Tag: Business Funds

How To Avoid The Business Funding Post Code Lottery

30th January 2019 / / Comments Off on How To Avoid The Business Funding Post Code Lottery

According to recent reports, where a small business is located can have a big impact on how likely it will receive funding. While some areas offer excellent prospects for funding others are virtually feeding of scraps according to statistics.

Figures from 2016 show that businesses that benefitted from the Bank Referral Scheme totalled only 900 out of the 19,000 that had been referred after failing to secure loans from high street lenders. Looking deeper into the stats just 75 of these companies was located in in the North West.

Looking at more recent figures from UK Finance, things haven’t changed much when it comes to loan approvals by UK region. All regions saw a year on year fall in loan approvals in the final quarter of 2017 apart from Wales which saw a 55% increase compared to 7.6% decline for England.

The statistics show banks still a have a long way to go before they have sufficient trust in lending to small businesses throughout the UK with the exception of Wales.

To get around this problem, businesses should consider alternative forms of business finance to support ambitious growth plans such as asset financing.

Is Your Start-up Prepared for A Loan?

20th December 2018 / / Comments Off on Is Your Start-up Prepared for A Loan?

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.

Is Asset Finance An Option For Startups?

11th April 2017 / / Comments Off on Is Asset Finance An Option For Startups?

Asset finance is often seen as something a more mature business might consider when they are looking to grow and expand, however it can be just as useful for a startup needing that extra boost to get things off the ground.

Another reason asset finance can be good for a startup is the relative ease with which it can be sourced compared to raising money from other sources. Raising money from the bank for an unproven startup can be a difficult task yet there is still that need to establish a solid financial platform to enable the business to survive.

Asset finance is available in many forms including leasing hire purchase, refinance and specialist funding. What all these different forms of asset finance have in common is they protect your cashflow.

Lack of cashflow coupled with unmanageable debt is a recipe for disaster in a business and if you have a business that may rely on one or two big clients, then you may be vulnerable if one or both decides to pull the plug.

Asset finance will at least enable you to spread the cost of borrowing over a longer period to protect your cashflow and continue to grow your business.

Unlocking Business Funds

8th December 2014 / / Comments Off on Unlocking Business Funds

Many businesses in the UK trade on a daily basis with cashflow issues.  They may already have an overdraft with the bank, and also Factor / Invoice Discount.  In the current trading climate across all industries, the banks are reducing overdrafts, usually at short notice.  They’re also trying to get businesses, whether Sole Traders, Partnerships or Limited Companies, to move low rate Commercial Mortgages onto higher rate loans or other higher margin products.  This is a common occurrence day in, day out in UK business, across all sectors.

These factors can have a huge impact on business, whether large or small.  Smaller business do not know where to turn, or who to ask for help.

A lot of businesses, however, do have solutions to this, particularly if they have a business that is doing well, either growing or making profits. The reason being is they have working assets in the business that are either free of any encumbrance / finance, or machinery / vehicles that are still on finance, but have equity in to release.  Richmond Asset Finance Ltd has helped many UK businesses to raise working capital via this method with ease and usually within 7 working days, from proposal to completion.  This method of financing equipment and vehicles is usually easily done, with no set up fees, legal fees or valuation fees, unlike re-mortgaging or raising capital against property and land.  Generally, there are at least 20 main funders lenders in the UK who specialise in this market, offering competitive rates.  With the perceived turning of the economy, there are now more lenders coming back into the lending market, which is helping to reduce the rates of interest.  Plant & Machinery to be refinanced can be relatively any age (up to 20 years) and finance documentation is generally signed on Hire Purchase or Finance Lease, with each product offering different tax benefits for accountancy basis.  These finance facilities are fixed rate, and can be drawn up where repayments are monthly, quarterly or even seasonal, dependent upon the industry.  Unlocking equity in your business assets is a lot easier than you think, underwritten within 24 hours (generally). And with fixed payments moving forward over a specific period, you know where you are with your cashflow.

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