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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 drives SME lending

3rd July 2014 / / Comments Off on Asset finance drives SME lending

Asset finance drives SME lending to pre-crash levels

Leasing and asset finance are among the biggest drives of growth in the sector as small firms seek alternatives to traditional bank loans, figures from the National Association of Commercial Finance Brokers (NACFB) show.

A combination of caution from banks, new capital rules making it expensive to lend to SMEs, and firms’ own reluctance to borrow has driven down borrowing levels. But loans secured on assets, leases, invoice finance and vehicle finance have all shot up in the last year.

Brokers with the NACFB arranged more than £1bn of finance for small firms in May, its highest level since the crisis struck. The biggest component was asset finance and leasing, at £230m and up 19.8 per cent on the year. Commercial mortgages were next, raising £225m, up 25.7 per cent on May 2013. And buy to let lending was next at £200m, down from £203m in the same month a year ago.

Growth in Asset Finance

3rd July 2014 / / Comments Off on Growth in Asset Finance

Sharp growth in business use of asset finance

Use of asset based finance by the UK’s biggest businesses has grown by 16 per cent in the past year, from £4.4 billion to £5.1 billion, says the Asset Based Finance Association (ABFA).

ABFA says that this is more than a fivefold increase on the £1 billion in asset based finance provided to big businesses ten years ago, as asset based finance becomes a mainstream method of funding for large businesses.

Asset based finance includes invoice finance, in which businesses secure funding against their unpaid invoices, and asset based lending, in which businesses can raise money secured against a range of other assets they own, including stock, property and machinery.

At the end of March 2014, 315 big businesses in the UK and Ireland were using asset based finance, compared with 277 a year ago, and just 81 in 2004.

Jeff Longhurst, chief executive of ABFA, said: “We’ve entered a new era for business funding, where asset based finance is an everyday part of the commercial finance toolkit for businesses of all sizes.”

“Financing tools like these have already been commonplace in the United States for a long time, and have played a key role in funding the recovery for a lot of businesses in sectors like manufacturing. We’re now seeing big British businesses following their lead, and using asset based lending as a vital part of their growth plans.”

“There are general concerns about the availability of finance for businesses and the consequences this could have for the recovery.  The asset based finance market in contrast – while it has grown sharply-still has unused capacity, and providers are actively looking to grow their lending books.”

[Fleet News]

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UK Manufacturing continues to flourish

1st July 2014 / / Comments Off on UK Manufacturing continues to flourish

UK manufacturing sector strengthens in June

Activity in the UK manufacturing sector grew at the fastest pace for seven months in June, a closely-watched survey has suggested.

The latest Markit/CIPS purchasing managers’ index (PMI) for the sector was 57.5, up from 57.0 in May. A reading above 50 indicates that the sector is expanding. Markit said the sector continued to “flourish”, with jobs being created at the fastest pace for more than three years. The survey results add to signs that the UK’s economic recovery is becoming more balanced.

The figure reflects one of the sector’s best spells of output and new order growth in the 22-year history of the survey and is the second-highest reading in 40 months, bettered only during this period by November’s 57.8.

The CIPS survey has now signalled expansion for the UK manufacturing industry for the past 16 months, with the June performance rounding off the sector’s best quarter since the start of 2011 and one of the best in the last two decades.

CIPS said strong domestic demand boosted new business sales, while export orders also edged higher despite the strength of the pound.

The latest official GDP figures, released on Friday, confirmed that the economy grew by 0.8% in the first quarter of the year and recorded the fastest expansion in business investment in two years.

Manufacturing employment also rose for the fourteenth successive month in June, with rising job numbers seen across all sectors and led by small and medium sized businesses.

Strong quarter

While the PMI survey indicated that manufacturing output saw a slight slowdown in the rate of growth last month, it said output had now increased for 16 months in a row. In addition, new orders grew at the fastest pace since November last year.

“UK manufacturing continued to flourish in June, rounding off one of the best quarters for the sector over the past two decades,” said Rob Dobson, senior economist at Markit.

“With levels of production surging higher, and order books swollen by a further upswing in demand from both domestic and overseas clients, job creation accelerated to its highest for over three years.”

David Tinsley, UK economist at BNP Paribas, said: “Manufacturing is growing strongly, and work flows suggest this has legs.

