Posts Tagged ‘Bank of England’

High Risk Business Loans, Creditsafe Quarterly Business Review and Bank Complaints – BFB 231

Posted on: October 20th, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

Are we seeing a build-up to another credit crunch? That’s a concern the Bank of England has flagged up following an increase in the volume of what it perceives as high-risk loans. If that’s the case, what can you do to prepare?

We look at the latest quarterly business review from Creditsafe, the credit reference agency, which has a mix of surprisingly positive news on sales growth and a less positive outlook on a potential growth in late payment.

To close this Bulletin, good news from the Financial Conduct Authority with its announcement that from next year small business owners will be able to refer complaints about their bank to the Financial Ombudsman Service. Finally, small businesses have an option to pursue complaints which doesn’t involve going to Court.

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.

Banks and Business Continue to be Cautious When it Comes to Credit

Posted on: October 12th, 2018 by blsuser1 No Comments Tags: , , , , ,
Posted in Business Finance News

The latest quarterly Credit Conditions Survey from the Bank of England for Quarter 3 2018 reveals that both bank and businesses appear to be adopting a cautious stance when to comes to lending and borrowing.

This quarterly survey of bank and building society lenders is to assist the Bank of England in understanding trends and developments in the banking sector. Lenders are asked about their experiences over the past three months and the coming three months in terms of lending to businesses of all sizes.
The Bank has reported that the overall amount of lender credit made available to businesses of all sizes was unchanged in Quarter 3. Within the total available finance, the availability of credit provided to small businesses was reported to have increased and was unchanged for medium and large businesses. So all appears well from the lender’s perspectives in the last Quarter.

However, the Bank’s monthly reporting of amount of credit taken by small businesses shows that the total amount of lending in the 12 months to August has essentially flat-lined this year. It seems that small businesses have limited appetite to borrow and not heeding the bank’s message that they have funds to lend.

Looking ahead to the next Quarter, this lack of appetite to borrow is reflected in lender’s view that the overall amount of credit they will make available in Quarter 4 is expected to decrease slightly.

Both borrowers and lenders seem to be battening down the hatches.

As well as concerns about the economy and the political situation, small businesses may also be wary of taking on additional debt due to concerns on ability to pay. The Credit Conditions Survey highlights that lenders have reported an increase in default rates, which are missed payments, on loans to businesses of all sizes in Quarter 3. Lenders though are expecting default rates to remain unchanged for businesses of all sizes in Quarter 4.

It would appear that an element of uncertainty creeping in for both lenders and businesses in terms of what lies ahead in the last Quarter of 2018.

Barclays and Marketinvoice, Company Insolvencies, and Business Borrowing – BFB 226

Posted on: August 4th, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In recent Bulletins, we have shared news of various collaborations between finance providers. The latest is an announcement from Barclays Bank of a tie-up with online Invoice Discounting firm MarketInvoice. This is another example of Old World meets New World.

The most recent statistics to Quarter 2 2018 on company insolvencies has been released by the Insolvency Service. Not surprisingly, but not of any less concern, is the news that insolvencies are on the rise. What impact will the latest increase in Interest Rates have on those businesses already struggling?

To close this Bulletin, our monthly look at borrowing levels among small business. Once again, from the latest Bank of England and UK Finance figures, business owners still appear to be reluctant to borrow and instead are busy hoarding cash.

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.

Who’s Getting Finance, Use of FinTech and Consumer Debt Concerns – BFB Epsd 184

Posted on: September 30th, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

We open our Bulletin with our concluding review of the latest SME Finance Monitor report. How many businesses are really getting a ‘yes’ from their bank? That’s one question the report answers and the reply may cause many businesses to re-think their approach.

Have you heard the term FinTech? If not, you may be surprised to find out that you are one of the majority of businesses which are managing their finances via a FinTech-related application. We look at a recent survey from online Invoice Discounting provider MarketInvoice which reveals how business owners are benefiting from new technology.

There are emerging concerns that an ongoing increase in the size of consumer debt could have a knock-on effect on banks. But if debt is getting out of control, how could it affect businesses?

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.

Late Payment, Small Business Borrowing and Watching Your Credit File – BFB Epsd 181

Posted on: September 8th, 2017 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

Late payment is a continual challenge for small businesses and a recent survey carried out by Zurich lays the blame at the door of the larger businesses. We share the findings of this latest research and what you can do to combat suffering from late payers.

With many people being uncertain about the current performance of the UK economy, one measure of confidence is the amount businesses are borrowing from the banks. I lift the lid on the latest Bank of England bank borrowing figures to see what businesses are up to.

To close this Bulletin, we share some recent experiences which highlight why you need to keep a close eye on your credit file. Lenders place a lot of emphasis on a clean report so it pays to keep your file in order.

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.

