To start this week’s Business Finance Bulletin, research from Hitachi Capital Business Finance has revealed that businesses are now less fearful of contraction or collapse compared to last year. The swing in confidence is a signal that businesses are seeing growth prospects again.

When businesses get back into a growth phase, that typically brings with it a need for additional working capital. This has been borne out in a survey from unsecured business finance provider Iwoca. We look at the findings which highlight an increase in demand for short term, unsecured finance.

Wrapping up this Bulletin, we have our monthly review of the latest insolvency figures. We look at how the number of firms entering into some form of insolvency arrangement is on the increase.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

Opening our latest Business Finance Bulletin, as businesses get back on the path growth, what are their top priorities and actions? We look at the findings from the recent Hitachi Capital Business Finance Business Barometer report.

It’s not all good news for businesses though. We review the most recent Red Flag Alert report from Begbies Traynor which reveals a jump in the businesses which class themselves as in ‘significant financial distress. What actions can you take to keep on the right side of the track?

To wrap up this edition, a report from Dun and Bradstreet highlights that a continuation in late practices could hinder the hoped-for business recovery and growth during the remainder of this year.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

We open our latest Business Finance Bulletin with the good news that business confidence levels are on the up. The latest Business Barometer report from Hitachi Capital Business Finance reveals that an increasing number of business owners are predicting improved months ahead.

Cashflow can be tight for many businesses, but particularly for start ups. Just Cashflow, the short term finance lender, has announced that alongside their new Business Account, qualifying start ups can now access their Revolving Credit Facility.

To wrap up this Bulletin, we review the latest company insolvency figures which highlight that businesses potentially in trouble continue to be protected by the various government support schemes.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

You can read the transcript of this Bulletin below…

Business confidence is starting to return; the short-term lender Just cashflow extends supports to startups; and company insolvencies still remain low. All of this in the latest Business Finance Bulletin.

Business Finance Confidence

Let’s opened this bulletin with some good news. Hitachi Capital Business Finance, as part of their quarterly Business Barometer series, have spoken to approximately 1,300 small business owners and the resounding message is that confidence is beginning to return to the marketplace.
Let’s have a look at those businesses who say that they are predicting growth.

Well, three months ago, 26% of businesses said that they were predicting growth for their business.

Forward three months to today, that figure now stands at 36% of business owners saying that they are planning growth over the coming months. That’s a quite a big increase and that’s a big vote of confidence for the UK economy.

Let’s look at the flip side of businesses who were fearing collapse. Well, 12 months ago, the survey found that 29% of small business owners said that they were fearful that their businesses would not survive.

Now, 12 months later, that figure stands at just 7%. That’s a significant fall and just shows how much confidence is now starting to come back into the market place. But of course, it’s not all plain sailing.

I just want to make you aware of one key thing to look out for and that is growth brings its own problems, particularly in terms of cashflow. When you start growing again, particularly if you’re growing rapidly, there’s a big demand on your cash. You need to buy in stock. You need perhaps to fund the growing debtor book, all of this needs cash.

So do watch that and make sure that you are forecasting your cash flow requirements ahead to make sure that you don’t run out of funds, but overall, a really good vote of confidence for the UK economy.

Just Cashflow Supports Start Ups

Are you planning to start up a new business or you have recently started one? I’m sure you’ll agree that the one thing that can hold you back is cash or more particularly cashflow.

Poor cashflow can be a killer for any business, but for startups in particular it can be very challenging.

The short-term finance provider Just Cashflow has announced, it is now going to support qualifying startups by giving them access to their Revolving Credit Facility, which is a facility up to the amount of £10,000. This sits alongside their newly launched business account which is available via a mobile phone or a desktop app. And it does all of the things that a traditional bank account will do. You can make payments online, both in and out. You have a master debit card as well. It integrates with various software accounting packages.

So it really is a good alternative to your main high street banks and particularly of interest of course to startups, where you may be able to access this Revolving Credit Facility up to £10,000. This facility acts essentially like an overdraft limit where often times when you need to make payments out, but you haven’t got the cash in from your clients yet; it acts like a bridge between cash in and cash out a really useful facility for startups.

If you want to know more about the Revolving Credit Facility and also the new business account, just go along to the just cashflow website, which is www.just-cashflow.com. A great new service by Just Cashflow and good to see that people are out there supporting new start ups.

Company Insolvencies

Let’s take our usual monthly look at company insolvency figures. That’s a bit of a depressing topic, of course, but it’s really important that you watch this, particularly if you provide credit to your customers, by giving them 30, 60, 90 days before paying you. You really need to watch the trends going out there to make sure you don’t get caught out.

The figures as I’ve reported in previous bulletins continue to be very low, which is puzzling compared to where UK economy is at the moment in terms of the stresses out there. The latest figures have been released by the Insolvency Service for March, 2021. And in that month, they were 992 firms that went into some form of insolvency arrangement. Now compared to March, 2020, that is down 20%. And that’s the puzzle. You’ve got lots of stresses in the economy, and yet a lower number of businesses are entering into insolvency compared to March, 2020.

