Posts Tagged ‘funding growth’

SME Borrowing Concerns, Missed Opportunities and Fast Business Loans – BFB Epsd 160

Posted on: March 17th, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

The latest SME Finance Monitor Report reveals an interesting insight into small business owner’s current thoughts about borrowing money. In this episode of the Business Finance Bulletin we take a look at feedback from small business owners on their appetite to borrow and funding growth.

Deciding to sit back and self-fund your growth plans, whether intentionally, or because you can’t find finance, comes at a cost. This is the finding from a survey carried out by Aldermore Bank which reveals that business opportunities are being lost because small businesses can’t access the right finance.

Looking for a fast, short term business loan? How about one in 12 minutes? We look at a new lending service launched by Ultimate Finance, the Cash Advance, which promises quick access to short term business finance with minimal fuss.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Business Finance Bulletin Epsd 76: Business Borrowing, Business Confidence, Metro Bank & Business Growth

Posted on: May 29th, 2015 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In the latest Business Finance Bulletin episode Business Loan Services’ Rob Warlow looks at highlights from the most recent SME Finance Monitor Report which reveals a number of interesting findings on how businesses are dealing with the issue of raising finance.

In a report from Hitachi Capital Rob looks at how business confidence is on the rise with more businesses looking forward to growth.

Relative newcomer to the banking market Metro Bank is looking to shake up the Invoice Discounting industry with changes announced to its service.

In the Business Finance Tip of the Week Rob chats with Nick Rowe from PricewaterhouseCoopers in which he shares their thoughts on the four levers of growth which small businesses need to be mindful of when planning ahead.

You can listen to this week’s edition as a podcast. To download to your phone, PC click below via our SoundCloud page or go to our itunes channel and subscribe.

Business Finance Bulletin Epsd 65: Business Growth Bank Lending, New Banks & Selling Equity

Posted on: March 13th, 2015 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , ,
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In the latest Business Finance Bulletin Rob Warlow looks at evidence of a continued increase in confidence amongst small business owners with positive news from a survey carried out by Hitachi Capital.

Rob also looks at signs that the success rate in getting a ‘yes’ from banks is on the up according to the FSB’s latest Voice of Small Business Index. According to this latest report businesses are also reporting how profits are on the up and there is more interest in hiring staff. All positive signs for the economy.

Turning to alternative lenders Rob shares news of a possible new entrant into the banking market with Civilised Bank looking to launch later in the year focusing on the SME market.

Funding growth via selling equity has often been a mental stumbling block for many business owners but Rob looks at a report from the British Business Bank which reveals that more businesses are considering it as a viable option to raising cash.

And in the Business Finance Tip of the Week Rob chats with Dr Paul Thomas of DNA Definitive in which he shares a number of key issues that growing businesses should be aware of.

If you prefer to listen to this week’s edition on your phone or in your car simply download the podcast version by clicking the download image.

Business Finance Bulletin Episode 57: Late Payment, Business Growth, Crowdfunding & Business Processes

Posted on: January 16th, 2015 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In the latest edition of the Business Finance Bulletin Rob Warlow looks at news from Lovetts, the commercial debt recovery firm, on how the amount of late payment debt is on the increase.
As part of its annual Small Business Income Index, news from Barclays of further evidence that the economy is showing signs of growth with a number of sectors and UK regions standing out.

Raising equity through crowdfunding continues to grow in popularity and Rob looks at an overview from Crowdcube on how it performed in 2014.

And in the Business Finance Tip of the Week Rob shares his thoughts on the importance of having sound systems and processes in place; getting this right may reduce the amount of finance you may need to raise.

You can also listen to the podcast version of this week’s Bulletin. You can download a copy for listening later by clicking below.

Business Finance Bulletin No 56: Planning for Business Growth and Sources of Finance

Posted on: January 9th, 2015 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In the first edition of 2015 Rob Warlow looks at reports of strong business confidence levels and the desire to grow amongst many businesses. However, there are some facing a more challenging environment with three key barriers to growth being blamed.

Of those businesses looking for finance Rob reviews a survey carried out by the Institute of Directors which lists the sources of finance that business owners are turning to.

When it comes to lending to small businesses news from the High Street banks has been bleak but as Rob reveals, the latest figures from the Bank of England show positive growth for two months in a row, which is a positive sign.

And in the Business Finance Tip of the Week Rob shares two key questions you ask of yourself and your team when planning for a year of growth.

If you prefer to listen to this week’s bulletin on your phone or in your car you can download the podcast version by visiting our SoundCloud page.

Business Finance Bulletin 44: Zombie Businesses, Credit Reports, Funding Empire & Value Adding Projects

Posted on: October 3rd, 2014 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In the latest Business Finance Bulletin Rob Warlow reviews findings by the Insolvency trade body R3 on how zombie businesses may be facing challenges ahead as the economy grows.