“This supports our view that UK GDP accelerated in Q2. As this news flow is absorbed further, rate hike expectations for the first hike in Q4 this year should harden.”

[BBC News + Belfast Telegraph]

NACFB Expo

27th June 2014 / / Comments Off on NACFB Expo

NACFB holds its largest Expo to date

At the NACFB’s largest Commercial Finance Expo to date, the association announced that for the first time in seven years its brokers have exceeded the £1 billion mark in monthly SME lending.

Within the Annual Conference at the expo, Marcus Grimshaw, Chairman of the Association announced that NACFB brokers had exceeded £1 billion of monthly SME lending, with May this year being the first £1 billion month. It was also revealed that for the first time, the turnover of the NACFB broke the £1 million barrier.

The conference saw members discuss whether Consumer Credit Authorisations should be compulsory to being an NACFB member. A significant 96 per cent of NACFB brokers have registered for interim permissions.

When asked if brokers without CC permissions should still be allowed to be a member of the NACFB, only one person voted yes. A solution is set to be debated in November’s AGM with the possible concept of a two tier option mentioned.

One strong voice within the meeting came from compliance expert Suzanna Walker of Bridgebank Capital. She clarified that as the action of credit broking falls under the Consumer Credit Act it is a regulated activity, therefore attracting the relevant permissions to conduct that sort of business. Furthermore, she explained that even if the product being sold falls under the exemptions of the act, the activity of credit broking is still a regulated activity and therefore permissions to trade in that area should be gained.

The association also revealed that it currently has the highest level of patrons to recent memory, currently resting at 115.

According to the Chairman, 14 or 15 patron applications were rejected as the association felt the applicants were just not ready.

The show had 102 exhibitors, and required an extension to be made to house all of the stands.

www.nacfb.org

[Bridging & Commercial]

Bank of England moves to avert housing boom

26th June 2014 / / Comments Off on Bank of England moves to avert housing boom

The Housing Boom

A cap on the proportion of home loans that can be lent at high multiples of income has been proposed.

The plan was outlined by the Bank of England as governor Mark Carney said the housing market could be a threat to the UK economy’s stability.

Under the proposal, lenders will not be allowed to lend any more than 15% of residential mortgages at more than 4.5 times a borrower’s income.

Affordability checks on borrowers will also be strengthened.

The Bank’s Financial Policy Committee (FPC) has a remit is to tackle any threat to the stability of the UK’s economy and the measures aim to prevent the housing market getting out of control in the future.

The key recommendations are:

  • Ensuring lenders check mortgage applicants can cope with a three percentage point rise in interest rates – slightly tougher than current affordability checks
  • Limiting risky lending by putting a 15% cap on the number of mortgages that banks and building societies can give to people who want to borrow more than 4.5 times their income
  • A separate Treasury pledge that bans anyone applying for a loan through the Help to Buy scheme borrowing any more than 4.5 times their income

Future-proofing

The Bank said that the plans would not have an immediate effect on the current housing market, and would not suddenly harm a potential buyer’s ability to get on the property ladder.

“These actions will have a minimal impact in the future if, and it is an important if, if the housing market evolves in line with the bank’s central view,” Mr Carney added.

“The 15% cap… could quickly become relevant if house prices grow more than we expect, if incomes grow less rapidly than we expect, or if underwriting standards slip.”

Mr Carney said that the Bank was acting in a proportionate and graduated way, acting early, and putting in place “a fire-break” on riskier lending.

Lenders said this cap would have an impact primarily in London.

“Nationally, 9% of new loans are at 4.5 times income or more, but the figure is 19% in London,” said Paul Smee, director general of the Council of Mortgage Lenders.

However, Mr Carney said the 15% limit could be reached nationally within a year.

Some lenders, notably Lloyds Banking Group and RBS, have already limited mortgage lending to four times income for loans worth more than £500,000. The average new mortgage for a house purchase is £135,200.

The action by Lloyds and RBS was specifically aimed at curtailing “inflationary pressures” in the London housing market.

The latest official figures on the housing market showed an annual property price increase of 18.7% in London, where a small proportion of buyers pay in cash.

Baroness Jo Valentine, chief executive of London First, which represents various property firms, said: “If anyone thinks these tighter rules on mortgage lending will somehow make London prices more reasonable then they are mistaken.”

Excluding London and the South East of England, the cost of a home was 6.3% higher in April than 12 months before, the Office for National Statistics (ONS) said last week.

