Tag: Asset-Based Finance (page 1 of 13)

Fast Farm Loans

27th July 2021 / admin / Comments Off

Fast farm Loans available from Richmond Asset Finance.

We often speak to farms needing to replace equipment, develop property, or settle bills to continue their business activities. The challenge we often hear is how they can access the necessary finance. The banks usually ask for a multitude of information and many lenders do not appreciate the cyclical nature of farming businesses. This is where Richmond Asset Finance can help.

If you need access to immediate finance for your farm this is a fast and competitive option.

Why choose a fast farm loan from Richmond Asset Finance?

You’ve just paid your staff, you are still waiting for that major client to settle their account and a large bill has just arrived on your desk.

When a number of circumstances conspire at any one given time this can cause even the most stable of farms to encounter cashflow problems, not to mention worry for you as the business owner.

Unfortunately this is not uncommon, but help is at hand.

If your farm needs emergency finance our fast farm loans can help you pay unexpected bills, bridge a cashflow gap, and get your farm back on track.

Speak to Richmond Asset Finance today and we will be able to help you with your farm finance requirements.

Farm Finance Near Me

10th May 2021 / admin / Comments Off

Richmond Asset Finance are one of the most reputable sources of agricultural and farm finance in the North West. We are experts in farm finance and all agricultural funding.

Richmond Asset Finance is an all embracing term we use to describe all types of farm and agricultural finance we offer to the rural and country business sectors and which can also be described as Agricultural Finance, Equestrian Finance, Farm Finance, Land Finance and Horticultural Finance. Finance can be provided for holiday complexes, caravan parks, caravan sites, properties with agricultural restrictions, land, buildings, working farms, non-working farms, nurseries, garden centres, smallholdings, estates, fisheries, farm shops and generally all types of rural type situations.

What is the purpose of farm finance?

Any legal purposes including but not being limited to repaying debt, repayment of an overdraft, diversification, working capital, business start ups, reducing outgoings, purchases of any kind and development of property or development of business.

Richmond Asset Finance completely understand farm finance, rural & agricultural funding. You can be assured of a personal and expert service at all times. Every case is handled personally by one of the partners. One of our main aims is to reassure you that you never become a just a ‘number’. It also helps that we have a lengthy and healthy relationships with our lenders.

Richmond Asset Finance are one of the most reputable sources of rural & farm finance in the UK. We guide and advise you throughout your application process, making sure your individual needs and circumstances always come first. Although we co-operate with a diverse range of banks and financial institutions, we are above all, independent. This means we always tailor a solution that best meets your requirements, not the banks We provide farm finance and refinance solutions, bridging finance packages, impartial advice, support and a level of customer service envied by our competitors.

ASSET REFINANCE SOLUTIONS

10th April 2021 / admin / Comments Off

Asset Refinancing Solutions from Richmond Asset Finance.

Asset Refinancing is based on using a company’s existing assets as a low-cost way to quickly release cash for the business to support growth or cashflow.

Most importantly, companies from all sizes can benefit from this type of financing solution, whether they are looking to expand, set up new projects or just need to raise funds quickly.

What is Asset Refinancing?

As one of the simplest financial solutions, asset refinancing is an arrangement which uses a company’s existing assets to raise cash. Also, it is a secured form of lending that uses an existing company asset as security against the loan.

The asset does not need to be owned outright as refinancing solutions can also be used on equity tied up in the company property. So, depending on a company’s requirements, they can refinance single or multiple assets. Refinancing multiple assets is also known as debt consolidation.

Additionally, funding providers can generally offer refinancing arrangements from £5,000 to £5million, depending on the value of the asset(s). Furthermore, terms are typically available from 12 months to five years, though this is dependent on the individual asset.

What sorts of asset finance are there?

9th April 2021 / admin / Comments Off

There are several types of asset finance and a few minor variations. Each has its uses, benefits and disadvantages but all broadly follow the principles of asset finance given above. A general overview of what’s available follows:

Hire purchase

This is a very similar model to hire purchase for individuals. The hire purchase provider retains ownership of the asset to be leased over the term of the agreement and leases it to the business for agreed regular fixed payments. Businesses may make a larger initial payment followed by smaller payments on an agreed schedule. At the end of the agreed period, the business can choose to buy ownership of the item outright with a further payment.

