Raising finance to grow your business is not about today, it is about tomorrow. The right finance package can be a positive force within your business, one which can be used to propel your business forward.
Building a bigger, better future… that’s what we do
When you’re looking for finance to grow, a lender will want to see a well constructed Business Plan. A great Plan sets out a clear vision for the future, a future in which you soar above your competition.
Helping business owners soar… that’s what we do.
The whole process of raising finance can be a distraction and divert your attention away from what’s important. With mounting priorities it’s a case of which one has to wait. Typically raising finance is one task that can grind you down.
Making it happen… that’s what we do
No one wants to stay in the same place; it’s boring and monotonous. Growth is much more exciting but getting to the next level takes money and with it a range of financial options to consider.
Taking your business to the next level… that’s what we do
Posted on 22.11.2013, by Rob Warlow
In the latest Business Finance Bulletin Rob Warlow looks at how crowdfunding and peer-to-peer lenders are starting to offer property finance and a recommendation to check out Peter Roper if you run a family business and need inspiration.
In the finance tip of the week Rob shares a lesson in why you need to keep on top of your Credit File…. don’t get caught out like one business owner did this week.
Posted on 20.11.2013, by Rob Warlow
The crowdfunding and peer-to-peer (P2P) loan market has been very much focused on providing short to medium term loans for traditional business needs such as additional working capital and asset/equipment purchases.
However, in a sign that the P2P market is maturing, some players are starting to venture into property funding.
Funding Circle, the most recognised marketplace for business loans, has signalled its intent to move into the property finance space, with the hire of Luke Jooste, formerly Commercial Director at Barclays Business. With an extensive experience in the property sector Luke has been brought in by Funding Circle to develop a property-focused offering.
Depending on what exactly the product is it should be a good source of property funding and will be music to the ears of businesses operating in this industry who have been badly serviced by the traditional High Street banks. I suspect the service will initially focus on secured bridging loans which is an easy toe in the water.
The P2P bridging market though does have a new confirmed entrant. Existing bridging lender Wellesley has launched a peer-to-peer lending service with the aim of funding its short-term loans.
Private investors will be able to fund bridging and development property loans of up to £1m. The shareholders of Wellesley are committing £5m so they will invest along side private investors.
The property being funded will be taken as security and sold if borrowers default. In this instance, the private lenders will be paid off first, with Wellesley’s shareholders being repaid from the remainder.
You can find out more here, Wellesley
Posted on 15.11.2013, by Rob Warlow
In the latest weekly Business Finance Bulletin Rob Warlow looks at the recent YouGov report on SME finance, shares tips on how to ensure you don’t get caught out by late payment and a clip from a seminar he delivered to entrepreneurs in Amsterdam for Kevin Green.
Posted on 13.11.2013, by Rob Warlow
One of the main reasons why businesses turn to banks for help is to bridge the gap between paying suppliers and receiving payments on invoices they have issued. However, late payment and overdue invoices can often put pressure on businesses when it comes to keeping within agree overdraft limits.
In the latest of its quarterly Late Payment Index surveys Experian, the credit reference agency, highlights the problems of dealing with large businesses when it comes to payment. According to Experian the UK’s largest businesses are paying their overdue bills on average 15 days later than smaller companies.
The latest survey reveals that larger companies (more then 501 employees) pay 35 days beyond agreed terms whereas small companies pay 20 days over terms. The fact that both large and small firms pay over and above terms is bad enough but at least smaller firms (who probably better appreciate the pain of late payment), make more of an effort.
Comparing previous results, the spectre of late payment is again creeping up on businesses. Larger business are now taking on average three days longer to settle invoices compared to the same period last year. Smaller firms are more or less paying up within the same timescale.
So pick wisely as to whom you do business with!
Poor cashflow is one of the main reasons for business failure so it’s up to you to ensure you have a clear credit collection process in place to avoid getting caught in a cash crunch.
Posted on 12.11.2013, by Rob Warlow
The banks have long countered the claim that they are not lending with the argument that many businesses don’t wish to borrow. Whilst the banks have to accept they can be too risk averse a new survey has back up their assertion that there is a lack of appetite amongst business owners to borrow.
A new YouGov study finds that almost two thirds (64%) of SMEs have not sought any extra finance over the past two years from banks or any other form of lenders.
The SME Banking 2013 report reveals that that amongst those SMEs that had not obtained additional finance in the last three years, the two main deterrents were not wanting to go into debt (34%) and fears about the economic climate (21%).
The YouGov’s research found the next five factors putting SMEs off from borrowing were,
20% didn’t like the interest rates charged
16% didn’t want to face the hassle of setting up a new facility
12% disliked the terms and conditions of the deal
11% thought they would be turned down and
10% were unhappy with the security demanded by the bank
Looking at the wider picture, the YouGov’s study shows that only 36% of SMEs have looked at alternative sources of finance but 21% have secured funding via crowdfunding and 20% took out leasing/HP agreements. Instead of searching out external finance 18% of business owners have used their own money to fund the business.
The findings of this survey confirm what we have been saying for some time in this blog… more needs to be done to highlight to business owners that there are alternative ways to fund growth other than banks. Also the government must take heed of the fact that a large number of businesses just don’t wish to borrow and so they need to be more selective in the schemes they put in place.