But various surveys have suggested that the heat might be coming out of the market, with mortgage approvals – a sign of future sales – having slowed in recent months. Some areas outside of London and the South East have seen relatively little increases in activity among buyers and sellers.

Affordability checks

Lenders are already using new affordability checks – known as the Mortgage Market Review – which test people’s ability to repay were interest rates to rise.

This will be added to, under the Bank of England’s plans, as lenders will need to assess if borrowers could still afford to repay their mortgage if interest rates were three percentage points higher, during the first five years of the term, than at the time the loan was approved.

Mortgage brokers said that relatively few people would be affected by these changes.

Mr Carney said the threat to economic stability was not imminent, but lending could turn from responsible to reckless very quickly.

In light of the bank’s move, the government has said that no applicants for the government’s Help to Buy scheme would be able to borrow at more than four-and-a-half times their income.

Shares in house-builders rose during trading shortly after the Bank’s announcement.

Persimmon shares were up 6.5%, Barratt Developments shares rose by 5.5% and Bovis Homes shares were up by 3.7% within an hour of the announcement.

“Any lack of a real targeting of the housing market would be a positive for the house-builders,” said Richard Perry, analyst at Hantec Markets.

[BBC News]

Banks should have final say on mortgage lending

26th June 2014 / / Comments Off on Banks should have final say on mortgage lending

Ross McEwan, RBS chief, said lenders should be “thinking about [the safety of our bank] before any regulator asks”

Royal Bank of Scotland has told Mark Carney that lenders should make decisions about mortgage policy, on the eve of the Bank of England introducing new rules intended to cool the housing market.

Ross McEwan, chief executive of the taxpayer-backed lender, said: “We should be thinking about [the safety of our bank] before any regulator asks.”

Mr Carney, the Bank’s Governor, is on Thursday expected to announce new measures clamping down on risky home loans at the biannual Financial Stability Review.

The Bank of England’s Financial Policy Committee (FPC) has the power to introduce measures such as a cap on the value of mortgages as a multiple of incomes or compared with house values, and could take other measures such as stricter affordability tests for borrowers.

House prices have risen 9.9pc in the past year, and Mr Carney has called the housing market the biggest threat to the economic recovery. Sir Jon Cunliffe, his deputy Governor for financial stability, referred to the sector as the “brightest” of the warning lights the Bank looks at.

When asked about potential new measures at RBS’s annual general meeting, Mr McEwan suggested that banks could be trusted to control their own mortgage lending. “We don’t think there’s a big problem out there, our preference is we make the move,” he said. “We are not going to do that [put ourselves at risk], we should be thinking about that before any regulator asks.”

His comments came the day after the British Bankers’ Association (BBA) cautioned against the FPC introducing drastic measures, saying today’s review “comes against a backdrop where the housing market is itself showing signs of moderating”. Data from the BBA released this week showed that mortgage approvals have fallen for four successive months, which it said suggested the new tests introduced by the Mortgage Market Review were working.

RBS and Lloyds, 80pc and 25pc owned by the taxpayer respectively after their 2008 bailouts, have both introduced their own loan-to-income caps on high-value mortgages.

Mr McEwan’s comments came after the bank’s shareholders almost unanimously backed its pay policies, in contrast to many other banking groups’ AGMs this year.

Speaking to shareholders in Edinburgh, three months before the Scottish people decide whether to remain part of the UK, RBS chairman Sir Philip Hampton admitted the debate is generating a “great deal of uncertainty” but refused to take sides on the matter.

“We are not taking one side or the other, and we will continue to maintain that neutral position,” Sir Philip said. He insisted that in the event of a “yes” vote in September, the bank – which employs 12,000 people in Scotland and has been based in Edinburgh since its foundation in the 18th century – would have time to make a decision.

“If there is a Yes vote there would be a period of time between the referendum and Scotland actually becoming independent when the UK and Scottish governments would enter negotiations,” he said.

Sir Philip added that a programme of branch closures would “inevitably” continue as consumers switch to using internet and mobile phone banking, saying that branch transactions had fallen by 30pc since 2011. He promised that RBS would maintain a significant branch network with “more branches than Asda and Sainsbury’s stores combined”.