New lenders keep appear on the finance scene and Rob shares the news of a new commercial lender, Secure Trust Bank, which is providing asset-based financial support to growing SMEs.

Funding Empire is one the growing band of crowdlenders and Rob has a chat with Parag Patel, owner and founder on what Funding Empire can do to help business owners access finance.

A clean credit report is important when raising finance and in this edition Rob looks at a recent survey by Experian, the credit reference agency, which reveals that many business owners have little knowledge about the make-up of a good or bad credit profile.

In the Business Finance Tip of the Week Rob shares a clip from a recent Business Wales ‘Access to Finance Workshop’ in which he talks about the type of proposals banks like to see.

You can also listen to this week’s episode as a podcast by clicking below or downloading it to your phone via Soundcloud so you can listen at your leisure.

Business Appetite to Borrow Continues to Fall… So How Will Growth Be Funded?

Posted on: September 4th, 2014 by blsuser1 No Comments Tags: , , , , , , , ,
Posted in Business Finance News

The latest SME Finance Monitor Report shows how much the funding and finance landscape is changing with small businesses demonstrating cautiousness and a reluctance to engage in seeking out finance.

One of the key findings from the latest quarterly report, which surveys 5,000 UK small business owners, is that issues around access to finance is now slipping off the list of obstacles to running to a business.

The current economic climate continues to be cited as the main obstacle to running the business in the next 12 months with 17% of SMEs quoting this as the main barrier. In terms of access to finance only 8% claimed it to be an issue (compared to 12% in Q1 2013), which appears to be counter to how much press the relationship between banks and small businesses is given.

Interestingly 65% of those surveyed said they see no major obstacles which could hold them back from going for growth. This is an encouraging sign.

With access of finance being seen as less of an issue than we may think, how does this translate in to actually usage of finance?

The report found that 39% of SMEs were using external finance in the second quarter of 2014, which is in line with most quarters since 2012. This means that 60% of SMEs either fund their business via shareholders/directors or don’t borrow.

In fact 39% classified themselves as a ‘Permanent non-borrower’. These are businesses which have not borrowed over the last five years and have no intention of borrowing over the next three months. The number of small businesses who declare themselves as not interested in borrowing has increased steadily over time, having been 34% in 2011 and 2012.

Even the number of businesses which have not borrowed over the last twelve months is remarkably low. Referred to as ‘Happy non-seekers’ these amount to 78% of those surveyed. So nearly 80% of SMEs are quite comfortable in not borrowing at all. This number is also on an upward trend having increased from 66% in Q2 2012.

You do begin to wonder why so much attention is given to the issue of access to finance when so many businesses declare themselves as not interested! But this does have one implication and that is as to how future growth will be funded. Growth typically needs cash to support working capital and investment needs so it is important for businesses to realise that growth usually needs finance and not to shy away from seeking it out.

Of those who do borrow, the range of finance products they use is also beginning to change. The report found that 30% of SMEs used ‘core’ products (loans, overdrafts and/or credit cards), but this is a declining proportion over time (it was 36% in Q2 2012). Other forms of finance, such as leasing, invoice discounting, private loans and crowdfunding, are being used by 17% of businesses so there is a lot of scope for alternative lenders to grow.

It’s clear that many businesses are comfortable where they are but for them to grow a finance need will kick in and it’s vital they don’t fall into the trap of going for growth with no cash… that can only end in disaster. But there is also a need for all finance providers to ensure that funds are there when needed and sending a clear signal that they are ‘open for business’. We don’t want businesses assuming they will get a ‘no’ and not even approaching a bank in the first place.

We will continue our look in to the findings of the latest SME Finance Monitor Report in future blogs.

Asset-Based Finance Growth Putting Banks to Shame

Posted on: August 26th, 2014 by blsuser1 No Comments Tags: , , , , , , , , , ,
Posted in Business Finance News

The rise in the level of support being given by the asset-based finance industry continues to put the banks to shame.

According to the Asset Based Finance Association (ABFA) in the three months to the quarter ended June 2014 asset-based funders (comprising of invoice finance and asset finance providers) lent out a record £18.9 billion to UK businesses.

The figures from the ABFA reveal that the combined amount of invoice finance and asset based lending provided to businesses grew by 7% in the last quarter, from £17.7 billion in March 2014, and 10% in the last year, from £17.3 billion in June 2013.

The ABFA puts the growth down to constraints on traditional lending as well as greater awareness and understanding amongst businesses as to how borrowing against the value of their invoices and other assets can free up cash to invest in growth.

