Category: Business Finance (page 3 of 3)

What you need to know about JCB’s first ever fully electric diggers

The first of JCB’s fully electric diggers are rolling off the production line; here’s what you need to know about them.

JCB’s new 19C-1E electric digger can be used either indoors or outdoors but is expected to be particularly popular for indoor and inner-city projects where reducing noise and air pollution is especially important.

JCB Compact Products’ managing director Robert Winter said: “This is a historic moment for JCB and for JCB Compact Products.

“We are delighted to go into full production with the industry’s first fully electric mini excavator. The machine has a very promising future ahead of it.”

The first orders have already been delivered to customers across Europe and North America.

Here is the key information and standout stats about JCB’s first fully electric excavator:

They are five times quieter than JCB’s diesel diggers.
They can be fully charged for a day’s work in under 2 hours.
Charging costs are expected to be 50% cheaper than running a diesel model.
Servicing costs are expected to be up to 70% cheaper than a diesel model.

As evidence of the severe and rapid effects of climate change mount, businesses are coming under increasing pressure to become more sustainable and reduce their Co2 emissions.

Switching to electric vehicles can massively reduce your business’ carbon footprint, helping you to meet your corporate social and environmental responsibilities.

If you require help or advice with financing electric diggers, excavators, or commercial vehicles, speak to our team here at Richmond Asset Finance. We provide a range of flexible vehicle finance and asset finance services to help you to grow your business.

To discuss your requirements in more detail, give our team a call on 0113 288 3277.

Financial incentives for switching to electric commercial vehicles

10th September 2019 / admin / Comments Off

Did you know that there are financial incentives available to help your business make the switch to cost-effective and environmentally friendly electric vehicles?

There is no time like the present to begin doing your part in looking after our planet and helping to tackle climate change.

There are many changes that businesses can make to become more socially and environmentally responsible. But for businesses that operate commercial vehicles, switching from petrol or diesel to electric vehicles is a good place to start.

Electric vehicles are virtually silent and emit zero emissions, so making the switch will go a long way in reducing your business’ carbon footprint.

Aside from the environmental benefits, there are also plenty of financial incentives out there to reward businesses that decide to make the switch, so what’s not to like?

Low running and maintenance costs

As well as looking after our environment, operating electric vehicles can help to look after your business’ finances too. Whilst electric vehicles can be more expensive to buy, this cost is offset by their comparatively low running and maintenance costs, making them a cost-effective option in the long term.

Tax incentives

Here are a few of the tax benefits that your business may be able to benefit from if it uses electric vehicles.

Enhanced capital allowance benefits– Claim the entire cost of the vehicle against taxable profits.
Exemptionsfrom the following:
fuel duty
vehicle excise duty
company car tax

Government grants

When purchasing an eligible electric vehicle for your business, you may be able to claim a discount using the government’s plug-in car grant.

Despite the grant’s name, it provides discounts for business’ purchasing electric cars, vans, motorcycles, mopeds, taxis and trucks, providing they are on the eligible vehicles list.

The grant is worth 35% of the vehicle price for electric cars (up to a maximum of £3,500) and 20% of the vehicle price for electric vans (up to a maximum of £8,000).

Finance

Need further help financing one or more commercial electric vehicles? Here at Richmond Asset Finance we provide a range of flexible vehicle finance and asset finance services to help you grow your business.

For more information about our services, or to discuss your requirements in more detail, give our team a call on 0113 288 3277.

More property investors using bridging loans

18th August 2019 / admin / Comments Off

Recent statistics show that the demand for bridging loans is continuing to grow, particularly in the property investment market.

Whilst property investors may be shunning commercial properties amidst Brexit uncertainty, the market for residential property investment in the UK is still booming.

Recent figures show that investment in UK residential property rose by a huge 150% in 2018.

Tighter mortgage lending criteria has created a higher demand for rental properties. The high demand has caused a shortage of rental properties, allowing landlords to charge higher rent. These factors combined with a slight decrease in property value have made residential buy-to-let properties a valuable investment.

As more property investors seek opportunities to buy properties in the residential sector, the demand for bridging loans has also increased.

In fact, the latest ‘Bridging Trends’ report found that for the second consecutive quarter the commonest use of bridging finance was to buy investment property.