Just 0.34pc of votes at the meeting were cast against the bank’s remuneration policy at the meeting. RBS had been forced to drop proposals that would have allowed it to pay bonuses equivalent to 200pc of salaries when the Treasury said it would not back the proposals, and Sir Philip defended the bank using controversial “share allowances”, seen by critics as a way for banks to circumvent an EU bonus cap.

“The more challenged the bank, the more you need the top talent, because you have the day job of running a bank and sorting out the legacy problems,” he said.

“I don’t think it’s realistic to get top people to do top demands if they’re paid significantly less than the market.”

[Telegraph]

Bank of England Interest Rates

20th June 2014 / / Comments Off on Bank of England Interest Rates

Bank of England should not ‘hold back too long’ on raising interest rates, warns MPC member

The Bank of England (BoE) should not “hold back too long” on raising interest rates, warned a member of the Monetary Policy Committee (MPC).

Ian McCafferty is the latest in a string of senior BoE policy makers to strike a more hawkish note.

This view is at odds with Business Secretary Vince Cable who warned on Wednesday that raising rates prematurely could put the recovery “in jeopardy” by choking off business lending.

Mr McCafferty, an external MPC member, said that solving the “productivity puzzle” is “critical” for the timing of decisions on interest rates.

“A fuller understanding of why productivity has remained so weak, and to what extent it is therefore likely to recover, is critical for the path of interest rates as the expansion continues,” he said in a speech on Thursday.

Mr McCafferty added that people would be “hoping for too much” if they expected a more “rapid recovery” in productivity over the next couple of years.

The former chief economic adviser to the Confederation of British Industry (CBI) said that the MPC’s decisions would “depend critically” on data over the next few months.

Standard Life Investments said on Thursday that the time is approaching for the BoE to move away from its emergency policy setting, or risk greater volatility in the future.

James McCann, UK and European economist at the global investment manager, said that the Bank should “flex its muscles sooner rather than later”.

Deriding the Bank’s current policies an “intoxicating mixture”, he advised: “The Bank of England can lead with macroprudential measures in the first instance, but should raise rates later this year if spare capacity continues to shrink and financial conditions do not tighten sufficiently.”

Mr McCafferty is the latest in a string of policy makers to comment on the timing of an interest rates hike, raising the possibility that it will occur later this year.

Martin Weale, a notoriously “hawkish” member of the MPC, said on Wednesday that he expects wages to rise at twice the rate of inflation once the economy has fully recovered.

He predicted that wages would rise by 4pc a year once unemployment and worker productivity return to normal levels, which is double the Bank’s 2pc target for inflation.

Kirsten Forbes, the American economics professor who will join the MPC next month, appeared to be singing from the same hymn sheet as her future colleagues.

She told MPs on the Treasury Select Committee on that a delay in rising interest rates could lead to more abrupt hikes in the future.

Andrew Haldane, another MPC member, highlighted the challenge of estimating “slack” and therefore the timing of an interest rate hike.

The minutes released from the Bank of England’s June 4-5 meeting on interest rates showed that Governor Mark Carney is not alone in considering a hike in interest rates sooner than previously expected.

[Telegraph]

Car Production falls

19th June 2014 / / Comments Off on Car Production falls

Car production falls 10% in May

The fall comes after car manufacturers closed down their plants for several days in May, a month later than usual, for upgrades to production lines.

UK car production dropped almost 10pc last month as manufacturers closed down their plants for several days in May, a month later than usual.

Car manufacturers regularly close their plants for 4-5 days in spring, usually April, to allow for production lines to be upgraded.

This year several manufacturers chose to have their spring shutdown in May, which resulted in a 9.8pc fall in production to 116,655, according to the Society of Motor Manufacturers and Traders (SMMT). While a dip was expected the numbers were slightly worse than analysts’ forecasts.

Mark Fulthorpe, director at IHS Automotive, said the fall in production last month was “not cause for concern” and added that the “fundamentals for the car industry remained in place”. He said he expected the sector to grow 2.1pc more this year than in 2013.

Year-to-date car production is still up 3.5pc compared to 2013, SMMT said. Mike Hawes, chief executive at the motor industry’s trade body, said he also expected production to grow as demand and investment in the sector picked up.

“The prospects for the coming months and years, however, are still bright; new UK-built models will benefit from growing demand across Europe, while significant investments in UK manufacturing operations are moving closer to production readiness,” he said.

