In this first edition of the Business Finance Bulletin Xtra Rob Warlow takes you through the experiences small business owners have when it comes to raising business finance… are they getting what they want?

The need for business finance can be compounded by late payment and cashflow problems which remain a challenge for business owners. Rob looks at how this is affecting them.

Crowdfunding continues to gain in popularity and Rob looks at news from the P2P Finance Association on how the sector continues to grow.

If you’re looking for more traditional sources of finance then Rob takes you through the five steps to getting the business finance you need.

We’re continuing our look at the outcomes from the recent SME Finance Monitor Report for the first quarter of 2015.
The SME Finance Monitor Report is a quarterly survey carried out by an independent body tasked with researching the relationship between small businesses and how they finance themselves.

Previously we looked at what the real demand for finance is (‘What’s The Real Demand for Business Finance?’) and now we’re looking at what the outcome is for those businesses that did apply for finance from their bank.

First of all of those businesses thinking of applying for finance what was their level of confidence in getting a yes? The survey found that amongst those planning to apply, 49% were confident that their bank would agree to their request.

Let’s look at those businesses that said they had applied for finance and what actually happened.

In the 12 months to quarter 1 2015 18% of the businesses surveyed said that they had what’s referred as a ‘borrowing event’ whether that’s a new finance request or a renewal of an existing facility.

So what was the outcome?

The SME Finance Monitor team stretched it back further by looking at the previous 18 months and the success rate for new and renewed facilities was that 76% got what they wanted.

Is that a bit higher than perhaps you thought?

And that 76% was an increase on the 66% success rate reported 12 months previously… so the success rate is on the way up.

Let’s strip out those looking just to renew existing facilities – there the success rate was 98% got their renewal agreed.

What about those applying for new money being those that have borrowed in the past. That success rate is slightly lower at 65% but it is up from 46% a year ago… so again more progress with more businesses getting what they wanted.

For those applying for money for the very first time then the success rate is slightly lower at 55% but this has improved from the 37% seen in the 18 months to quarter 4 2013.

Remember at the start I said that 49% of businesses said they expected to get a ‘yes’ from their bank but as we have seen, the actual success rate is much higher.

It’s in closing this ‘confidence gap’ where our focus should be… getting businesses to realise that their chances of success in getting finance is actually higher than they may believe.

Growth typically needs finance so don’t hold back your growth by assuming you’ll get nothing and so you don’t ask… bad move!

Prepare your Business Plan, get your financial information up to date and start applying!

If you want to chat through your finance options then just book a call with one of the Business Loan Services team.

As we know access to finance amongst businesses has been tough and over the last few years the media has been filled with horror stories… but what is the reality on the ground?

Since mid 2011 an external body, the SME Finance Monitor team, has been carrying out quarterly independent research in to dealings between banks and small businesses when it comes to raising finance. Over the years the SME Finance Monitor Report has provided insight into what is really going on.

And the team has now released its latest report for quarter 1 2015.

So what are the key findings?

First the good news… 79% of those surveyed said they are now operating profitably.

This is up from 69% in the same quarter of 2013 – a significant improvement.

What about use of external sources of finance?

In quarter 1 of 2015 36% of businesses said they used external sources of finance.. that leaves a large number which are self-financing

Of those businesses using external finance 29% are using ‘core finance’ products such as overdrafts, loans and credit cards. This is down from 40% in the first quarter of 2012. This shows how businesses are moving away from the traditional sources of finance.

We often hear the statement that businesses are being starved of credit… well here’s the killer statistic which consistently comes out of this survey.

In the first quarter of 2015 48% of SMEs define themselves as ‘permanent non-borrowers’… they are not interested in borrowing and haven’t done so over the five years and don’t intend to in the future.

This was 30% in quarter 1 2012 so an increasing number of businesses are opting out of borrowing.
But what about business’ appetite to borrow over a shorter term?

The SME Finance Monitor team ask businesses about borrowing over the previous 12 months and looking ahead.

Here, 79% of businesses put themselves in this category – referred to as ‘Happy non-seekers of finance’

That’s nearly 80% of those surveyed saying they don’t want to borrow!