Encouragement to Borrow, Alternative Finance Awareness and Bad Debt Write-Offs – BFB Epsd 131

Posted on: August 5th, 2016 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

With news that the Bank of England has reduced its Base Rate and an announce of a new scheme to get banks lending and businesses borrowing, in this edition of the Business Finance Bulletin we look at whether these will have the desired impact.

We take a look at the findings from a survey carried out by the British Chamber of Commerce and Bibby Financial Services which reveals low awareness levels of the sources of alternative finance amongst UK SMEs.

Have you been faced with writing off a debt owed to you following being hit by a late payment of an invoice? The latest Bibby’s SME Confidence Index suggests that too many businesses are writing off debts and the average sum involved is not small.

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.

Bank Lending, High Growth Support, Late Payment and HMRC Tax Investigations- BFB Epsd 115

Posted on: April 1st, 2016 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In the latest episode of the Business Finance Bulletin a look at the latest statistics from the Bank of England on how much money UK businesses are borrowing from banks. Once again it’s small businesses which are coming out on top.

There’s news of a partnership between Barclays Bank and the UK Business Angels Association with the announcement of mentorship and growth advice service for High Growth businesses based in Birmingham.

Efforts to tackle late payment have been high on the UK government’s agenda but in an ironic twist of fate the government is now late in launching a ‘name and shame’ programme promised as part of the Small Business Enterprise Act.

With HMRC looking for every penny it can lay its hands on we share a warning from accountancy firm UHY Hacker Young that small businesses are vulnerable to coming under HMRC scrutiny.

In the Business Finance Tip of the Week, a question you should ask your bank manager if they have said ‘no’ to your finance request.

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.

SME Lending, Who’s Borrowing, Late Payment & Business Confidence – Business Finance Bulletin Epsd 111

Posted on: March 4th, 2016 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In this episode of the Business Finance Bulletin a look at the latest statistics from the Bank of England which reveals the current level of borrowing by UK SMEs.

Also a review of the key findings from the recent SME Finance Monitor Report which includes how many businesses are using external sources of finance, the type of SMEs accessing such finance and the number of businesses who are not borrowing at all.

Marketinvoice, the online invoice discounter, has taken a look at late payment experiences across 80 countries and the results indicate that we have a lot of work to do in the UK to speed up payment.

Are you planning to grow or change your business within the next three months? That’s the question posed to 1,021 businesses by Hitachi Capital as part of its regular British Business Barometer Report and the answer reveals that SMEs are now more cautious than before.

And in the Business Finance Tip of the Week a signpost to a recently posted video which shows you how to calculate and use the Creditor Payment Ratio.

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 39: Bank Lending, Asset Finance, Crowdfunding & Bank Questions

Posted on: August 29th, 2014 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

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.

Bank Lending Continues to Fall But Small Businesses Coming Out on Top

Posted on: August 28th, 2014 by blsuser1 No Comments Tags: , , , , , ,
Posted in Business Finance News

Latest figures from the Bank of England of lending to businesses show a continuation in the decline of total money lent to UK businesses. But small businesses appear to slightly better off than their larger corporate counterparts.

The figures to June 2014 reveal that the total amount of loans (including overdrafts) currently outstanding to businesses decreased by £3.4 billion in June, compared to the average monthly decrease of £0.9 billion over the previous six months. This results in a twelve-month fall of -3.8% in the stock of loans currently outstanding in banks.

However, a glimmer of hope for small businesses. Within these figures, loans (including overdrafts) outstanding to small and medium-sized enterprises (SMEs) increased by £0.2 billion, compared to the average monthly decrease of £0.5 billion over the previous six months. So unlike their larger corporate counterparts, UK small business owners are coming out on top.

That said the overall stock of loans advanced to small businesses has contracted by -2.8% over the twelve-months compared to June 2013 but this compares favourably to the overall fall of 3.8% for businesses of all sizes.

One important point to remember is that these figures relate to the amount outstanding at the end of the month i.e. existing loans, plus new money lent in the month, less money paid back during the month. When we delve further into the figures, particularly in relation to small businesses, the amount of new money being lent each month is showing a slight increase,

Monthly New Loans to Small Businesses

April £4.1b
May £4.3b
June £4.8b

Of course, these new loans are being netted off against monthly loan repayments and overdrafts paid down and here we see that small businesses are more or less paying back what they taking in new loans

Monthly Repayments by Small Businesses

April £4.5b
May £4.3b
June £4.7b

The net result looks like this:

Month   New Loans   Repayments   Net Amount

April               £4.1b               £4.5b                   -0.5b

May                 £4.3b              £4.3b                     0.0b

June                £4.8b              £4.7b                     0.1b

So are we seeing early signs of banks stepping back in to the SME market? If so, this growth is being offset by small businesses which would rather pay debt off than take on more; the appetite amongst small businesses to borrow may not as strong as many believe it to be.

Of course the other argument is that the ‘new loans’ figure should be a lot higher resulting in positive growth but it is the banks that don’t have the appetite to lend.

In reality it’s a bit of both!

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