According to the report, 25% of bridging loans were taken out to fund the purchase of investment property, that’s up from 22% in the first quarter.

Bridging finance is the ideal solution for property investors looking to grow their portfolio as it allows them to move on a purchase quickly whilst the price is low. Without access to a bridging loan it is easy to miss opportunities whilst trying to raise funds.

Here at Richmond Asset Finance we provide flexible commercial bridging loanssuitable for property investment, buy-to-let, and land purchase and development.

For more information about our commercial bridging loans, or to discuss your requirements in more detail, give our team of experts a call on 0113 288 3277 and we’ll be happy to help.

How bridging loans can help businesses affected by seasonality

15th June 2019 / admin / Comments Off

Commercial bridging loans provide businesses affected by seasonality with funds to bridge the gaps between seasonal peaks and troughs in revenue.

Seasonality is a challenge faced by businesses in a variety of industries whereby they experience recurring peaks and troughs in income throughout the year.

One of the commonest causes of seasonality is the weather. Many businesses thrive during the warmer summer months and then see a sharp decrease in revenue when the weather is wet and cold.

The weather is by no means the only cause of seasonal dips though. Other factors that could cause seasonal changes in revenue include the economy, university terms, and special celebrations like Christmas, Valentines’ Day, Easter, and Mothers’ Day.

Tackling seasonality

Businesses that are affected by seasonality should take the time to analyse their performance throughout the year and understand when and why these dips and troughs occur. Once they have a good understanding of what is happening and why, they can adjust their budget throughout the year accordingly and make plans to drive sales or push alternative sources of revenue during the dips. This could involve setting up a side-project, running special offers, boosting marketing efforts, and hiring seasonal staff.

Even businesses that have prepared and planned for seasonal dips may find themselves struggling with cash flow during these quieter periods though. This is when a bridging loan may come in handy.

Bridging loans to finance seasonality

Bridging loans offer businesses affected by seasonality a quick way of acquiring the funds they require to tide them over during a seasonal dip.

As well as being useful for keeping the business afloat and paying for unexpected expenses during quieter periods, bridging loans can also be useful for maximising profits during peak periods.

Businesses that experience significant increases in demand at certain times of the year will need to inject large amounts of money into buying stock and hiring staff before they enter their busy periods. A bridging loan allows them to acquire more inventory and cover greater expenses to further increase sales during these seasonal peaks.

At Richmond Asset Finance we provide flexible commercial bridging loansto help with your business’ immediate financial requirements during seasonal peaks and troughs. To find out more about our bridging loans, give our team of experts a call on 0113 288 3277.

Using livestock lending to improve the genetics of your animals

30th May 2019 / admin / Comments Off

Whether you’re a beef or dairy farmer, improving the genetics of your herd has countless benefits to both your animals’ welfare and your profit.

If you’re considering increasing the size of your herd, choosing animals with superior genetics will increase the profitability of your investment.

Here are just a few of the key benefits of investing in livestock with superior genetics.

Improve animal welfare– Genetically superior animals should be healthy and resilient, giving them a better quality of life and making them a more ethical investment.

Resist diseases– Disease in livestock has a devastating financial impact on farmers. Livestock with superior genetics are better at fighting disease, making them a more reliable investment.

Reproduction rates – Genetically superior livestock are a cost-effective investment as they are bred to have better fertility and survival rates.

Increased production– Farmers are always looking for ways to improve the efficiency and production rate of their livestock to elevate profits. Livestock can be bred with genetics that relate to traits like better marbling of meat, fat depth or muscle score to improve the value and appeal of the product.

Climate-friendly– Improve your farm’s social responsibility by factoring into your buying decision the impact that your livestock has on the environment. Livestock bred with a higher feed conversion efficiency emit less methane into the environment.

Feed efficiency– As well as being more environmentally friendly, livestock with a high NFE (net feed efficiency) rating can reduce animal feed expenses whilst increasing production rates to improve your margins.

Funding the purchase of livestock

Livestock lending services make growing and improving the genetics of your farm’s herds an affordable investment. Depending on your requirements, here at Richmond Asset Finance we offer both short and long-term livestock lending solutions.

For more information or to discuss your requirements, give our team a call on 0113 288 3277.