Added to that 72% of businesses said that their aim is to pay down their debt… and not borrow again.

So perhaps all the fuss about helping businesses to borrow is not as a big a problem as we think.

I’ll be returning to sharing more findings from the latest SME Finance Monitor Report so watch out for a future video.

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.

Getting a business loan is about understanding what a bank will lend your business money for and what it won’t. How you are going to use the money is important and in this clip from a live seminar Business Loan Services’ Rob Warlow explains why banks won’t lend you ‘get me out of jail’ money.

If you would like to receive Rob’s weekly Business Finance Bulletin with news, tips, ideas and strategies on raising finance subscribe by going here.

In the latest Business Finance Bulletin episode Rob Warlow discusses two surveys which touch upon the subject of seeking out advice and support from professional advisors. The first survey looks at how many businesses are currently looking to sell up and why that is. In terms of the start up market Rob talks about another survey from Aviva and the support and advice start ups seek.

Invoice discounting continues to grow in popularity but Rob looks at news from Market Invoice about the lack of transparency and hidden fees which are prevalent in the invoice discounting industry.

Rob also discusses the news that BrewDog, the craft beer brewer is looking to raise £25m to fund its expansion but doing it on their own under their ‘Equity for Punks’ scheme and so bypassing the industry stalwarts.

In the Business Finance Tip of the Week a clip from a live seminar in which Rob talks about the impact on cashflow of carrying too much stock.

If you would to listen to this episode in the podcast version click below to listen or to download to your computer or phone.

According to a survey carried out by the Institute of Chartered Accountants in England Wales a large number of businesses are sitting on cash. Business Loan Services’ Rob Warlow explains…

In the latest Business Finance Bulletin episode Rob Warlow looks at the latest result from the Begbies Traynor Red Flag report which provides insight into how businesses see their financial condition in the first quarter of 2015.

Having the right skill set within a business is often cited as one of the barriers to growth and Rob looks at a new programme from Close Brothers, the asset-based lending bank, and the University of Sheffield designed to support businesses looking to take on apprentices.

With many alternative providers of finance looking forward to 2016 when banks will be required to pass on clients they cannot assist, one alternative funding platform reveals the extend of help they think UK small businesses will need.

In the Business Finance Tip of the Week Rob chats with sales mentor , author and international speaker Steve Clarke about whether there is any difference between selling products to customers and selling your idea to your bank.

If you would like the podcast version to listen to either on your phone or in the car click below to either listen to or download.

In the latest Business Finance Bulletin episode Rob Warlow looks at a new business programme produced by TV production company Liberty Bell who are looking to bring together ordinary investors and businesses owners on the hunt for finance; a case of crowdfunding meets Dragons Den! Could this be for you?

The creative industry has always found it challenging to raise business finance and Rob looks at support being provided by a network of lenders via the Creative Industry Finance network with news that P2P lender Ratesetter has joined the scheme.

Continuing the support theme the Entrepreneurial Spark team has announced that KPMG has joined the network to provide advice to the businesses seeking mentors and guidance.

In the Business Finance Tip of the Week a clip from an interview in which Rob talks about Business Plans and specifically what should be included in the Staff and Management section.

If you prefer to listen to this week’s Business Finance Bulletin in podcast form then click below and download.

In the latest Business Finance Bulletin episode Rob Warlow looks at a recent report from the British Business Bank on the low level of awareness and activity in selling equity to raise growth finance.

If you are sold on the idea of selling equity Rob looks at Crowdcube’s statistics for the first quarter of 2015. Crowdcube are demonstrating how raising growth finance via the crowd can work.

The latest Entrepreneurs Index from Barclays and the Business Growth Fund reveals a strong growth in the number of UK start ups but offset by an apparent slowdown in fast-growth companies. And in terms of business confidence generally Rob looks at the latest survey from Lloyds Bank which reveals growing levels of optimism amongst businesses.

In the Business Finance Tip of the Week a clip from a live seminar in which Rob talks about the importance to the bank of the purpose of your loan request and how you are going to use the money.

If you prefer to listen to the podcast version then simply download it from our SoundCloud page by clicking below.