Tag: Richmond Assest Finance (page 10 of 12)

UK manufacturing expands at fastest pace in three years

9th December 2013 / / Comments Off on UK manufacturing expands at fastest pace in three years

Solid upturn in UK manufacturing driven by “substantial increases” in both manufacturing production and new orders, Markit-CIPS PMI survey shows.

Manufacturing returned to form in November as the sector steamed ahead with the fastest growth in nearly three years, following two months in which the pace of expansion slowed.

The reading of 58.4 on the closely-watched CIPS/Markit purchasing managers’ index (PMI) survey – where the 50 mark separates growth from contraction – was the best level since February 2011.

Monday’s figures are further evidence that the recovery is gaining traction, creating the best economic backdrop in three years for the Chancellor when he delivers his 2013 Autumn Statement on Thursday.

The growth in manufacturing included a strong level of export orders – with new work from Asia, the US, Germany, France, Ireland, Belgium and the Middle East – but the domestic market remained the prime factor in order growth.

It was the eighth successive month of growth in manufacturing. The expansion in new orders surpassed a 19-month high seen in August.

The data suggest that manufacturing is on course to beat the 0.9pc growth it notched up in the third quarter, with the pace of growth so far in the final three-month period of the year tracking comfortably above the 1pc mark.

Employment in the sector rose at the fastest pace since May 2011, signalling that companies are creating around 5,000 jobs a month.

Manufacturers’ input costs rose for the fifth month in a row but companies reported some success in alleviating the squeeze by passing these on to clients.

Rob Dobson, senior economist at survey compiler Markit, said: “UK manufacturing continued to hit the high notes in November.

“Manufacturing and the wider economy are on course to build on the third quarter’s solid foundations.”

David Noble, chief executive of the Chartered Institute of Purchasing and Supply, said it was an “all-round glowing performance” for the sector.

“The sector’s solid growth was primarily underpinned by a strong domestic market, boosting new business in the UK and giving manufacturers the confidence to look ahead to the future,” he said.

“This was coupled with new export orders from key overseas markets accelerating at one of the fastest rates since the financial crisis.”

Samuel Tombs, UK economist at Capital Economics, said: “The improvement in the UK CIPS manufacturing survey in November should help to ease concerns that the recovery is entirely founded on an unsustainable housing market boom.”

Howard Archer of IHS Global Insight said that if it is followed by robust PMI data from other sectors this week, it will look very likely that gross domestic product growth for the fourth quarter “could at least match” the 0.8% of the third quarter.

James Knightley of ING Bank backed the view that unemployment would drop below the key threshold of 7% around a year from now – a figure which would prompt the Bank of England to be able to consider lifting interest rates.

[Telegraph]

Calls for help with farm debts rise

9th December 2013 / / Comments Off on Calls for help with farm debts rise

The number of farmers in the south west seeking help for financial hardship is increasing, a charity has said.

The Farming Community Network (FCN) said it was dealing with a rise in cases in Devon and Cornwall.

Sustained wet and cold weather in 2012 is thought to be largely to blame for many farms in financial difficulties.

The FCN, which is dealing with more than 200 cases in Devon alone, said it encouraged farmers to seek help “before a problem becomes a crisis”.

‘Unsustainable’ debt

The FCN said that it had seen an increase in cases in Devon alone from 213 last year to 230 up to August this year.

Of the cases being dealt with this year, 90 were new, according to the charity’s figures.

In Cornwall in 2012, it was dealing with 121 cases.

More than half of the problems raised with the charity nationally concerned finance and for some debt was reaching “unsustainable levels”, it claimed.

Joanne Jones, a dairy farmer and FCN coordinator in Devon, said some farmers – often on small family-owned farms – felt isolated and were struggling with seemingly “insurmountable” pressures.

Farmer Tom Jeanes said he was forced into selling half his herd after flooding last year rendered his grazing fields “useless”.

“I doubt if I’ll make any profit this year at all,” he told BBC News.