Using rural lending to diversify…

29th April 2019 / admin / Comments Off

…into alternative livestock and crops

Rural lending opportunities could help farmers to boost their income by giving them the means to diversify into alternative livestock and crops.

Many farmers are feeling the pinch of increased competition, Brexit uncertainty, and the falling price of milk. In an uncertain economy and a changing industry, diversifying can bring in a valuable source of extra income.

According to Countryfile, over half of the UK’s farmers have now diversified in some form.

Some farmers are choosing to diversify into very different areas like leisure and tourism, which require significant investment to set up. Diversifying into alternative crops and livestock is less of a jump, uses existing skillsets, and is often more affordable.

Alternative livestock and crop ideas

Here are just a few popular alternative livestock and crop diversification ideas to inspire your new venture.

Goat or sheep milk.
Quail or duck eggs.
Wild boar.
Ostriches.
Angora rabbit wool.
Llama or alpaca wool.
Edible flowers or herbs.
Pharmaceutical crops.
Free-from crops.
Pumpkins.
Christmas trees.

Rural lending opportunities

For many farmers, diversification is becoming a necessity to stay afloat rather than an option. Whilst diversifying can be daunting, the results can be exciting and rewarding.

For most farmers, taking the plunge and deciding to diversify is aprofitable decision. Some farmers even find that their side-project grows into their main business. However, finding the funds to set it up in the first place can be challenging.

Rural lending opportunities provide farmers with the means to expand and grow their business. Whatever your circumstances, it is worth speaking with a specialist rural lending business like our team here at Richmond Asset Finance to find out more about how our short-term and long-term rural lending services can help you to grow your business and income.

To discuss your vision in more detail, receive free help and advice, or find out what rural finance options are available to you, give our team a call on 0113 288 3277.

How farm finance products can help farms become more sustainable

15th April 2019 / admin / Comments Off

The farming industry is under increasing pressure to operate more sustainably. Here’s how farm finance products can help farmers to achieve this goal.

Sustainability, climate change, and animal welfare are all hot topics. As vegan and vegetarian diets grow in popularity, more people are becoming interested in the environmental impact of agriculture, particularly the farming of cattle for beef.

What is sustainability?

To be sustainable is to look after the environment and renew resources at a rate equal to or in excess of the rate at which you use them. In order to become more sustainable, farmers must adopt environmentally friendly practices and find ways to improve the efficiency of their processes.

Which areas of farming can this be applied to?

When looking at the way you run your farm there are likely to be many areas where you could make improvements to become more efficient and sustainable.

Just a few areas you may identify include:

Feeding livestock.
Breeding livestock.
Manure management.
Looking after soil.
Tools, tech, and machinery.

Tools and equipment for agricultural sustainability

As well as changing and improving existing processes, farm machinery and equipment play an important role in a farm’s sustainability.

If you are using old or outdated machinery, upgrading could lower your farm’s environmental impact. Modern machinery is often built to be more intelligent and efficient with sustainability in mind.

Just a few sustainability problems that modern machinery can solve include:

Machinery that produces fewer emissions.
Machinery that consumes less power and uses fewer resources.
Machinery that can apply chemicals with greater precision.
Micro-sprinklers and drip irrigation technologies to save water.
Smart technology like crop sensors and drones to improve efficiency of processes.

Farm finance products to fund sustainability

Adopting modern farm machinery isn’t just about being kinder to the environment, it also makes good business sense. Working smarter and more efficiently will also help to save you time and money, making modern farm machinery and technology an excellent investment for the future.

If you need help financing new farm equipment, then there are a variety of farm finance products on the market to choose from. The farm finance product suitable for you will depend on your current situation.

Get in touch with our team of specialists here at Richmond Asset Finance for free farm finance help and advice by calling us on 0113 288 3277 to discuss your requirements in more detail.

Agricultural equipment that can help to lower ammonia emissions

10th April 2019 / admin / Comments Off

Farmers are being encouraged to invest in new agricultural equipment and tools to help them to lower their ammonia emissions.

Particulate matter is a type of airborne pollution made from a mixture of small solid particles and liquid droplets including organic chemicals, dust, and acids.

Particulate matter can be inhaled and has been linked to several health problems as well as damage to wildlife habitats and wild plant species.

