome news as bank lending to business continues to show a decline in loan approvals across much of the UK.

Despite the good overall news, technology equipment finance saw a fall in new business which pushed the overall figure down. It will be interesting to see if growth in new asset finance business is maintained in 2019.

Is It Possible to Get a Business Loan with Bad Credit?

20th October 2018 / admin / Comments Off

Often one of the biggest barriers to small business and start up founders getting a business loan is a poor credit rating. So, if you have been turned down for a loan because you have bad credit let’s look into ways it may be possible to gain funding for your business even if you have a bad credit rating.

Find out why you have a bad credit record
Review your credit score online and find out what may be causing the problem. A poor credit score can come as a surprise and the first thing you know about it is when you are refused a loan. Sometimes the cause can be rectified if for example there are some discrepancies in addresses, your name isn’t on the electoral roll or if you have missed credit card payments.

Research lenders willing to provide loans to people with below average credit scores
Some lenders will consider business owners with below average credit scores so it is worth doing some research to find them. If your credit score is below 500 this can start to make life difficult and lenders willing to take the risk on you will become harder to find the lower your score is.

Look to alternative sources of finance that won’t require a good credit score
You may find there are plenty of alternatives available when it comes to finding funding for your business. Friends and family might be one avenue if they are understanding and supportive or asset finance could be an option.

Work to improve your credit score
Your credit score isn’t set in stone and it can improve significantly if you pay all your bills on time and avoid running up debts. Taking out smaller loans and using a credit can actually help improve your rating if you are sensible about making more than the recommended monthly repayments.

Businesses Turned Down For Business Loans Secure £15m of Funding

5th September 2018 / admin / Comments Off

While securing a loan for a mature business in good health is relatively straightforward, for smaller businesses and start ups going to the bank for a business loan can often end in rejection and disappointment.

In the past this would usually lead to business owners giving up on their growth and expansion plans unaware there might be alternative sources of funding readily available. This is why the government came up with a scheme that referred those businesses that were turned down for a bank loan to smaller lenders or companies offering alternative sources of finance such as asset finance.

The referral scheme was introduced in November 2016 and according to the government it has been successful in sourcing £15 million of funding for small business with loans ranging from £100 to £1.3 million.

Such is the demand for funding in the small business sector, the amount loaned via the referral scheme quadrupled in its second year with 670 businesses benefitting from the extra funding in the last 12 months alone.

These results while amounting to a small proportion of the amount of money being lent to businesses each year show just how many businesses might not have received the vital funding they needed to develop.

Are UK Businesses Shrugging Off Brexit Uncertainty?

21st August 2018 / admin / Comments Off

It would appear so according to some statistics released in the past month, however measures of sentiment vary.

While the past month cannot be seen as a crisis for the UK’s Brexit plans, it has at times been close to one. Despite all the uncertainty about whether the UK is going to crash out with no deal or not, the economy has continued to be coping well and carrying on in an upward trajectory.

Business confidence according to Lloyds Bank is at its highest level since the referendum with 25% of SME businesses feeling confident about sales orders and profits. This marked a rise of 2% on the 23% recorded in January 2018.

When it comes to investment, however, the results are not so clear with some data showing that the number of firms not planning to invest in the next 6 months rising by 10% this quarter.

While many business owners and politicians will be thinking more about their holidays than business this month, it could be the calm before the storm when we are set to see negotiations begin again in the autumn.

Those leading the Brexit negotiations will continue to walk a precarious tight rope to protect the interests of business and its people.

Common Questions About Asset Finance Answered

20th June 2018 / admin / Comments Off

Asset finance can be the key to achieving real growth in your business particularly when you need a flexible way to raise finance while protecting your cashflow at the same time. Here are some answers to some of the common questions we receive from business owners who ask about asset finance.

Why use asset finance instead of paying in full for the asset?
Like any other form of lending, asset finance gives you the flexibility to continue to invest in your business without using up all your capital. Paying in full means using up your cash which can leave your business vulnerable in a downturn.

How hard is it to get asset finance for my business?
An increasing number of businesses are benefiting from asset finance and it among one of the most accessible sources of funding out there. Compared to other alternative forms of finance for your business, asset finance can often be the best option.

What can I use asset finance for?
Asset finance is used to invest in equipment that is needed to improve areas such as productivity, and efficiency or to expand your business into new areas with investments in assets including machinery.