“I’m only a very small farmer – and I’m not the only one… there are others who’ve lost far more than me.”

‘Reluctance to help’

The FCN said although 2013 had been drier, farmers were still dealing with financial problems caused by the previous 18 months of bad weather.

“We have had a better year this year,” Ms Jones said.

“The harvests have been better, but not enough to get stocks back up to where they need to be for this year and this winter.

“I think some of these issues relating to finances are to do with banking services and maybe some reluctance to help extend overdrafts and to carry on supporting farmers.”

Ms Jones said FCN was trying to encourage farmers to seek help.

“Sometimes we feel farmers don’t come forward soon enough with their problems,” she said.

[BBC News]

HSBC considers floating UK arm

9th December 2013 / / Comments Off on HSBC considers floating UK arm

Britain’s largest bank has been reportedly sounding out investors in recent weeks to gauge support for the idea to list its £20bn UK banking operation.

HSBC is considering floating its UK arm, ahead of new regulation that demands banks ringfence their retail banking operations.

Britain’s largest bank has been reportedly sounding out investors in recent weeks as to whether or not they would support the project.

There have also been informal conversations at board level to gauge opinion on the idea, the Financial Times reports.

The newspaper reports that people familiar with the matter, which is still in the early stages, have said the most likely plan would be to list a minority stake of up to 30pc in the UK retail and commercial banking operation.

Investors have estimated that the UK arm could float with a total market value of roughly £20bn.

The lender is said to be considering the IPO ahead of the incoming Vickers rules which will demand that banks ring-fence retail, which includes customer deposits and small business loans, from investment banking activity. While a formal separation is not required, experts have suggested that the bigger banks could go that one step further and completely spin off their retail unit.

“Given the trouble you have to go to to establish a self-contained operation, with its own capital and governance, you might as well go the whole hog and spin it off,” said one executive who knows HSBC well.

While the bank may be looking into floating its UK arm, the FT reports that its sources played down any suggestion that HSBC was looking to move its headquarters from London, with any questions of redomiciling “off the table”.

If the bank does go ahead with the stock market listing it would be the latest in a slew of banks to announce their intention to float.

Just yesterday it emerged that OneSavings Bank was examining a stock market flotation next year. The group, which trades under the Kent Reliance brand name, has reportedly started discussions with banks about a potential flotation that could give JC Flowers & Co, run by US financier Christopher Flowers, a way out of its investment in the company.

Meanwhile Lloyds Banking Group is preparing to float its TSB subsidiary next year with a valuation in the region of £1.5bn to £2bn, and Royal Bank of Scotland is planning to float a new challenger bank under the revived Williams & Glyn’s brand in late 2015.

[BBC News]

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!

Payday loans: New law to cap costs

27th November 2013 / / Comments Off on Payday loans: New law to cap costs

The government is to introduce a new law to cap the cost of payday loans.

The level of the cap, which has not yet been announced, will be decided by the new industry regulator, the Financial Conduct Authority (FCA).

The Treasury says there is “growing evidence” in support of the move, including the effects of a cap already in place in Australia.

But the industry said the move could restrict credit, and encourage more illegal lending.

The cap will be included in the Banking Reform Bill, which is already going through Parliament.

Speaking to the BBC, the Chancellor, George Osborne, said there would be controls on charges, including arrangement and penalty fees, as well as on interest rates.

“It will not just be an interest rate cap,” he told BBC Radio 4’s Today programme.

“You’ve got to cap the overall cost of credit.”

‘Duty on regulator’

Previously the government had said such a cap was not needed.

But the chancellor denied the government had a made a U-turn on the issue, saying he was not pre-judging the outcome of a Competition Commission inquiry into payday lending.

“These things can go along in parallel,” he said.

Some payday lenders have been criticised for charging more than 5,000% annual interest – though the lenders say these loans are meant to be short-term, so the annual rate can make charges appear worse than they are.

Australia has an interest rate limit of 4% per month, after a maximum up-front fee of 20%.