The automotive industry is a vital part of the UK economy accounting for more than £60bn turnover and has been a key driver of the recovery, as car manufacturers look to increase their production of vehicles in the UK.

Nissan last year announced it would create 400 new jobs to allow 24-hour production to begin in Sunderland from this year, while Jaguar Land Rover also announced 1,700 new jobs at its Solihull factory.

[The Telegraph]

What is Asset Finance?

12th June 2014 / / Comments Off on What is Asset Finance?

A Guide to what is Asset Finance

Small business asset finance explained: the different financing options and their benefits, the costs involved and the variables lenders consider

In order for your business to grow, it is likely that you will need to make a significant investment in a new asset. This could include the purchase of new computer equipment and software, new machinery and equipment, or a new motor vehicle such as a van.

As a start-up or small business you are probably looking at the price of your new asset and wondering how you are going to afford the one off, large payment required to make your purchase. This is where asset finance can help.

Leasing and hire purchase

With asset finance packages, hire purchase and leasing, you can breakdown the payment of your assets into monthly bite-sized chunks. This makes the investment much more affordable and has less of an impact on your cashflow.

What is leasing?

Ownership:

With leasing, you are paying for use of the asset and do not own it at any point.

Advantages of Leasing:

  • At the end of the contract you can simply renew the lease contract, or you may be offered to purchase the asset so you become the owner.
  • You will be able to always stay up to date with the latest version of your asset, for instance after an 18 month contract, when your machinery is out of date and the contract comes to an end, you can take out a new lease with the latest machinery that is available. This may significantly impact on the quality of your product/service you can offer to your customer.
  • Some leasing agreements also offer a full service package which can include repairs and replacements, saving you money and time when things go wrong as the leaser will have responsibility for the asset’s upkeep.

What is hire purchase?

Ownership:

Once the contract is fulfilled, you are the owner of the asset.

Advantages of hire purchase:

  • You do not need to take out a loan, overdraft or favour from your family to find the cash lump sum you require up front to pay for an asset – you will be able to pay for the asset in affordable monthly repayments.
  • You do not require any security or collateral to secure an asset finance deal such as hire purchase.
  • Once the contract is paid off, you will be the owner of the asset. This means you can later sell the asset for a lump sum. Remember though, the price will likely be less than you paid throughout the entire hire purchase facility as depreciation occurs and new models of the asset will subsequently have been released. However, you will at least receive some return for your investment in the asset, unlike leasing.
  • Finance charges for assets are tax deductable which effectively means that the tax man is financing some of the asset for you.

What are the costs involved in asset finance?

As highlighted previously, leasing usually only consists of a single cost – the monthly lease. This makes it simple to calculate in your accounts. Hire purchase, on the other hand, consists of a deposit, plus an interest charge which will be calculated and included in your monthly payments.

Poor Awareness Of Asset Finance

12th June 2014 / / Comments Off on Poor Awareness Of Asset Finance
A “lack of basic awareness” of asset based lending among small businesses is costing the UK economy billions every year, says Susan Allen, chief executive of Royal Bank of Scotland’s asset finance arm.

asset financeLast month the Government opened its Funding for Lending Scheme (FLS) to providers of asset finance and leasing, which allow businesses to release cash from machinery. This was a welcome move to provide attractive rates of borrowing to companies which urgently need to update ageing equipment, or obtain new technology.

Lombard, which is RBS’s asset finance arm, has conducted research for the second year running on usage and awareness levels of asset finance. Our survey of 600 UK companies, mainly small and medium-sized companies, exposes worryingly low levels of investment. UK firms have limited awareness of asset finance, and the consequences are stark. Companies are turning down business because they do not have the right machinery or technology in place. A conservative estimate of the loss of potential business to SMEs in the UK is upwards of £5.4bn.

A lack of basic awareness of this form of lending – our survey shows two-thirds of companies do not know of its existence – needs to be urgently addressed. Information direct from lenders, as well BIS and the industry’s body, the Finance and Leasing Authority (FLA) needs to be targeted to the right SMEs. But there is also a role for the accountants and advisers, who are often the main source of financial information for small companies.

There is also a need to update the image of asset finance to meet the requirements of today’s customers. The traditional image of capital goods – plant and machinery – paints only part of the picture. Though manufacturing remains the biggest sector we finance, and we have seen lending increase in this area by 66pc over the past year, IT and technology is the area of highest demand amongst the companies we surveyed. Innovative finance options are developing to cater for this demand, such as a recent software deal to protect a company’s intellectual property rights.