If you would like to find out how asset finance can help your business, give us a call. Our experts are happy to answer any of your questions

Mixed Results For Asset Finance

26th April 2018 / admin / Comments Off

Following several consecutive months of growth, the latest figures released by the Finance and Leasing Association (FLA) reveal mixed news for the asset finance market in the 12 months to February 2018.

The two sectors that have performed strongly according to the latest data are Plant and Machinery Finance and IT equipment. The former saw a 5% increase in asset finance while the latter saw a 13% increase suggesting these sectors are more willing to explore alternative sources of finance in the current economic climate. The same can be said for the manufacturing and the agricultural and construction sectors.

Two sectors that have not performed well in the 12 months to February are commercial vehicle and surprisingly business equipment which had seen growth up until this point. Commercial vehicle finance saw a 5% drop while business equipment saw a 20% fall.

Despite these mixed results, the underlying health of the asset finance sector remains strong and continues to offer businesses a less risky alternative to banks loans and other traditional forms of lending.

If you would like to find out more information on how asset finance could help with your own business investment, contact us today for advice.

Small Businesses Moving Away From Bank Lending

22nd March 2018 / admin / Comments Off

According to a recent report in the Financial Times, small businesses are increasingly likely to be looking to specialist lenders they are finding online.

The article reports that the chief executive of the British Business Bank saw evidence that small business owners exercising all their options when it comes to lending which includes anything from asset finance to peer to peer lending and venture capital.

Fear of getting turned down by banks has been given as one of the main reasons for the movement towards alternative finance while the number of businesses applying for bank loans has remained flat.

As with retail, there is a quiet revolution taking place where business owners have followed consumers online and to what they perceive as better deals.

Taking on a business loan from a bank is seen as risky compared to asset finance, which is comparatively less risky and allows business owners to use their existing assets to free up cash or boost cash flow.

According to the recent report asset finance lending increased by 12% last year while peer to peer lending increased by 51%. Equity investments meanwhile increased by 79%.

If you would like to find out more about how asset finance can help your business, then give us a call today.

Is Now A Good Time To Invest In Your Business?

10th November 2017 / admin / Comments Off

As another year reaches a conclusion, you may be thinking about what the new year will bring as most business owners are. This coming year things are predicted to be less certain than they have been for several years so is now a good or bad to time to be thinking about investing?

A lot will depend on the sector your business operates in. Each sector will have its winners and losers as a result of Brexit but recent positive news coming from the manufacturing sector shows that there has been some benefit from the fall in the value of the pound.

This makes the UK’s exports cheaper and attracts higher levels of demand. The growth picture for the economy as a whole however is not quite so rosy with growth slowing down even though unemployment levels are at their lowest since the 1970s.

The conclusion to be drawn from all this is that we rarely see all the balls in alignment when it comes to economies so paying too much attention to bad news can discourage investment at just the time when it is needed.

Many people were predicting a slump following the results of the EU referendum but this hasn’t materialised – at least not to anything like the degree anticipated. If you are a business owner looking to play safe and invest, then asset finance may be the option to get the best of both worlds by protecting your cashflow and making the most of your assets to fund growth next year.

Strong Growth For Asset Finance in Q1 2017

10th June 2017 / admin / Comments Off

Economic forecasts may have been gloomy in the first quarter of this year but the Asset finance market appears to be bucking the trend with promising results for asset finance new business in Q1 2017.

According to the latest data released by the Finance & Leasing Association (FLA) new business in the sector increased by 9% overall in the first quarter of the year compared to the same period last year.

The results show that more and more businesses are continuing to opt for asset finance over other sources of finance to invest in new equipment and machinery.

Results from the agricultural and construction sectors were even more encouraging with the former seeing growth of 43% and the latter seeing 23% compared to the same period a year ago.

While new business growth for asset finance in business equipment was less impressive at 2% it still indicates that growth is strong overall and asset finance growth is not just confined to the agriculture and construction industries.

Economists say this quarter’s strong results matched improved expectations for business investment in the Bank of England’s May inflation report.

If you would like to find out how asset finance can help your business contact us today.

Clarity Needed On Diesel Cars…

11th May 2017 / admin / Comments Off

…To Prevent Uncertainty Over Asset Values

Diesel cars have enjoyed a long period of high residual values but this appears to be coming to an end as the government toys with the idea of how to reduce levels of harmful pollutants.