However, even in Australia, borrowers can still face hefty charges.

Penalties for late payment are allowed to be as much as twice the loan amount.

In the UK, the FCA has already been given the power to cap the costs of payday loans.

But under the new law, the FCA will now have a duty to go ahead and introduce price controls.

“Now the regulator will go away and decide what is the best form of cap,” said Mr Osborne.

The FCA takes over as the industry regulator in April 2014, so no changes are expected before 2015.

Reservations

The FCA has also proposed a series of measures to clamp down on the industry, including limiting loan roll-overs to just two, and restricting the use of continuous payment authorities (CPAs).

But the Consumer Finance Association (CFA), which represents some of the payday lending firms, was sceptical about whether price controls would work in consumers’ interests.

It said the move could encourage more illegal lending.

“Research from other countries where a cap has been introduced, suggests price controls would lead to a reduction in access to credit, and open up a larger market for illegal lenders,” a spokesman said.

The FCA itself has also expressed reservations about a cap on charges, fearing that some lenders might increase fees to the legal maximum.

Labour leader Ed Miliband has already said his party would cap the cost of payday loans.

Mr Miliband has also pledged to give councils new powers to limit the spread of payday lending shops in town centres.

The shadow minister for competition and consumer affairs, Stella Creasy, told the Today programme that “the devil really is in the detail”.

“This industry’s a bit like an inflated balloon and if you don’t crack down on the whole cost of credit, then wherever they can recoup their costs by expanding the prices at other points, they will.”

[BBC News]

WIN a T6 or T7 Tractor!

27th November 2013 / / Comments Off on WIN a T6 or T7 Tractor!

Once we heard that Farmers Guardian has once again teamed up with New Holland to give you an opportunity to win the use of an Auto Command™ tractor for one year, well we just had to share this!

As well as this, the winner along with nine lucky runners-up will win a factory tour for up to five people at Basildon, Essex – which is the home of the popular T6 and T7 tractors series.

The T6 range comprises seven models which produce between 119 – 173hp and is the tractor of choice for the mixed farmers, as well as contractors and specialist agribusinesses. The range includes three new Auto Command™ continuously variable transmission models for even greater efficiency and ease of use.

The T7 range models range between 171hp and 274hp. The T7 is perfect for both farmers and contracting operations, offering excellent performance and exceptional fuel efficiency. They are ideally suited to a wide range of farming tasks including field cultivation, high-speed transport and front loader activities thanks to exceptional manoeuvrability and versatility. Nine T7 models also features the Auto Command™ Transmission for maximum efficiency.

Both ranges are built in the award-winning manufacturing facility in Basildon, Essex, which celebrates in 2014 its fiftieth anniversary.

To enter this great competiton visit their website at www.farmersguardian.com

Farmer insurance scheme could be an option

21st November 2013 / / Comments Off on Farmer insurance scheme could be an option

A RADICAL new approach to agricultural insurance could provide an alternative to the Single Payment Scheme (SPS) in the UK.

That was the message from George Eustice, Parliamentary Under Secretary for Farming, Food and Marine Environment.

Mr Eustice said the UK could learn from Canada and the USA which have their own successful national agricultural insurance schemes, which are paid for both by farmers and the Government.

“The USA has a flagship agri-insurance scheme,” he said. “If a farmer’s income drops significantly below a certain level, due to crop failure for example, they can call on the insurance fund to top their income up.”

Farmers pay in to the system, explained Mr Eustice, and the American government helps support it by paying some of the administration costs and helping the insurance scheme pay for the gap in farm income.

He said: “Canada also has a similar system, known as agri-stability, whereby if the farmer’s income drops below 70 per cent of their average income for the previous five years, they are eligible for the insurance.

“The Canadian Government has a bigger financial input, contributing between 60 and 80 per cent of the insurance cost, with the industry paying the rest.

“The NFU has previously asked us to consider such a scheme and in 2009 Defra commissioned Prof Berkeley-Hill to look at its potential in the UK.

