Tag: Asset Finance (page 6 of 6)

Asset Finance Now Funding 32% of Business Investment

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

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

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

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

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

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

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

Can Businesses Cope With High Wage Growth?

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

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

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

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

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

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 and Refinance

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

Asset Finance

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

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

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

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

Benefits of Asset Finance:

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

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

Assets Considered:

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

Asset Refinance

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

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

Benefits of Asset Refinance:

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

Assets considered:

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

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

Asset Finance

2nd December 2013 / / Comments Off on Asset Finance

What is asset finance?

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

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

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

Why use asset finance?

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

Who Uses Asset Finance?

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

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

Advantages

Asset finance is:

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

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

#YorkshireHour

20th November 2013 / / Comments Off on #YorkshireHour

#YorkshireHour is open for business once again this evening 8pm-9pm.

A virtual place – but a real time – to promote your Yorkshire Business. Will you be participating this evening? We certainly will be!

When it gets to 8pm tonight start tweeting about your Yorkshire business and add the hashtag #YorkshireHour – it’s that simple!!

For example:

  • “We’re an independent finance brokers based in Leeds, West Yorkshire #Yorkshirehour”

You can also search for #YorkshireHour on Twitter to see what other Yorkshire folk are promoting. This way you can then follow, say Hi and build connections that might be relevant to you business, or if the tweets are just interesting to yourself. It’s a great tool to use to market your Yorkshire Business are also find other business’ that you could benefit from.

After, don’t forget to check your account for new followers and say thanks – see if you want to follow them back and start up new connections with them as well. You’ll be  amazed and surprised how many new followers you’ll get and business contacts you can make in an hour.

Something Nice On Your Lunch Hour

18th September 2013 / / Comments Off on Something Nice On Your Lunch Hour

Above Agriculture – A Summer In The Skies

Jason Hawkes has been taking aerial photographs from the skies above the UK for more than 20 years. Perched in the open door of a helicopter, hundreds of metres above the ground, his vantage point offers a colourful and striking view of the land below.

Here – with his latest set of images – he explains how he spent the summer of 2013 criss-crossing Britain, snapping the natural and manmade patterns and shapes that dominate our rural landscape.

Just click the link below to view the slideshow.

/www.bbc.co.uk/news

All photographs subject to copyright. Aerial images courtesy Jason Hawkes. Music by the Steve Miller Band, Paul Weller and KPM Music.

Slideshow production by Paul Kerley. Publication date 17 September 2013.

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