Finance lease (or capital lease)

This differs from some other asset finance in that the business is only ever renting the assets concerned. Again, payment is made with regular payments to an agreed schedule. This normally lasts until the finance provider has recouped the purchase value of the asset. In some instances, the finance company may allow the business to share in a percentage of the sale value of an item once it has been sold. The business does not have the option to purchase the asset outright.

Tax-wise, it may be possible for a business to offset the rental payments against their profits. However, this is not possible with long funding leases. The finance company retains the right to any capital allowances, but the business can reclaim VAT.

Asset refinancing

There are basically two forms of asset refinancing: the first is simply using a company’s assets (physical or otherwise) as security against a loan.

The second – more properly called asset-based lending – is where a business sells an asset to asset finance provider for an agreed lump sum. The business then leases back the asset sold from the finance provider – thus repaying the lump sum paid.

Asset refinancing differs from a simple secured loan in that a business can use physical assets they may only partially own as collateral, but only up to the level of equity they have in that item.

Contract hire

This form of asset financing relates to vehicles only. A business wishing to expand its fleet will approach a contract hire provider who will source the vehicle(s) required. The business pays a regular amount over the agreed leasing period.

Maintenance and servicing costs remain the responsibility of the provider, rather than the business. For larger companies with multiple vehicles fleet management services may also be included in the base contract hire costs.

Contract hire (also sometimes referred to as vehicle asset finance) carries the benefit of relieving a business of the time and budget-consuming tasks that accompany normal vehicle ownership. The provider is responsible for finding and buying a new vehicle, as well as all maintenance and servicing costs. At the end of the leasing period, the provider also assumes responsibility for the disposal of the vehicle.

Farm machinery finance options through Richmond Asset Finance

30th March 2021 / admin / Comments Off

Richmond Asset Finance are pleased to announce that we offer a wide range of financial payment facilities on most of our new and used tractors and farm machinery.

We offer agricultural and farm machinery finance across the UK. Richmond Asset Finance’s success is reliant on its specialist service and preserving a competitive edge in a very competitive industry. We ensure that our interest rates are monitored regularly so that they remain at the sharp end of the market.

We can provide finance for a wide variety of agricultural assets, from cultivators, tractors and combine harvesters to livestock, robotic milking machines and crop sprayers, and we’ll guide you through every part of the agriculture finance process.

Having helped thousands of farm owners achieve business growth, we can help you with a tailored flexible agriculture finance funding solution from £10,000 to £500,000. We’ll even take the seasonality of your business into account when tailoring your payment plan.

Speak to one of our specialists today for more information.

What is asset finance?

9th March 2021 / admin / Comments Off

Asset Finance very often associated with the purchase of equipment or agricultural equipment for a business. This type of finance is used by organisations who have the need or the opportunity to grow their business but perhaps may not have the funds readily to hand or prefer to spread the cost over a longer term.

In other cases, a business can use assets they own – such as plant, machinery or vehicles – as security against a loan from an asset finance provider.

Where a business requires the purchase of a new physical asset the finance company will pay for the equipment, plant, vehicle or machinery and the client will pay a regular sum to the provider.

The item may eventually become the property of the business over time, depending on the sort of asset finance involved.

What is an asset?

An asset is an object or resource that has a value and can be converted into cash. Assets can be owned by a company, government or individual and can help these organisations to deliver their purpose or generate an income.

Who is asset financing a good idea for?

Asset financing is suitable for a wide range of businesses and organisations, including sole traders and small to medium-sized enterprises, as well as larger companies and corporations. In the past, this tended to be an avenue only used by bigger businesses, but with the minimum levels of finance available being lowered, this has now become a more widespread option for all kinds of businesses seeking asset-based finance.

However, it should be noted that some providers tend to specialise in certain company types, such as limited companies, public limited companies (PLCs) or similar.

What are the benefits of equipment finance?