“He concluded if done correctly a national agri-insurance scheme could provide an alternative exit strategy to the SPS we currently have.

“Prof Berkeley-Hill also said it could be on way of reducing the long-term cost of the CAP.”

However, he also highlighted several big drawbacks to this kind of insurance system.

“Both Canada and the USA do not have a SPS, so the insurance scheme which NFU has previously advocated would have to be in place of a SPS, rather than an addition to it.”

He also said the cost of such schemes, which cost more than the UK currently pays to administer CAP, were also a drawback.

#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.

New Tractors for Landini Range in 2014

18th November 2013 / / Comments Off on New Tractors for Landini Range in 2014

The all-new Landini Series 4 will have power outputs from 61hp to 101hp channelled through a new Argo Tractors 12×12 transmission with synchro shuttle, power shuttle creep and two-speed powershift options.

Italian agricultural engineering firm Argo Tractors presented its biggest ever collection of new models at the Agritechnica exhibition in Germany as a major investment in product development bears fruit.

High quality materials and design are evident in the new cab built by Argo for the new Landini Series 4 tractors, and it is reckoned to be one of the most spacious in the class.

Previewing more new tractors than any other manufacturer at the event, in preparation for their commercial launch in 2014, Argo’s Landini exhibit included the Series 4 livestock tractor, which features a new-design cab with a more up-market and spacious interior and mechanical controls.

The Landini Series 4 is a new class of stockman’s tractor for the Italian-built range. This all-new range of tractors from 61hp to 101hp that will comprise six models powered by either 2.9-litre or 3.6-litre engines. It has a new Argo Tractors synchro shuttle 12×12 transmission that can be enhanced by creep, power shuttle and hi-lo powershift options.

The new Argo-built cab, with an interior design using materials to automotive standard, is said to be the most spacious low-profile design available in this class.

When it is introduced next year, the new Landini Series 4 range will slot in beneath the newly launched 85-113hp Landini Series 5-H T4i, which is a little larger and heavier, with power outputs up to 113hp: www.farminguk.com/news

The Series 4 will be ideally suited to livestock farms and other operations wanting a light, highly manoeuvrable and well-equipped tractor of this size and power.

Barclays to move four bank branches to Asda

8th November 2013 / / Comments Off on Barclays to move four bank branches to Asda

Barclays is to close four branches and move staff and banking services to nearby Asda stores.

It said it then wanted to open another four branches in Asda supermarkets by early next year in an attempt to make banking more convenient.

The initial four branches will swap locations to make parking easier, and sees branches with relatively low footfall being moved to the stores.

Asda said that access to banking services was vital for communities.

Bank staff will work at the new supermarket-based branches during normal bank opening hours, with cash and cheque machines accessible during the supermarkets’ opening hours.

The first branch will be opened in an Asda store at Birchwood in Cheshire in February.

Three more will later be opened at Asda stores in Pudsey in West Yorkshire, North Watford in Hertfordshire and Broadstairs in East Kent.

The additional four stores for new branches will be chosen later.

Bank branches in supermarkets are common the US.

Business costs rising 3.5pc ahead of inflation

8th November 2013 / / Comments Off on Business costs rising 3.5pc ahead of inflation

Business costs continue to rise, with inflated energy prices proving the most burdensome for small firms in 2013, according to research from the Forum of Private Business.

Small businesses are struggling to make ends meet despite positive signs of an economic recovery, the latest Cost of Doing Business report from the Forum of Private Business has found.

According to the 4,000 respondents to the survey, 94% of businesses have seen an overall increase in their business costs. Of these, the cost of gas and electricity are the biggest bugbears with 87% reporting an increase in energy overheads. However, 83% also saw a rise in transport costs, 78% are spending more on marketing and 69pc have experienced a rise in the cost of raw materials/stock.