Agriculture creates a large amount of ammonia emissions, which play a key part in the formation of particulate matter. Levels of ammonia and particulate matter in the atmosphere are monitored closely by DEFRA.

What causes ammonia emissions?

According to Farmer’s Guardian, around 87% of the UK’s ammonia emissions come from farming activity.

Just some of the agricultural causes of ammonia emissions include:

Manure application.
Livestock housing.
Sewage sludge application.
Manure storage.
Fertiliser application.
Livestock grazing outdoors.

Tackling ammonia emissions

Ammonia emissions from agriculture have been in the spotlight recently after the government launched aClean AirStrategyearlier this year to cut air pollution.

Farmers are being urged to invest in agricultural equipment and machinery that will help them to reduce their ammonia emissions.

To reduce emissions farmers need to find ways to retain the valuable nitrogen found within manure and slurry and then apply it using low-emission techniques.

Just a few types of agricultural equipment that can be used to lower ammonia emissions include:

Covers for slurry tanks and solid manure.
Specially designed livestock housing that reduces the amount of slurry exposed to air.
Low emission spreaders.

Funding agricultural equipment to lower ammonia emissions

You may be able to receive help and funding towards the costs of agricultural equipment to lower ammonia emissions through government schemes like the Clean AirStrategy, Countryside Stewardship Scheme, and Countryside Productivity Small Grant Scheme.

If you don’t qualify for funding or require further financial help, then Richmond Asset Finance provide a range of farming finance products to help you acquire the agricultural equipment you require.

To discuss your requirements in more detail, give our team a call on 0113 288 3277.

Why are so many UK farmers choosing to diversify?

30th March 2019 / admin / Comments Off

In today’s uncertain economic climate, many UK farmers are choosing to diversify their businessto boost their income.

Government figures show that 62% of UK farmers are now diversifying into other business opportunities to top up the income they make from traditional farming.

According to Farming UK, of the 62% of farmers that have diversified, 94% of the schemes have been financially successful.

So, if you’re not yet diversifying, it may be worth doing some research and speaking with an expert about rural finance to find out if you can get some help with financing your diversification scheme.

Why diversify?

With over half of those farmers diversifying reporting that the income from their alternative business has become ‘vital’ or ‘significant’ to their farm, can farmers afford not to diversify?

Key factors that are pushing farmers in the UK to diversify include:

Disease in farm animals.
Increased competition.
Falling price of milk.
Subsidies falling away.
Brexit uncertainty.

As with any business, it makes sense for farmers to avoid putting all their eggs in one basket (excuse the pun).

With many farmers owning a substantial amount of land, it makes good business sense that they use all land and buildings owned to their full advantage. Diversifying into alternative markets like leisure and tourism and renewable energy allows farmers to boost their income.

Rural finance to aid diversification

To find out if you can apply for rural finance to help with your diversification scheme, get in touch with our team here at Richmond Asset Finance to discuss your plan in more detail.

New technology and machinery that could transform farming

20th March 2019 / admin / Comments Off

Advancements in technology mean that we could soon see smart farming dominating the agricultural industry.

Farmers are likely to become increasingly reliant on farm machinery finance to help them gain the new machinery and equipment they require to keep pace with technology and stay competitive.

Just a handful of the high-tech agricultural equipment set to automate farmers’ jobs include:

Sensors– Sensors can be used on the land or in machinery and equipment to gather and share information and data. Sensors can be placed in fields to gather data about the condition of the soil, or in machinery to track information about yield or condition of machinery. This information can then be accessed by the farmer from anywhere, allowing them to make the relevant changes necessary to optimise crop growth.

Drones– Drones are already being used by farmers in the US for a variety of tasks including monitoring crops and spraying chemicals.

Driverless tractors– Automated, driverless tractors can operate all day and all night, to get the job done quicker and more efficiently. Future farmers may also be able to link their tractors to sensors and drones, giving them access useful information about the field that they’re working.

Robot pickers– Picking crops is a labour-intensive task which can be completed quicker and more efficiently with the help of robots that work 24/7. Using robot pickers would also significantly reduce labour expenses.

To find avoid getting left behind, find out more about our farm machinery finance options by giving our team a call on 0113 288 3277.

Why Is The Machine Finance Market Growing?