5th February 2021 / admin / Comments Off

There are many reasons you might choose equipment finance rather than paying up front out of your business’s coffers. Here are four of the best:

Tax efficiency

Some types of equipment finance like equipment leasing and sale and leaseback are more tax efficient than buying outright. That’s because when you lease an item it’s a monthly expense rather than an asset sitting on your balance sheet.

Easy to budget and manage

Equipment finance in most of its forms gives you predictable payments so you can spread the cost over time. That means that managing cashflow is that little bit simpler, and you can focus on running the business.

Flexibility and scalability

If you finance one piece of equipment and your business starts growing, you can get more items quickly without a large outlay. Whether you’re ramping up production using a new piece of state-of-the-art kit, or getting hold of extra vehicles for expanding logistics, equipment finance is a great way to grow your business.

Access to other lines of credit

One of the often forgotten but important reasons to finance equipment rather than buy it outright is access to other lines of credit. For similar reasons as tax efficiency, equipment finance is usually a predictable monthly expense, which means you can get another type of business finance alongside it. This is a huge advantage for some businesses — you could get the equipment you need, and take out a business loan for marketing, for example.

What are the benefits of Agricultural Finance?

13th August 2020 / admin / Comments Off

What are the benefits of agricultural finance?

As a farmer, it can be difficult to purchase the equipment and machinery you need. The costs can be huge and can eat into capital that is much needed for other necessities. You may not be aware, but there is a solution to this in the form of agricultural finance. Outlined below is the importance of agricultural finance.

Farmers need to purchase new inputs, such as seeds, fertilizers, pesticides, irrigation water and more. Agricultural finance can help to make these purchases easier for farmers. If the seed of a high yielding crop is readily available for farmers, then the productivity of the farm is improved.

Smaller farms may not have the need for agricultural finance for items such as seeds or pesticides but larger farms may need help with bulk purchases of these items. Seeds, fertilizers and irrigation water can prove to be a highly expensive continuing need which agricultural finance can help to meet.

You can cover land costs

If you are looking to buy new farmland as a budding farmer or simply increase the amount of land you already have, then agricultural finance can help cover the land costs you may incur. The land you need will depend on the type of farming you are planning on doing.

In order to apply for finance for land, you will need to calculate how much land you need and what kind of land you are looking for. Once you have your loan approved, you will be able to move forward with your endeavour. Buying land with your own money may not be feasible as a start-up farm, which is why finance is a good option.

You are better equipped for a crisis

Farming can be a difficult business. You are never able to predict what will happen to your crops or livestock, and are at the mercy of customers and competitors. Some farming is seasonal, which means you may only earn money during certain times of the year.

An agricultural loan can be used to protect yourself during the various ups and downs of your business. You can also use it for operational costs as well as costs that occur from damages. It is better to be prepared for every eventuality, which is why having agricultural finance is important to all working farms.

What is asset refinancing?

19th June 2020 / admin / Comments Off

What Is Asset Refinancing?

Asset refinancing is an alternative finance arrangement that offers a simple and straightforward way to raise cash against an asset that your company already owns. Depending on the amount of funds required, you can refinance any single or multiple assets. You don’t even have to own the asset outright; refinancing arrangements can be offered on the equity tied up in company property. Refinancing a number of assets is also referred to as debt consolidation.

Richmond Asset Finance offer a number of different asset financing solutions for your business. Asset Finance is a very useful financing option because of the many benefits to your business. A business in any sector can have many financial assets and there are a number of ways to attain finance for these. In recent times this makes it the third most popular source of finance for UK Businesses.

What Are The Benefits Of Asset Refinancing?

Asset refinancing offers a simple, cost-effective and quick way to secure additional finance for ongoing business activities. You can continue to use the asset offered as security against the loan, whilst using the released funds to invest in new assets, such as a larger fleet of vehicles or new company premises. Most asset refinancing arrangements offer structured payment plans to help business owners budget effectively. Interest rates and charges are agreed upfront so you won’t incur any surprises during the lifetime of the loan. Once the loan amount has been agreed, along with associated rates and charges, you will be required to pay fixed instalments on a weekly, monthly or quarterly basis.