The cost of petrol, rising transport costs and the spiralling price of energy are proving extremely challenging for small businesses. These, coupled with the continued weakness of sterling, are putting downward pressure on balance sheets. And these firms are unable to simply pass on these costs to customers. Despite evidence of a muted economic recovery, 41pc of small business owners said that they were absorbing the costs themselves. Just 2pc were able to pass on costs in full.

Annual inflation may have fallen from 3pc to 2.7% but this research shows that prices have continued to rise for micro, small and medium-sized employers, increasing by 6%. This is less than the 6.7% figure reported by the Forum last year, however, suggesting that the environment for SMEs is gradually improving. Nevertheless, 83% of those surveyed expect the situation to worsen next year.

Credit restrictions are also an issue, with 26% of businesses reporting less leeway in coping with business costs than they had last year.

The report has found that 81% have experienced a detrimental effect to their business as a result of these rising business costs. 73% have had cash flow issues and 51% of firms have struggled to to invest in new training or plant. 51% also reported that these sky-high overheads have prevented them from employing new staff and 63% feel that it has hampered their growth plans.

More worryingly, the most frequently cited factors exacerbating the problem of rising costs were customers paying late (59%) and competitors offering products below cost price (51%). Excessive administrative demands forced on businesses by the government, banks and customers meant that 35% of businesses have not been able to focus on business activities. Changing payment terms has been a problem for 24% of businesses in dealing with suppliers, and 26% in dealing with customers.

“As well as positive action on late payment we’d like to see further steps to help small firms with business overheads,” said Alexander Jackman, the Forum’s head of policy. “We’d like a freeze on business rates and small business multipliers next year. An extension of small business rates multipliers until the end of the current parliament would also be welcome and we’d like to see the government commit to undertaking independent research into business rates.

“While the Chancellor’s announcement of a fuel duty freeze at the Conservative Party Conference was a welcome move, we feel that further action should be taken to investigate where further savings could be made across government to ensure that fuel duty is not raised again before the end of this parliament.”

The Housing Bubble

8th November 2013 / / Comments Off on The Housing Bubble

The Bank of England must find a way of slowing demand without bringing the economic recovery to a halt.

Of the Ten Commandments of central banking, the most important is to take away the punch bowl before the party gets started. Perhaps inevitably, few manage to obey. Central banks are invariably too slow to cut rates when circumstance demands – the European Central Bank has waited until the eurozone is almost in deflation before taking action – and too slow to raise them when the economy starts to overheat.

So it appears with the Bank of England, which despite a quite pronounced bounce in the economy, and accompanying recovery in the housing market, has committed itself to not raising interest rates for at least three years – subject to inflation and unemployment thresholds.

Margaret Thatcher’s favourite theorist, Friedrich Hayek, was by no means right about everything. But one of his central insights contains a great deal of truth. It is that expansionary policies in a recession will only postpone the necessary adjustment – and that creating more credit makes the eventual return to reality more painful still.

Today, Britain is being cynically frog-marched into a pre-election credit boom, for which there may eventually be a quite heavy price to pay.

Now, it would be wrong to exaggerate the current state of play. Despite the positive news on growth, the economy remains some distance below pre-crisis levels of output. In some parts of the country, it still feels like a depression. It can therefore be reasonably argued that the Bank of England shouldn’t even consider taking its foot off the monetary accelerator, at least until the economy is back to where it was.

But here’s where the debate gets really interesting. Why is it that output here has come bounding back, even as the world economy slows and the eurozone sinks ever further into the doldrums?

Certainly it has got nothing to do with the Government easing back on its austerity programme; to the extent that there ever was austerity, it is continuing at roughly the same pace as before. Nor has it got much to do with our moving towards a more balanced economy, less reliant on consumption and more driven by exports and investment. In fact, consumption today has an even bigger share of GDP. No, the true explanation is that the credit cycle has turned. Consumers are more confident, so they are borrowing more and saving less.

Behind this turnaround lie three key policy initiatives. Help to Buy has provided crucial support for the housing market. Funding for Lending has hosed the banks down with cheap money, giving them the capacity to start lending again. And the Bank of England’s “forward guidance” has offered households and businesses a degree of confidence that they are not about to be hit by a precipitous rise in interest rates.

