In the latest Business Finance Bulletin Rob Warlow looks at a survey carried out by the British Business Bank into the SME finance landscape which draws a number of conclusions on how small businesses view the world of finance.

The use of asset based finance continues to grow and Rob shares news from the Asset Based Finance Association on the increased use of invoice discounting and leasing as an alternative source of finance.

In the crowdfunding world, news of a milestone reached by crowdlender Funding Knight and an announcement by Cambridge and Counties Bank of the opening of a new branch in the North of England.

In the Business Finance Tip of the Week Rob shares a conversation he had with a business owner about the use of management information and how to get the best out of it.

You can also listen to this week’s Bulletin as a podcast. To listen via your PC or download to your phone either click below to listen or click the download symbol.

In the 50th edition of the Business Finance Bulletin Rob Warlow looks back over the last 12 months and how the business finance landscape has changed.

Crowdfunding and peer-to-peer lending is one of the growth areas and Rob reviews a report on the sector undertaken by NESTA which highlights this rapid growth.

Rob also looks at the news of a forthcoming review into the banking sector to be carried out by the Competition and Markets Authority.

What keeps small business owners awake at night is a question posed by the ICAEW and it may not be what you think.

And in the Business Finance Tip of the Week, a clip from a live seminar in which Rob Warlow shares his thoughts on when it’s best to share your Business Plan with the bank.

If you prefer you can also listen to this week’s episode as a podcast and download to your phone. To either listen or download simply click below via our SoundCloud page.

In this clip taken from a live seminar Rob Warlow talks about the history of crowdfunding, and how the credit crunch led to the launch of crowdfunding sites.

From raising finance via equity to business loans crowdfunding is a growing alternative to the banks.

In the latest Business Finance Bulletin Rob Warlow looks at the latest bank lending figures from the Bank of England… a mixture of good news and not such good news!

One finance sector which is booming is the Asset Finance industry and Rob looks at the latest growth figures from the Asset Finance Based Association which are in sharp contrast to that of the High Street banks.

Rob also talks about a new crowdfunding site, CrowdProperty which is looking to match private investors with property developers and Buy-to-Let owners on the hunt for finance. One for you to look at if you are in the property game.

And in the Business Finance Tip of the Week a clip from a live seminar in which Rob shares one question that banks will ask of themselves when reviewing your business finance request.

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.

In the latest episode of the Business Finance Bulletin a look at what business owners who are selling an equity stake want from their new partners. The relationship between banks and business owners has been strained but a new survey from Albion Ventures reveals a surprisingly high number of businesses getting a ‘yes’ from their banks.

On the alternative finance scene Rob looks at the latest government proposals to force banks to refer borrowers who have been declined finance to sources of alternative finance.

Late payment continues to be an issue for businesses and Rob shares the findings of a recent survey which reveals that a large percentage of businesses are missing out on an important piece of the late payment jigsaw puzzle.

And in the Business Finance Tip of the Week a clip from a live seminar in which Rob discusses the history of crowdfunding.

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.

Figures released by the Peer to Peer Finance Association reveal that lending via the peer-to-peer and crowdlending sector has soared in the first six months of this year. During this period the amount lent has doubled with platforms having lent out over £500m in the six months putting it on track to break the £1bn barrier for 2014.

The figure lent comprises of funds advanced to both consumers and businesses but it was growth in money lent to businesses that has led the way.

In the first quarter of 2014 £132m of new money was lent to business and this increased to £146m in the second quarter. The number of businesses borrowing via P2P has also increased from 5,169 in the first quarter to 5,919 as at the end of June.

There has also been an increase in the number of lenders supporting businesses with a movement from 31,616 to 35,477.

The growth demonstrates how businesses are quickly embracing this innovative way of raising finance.

The growth in crowdfunding comes on the back of clear signs that businesses are looking to expand and hence on the hunt for finance. A recent survey from Albion Ventures showed that a third of businesses plan to raise finance in the next 12 months. Of these 27% are targeting capital for business development and 23% looking to expand their premises. With crowdfunding sites such as Funding Circle already entering the commercial mortgage market the peer-to-peer market is well placed to satisfy demand from businesses.

If you want to know how you can use crowdfunding and peer-to-peer lending to support your growth plans read more here or simply complete the contact box at the foot of this page.

In this week’s episode of the Business Finance Bulletin I look at the news that Paypal is launching its Working Capital programme in the UK to provide its clients with access to business loans. So if you’re a PayPal merchant this is for you!

The alternative finance continues to grow with news from AlternativeBusinessFunding that it has brought new alternative lender partners on board.

I also look at a survey from Beggies Traynor on small business investment plans and news from the Competition and Markets Authority about its plans to undertake a full review of the UK SME banking market.

The Business Finance Tip of the Week is taken from a live seminar I delivered for the ACCA on access to finance. In this clip I look at one source of finance which tends to remain hidden in the business… stock.

Thanks for watching and enjoy!

This is a special edition of the Business Finance Bulletin which was filmed on Wednesday at the 2014 Commercial Finance Expo at the NEC Birmingham.

This annual event is hosted by the National Association of Commercial Finance Brokers and attracts key lenders and commercial finance brokers from across the country.

With the alternative finance scene continually changing I had a chance to chat with the likes of Funding Knight, Lancashire Mortgage Corporation, PensionLedFunding, Pay4 and Funding Circle to find out more about how they are supporting businesses which are in need of finance.

It is good to see that the number of lenders in the market continues to grow so watch this week’s edition to hear what these lenders are up to and how they could possibly help you.

If you want to discuss your particular needs we’d be happy to have a chat – just drop us an email.

I mustn’t forget… a special thanks to BLS team member Steve Taylor for being cameraman for the day!