Category: Asset Finance (page 10 of 10)

How To Grow Your Business on a Shoestring

4th April 2016 / / Comments Off on How To Grow Your Business on a Shoestring

It’s in every entrepreneur’s nature to want to grow their business, however doing it on a shoestring can be difficult but not impossible.

One of the most important things to think about as an entrepreneur starting a new business is future direction. Are you thinking big? Are you making plans to take the business to the next level?

If you are, then this is an important first step. As soon as you have the vision for where you want to take your business then you will need funds to bring your plans to fruition. This is where a lot of entrepreneurs fail.

They can often end up stuck in a rut without exploring the funding options available and rely on the business itself to generate the funds for growth. Unfortunately as almost every business owner knows, you can’t always rely on sales to fund expansion.

So it is worth considering funding options that will help clear the obstacles to future growth. These can include: 

Friends and family
Many successful business have started with help from friends and family. Just make sure you have a proper agreement set up from the outset in writing, just in case things don’t go according to plan.

The bank
Ok this may not be the best source of funding available. You will have a lot of interest to pay and banks won’t just lend to anyone, but if you can present a strong business plan, then there are plenty out there who will be willing to take the risk even if you are a small business owner.

Alternative business finance
Alternative forms of finance are flourishing. Asset based finance, crowd funding, funding from business angels and so on. You may even get better terms than from the bank with these alternatives.

Asset Finance Hits A 7-Year High Among UK Firms

2nd March 2016 / / Comments Off on Asset Finance Hits A 7-Year High Among UK Firms

According to the latest statistics released by asset based finance companies, the use of asset finance among UK firms continues to grow with £29bn raised in total in 2015. This was the highest total for seven years.

The 29bn raised was 12% up on 2014 and shows that businesses are increasingly turning their attention to this alternative and often more convenient way to raise funds. The last time money raised through asset finance reached this point was in 2008 when a total of 30.8bn was raised by businesses.

The figures show that while businesses are now exploring other ways to raise money and positive about future growth, there is less trust in the banks when it comes to delivering the money needed to help business survive and flourish.

Access to finance will be important for many businesses who may be affected by the uncertainty surrounding a potential exit from the EU. Those businesses will be busy preparing for various scenarios which include a fall in the value of the pound and potentially more difficult trading conditions.

Asset finance is an excellent alternative to bank lending because it uses the assets a business already has at its disposal to raise funds.

UK Leads Europe In Asset Based Finance

5th February 2016 / / Comments Off on UK Leads Europe In Asset Based Finance

According to the Asset Based Finance Association (ABFA), the UK currently leads Europe in the support asset based finance provides to businesses.

A recent survey has revealed that asset based finance now supports 15% of all UK company turnover which is 5% more that the average for economies across Europe. The trend towards asset based finance as an alternative to other finance continues to be positive with significant growth in Germany and France tow of the EU’s leading economies.

Both, however, continue to lag behind the UK with France having 11% of business turnover supported by asset based finance and Germany even further behind at 7% less than half the level in the UK.

Invoice finance where companies secure their funding against unpaid invoices continues to make up the biggest proportion of asset based finance in Europe with asset based lending against things like machinery and other assets accounting for 20% and this is an area that continues to grow strongly.

The other countries that are supporting business turnover at a level of asset based finance that is higher than average are Belgium (14.5%) The Republic of Ireland (13%) and Portugal (12%).

The UK is seen as one of the biggest innovators when it comes to alternative finance and now the rest of Europe are beginning to wake up to the obvious benefits it provides to businesses.

New Business Asset Finance Expected To Grow 10% in 2014

14th January 2016 / / Comments Off on New Business Asset Finance Expected To Grow 10% in 2014

The Finance & Leasing Association (FLA) has revealed statistics showing that the asset finance industry has grown for the 25th consecutive month. As a result of this and current market conditions the industry expects further growth of 10% in new business asset finance in 2016.

According to the latest figures from the FLA asset finance relating to new business saw an increase of 3% in October 2015 compared to the October 2014. This represented a total of £2.51bn overall. Car finance was by the far the biggest growth area in leasing with 6% year on year growth recorded followed by IT equipment finance (2%) and plant and machinery accounting for 1%.

