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.
Posted on 25.03.2014, by Rob Warlow
In the latest episode of the Friday Business Finance Bulletin I look at what was in the Budget for business owners and savers – capital allowances and using ISAs to support crowdfunding and Peer to Peer lending.
I also look at a report from the ACCA’s Global Forum on SMEs which focused on financial literacy – an important skill when approaching a lender for finance.
And in my Tip of the Week I talk about the emotive subject of giving a personal guarantee, or Directors Guarantee, to secure your Limited Company’s debt.
This week’s Friday Business Finance Bulletin is out and I look at the new rules being introduced by the Financial Conduct Authority to regulate the crowdfunding and peer-to-peer lending sector.
Also I take a look at the launch of a new one-stop information site for alternative sources of finance speared-headed by Funding Circle, Zopa, MarketInvoice, Platform Black, Seedrs and Crowdcube.
There’s news from the OFT on its interim report into the SME finance market and I look at a survey from Lloyds Bank on cashflow and invoicing.
In the Finance Tip of the Week, following a session with a team of bank managers I share three key things which bankers say hold them back from giving a ‘yes’ to a business finance request.
Posted on 28.02.2014, by Rob Warlow
In the latest Business Finance Bulletin Rob Warlow looks at the latest tranche of British Business Bank money given to peer-to-peer lender Funding Circle for on-lending to UK businesses. Rob also looks at an incentive being run during March by another peer-to-peer platform, ReBuildingSociety to encourage use of this alternative lending source.
A new survey from the Manufacturing Advisory Service reveals a buoyant mood amongst manufacturers and in his Tip of the Week Rob looks at why you should contact your bank before you make a formal approach for commercial mortgages to find out how your proposal fits.
Posted on 25.02.2014, by Rob Warlow
With the economy picking up confidence is beginning to return and small to medium sized manufacturers in England are set to embark on a major investment drive in order to meet expected increase in demand.
A survey from the Manufacturing Advisory Service (MAS) has revealed that 86% of respondents were planning to invest in capital equipment over the next twelve months, with companies looking to spend £121,000 on average.
Two thirds of the firms questioned are looking to purchase new plant and machinery, and just over half are focused on upgrading IT/communications infrastructure and nearly a third on improving premises.
So what’s prompting this investment drive?
The key reasons cited by those businesses surveyed were boosting efficiency and quality (31%), followed by developing new products/processes (30%) and extending existing capacity (22%).
Interestingly fewer than one in five companies (19%) said they planned to approach banks to fund capital equipment purchases in the next year, with manufacturers instead choosing to secure money via grants (27%) and the Regional Growth Fund (21%).
A even more positive sign that the economy is kicking back into life is that 62% of companies reported an increase in sales over the last six months, whilst over three quarters of businesses (76%) expect to boost sales between now and June 2014.
If you are looking at growth plans this year then we’re happy to have a chat about your financing options.
Posted on 21.02.2014, by Rob Warlow
In this week’s Business Finance Bulletin Rob Warlow chats with entrepreneurship guru Robert Craven on the key aspects of business growth. More news on another new entrant into the banking market which promises to support small businesses with their finance needs.
And in the Tip of the Week Rob shares his thoughts on taking time out of your business which came out of a day spent with members of the Infinite Group of business advisers.
Posted on 14.02.2014
In this week’s Business Finance Bulletin I look at a survey from Peer-to-Peer lender ReBuildingSociety on how business owners are personally financing growth.
Another growing source of finance is family and friends and I discuss a finding by Hilton Baird that a growing proportion of businesses are turning to this type of alternative finance. But, as I reveal, this type of finance can come at a heavy cost.
And finally, I tell you about a number of Business Plan sessions I’ve been delivering on a MBA programme for future entrepreneurs.
Posted on 07.02.2014
My Friday Business Finance Bulletin is out and this week I look at one alternative source of finance which a new report reveals is little used by UK business owners… selling equity to raise growth finance. I also look at the latest crowdfunding statistics and in the Tip of the Week I discuss the business skill gaps you may have and why this is important to a bank.
Posted on 05.02.2014
With 2014 being a year of growth for many businesses, as we have talked about before in this blog, the question is how is that growth going to be financed?
Whilst there is evidence to suggest that banks are dipping their toes back into the market and avenues for alternative sources of finance continue to grow, one area of funding that is under-utilised and little understood is equity.
A recent report issued by the CBI, ‘Slice of the Pie: Tackling the Under-Utilisation of Equity Finance’, has revealed that just 3% of small and medium-sized businesses use this type of finance.
Raising equity to release cash involves shareholders selling a slice of their business and yet for many business owners this is a step too far. Not unsurprisingly the report reveals that the biggest barrier to improved demand for equity finance is the perception of losing ownership. 46% of businesses say they will not considering using equity finance due to concerns about losing ownership and decision-making power.
The CBI survey finds though that 68% of those firms which have raised finance this way believe that the investment had a positive impact on their business. As a result, four out of five of these businesses said that they would use additional equity finance to fund their business growth in the future. Bringing in new capital has also helped 26% of businesses gain additional external finance.
These businesses are ready-made advocates of equity finance, with 81% saying that they would recommend equity finance to another business.
Against the background of these benefits the CBI has recommended the following actions:
Hi Rob, it was so interesting and entertaining listening to you at the Kevin Green Wealth Coach Workshop in Reading this weekend! I didnt realise you can find Finance proposals such fun!. Brilliant tips! Thanks.
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.
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.
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!
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.