As engineered, politically driven recoveries go, it’s quite clever. But it won’t be sustainable much beyond the election unless there is a pretty dramatic pick-up in business investment from here on in. So far, there is very little sign of it.

Having largely lost the argument over austerity, Labour has switched tack to the “cost of living crisis”. This may or may not be politically astute, but unfortunately it is a problem that is even less easily magicked away than a flatlining economy.

Certainly it is not going to be solved by Labour’s economically illiterate mix of price controls on energy and tax incentives to create higher wages. This will only succeed in raising unemployment. Similarly, reversing the Coalition’s attack on benefits, which is also depressing overall household income, would have to be paid for – and negated by – higher taxes.

In truth, there are no easy fixes for falling real incomes, since the underlying cause is endemically poor productivity. In recent years, Britain has become substantially less productive. Output has fallen, but employment has risen; ergo, output per worker – which was already quite low even before the crisis – has been badly eroded.

You cannot spend what you don’t earn unless you borrow the difference. Policy-makers have therefore returned to the old palliative of compensating for stagnating incomes by encouraging an expansion of credit.

Both the Bank of England and the Government believe that with a recovering economy will eventually come an improvement in productivity, real wages, and therefore living standards.

Believe it if you will. An alternative view is put by Fathom Consulting’s Danny Gabay, who thinks there is very little spare capacity in the economy. If that’s true, then Britain’s credit-led recovery will soon cause inflation to spike higher again.

So how could the Bank of England remove the punch bowl without bringing the recovery to a screeching halt? Raising interest rates is not the only tool available. The Bank could also act directly to prick the nascent housing bubble via its newly formed Financial Policy Committee. Some of the committee’s members, alarmed by the speed of the recovery in house prices, are already determined to act, by increasing capital requirements on mortgage lending, or recommending the imposition of tougher loan-to-value and/or loan-to-income criteria. Alternatively, they could simply embarrass the Chancellor by recommending that Help to Buy be scrapped.

A rather better solution all round, though one with few immediate political dividends, is the deregulatory and planning shake-up necessary to bring about a genuine improvement in supply and productivity. Unfortunately, such a course requires a rather braver Government than this one.

Alternatives to payday loans

6th November 2013 / / Comments Off on Alternatives to payday loans

If you’re struggling with your finances, a quick and easy payday loan can seem like a good option. But there are many other far cheaper alternatives.

Payday loans have been heavily in the spotlight this week. First, Wonga went on a PR offensive, premiering a film called 12 Portraits which featured 12 of its customers. Then there was a string of interviews in which the company’s Niall Wass told anyone who would listen the majority of Wonga’s customers were happy with its service.

Then representatives of three of the biggest payday lenders were grilled by a committee of MPs and naturally defended the industry and its practices.

While the industry may have cleaned up its act compared to a year ago, the simple fact remains that payday loans are an extremely bad way to borrow. Several mortgage brokers have also spoken about the detrimental effects using payday loans can have on any future mortgage application, as lenders see them as a sign of desperation and an inability to manage money.

But if money is really tight, what are the alternatives?

First steps

Cut your spending and budget

This should be the first thing you should do.Just looking at your monthly spending habits can make you realise you need to cut some things out completely. And if you’re using payday loans to pay off for nights out and new clothes then you’re already in deep trouble.

A budget can get you back on track so you have enough for both bills and treats.

Why not check out our free, secure Money Track budgeting tool?

Take out a 0% credit card

If you have a good credit rating but your debts are slowly mounting up and you’re only able to make the minimum payment on your credit card or you have a large overdraft, a 0% credit card could give you some valuable breathing space.

If you have card debts you want to transfer, you could get up to 30 months with no interest to pay using a 0% balance transfer credit card. All you have to pay is a fee, which is a small percentage of the debt you’re transferring.