IT equipment finance was worth a total of £170m in the 12 months to October 2015 while car leasing finance represented £864m.

The one area that bucked the positive trend was business equipment finance which saw a negative year on year trend, falling by 12%. This meant that the sector was worth £159m overall.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “October saw continued growth across most of the main asset finance sectors, although the slowdown in emerging markets in recent months and falls in commodity prices have hit demand for construction and agricultural equipment finance.”

Asset Finance Now Funding 32% of Business Investment

4th November 2015 / / Comments Off on Asset Finance Now Funding 32% of Business Investment

With the announcement this month that the government are considering scrapping grants for research and development and replacing them with loans, at least asset finance is providing a boost to UK businesses.

According to the Finance & Leasing Association (FLA) asset finance funding is continuing to grow at a rapid rate with August seeing the twenty third consecutive month of growth. Asset finance new business increased by 5% on the previous month which shows that more and more businesses are considering asset finance as a realistic alternative to other forms of business funding.

The percentage of business investment in machinery, equipment and software financed by asset finance currently stands at 32% according to the latest figures available.

Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said

“The revised ONS business investment figures show that the industry’s contribution to the funding of investment is much greater than previous data suggested. The percentage of UK investment in machinery, equipment and software has grown from a low of just over a quarter in 2010 to almost a third in the year to June 2015.”

Aircraft, ships and rolling stock finance and IT equipment has seen by far the biggest increase in asset funding with 119% and 81% increases compared to August 2014.

Record Number Of Firms Using Assets To Raise Cash

6th October 2015 / / Comments Off on Record Number Of Firms Using Assets To Raise Cash

According to new data released by the Asset Based Finance Association (ABFA) a record number of businesses are now using assets to raise cash.

The assets typically used by businesses to raise money include plant, machinery and real estate as firms are increasingly seeking better alternatives to bank loans and overdrafts. Funding that is secured against assets offers businesses an opportunity to borrow money at a cheaper rate because lending is secured. Assets can either be physical or loans can be secured against the outstanding debts owed to a business.

A total of £4.2bn was secured against assets by businesses in the UK, which represents a 9% increase on the £3.8bn recorded in 2014. The overall amount of funding secured by businesses through asset based financing stood at 19.3bn to the end of June 2015.

The figures indicate that businesses are embracing this innovative form of financing rather than relying on other more expensive and less secure forms of lending. While asset based finance can be used to help businesses that may be struggling with cash flow issues, it is also being used as a positive means of driving investment in future growth.

Asset based finance is not just restricted to areas such as real estate, plant and machinery it can also be used to borrow against more unusual assets such as IP and forward income.

Can Businesses Cope With High Wage Growth?

17th September 2015 / / Comments Off on Can Businesses Cope With High Wage Growth?

UK wages are said to be rising at their fastest pace for six years but what does this mean for SME businesses?

The UK economy at present is something of a mixed picture. On the one hand unemployment has risen while employment and wage growth are rising. It might sound strange that employment can rise while unemployment also increases yet there will be some areas hidden within the statistics which explain why this is the case including more people taking part time jobs and so on.

The big news from a business perspective however is the rapid growth in wages. As competition heats up for the best qualified staff it is inevitable that wages will be pushed up in some sectors and this can happen even if that sector is not doing so well such as the construction and manufacturing sectors – the latter feeling the ill effects of a strong pound.

Higher wages are likely to put a strain on businesses at a time when bank lending is constrained. If your business has been hit by a higher wage bill and the need to keep cash flow going why not consider asset finance? Our experts are on hand to guide you through the simple process of using your existing assets to consolidate your business.

4 Reasons To Consider Asset Refinance

15th July 2015 / / Comments Off on 4 Reasons To Consider Asset Refinance

You may be running a business in need of a cash boost to help with expansion or you might need to release it for a whole number of other purposes. With this in mind here are the top for reasons to consider asset refinance.