The ABFA reported that 80% of asset based finance is invoice finance, in which businesses secure funding against their unpaid invoices, while the remaining 20% represents asset based lending, in which businesses can raise money secured against a range of other assets they own, including inventory, property and machinery.

Compared to the average fall in bank lending of 3% to 4% per year it’s clear that whilst many businesses may be forced to consider alternative sources of finance the fact that funding sources are now more diverse can only be a positive move.

How Growth is Being Held Back by Late Payment

Posted on: August 19th, 2014 by blsuser1 No Comments Tags: , , , , , , , , , ,
Posted in Business Loan Services News

With the economy beginning to pick there is one barrier to growth that many business owners don’t see until it’s too late and that is lack of cash to fund future growth. Two recent surveys have highlighted the recurring problems UK businesses have when it comes to late payment.

The first survey from Close Brothers reveals that of those businesses experiencing problems due to late payments, 58% said that it impacts on their day-to-day cash flow management with 17% saying it has resulted in them reining in necessary spending. A further 15% say it threatens their ability to trade.

The impact of late payment is not just on poor cashflow but also in terms of the time taken out of the working day to chase up outstanding debts. Close Bros found that 17% of businesses spend more than 10 hours a month chasing late payers.

Despite chasing for payment it can often happen that the debt remains unpaid and findings from Satagom an automated credit control firm have revealed that 40%of firms have written debts off in the past.

As discussed in previous blogs part of the solution the late payment is to ensure there is a system and process in place for chasing bad debts. The Satago survey found that 77% of firms don’t have a person or a procedure in place so making the chasing of late payments even more difficult.

If your growth plans are held back by poor cashflow there are a number of solutions including invoice discounting, factoring, and spot finance which are detailed here – Cashflow Solutions.

Also here is a chat Rob Warlow had with Steve White of Thornbury Collections on steps you can take to avoid late payment.

More Small Businesses Getting the Business Finance They Need

Posted on: August 12th, 2014 by blsuser1 No Comments Tags: , , , , , , , ,
Posted in Business Finance News

Small businesses on the hunt for bank finance are seeing a higher success rate in getting a yes than in previous years, with 80% of applicants receiving a positive response.

The survey, carried out by Albion Ventures as part of its annual Growth Report, revealed the success rate had increased from 71% in 2013 to 80% in 2014, a sign that banks are becoming more responsive as the economy improves.
Access to finance has been a prominent concern for UK business owners since the onset of the recession but it seems that the situation is now proving to be less of an issue. The survey found that access to finance now ranks fifth as a key concern for business owners.

However it may be that businesses are being more realistic in their chances of success in getting finance as the report reveals that only 10% of those surveyed said they had applied for funding compared to 17% in 2013. Are they assuming they will get a ‘no’ and so not bothering applying?

But the future is not so bleak when businesses were asked about their plans for the next 12 months. Looking ahead a third said they are planning to raise finance over the coming 12 months with 27% being for business development purposes and 23% to expand their premises.

This move to a more positive reason to raise finance was backed up by a 25% drop in those looking to raise cash to support trading (24% in 2014, down from 32% in 2013); an indication that businesses are moving in the right direction.

The news that businesses are feeling more positive comes on the back of the government announcement that in autumn it will be introducing legislation to force banks to refer businesses which they can’t support to alternative lenders. With small businesses being given more guidance we could see a further increase in the already fairly healthy success rate.

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  • Further to your recent presentation at LEAD Wales just wanted to say it was very refreshing to see somebody talk passionately and positively about finance, very insightful!

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  • Rob kindly agreed to attend the recent Pontypridd RFC sponsors networking evening and delivered what can only be described as an excellent talk on 5 Tactics to Boost Your Business and Your Profits. He kept the audience engaged throughout and the feedback from everyone was excellent. Rob is very knowledgeable on business and finance and on top of that is a genuine nice guy. We hope to have him back at a future event and I have no hesitation in recommending Rob’s services.

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  • Rob delivered a series of 3 workshops aimed at understanding how finance houses look at finance propositions with the aim for us as a team to deliver more of a bespoke offering to our customer base. The training was delivered to a mixture of staff who work with new businesses start-ups and existing established businesses across Mid & South West Wales. Rob delivered the training with an abundance of passion and has really helped my team look at financial propositions in a different light, many thanks again Rob and I look forward to work with you in the near future.

    Shayne Yates | Welsh Government Regional Centre Service Mid Wales
  • I wanted to thank you for such an insightful, energetic, and entertaining talk at the Kevin Green Wealth event on securing funding and creating a successful plan. It was brilliantly executed and a pleasure to listen to and the ideas I’ve learned are definitely going to help me in going forward.

    Max Cooper of Manchester
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    Gaz Jabeen | Bollywood Burn Out

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