If you have an overdraft, you can take a card that offers a 0% money transfer period. This allows you to transfer money into your current account and it will just cost you a percentage of the amount you’re borrowing (usually 4%). At the moment, you can get a 0% money transfer for 27 months with the MBNA Platinum and Fluid 27-month cards. Compare 0% credit cards

Ask for a pay advance

The best payday loan could come direct from your employer.

Asking for an advance on your wages could mean you meet the shortfall an unexpected bill or car repair causes, without the risk of falling into a pit of debt. Companies with a good cashflow may be willing to pay an advance on your wages and usually take the amount out of your next payslip.

Another way your employer may be able to help is by allowing you to do some overtime to boost your pay.

Turn to friends and family

Turning to your family or even your friends for a loan could prevent you from falling into a spiral of debt. They may even be able to lend you the money interest free.

Just remember to treat paying back a friend or family member as seriously as you would an official lender. After all, you don’t want them to fall into debt because you haven’t lived up to your side of the deal. If you want to make it official and reassure those close to you that you will repay, write down an agreement clearly marking the exchange as a loan not a gift.

Sell some old stuff

From CDs to DVDs, games to gadgets, if you have things you don’t use that could be cashed in then now is a good time to do it.

You could sell them online on sites such as eBay or Amazon or in high street shops such as Cash Convertors or Cash Generator.

Ask your bank for an authorised overdraft

An authorised overdraft with your bank is an alternative form of borrowing that is far more affordable than a payday loan.

Overdrafts that are agreed formally, rather than used accidentally, which are known as unuathorised overdrafts and can cost a small fortune, typically have rates between 12% and 20% AER. However, the Nationwide FlexDirect account offers a fee- and interest-free overdraft for a year, so long as you pay in £1,000 a month to the account.

Next steps

If money is still tight after you’ve exhausted all the options above, then find out if any of these are viable.

See if you’re entitled to benefits

The benefits system in the UK is highly complex, so many of us are unaware of the benefits we may be entitled to.

If you are pregnant, on a low income, caring for someone, have been bereaved, aged 60 or over, ill or disabled or even if you are unemployed then there is a chance that you could be entitled to a range of benefits such as Working Tax Credit, Child Benefit, Income Support, or Jobseeker’s Allowance.

Use this handy benefits checker on the Gov.UK website to double check you are claiming all the benefits you qualify for.

Apply for a credit union loan

Credit unions are not-for-profit, community-based organisations that provide transparent savings accounts and affordable loans to its members. Credit unions have a common community bond, so you could find yours where you live or where you work.

Many of them now offer payday loans at far lower rates than payday lenders. The only catch with credit unions is you often need to be a member before you can borrow.

To search for your nearest, use the Find Your Credit Union website.

Look into a budgeting loan

A budgeting loan is available from the Government to those on income support, income-related employment/support allowance, income-based jobseeker’s allowance and pension credit and is available if you need to pay for a particular range of expenses.

The loans are between £100 and £1,500, are interest free (so you only pay back the amount you borrowed) and you have two years in which to pay them off.

Seek free debt advice

If your finances are out of control and you consistently turn to payday loans, you should seek advice. There are a number of charities that are dedicated to helping those in financial difficulty such as StepChange Debt Charity, National Debtline and the Citizens Advice Bureau.

A Guide to Bridging Loans

1st November 2013 / / Comments Off on A Guide to Bridging Loans

Bridging loans are a short-term funding option. They are used to ‘bridge’ a gap between a debt coming due – and we’re talking primarily about property transactions, here – and the main line of credit becoming available. Or they can simply act as a short-term loan in pressing circumstances.

They can be invaluable in facilitating a property purchase that otherwise would not be possible. But as you might expect with a stop-gap measure, they can be significantly more expensive than a ‘normal’ loan.

What are bridging loans and how do they work?

Bridging loans are designed to help people complete the purchase of a property before selling their existing home by offering them short-term access to money at a high-rate of interest.