Business Survival
Business isn’t always easy and conditions can fluctuate. Often you may be forced to consider using cash reserves you have built up over the years just to survive. Rather than put your business in further trouble doing this it may be better to secure finance to keep the business afloat. You can use the assets the business already has to do this rather than going to the bank.

Business Expansion
During periods where business is brisk and things are picking up, you may be considering expansion but lack the cash needed to do it. Asset refinancing can help you free up some extra cash to bolster your expansion plans.

Business Acquisition
Your business may have moved beyond the expansion phase into one where business acquisition is possible. Asset refinance can help fund an acquisition while leaving your cash reserves intact.

Consolidation of your business
It is important for a business to consolidate its position so that it isn’t left vulnerable to market forces. If the business has debts then asset refinance can help those debts become more manageable securing a long term future.

3 Simple Ways Asset Finance Could Help Your Business

17th June 2015 / / Comments Off on 3 Simple Ways Asset Finance Could Help Your Business

Being a business owner often involves a lot of big decisions. This is often the case when there are plans for expansion or there are cash flow issues that need to be addressed alongside actually keeping the business running while all this is going on. The good news is there are alternatives to common forms of lending then may be better suited to your needs.

Refinancing
Do you know how much value you have in your business assets? Refinancing is where you can free up cash from the business assets you already own. What many business owners aren’t aware of is the possibility of using assets that are subject to outstanding finance agreements. You can refinance your business in this way at any time at it can give you great flexibility.

Finance Leasing
Often buying new equipment for your business can be prohibitively expensive. Fortunately it is possible to buy the equipment you need without it leading to problems with cash flow. You can even buy without putting in a deposit and funds start from as little as £1,000. You can also fund any software you need.

Sale and lease back agreements
If you have already bought equipment and as a result lack the funds to spend further on your business then sale and leaseback is a way to release the money you have already spent by selling equipment to a funder who will then lease it back to you for an agreed period of time.

If Asset Finance is right for your business give us a call today to find out more about your options.

Asset Finance appoints new head of portfolio risk

8th July 2014 / / Comments Off on Asset Finance appoints new head of portfolio risk

Investec Asset Finance appoints new head of portfolio risk

Investec Asset Finance Plc (IAF) has appointed Jane Mantell as head of portfolio risk with immediate effect. Mantell’s remit will include the IAF portfolio, as well as the portfolio from the newly acquired commercial and consumer motor finance brokerage, Mann Island Finance Limited. In addition to all aspects of business intelligence, she will also be responsible for establishing a model-based framework for decision-making, capital and provisioning.

In 2007, she joined consultancy firm Insight Plus, where her financial clients included Lloyds Banking Group, Kensington Mortgages, Barclays, Northern Rock, Close Brothers Asset Finance and Lombard. Before that, she spent nine years with Foxreed Consulting.

Mantell’s appointment follows her involvement in assisting with the Investec Credit Risk Team on a consultancy basis, supporting them in recently winning the ‘Credit Risk Team of the Year’ at the 2014 Credit Today Awards.

Andy Higgins, head of credit at Investec Asset Finance, said: “We are delighted that Jane has joined the team. She has already helped to ensure we have an award winning Credit Risk Team and her industry experience and expertise will be invaluable in helping the team embed business intelligence in everything we do and move from strength to strength.”

Mantell added: “I’m pleased to be joining Investec Asset Finance on a permanent basis at such an exciting time. I’ve already worked closely with the team and am looking forward to continuing to deliver progressive credit risk solutions in the future.”

[Credit Today]

Asset Finance and Refinance

10th April 2014 / / Comments Off on Asset Finance and Refinance

Asset Finance

Asset Financing is more flexible than a business loan because it has tax and cash flow benefits for your business. Asset Finance is a loan that is used to obtain equipment for your business.

When companies invest in tangible assets, anything from office equipment to manufacturing plants, cars to aircraft, they usually need a secure means of finance.

This makes Asset Finance is the third most common source of finance for businesses, after bank overdrafts and loans. It is a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new piece of equipment, a vehicle or other fixed assets.

With many years of experience, Richmond Asset Finance Ltd can help you to gain the important assets for your business to succeed.