This has led to calls for clarity in areas such as a potential scrappage scheme for older diesel cars and possible restrictions on where diesel cars are allowed to go in city centres.

The future of diesel is currently under threat not only from the rise of electric cars which enjoy considerable tax benefits but even petrol engine cars. The latter once demonised as the primary polluters of the atmosphere and for comparative inefficiency have evolved to become much more economical than in the past. Pollution from petrol cars has also been found to produce less of the particularly harmful substances found in diesel emissions.

All of this of course will affect the value of older diesel cars and possibly a knock-on effect on newer models. The emissions scandal that has recently rocked Volkswagen and continues to rumble on will have done little to inspire confidence.

Continued speculation over which cars a potential scrappage scheme will apply to and when to will also cause uncertainty in the used car market as people start to wonder how much their cars are actually worth.

Why SMEs Need Asset Finance More Than Ever In 2017

6th March 2017 / admin / Comments Off

If anyone had a crystal ball back in June 2016, it is unlikely they would have been expecting to see strong UK economic growth by the end of the year.

Fortunately despite a steep drop in the value of GBP and its continuing weakness, the UK economy has been surprisingly robust, confounding the expectations of analysts.

While this is welcome news for most of us, strong economic growth can be something of a double edged sword for SMEs. On the one hand there is the potential to grow the business and take advantage of the positive economic environment.

On the other there is the need to maintain the balance of cashflow and investment in the business. The cost of a sudden increase in new orders can put pressure on cashflow unless business owners can ease this problem with finance.

A range of finance options will be on the table for companies that find themselves in this position but one of the more sensible options is asset finance.

Asset finance can help business owners grow their businesses with fixed periodic payments rather commit upfront cash or apply for an overdraft from the bank.

5 Steps To Producing An Accurate Forecast For Your Business

13th January 2017 / admin / Comments Off

Regardless of how large or small your business is, accurate forecasting for the year ahead is critical to maintaining healthy cash flow. Reduced cash flow is the most common reason for business failure, so being realistic about the sales you expect to make and the profit that will be generated from these sales is vital.

Here are our top tips on producing an accurate forecast.

Be realistic
Many business owners find themselves living in a fantasy world when it comes to forecasting. They only consider the best case scenario when investing in new ventures for example and fail to consider what happens if that venture fails to make a profit. Business costs can certainly rocket and there is often no guarantee that doubling advertising spend will lead to a doubling of sales.

Consider possible economic impacts
This year we are more likely to see inflation rise due to the falling value of the pound against other major currencies as well as the start of Britain’s exit from the EU. Ensure that your business is prepared for any shocks that might come in the next 12 months.

Consider seasonal demand fluctuations
If for example you own a retail business that sells winter sports equipment, then your busiest times of the year are unlikely to be the summer months. Take into account seasonal demand with your seasonal forecasting if your business relies on it.

Make sure you differentiate between the income your make and your costs
Not every business gets paid monthly, sometimes payment terms may be up to 90 days which means a long wait for money. The opposite may be true if you purchase equipment for your business on credit and the bill doesn’t arrive until the following month, putting your business under possible financial pressure.

Consider asset finance for your business
Asset finance can help you boost cash flow at vital times and ensure your forecasting remains positive for the year ahead.

Business Lending To Manufacturers Falls

9th December 2016 / admin / Comments Off

Despite the current low levels of interest rates on loans, lending to manufacturers slowed in the year to October 2016, declining by 5.2% according to the latest statistics released by the Bank of England.

Does this signal the start of a more cautious approach to lending amongst manufacturing businesses post Brexit? It’s too early to say but uncertainty doesn’t appear to be having any impact on consumer borrowing, which increased by 10% in the same period.

Although manufacturing only accounts for a tenth of the UK economy today, the divergence in lending figures suggests that consumers are happy to keep on borrowing in advance of expected price hikes in 2017 when the fall in the value of GBP against the dollar and other currencies starts to bite.

Despite making up a smaller part of the UK economy than it once did, the manufacturing sector may be in a for a tough time due to its reliance on foreign imports. This could be exacerbated further if the government pursues a so-called hard Brexit, which could result in tariffs when trading with EU nations.

Manufacturing wasn’t the only sector to see a decline with total business lending also falling by £8.2 billion month on month. This fall was largely due to a decline in loans to the financial services sector.