We also recognise that banks need to improve how we reach out to customers. At RBS, for example, we are piloting a scheme to streamline the guidance and processes for customers to provide access to the wide range of finance options available. This is crucial because our survey shows that nearly two-thirds of businesses are paying for capital expenditure from their own funds. This will be the right option for some, but in many cases alternative sources to finance assets are less risky and better value for money.

This matters because the profits in companies which are investing are growing or remaining stable. Meanwhile, UK companies which are turning down contracts rather than investing in capital assets, are finding themselves with higher maintenance bills, and unreliable machinery.

One of the biggest barriers we need to overcome is a lack of confidence in the economy, which leads to caution. Companies are often choosing to sit on their cash, and protect what they have. This protects jobs, which is welcome, but it does not create new ones, or get the economy moving.

To achieve this concerted effort is needed across the board from the industry body, banks and advisers. This includes ensuring that awareness levels are raised, as well as facilitating take-up of time-sensitive policy measures designed to encourage capital investment. In addition to bringing asset finance under the FLS, the Government has recently increased the Annual Investment Allowance to £250,000 on capital expenditure until 2015, meaning companies get generous tax breaks for investing. We need to make sure companies and their advisers are familiar with the advantages these measures offer.

The IMF’s latest annual health check on the UK economy warns that the long-term stagnation in the economy risks “a permanent loss to productive capacity”. Should companies use outdated equipment for too long, not only does the machinery eventually wear out, but the experience and skills associated with new technology are lost too. Contracts which could have catapulted a business to the next level and helped them access new markets may be permanently lost.

It is not just Germany which is investing far more than us – it is Turkey, Mexico and Italy. Many countries easily outstrip the UK’s rates of investment in specialised production machinery and the competition is fierce. We need to get from the back foot to the front foot – and fast, which means everyone playing their part to stimulate the growth that the economy desperately needs.

Susan Allen is chief executive of RBS’s Customer Solutions Group.

[Telegraph]

Asset Finance Benefits

16th May 2014 / / Comments Off on Asset Finance Benefits

There are many benefits that Asset Finance could have for any business in different industries. Many businesses now are turning to this type of lending due to the benefits and current state the financial markets are in.

The upfront cost of buying equipment, vehicles, and machinery can often seem daunting, especially when trying to maintain a healthy cashflow or grow your business. From modernising or upgrading, to replacing faulty or old fashioned assets, we know sometimes a little help wouldn’t go amiss – and Funding Options is here for exactly that reason.

There are 3 simple ways you can go about getting finance for your business assets; here’s our beginners guide to help you understand what’s out there.

1. Refinance

You can release cash into your business at any time for any purpose using assets you already own. This even includes assets with outstanding finance agreements.

2. Finance Lease

Purchase any business equipment now, without affecting your cashflow. Benefits include – no deposit, funds starting at £1000 +vat, and any equipment will be considered (including 100% software).

3. Sale & Lease Back

Equipment you have purchased in the past 3 months can be sold to a funder and leased back over 3 years. This will release cash you may have just spent, enabling you to use it elsewhere.

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

Lloyds: Scottish independence

16th May 2014 / / Comments Off on Lloyds: Scottish independence

Chairman of bank says it currently has no plans to move south but says independence is a potential ‘risk’

Lloyds Banking Group has warned that the consequences of Scottish independence are largely unknown, saying the bank has no plan for what would happen if the Scottish people vote to secede.

Lord Blackwell, the bank’s new chairman, said that “there are clearly some uncertainties in terms of what a vote for independence would mean” and that it is “impossible to speculate how compliance, regulation and governance would work”.

When questioned at Thursday’s annual general meeting in Edinburgh about Lloyds’ contingency planning in the event of a “yes” vote, Lord Blackwell said the bank does not have a strategy for what it would do. However, he said the situation was a potential “risk” for financial institutions.

“We are not at this point planning any moves. There are uncertainties created for everyone [and] uncertainties for banks create risk,” he said. “There’s no plan because we do not know what the result would be or what the [subsequent] discussions would be.”

Edinburgh-based financial institutions are grappling with the potential fall-out from a vote for secession in September’s referendum. Royal Bank of Scotland has referred to independence as a “risk factor” and Standard Life is preparing to shift some of its businesses south if Scottish citizens vote to leave the UK.