Posted on 08.11.2013, by Rob Warlow
In this week’s episode of our weekly Business Finance Bulletin we start off with a look at a recent survey which studied the relationship between banks and business owners. Some interesting conclusions!
We also talk about sources of advice and how to avoid the dread of the quarterly VAT bill.
Posted on 07.11.2013, by Rob Warlow
We all like to turn to friends and family to bounce an idea around or to seek feedback but are they really the best source of advice?
According to new research from Bibby Financial Services friends and family are the most trusted sources of business advice for small business owners, even in preference to accountants, financial advisers and solicitors.
The research found that 23% of small and medium sized business owners said they trust friends and family the most when seeking guidance, followed by financial advisers (18%), the internet (14%), accountants (14%) and solicitors (9%).
However, when asked where they search out for advice most often 24% said they turn to online resources, with friends and family coming in at the second most-frequented source at 19%.
Although the internet is the most frequented source of business advice, 52% did admit that they would prefer to receive face-to-face advice, with only 14% saying that browsing the internet was their favoured way of finding information.
Whilst the findings don’t come as a surprise in that it’s easier and less threatening to speak those closest to you than turning professional advisors you need to carefully decide whom you’re asking advice from. Are your friends best placed to pick holes in your plan? Are they willing to step up and challenge your grand ideas for world domination or are you likely to get a simple ‘sounds good to me’ response?
Friends and family advice will get you so far but you’ll travel further with the right advice.
Posted on 06.11.2013, by Rob Warlow
I often hear business owners say there is little help for them to get finance and yet there are a number of schemes out there. So why is it that the existing of the various schemes are not widely known?
This is one finding highlighted in a review on government finance support carried out by the Nation Audit Office (NAO). The NAO has concluded that despite a renewed focus by the government on the challenges facing SMEs in raising finance, there is scope for the range of initiatives to work towards a more unified offering.
The NAO found that schemes such as the Enterprise Finance Guarantee and Start-Up Loans provided direct support to around 5,900 firms in 2012-13, and whilst the schemes are generally performing positively it is felt the profile of the schemes needs to be raised.
The new Business Bank, which is due to be launched in 2014, will be the organisation to bring the schemes together but in the meantime more needs to be done to improve awareness.
The NAO also report found that, at present, although the Department for Business, Innovation & Skills (BIS) and HM Treasury both have teams dealing with ‘enterprise’ policy, there is no formal research programme joining the Departments with other departments, such as HMRC, all of which have an interest in SMEs.
In past blogs we have shared information on lending to SME from sources such as the Bank of England, British Bankers Association, the SME business barometer and yet there is no one single point of source.
It’s as in all things in life… you have to know where to hunt out the right information and of course BLS is one of those sources of information so keep reading our blog!
Posted on 04.11.2013, by Rob Warlow
Back in July in this blog we reported that RBS decided to request an independent review of its lending practices with the objective being to enable RBS to enhance its support for SMEs while maintaining safe and sound lending practices. With the review having been carried out the findings reveal that RBS and its subsidiary Nat West has much to do in overhauling its lending processes.
The investigation, headed by former Bank of England Deputy Governor Andrew Large concluded that RBS has not supported the SME sector in a way that meets its own targets or the expectations of its customers. It says that while RBS has started to address a number of the issues raised, further progress is needed.
The report identified a number of reasons for RBS failing to hit its lending targets, including:
RBS’s SME lending targets were at odds with its tougher credit standards, and the limits imposed on lending to certain sectors, for example lending to commercial real estate
Internal restructuring had led to lack of clarity as to which part of the bank was responsible for SME lending
There is a ‘risk adverse’ culture amongst its Managers and Credit Officers
The bank’s lending process is time consuming and loan applications take longer than at other banks
Credit skills of customer-facing staff, although improving, are not up to standard
Having an independent committee pull apart your business and highlighting areas of weakness is a tough message to take but RBS CEO Ross McEwan has accepted the findings and recommendations and has committed to take action. Looking at the findings I suspect that other High Street banks are guilty of many of these sins.
McEwan has committed RBS to the following key actions amongst others:
The bank will write to thousands more SMEs setting out clearly how much it is willing to lend to their business. It has already offered £4 billion of lending opportunities following a similar exercise earlier this year;
A dedicated website will be developed to show clearly what information RBS use to make a lending decision and set out simple, clear steps in its lending process;
The bank will begin work to enable bankers to make all but the most complex lending decisions in just five days of receipt of all necessary information;
RBS will ensure two thirds of its lending decisions are made locally and by sector specialists;
RBS will continue to invest in building the capability of its people with at least 90% of Relationship Managers and Credit Managers professionally qualified;
RBS will start a programme to make all customers whose loan applications are declined aware of the appeals process, and will continue to work with the Independent Appeals Chair to improve the support it provides to customers going though this process; and,
The bank will commit to pointing businesses to alternative sources of finance where it cannot support a loan application.
This is a big undertaking and RBS will on an annual basis publicly report on progress against these commitments. It will be interesting to see how they fare in addressing these issues given the mammoth task ahead of them.
Posted on 02.11.2013, by Rob Warlow
In this week’s episode of my Business Finance Bulletin I take a look at the importance of business planning particularly when it comes to planning for growth.
I also talk about why you must never forget to spread a little love when it comes to dealing with your clients!
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.
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.