As well as helping home-movers when there is a gap between the sale and completion dates in a chain, this type of loan can also help someone planning to sell-on quickly after renovating a home, or help someone buying at auction.

As banks and building societies have grown more reluctant to lend in the wake of the financial crisis, there has been an influx of bridging lenders into the market.

Who are bridging loans aimed at?

Generally speaking, bridging loans are aimed at landlords and amateur property developers, including those purchasing at auction where a mortgage is needed quickly.

They may also be offered to wealthy or asset-rich borrowers who want straightforward lending on residential properties.

When should you use bridging loans?

Bridging loans can be used for a variety of reasons, including property investment, buy-to-let and development.

However, more recently, there has been a growing trend among borrowers to use bridging loans because high street and private banks are taking longer to process applications for larger home loans.

Some borrowers are also viewing bridging loans as a simple alternative to mainstream lending.

While a bridging loan may sound tempting, if you’re thinking about taking one out, you need to think carefully about your exit strategy. This might, for example, involve getting a mainstream mortgage or a buy-to-let mortgage, or selling the property altogether.

Crucially, if you’ve not used this type of finance before you need to tread carefully and get all the facts before hand and figure out if it’s the right sort of lending for you.

Put simply, bridging loans should not be viewed as an alternative to mainstream lending.

Where can you get a bridging loan?

Bridging lenders can come in all shapes and sizes, ranging from one-man bands up to professional outfits regulated by City watchdog, the Financial Services Authority (FSA).

Non-bank lending to small businesses at highest level since 2008

28th October 2013 / / Comments Off on Non-bank lending to small businesses at highest level since 2008

Non-bank lending to small businesses has hit a five-year high, as more enterprises turn to alternative sources of credit such as peer-to-peer lenders and invoice financing.

With traditional bank lending in its fifth year of decline, the UK’s commercial finance brokers say they have arranged £10.5bn of credit for small and medium-sized enterprises in the past year. This marks the highest figure since 2008 and an annual rise of 17 per cent.

Meanwhile, asset-based lenders, who advance money against equipment or invoices, also reported their biggest annual total since 2008, rising 10 per cent to £17.4bn in the year to June.

The data, from industry associations, highlight the shift away from traditional bank lending to small business, which has shrunk by a quarter since 2011. SME funding through leasing and asset finance has more than doubled in the same period, according to the National Association of Commercial Finance Brokers .

Its members also arranged £501m worth of loans through innovative channels such as peer-to-peer lenders, which match individuals to companies that want to borrow, a rise of 80 per cent.

Adam Tyler, chief executive of the finance brokers association, said that while the government’s Funding for Lending and Help to Buy schemes have eased credit conditions in the property market, small businesses were still being neglected by mainstream lenders.

“Alternative finance is providing life support to the sickly SME market and will be vital to give it extra impetus to boost the economic recovery,” he said.

“These figures show that alternative options from leasing and asset finance to peer-to-peer lending are increasingly taking up the slack and plugging a vital gap.”

The commercial finance brokers’ association, which compiled the data from its 1,000-plus members who arrange loans for businesses, will join the British Bankers’ Association to brief MPs on Monday on the use of alternative finance.

A BBA spokesman said banks were working with brokers to help customers gain access to alternative sources of credit. “While banks are open for business there are other ways to get finance. Bank finance is not always right for companies.”

Bank of England figures for the second quarter of 2013 showed that, excluding overdrafts, SMEs paid back £600m more than they borrowed from banks, although gross lending rose slightly to £10.2bn. The BBA said fewer than three in 10 applicants were turned away and total SME bank borrowing stood at £114.9bn.

The Asset Based Finance Association, which represents lenders rather than brokers, said last month that its advances rose from £15.8bn to £17.4bn in the year to June.

Mr Tyler said there was still a lack of awareness among small businesses and their advisers on alternatives to bank loans.

Even after the recent increases, brokers remain far short of the £19.7bn of finance they arranged in 2006-7.

Copyright The Financial Times Limited 2013.

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