If you wind it back a further 12 months to March, 2019, this figure is down a further 37%. So again, a very large drop in the number of businesses going into insolvency.

But of course, the reason behind this is the level of government support, via bounce backs and the CBILs loans that were given; the furlough or the various grants. But we know all of that is now coming to an end or has come to an end. The distresses will now start to come through.

The other thing of course is the perils that come with growth. And I mentioned in the first segment, you’ve got to watch out when you grow your businesses; growth brings an increased demand for cash. And if you can’t access that, then you may get into trouble. So if you are providing credit, just keep an eye on those firms, making sure that they are financially sound.

Also if you are one of the businesses suffering financially, make sure that you take the appropriate advice. Go speak to your financial advisor, your accountant, or seek out a licensed insolvency practitioner in order to make sure that you seek out the correct advice.

Close

That’s it for this Bulletin. As ever, I hope you liked it and if you did, please, don’t forget to give it a like, a share and of course, subscribe to this channel.

So that’s it and I look forward to being with you next time In the meantime, have a profitable, successful and safe week.

Opening the latest Business Finance Bulletin, good news in a survey from Hitachi Capital Business Finance, which reveals that despite continuing lockdowns, many businesses are still looking ahead to growth. But not all sectors are so confident.

We look at findings from Purbeck Insurance Services which highlight that businesses which took on larger CBILs facilities have exposed Directors to an element of personal risk via Personal Guarantees.

To close, not all businesses are keen to take on debt to keep cash flow positive or fund new projects and would prefer a grant. We look at a new free grant finder service launched by Nat West and Swoop which could help source the right grant.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

As we enter a recovery phase in the UK economy, businesses are now turning their thoughts to how their operation will look in the future. A survey from Hitachi Capital Business Finance reveals that many business owners have undertaken a critical review of key areas and taken steps to safeguard their future.

One impact of recent events has been the effect the downturn has had on business owners looking to exit. Findings by Nucleus Commercial Finance undercover how plans to sell up have been put on hold.

To close this Bulletin, we look at annual results released by the British Business Bank. This lender may not be familiar to many small businesses, but the chances are they have been indirectly supported by this government body.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

To open the latest Business Finance Bulletin, the recent announcement that CBILS lenders now have until the end of November to review and process applications does not mean an extension to the deadline for submission of applications. Are you ready to beat the closing date?

With an element of business-as-usual beginning to be seen, we review a survey from Hitachi Capital Business Finance which reveals they three key priorities business owners are now focusing on.

To wrap, news from Atradius, the trade credit insurance provider, on a prediction of a sharp increase in insolvencies over the next 12 months. What do you need to be aware of?

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

Opening the latest Business Finance Bulletin, we look at proposals presented by financial firms and professionals on how to ease the debt and cashflow burden facing business in 2021 when CBILS and Bounce Back Loan repayments start.

As businesses open and consumers slowing start spending, we review the latest quarterly survey from Hitachi Capital Business Finance which reveals that business confidence is slowly beginning to return, especially among small businesses.

To close, the announcement that the European Union has relaxed the Undertaking in Difficulty test means that businesses refused a CBILS loan due to an insolvent Balance Sheet can now re-apply. This is good news for businesses previously denied access to the CBILS programme.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

We open this Bulletin with an update on the CBILS performance. How are the accredited lenders doing in terms of getting money out to businesses in need of support? Will the launch of the Bounce Back Loans help those businesses which failed to access funding under CBILS?

We look at surveys carried out by Lloyds Bank and Hitachi Capital Business Finance which, not surprisingly, reveal that business confidence has taken a severe knock over the last two months.

To close, on a positive note The Pitch, the start up competition organiser, finds that some people are now turning their thoughts to starting a business.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Spotify, Stitcher or itunes channel.

To open our latest Bulletin, we review a survey from Hitachi Capital Business Finance which reveals that businesses are now prioritising growth plans over cost cutting measure. SMEs are focusing on three main strategies to boost business in 2020.

Mobile-only banking continues to provide an alternative to traditional High St bank accounts. Anna Money is one such bank which focuses solely on providing mobile banking for businesses. We take a look at the key features designed to support SMEs.

To close this Bulletin, news of action taken by the Prompt Payment Code against a number of household names which have failed to meet payment guidelines. The steps are intended to send a message to larger businesses that late payment is unacceptable.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Spotify, Stitcher or itunes channel.

Opening this week’s Bulletin, a surprising continuation in the rise in business confidence despite the looming general election and Brexit limbo. However, another survey reveals that the feeling of uncertainty still prevails, especially among younger businesses.

With approximately £382b held on current accounts and low interest deposit accounts, findings from Aldermore Bank exposes how much businesses are losing out by not maximising deposit account returns.

To wrap up this episode, a look at how small businesses are still limiting their borrowing appetite as revealed in the latest Bank of England bank lending figures.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Spotify, Stitcher or itunes channel.