Lord Blackwell insisted that the vote was “clearly a matter for the Scottish electorate” and said Lloyds, which is 24.9pc owned by the taxpayer, does not have a view. He said the bank would have 12-18 months after the vote to work through the potential ramifications.

When asked if Lloyds would be able to protect jobs north of the border, he said: “We very much hope that any consequences wouldn’t have any negative effects for employment but I can’t answer that question.”

Manufacturing growth at highest for 15 years

9th May 2014 / / Comments Off on Manufacturing growth at highest for 15 years

Hopes of balanced recovery boosted by increased factory output and higher exports in March

Hopes for a balanced economic recovery driven by factory production and exports have been boosted by data showing the fastest growth in manufacturing output for 15 years.

Official statistics showed that the sector expanded by 1.4pc in the first quarter of the year, the best since 1999, while the gap between imports and exports narrowed in March.

The increase in manufacturing output was well in excess of total economic growth of 0.8pc in the quarter, suggesting the economy is becoming more dependent on factory production. Friday’s data for manufacturing in March, which rounded up the quarter, showed a 0.5pc increase in manufacturing output on the previous month.

“The ‘march of the makers’ continues,” said Martin Beck, senior economic adviser to the EY ITEM Club. “And with April’s manufacturing PMI [survey] registering one of its best readings in the last three years, [the second quarter] seems set fair for further strong growth in the manufacturing sector.”

Separate figures indicated that Britain’s trade deficit improved in March, as foreign buyers purchased British-made jewellery and cars.

The deficit in trade of goods and services fell to £1.3bn in March, against £1.7bn in February and £2.5bn in March last year, although economists warned that the country still has a long way to go to improve the balance of imports and exports.

“While there are signs of a small improvement in the UK’s international trade performance over time, the pace of change is still painfully slow,” said David Kern, the British Chambers of Commerce’s chief economist. He said the trade deficit for the first three months of the year was only marginally narrower than that in 2013.

Exports of goods increased by 4.9pc between February and March, although imports also rose by 2.8pc. The deficit in goods narrowed to £8.5bn, while Britain’s surplus in services rose to £7.2bn.

While manufacturing improved, industrial production, which counts other areas such as water supply and mining, fell 0.1pc in March due to declining oil and gas extraction. Construction output fell for the second consecutive month, down 1pc on February.

Economists said the figures were unlikely to affect the official 0.8pc reading for economic growth in the first quarter of the year.

[Telegraph Finance]

Concern over Debt Collection Plans

9th May 2014 / / Comments Off on Concern over Debt Collection Plans

An influential group of MPs has expressed alarm about plans for the taxman to be able to seize money direct from millions of personal bank accounts.

The cross-party Treasury Committee said it had “considerable concern” over Chancellor George Osborne’s debt collection proposals, and called for further scrutiny.

In their report on this year’s Budget, the MPs suggested the change could amount to a back-door reintroduction of the discredited Crown Preference rule – which gave HM Revenue & Customs (HMRC) priority access to assets when firms went bust.

“The proposal to grant HMRC the power to recover money directly from taxpayers’ bank accounts is of considerable concern to the committee,” the report said. “The committee considers a lengthy and full consultation to be essential.

“Giving HMRC this power without some form of prior independent oversight -for example by a new ombudsman or tribunal, or through the courts – would be wholly unacceptable.”

The committee dismissed the Chancellor’s argument that the Department for Work and Pensions (DWP) already had similar powers to collect child maintenance.

The MPs said: “The parallel is not exact: in those cases, DWP is acting as an intermediary between two individuals.”

“HMRC would be acting not as an intermediary between two individuals but rather in pursuit of its own objective of bringing in revenue for the Exchequer.”

They also highlighted the potential for fraud and error if the taxman was given direct access to millions of accounts.

“This policy is highly dependent on HMRC’s ability accurately to determine which taxpayers owe money and what amounts they owe, an ability not always demonstrated in the past,” the report said.

“Incorrectly collecting money will result in serious detriment to taxpayers.

“The Government must consider safeguards, in addition to those set out in the consultation document, to ensure that HMRC cannot act erroneously with impunity.

“These might include the award of damages in addition to compensation, and disciplinary action in cases of abuse of the power.”

[MSN Money]

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