Benefits of Asset Finance:

  • A valuable alternative to conventional bank loans
  • Secure for the user, as the finance cannot be recalled during the life of the agreement
  • Sustainable because businesses have the option to replace or update equipment at the end of the lease period.
  • Widely available through a network of around 5,000 equipment dealers and 400 brokers, as well as direct from finance companies.

Listed below are a small example of individual assets, there are many more that we can provide finance for. We can place many more, even if bespoke and transactions are always considered on their individual merits. Deposits, Period & Rates of Interest depend upon the strength of the proposal.

Assets Considered:

  • Commercial Vehicles / Trailers
  • Agricultural Machinery & Tractors
  • Coaches & Buses
  • Vans & Cars
  • Contractors Plant
  • Engineering Equipment
  • Print & Print Finishing Equipment
  • Packaging & Labelling Machines
  • Woodworking & Plastic Injection

Asset Refinance

Richmond Asset Finance Limited can fund most type of individual asset refinance packages. It boosts a business’ cash flow by releasing cash against the value of a company’s existing assets. You therefore sell an asset to the leasing company for the current value, which then leases it back to you. Additionally, asset refinance also protects the business from asset depreciation.

Refinancing may be required to fund a deposit on a larger purchase or purely raising additional capital for cash flow purposes on a Non Status basis. Limited Companies, Partnerships or Sole Trader, whatever the case, we can help! We can provide asset refinance in England, Wales, Scotland and Northern Ireland. Static or moveable plant, whether new or up-to 20 years old. Our refinancing solution enables you to boost your cash flow by releasing cash against the value of your existing assets. Our experienced asset finance specialists will work with you to get the most from your refinancing facility.

Benefits of Asset Refinance:

  • Provides access to working capital that’s otherwise tied up on the business’ balance sheet
  • The cash that asset refinance generates can be reinvested into further asset growth
  • Protects your company from asset depreciation

Assets considered:

  • Commercial Vehicles / Trailers List
  • Agricultural Machinery & Tractors
  • Coaches & Buses
  • Vans & Cars
  • Contractors Plant
  • Engineering Equipment
  • Print & Print Finishing Equipment
  • Packaging & Labelling Machines
  • Woodworking & Plastic Injection

The above list is not comprehensive, even if the asset is bespoke, we may still be able to help. All deals considered from £15,000 – £5,000,000. Most transactions are typically Hire Purchase or Finance Lease, with periods being between 12 – 60 months. All transactions are considered on individual merits. Lenders will take a view on CCJ’s, Defaults and Phoenix Companies.

Asset Finance

2nd December 2013 / / Comments Off on Asset Finance

What is asset finance?

Asset finance is basically a loan that is used to obtain equipment to meet your business requirements.

Whenever organisations invest in tangible assets, this is anything from office equipment to manufacturing plants or cars to a fleet of aircraft, they usually need an affordable, secure means of finance.

That’s exactly what the asset finance sector is all about. During these difficult financial times, Asset Finance has become the third most common source of finance for businesses in the UK, this is after bank overdrafts and loans. It is also of growing importance in the public sector.

Why use asset finance?

Asset finance can be a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new or used piece of equipment, a vehicle or other fixed assets.

Who Uses Asset Finance?

Asset finance accounts for the majority of debt-financed business investment.

Around one in three small businesses that have any external borrowing use asset finance. Amongst these, the use of asset finance is particularly high in Wales (54%), the North East (46%) and the North West (42%) with agricultural and manufacturing making most use of leased equipment.

Advantages

Asset finance is:

  • A valuable alternative to conventional bank loans
  • Secured wholly or largely on the asset being financed, reducing the requirement for additional collateral
  • Secure for the user, as the finance cannot be recalled during the life of the agreement
  • Sustainable because businesses have the option to replace or update equipment at the end of the lease period.
  • Widely available through a network of around 5,000 equipment dealers and 400 brokers, as well as direct from finance companies.

We have over 20 years worth of experience in the Asset Fiannce sector and can finance new or used equipment. We can place many more, even if bespoke. Transactions are always considered on their individual merits. Deposits, Period & Rates of Interest depend upon the strength of the proposal. We also deal anywhere in the UK!

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