19th February 2019 / admin / Comments Off

Machines are critical to growth in the manufacturing sector but they are often expensive and can eat into business profits without some form of financial help.

Traditionally business owners turn to the bank to provide straightforward business loans to help if there is insufficient cash in the business to purchase machines. Even if there is enough cash to buy a machine, a loan can be a more sensible way to buy equipment particularly if there is risk attached in making large investments as there often is in business. However, business loans from banks also come at a cost and interest rates can be high.

Having multiple loans can also leave a business vulnerable in a downturn and restrict any cash flow available to grow the business. Machine finance is growing in popularity because it unlocks funding when you need it.

So if your business requires a new machine that will cut down the amount of manual labour required to get jobs done such as a CNC machine, machine finance can help you acquire that machinery at a minimum upfront cost.

This means you get the benefit of improved efficiency and profitability while spreading the cost. It can also be tax efficient now that the government has increased the annual investment allowance. So it comes as no surprise that the machine finance sector has grown 9% year on year.

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.

Is Your Start-up Prepared for A Loan?

20th December 2018 / admin / Comments Off

Starting a business from scratch is tough and the odds can be stacked against you if you don’t have enough investment capital to plough into the business at an early stage. Taking a loan, however, is also a major step which is why we have put together this guide to see if your startup is ready for a loan.

Do you have a business plan ready?
Having a business plan written down is a crucial step towards getting business finance. Lenders are going to want to see that you are serious about your business and a business plan indicates to them that you have took the time to develop your business and you have a clear pathway towards growing it.

Can you prove there is demand for your product or service?
Having a business idea and putting it into a plan is one thing but testing it out in the real market place is quite another. It will strengthen your case significantly if you can provide some data on real sales made and that your business idea works.

Finally, do you know what you need a loan for?
Applying for a business loan without any idea what it is for will almost certainly end in a failed application. Finance providers will be looking for some assurance over what the money will be used for.

Farm and Agricultural Finance

5th December 2018 / admin / Comments Off

With the uncertainties surrounding Brexit Farming in the UK faces an equally uncertain future depending on any deal eventually reached with the EU. Whichever way the deal goes the farming industry will almost certainly lose out on EU subsidies and this will make funding an even more important consideration in the future. So how can specialist agricultural finance help?

Agricultural finance plugs the funding gap
Many traditional sources of farm finance disappeared following the financial crisis of 2008 putting farm businesses under increased pressure to find alternatives. Agricultural finance is an attractive alternative aimed specifically at the industry.

Agricultural finance can be secured against real assets
Farming and agricultural businesses will often possess more assets than other business types making them ideal for asset finance. Assets such as land and property gives farmers an opportunity to use these assets to save or invest in their businesses.

Agricultural finance loans offer flexibility
Today farmers often need to diversify to survive. Areas such as renewable energy can provide some potentially lucrative opportunities to generate extra revenue. Agricultural finance enables farmers to invest in these types of projects and minimise risks at the same time.
If you would like to find out more about agricultural finance contact us today to find out more.

Types Of Business Finance You May Not Have Heard Of

20th November 2018 / admin / Comments Off

Your idea of business finance may be a trip to the bank to get a business loan and this is the route most SME business owners will go down. However, there are plenty of alternative sources of finance to explore including some of the following you may not be aware of.

Asset Finance
Asset finance is ideal for businesses that require expensive equipment but lack the funds to go and pay for all the equipment needed upfront. Asset finance can come in many forms from vehicle finance to finance on machinery. Asset finance is also flexible and can be arranged in the form of a lease or higher purchase (hp).

Invoice Financing
Did you know you can use your unpaid invoices to gain finance? You can use those invoices as collateral for loans or you can sell them to an invoice factoring company. This means you can get your hands-on cash in advance without having to wait for invoices to be paid. This is a great source of funding if you need cash in a hurry but with invoice financing you will still need to collect the invoice payments yourself.

Merchant cash advances
Another way to get your hands on some cash fast is to use a merchant cash advance. With this form of business finance, you receive a lump sum of cash up front and you won’t need to make a fixed payment each month. Finance can be paid back daily weekly or it can be paid out as a percentage of your sales from credit and debt cards. The downside is this type of finance can be more expensive than other options.