ASSET FINANCE IS ONE OF THE FASTEST GROWING FORMS OF FINANCE TODAY – Call us for more information.

Bridging Finance during the Covid19 Pandemic

5th June 2020 / admin / Comments Off

How has the Coronavirus affected bridging finance?

Some bridging lenders have stopped lending

A number of bridging lenders have stopped providing bridging loans during the current Coronavirus pandemic. Many lenders have announced that they are temporarily stopping all new lending or restricting the size and types of loan that they offer.

Some current lending applications have been cancelled

Some lenders have cancelled on-going applications and have even pulled current offers where contracts have not been exchanged. In some cases lenders are requiring customers to start the application process again from scratch.

Those still lending have reduced loan to values and loan sizes

Those lenders who are still offering bridging finance are being very cautious and have taken actions such as reducing their maximum loan sizes. Maximum gross loan to values (LTVs) are down from 80% to around 60 to 65%.

The Economic Impact of the Coronavirus Pandemic

17th March 2020 / admin / Comments Off

Shoppers across the country British shoppers have been greeted by empty shelves where toilet paper or canned food are usually stocked due to panic and bulking buying.

Shops are now opening earlier to allow elderly to do their shopping and doing their best keep up with the booming demand for certain products like cleaning supplies or toilet paper, but experts say all consumers have a role in making sure basic goods are available for everyone who needs them.

Most economists expect the long term hit to businesses and consumer spending because of COVID-19 will have long-term ramifications for the greater economy and potentially lead to a recession.

The chancellor, Rishi Sunak has unveiled a package of financial measures to shore up the economy against the coronavirus impact.

It includes £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs. Help for airlines is also being considered.

Manage Seasonal Fluctuations

10th March 2020 / admin / Comments Off

In business, seasonal fluctuations refer to the peaks and troughs in demand that correspond with different times of year. Most SMEs will experience this at some point, but certain industries can be subject to greater variations due to the nature of their trade. This is especially important during this time with the coronavirus pandemic effecting most businesses nationwide.

The upside is that these shifts are usually predictable, which allows companies to plan ahead and put measures in place to ensure they can fulfil customer requirements however as people and businesses are now learning, it’s not always that easy. It is prudent to review what your business can do to manage cyclical demand effectively.

Here are a few things you can do to control changes in the economic market.

Manage cash flow

During peak seasons, try to reserve cash for the quieter months so you have sufficient funds available all year round or in times of need. Aim to plan at least six months ahead by using historic sales data to forecast levels of supply and demand, although, cases like this are hard to predict. This will help you to better recognise trends in consumer behaviour and account for this in your sales projections.

Control inventory

Regularly monitoring levels of stock can reduce wastage and therefore save costs. Coincide orders with peak periods, so your company does not have surplus stock when business is slow.

Identify workforce needs

Establish how many employees you need in any given shift, month or season to maximise efficiency and organise staff contracts to reflect business levels. Employing temporary staff can provide additional support during busier periods and this strategy can also keep costs down during quieter months. This may apply to supermarkets and the NHS during this period when they need as much support as possible.

Review payment terms

Long payment terms and overdue client invoices can put a strain on your cash flow. Requesting shorter credit periods may prompt customers to pay for goods and services quicker, giving you adequate working capital to continue trading.

Should I buy a used mini excavator?

10th February 2020 / admin / Comments Off

If you’re thinking about investing in a mini excavator, one of the first decisions you’ll need to make is whether to buy new or used.

Mini excavators have quickly become a must-have piece of machinery in the construction industry.

They offer the same level of performance as their larger counterparts, but on a smaller scale and with added benefits.

The biggest advantage of the mini excavator is its compact size, which allows for excellent manoeuvrability, even in tight spaces. Generally, they are also more affordable, fuel efficient, and easier to operate than wheeled, tracked or truck-mounted excavators.

New or used?

When buying a mini excavator, you may be able to save a significant amount off the initial price by buying used. This will also help you to avoid the cost of the vehicle’s initial depreciation, which can be as much as 20 to 40% in the first 12 months.

If you do decide that buying used is the right route for your business, then it’s important to do your research and know exactly what to look for when shopping for a used mini excavator to ensure that you’re getting a good deal.

What to look for in a used mini excavator

Before investing in a used mini excavator you’ll want to ensure that the machine has been well cared for, maintained, and still has plenty of life left in it.

Bear in mind that mini excavators generally have a maximum of about 10,000 hours of usage in them, and that’s only if they’ve been well maintained and not run into the ground.

Most experts will advise you to only buy a used mini excavator with fewer than 2,000 hours on the clock to ensure that you get your money’s worth from it.

A thorough inspection should be carried out on the mini excavator to check for signs of leaks, rust, excessive wear, dents, and repair welds, all of which could signal that there are problems with the vehicle.

If you require help or advice with financing a mini excavator for your business, 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.

How to protect your tractor from theft

3rd February 2020 / admin / Comments Off

Your tractor is one of your farm’s most valuable and useful pieces of machinery, so it’s important to protect it from thieves.

Last year, rural crime in Britain hit a seven-year high, with theft of farm vehicles and livestock costing the UK £50m according to the insurance company NFU Mutual.

The report found that the sharp rise in rural crime was mainly caused by a huge increase in theft of tractors, quad bikes and farm vehicles, which rose by 26% between 2018 and 2019.

Tractors and other farm vehicles are often targeted by thieves because they have been left unsecured in an isolated and remote location, making them easy targets.

A stolen tractor is not only very expensive to replace, it will also cost your farm business in downtime as well as causing you a headache.

Don’t leave your tractor or other valuable farm vehicles unsecured, use the following tips to protect them from criminals.

Always store your tractor indoors

Where possible, always store your tractor in a locked building. Not only will this make it harder for thieves to access it, it will also help to maintain its condition and extend its lifespan.

Secure your boundaries

Don’t leave your perimeter open to thieves, install a high fence to make access more difficult. If your property is too large to install a boundary around the whole thing, then ensure that the area or building that your tractor is stored in is secured by a fence.

Use a wheel clamp

Always fit a wheel lock on your tractor when it is not in use to prevent thieves from driving it away.

Fit an alarm and tracking device

Fitting your tractor with a motion-detector alarm is an effective way of deterring criminals and preventing theft.

Security mark your vehicles

Use a service like DataTag to get a unique security ID to mark your tractor with, making it easy to identify if it is ever stolen.

If you require help or advice with financing a new tractor, speak to our team here at Richmond Asset Finance. We provide a range of flexible agricultural 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.

Ideas for supplementing your farm income during the festive season

28th December 2019 / admin / Comments Off

Cash-in on Christmas by diversifying your farm business during the festive season.

According to NatWest, two thirds of farms have now diversified their business to generate alternative revenue streams throughout the year and boost their income.

Many farms that have successfully diversified report that their additional ventures have become a vital part of their business.

Whilst the winter months are typically much quieter for agricultural businesses, with a little creativity they can offer excellent opportunities for exploring new business ideas.

Here are a few of our favourite ideas for diversifying your farm business during the festive period.

Holiday letting

Many families and friends book holidays and weekends away to meet up and celebrate together over the Christmas holidays. Rather than letting unused land or farm buildings stand empty and unused during the winter months, why not convert them into holiday lettings. This can be particularly lucrative if your farm is in a scenic location.

Grow Christmas trees

Nothing beats the smell of a real pine Christmas tree, and according to the British Christmas Tree Growers Association over 7 million trees are sold in the UK each year. Choose a type of fir tree that will thrive in your farm’s land and soil type and start growing fir trees to sell locally each Christmas.

Run Christmas events

If you’ve got the land and buildings, why not run a series of festive events for the public in the lead up to Christmas? Popular activities and events could include turning a kids’ petting zoo into Santa’s grotto, running kid’s Christmas craft activities or adult wreath making workshops.

Turkeys and geese

Rearing free-range turkeys and geese can provide an additional source of income around Christmas time when demand for high quality meats for Christmas dinner soars.

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