Author: admin (page 4 of 18)

Over Half a Million UK Companies in Significant Financial Distress

According to redflagalert, a report has suggested thats:

509,000 UK companies are in significant financial distress—the highest number ever measured.
The coronavirus lockdown has seen the largest quarterly increase in the number of businesses in significant distress since the end of 2017, growing by 15,000 companies.
This figure is expected to increase throughout Q2 as COVID-19 restrictions continue.
The number of critically distressed businesses increased by 10% in the last quarter alone.

During Q1 2020, the number of UK companies experiencing significant financial distress exceeded the half a million mark for the first time since our research began.

Latest figures show a 3% quarterly increase in the number of companies that are unable to meet their debts—that’s 15,000 businesses, representing the largest increase since the end of 2017.

The leading cause of this is the coronavirus restrictions and our data shows that SMEs have been worst hit, representing over 99% of all businesses in distress.

Companies with less than 250 employees are particularly vulnerable at this time as many have struggled to access government support schemes.

Even more concerning is that our data shows a 10% jump in the number of businesses in critical distress in the last quarter—this is usually a precursor to insolvency.

A recent survey from redflaghalert has suggest that there has been a significant increase in businesses experiencing critical distress; 2,289 companies are now in this category. Between Q4 2019 and Q1 2020, the increases in certain sectors have been dramatic:

Bars and restaurants: +37%
Real estate and property: +21%
Construction: +11%
Retail: +8%
Manufacturing: +8%

The sectors that have been hardest hit by significant financial distress in the last quarter are:

Real estate and property: +6%
Hotels and accommodation: +5%
Construction: +4%
Health and education: +4%

Since 2014, several sectors have had huge increases in the number of businesses in distress. These sectors include:

Utilities: +132%
Real estate and property services: +104%
Sport and health clubs: +86%

Year-on-year, all but one (printing and packaging) of the 22 sectors monitored by Red Flag Alert have seen increases in the number of companies in significant distress over the past 12 months, with the worst affected being:

Real estate and property: +17%
Sport and health: +8%
Food and beverage: +7%

Many businesses are currently not failing immediately because the government support schemes. The suspension of court action has stopped many businesses from also going under. However, this will only be a short-term solution and once things start to normalise again the figures may increase.

Typically, it would be expected that 4.3% of these companies will fail each year not because of coronavirus restrictions, but because they were already at high risk of failure from any short-term drop in revenue and cash flow. However, the impact of COVID-19 will see this figure double and leave the UK economy with insolvent debts totalling £8.6bn this year.

Will Coronavirus affect my loan?

8th April 2020 / admin / Comments Off

Loan and credit card payments to be frozen for three months in UK.

The financial regulator has announced plans to freeze loan and credit card payments for up to three months as part of emergency measures for consumers impacted by the coronavirus outbreak. They have also announced plans to help businesses that are struggling in the current climate.

The new measures which could come into force by 9th April is aimed at consumers and renters who are not benefiting from existing relief measures that have targeted homeowners – with mortgage payment holidays – or business owners.

The FCA has advised that banks and credit card providers will have to ensure that consumer credit ratings are unaffected by any of the measures.

If you are looking for a loan or bridging finance for your business in the agricultural sector. Feel free to give us a call or email us today and we will be happy to help!

Starting a Farm – Mortgages and Finance

8th April 2020 / admin / Comments Off

Do you aspire to live in the country, where your partner will continue to work and you want to run a smallholding or are you starting a farm business?

Richmond Asset Finance often receives enquiries from customers who want to start a farm and we have the ideal farm loan for this type of scenario, whether short or long term Richmond Asset Finance can help.

Obtaining farm finance can be difficult, especially where accounting information may not be good enough for the banks.

You may qualify for finance on a long-term basis through Richmond Asset Finance, but we also have a great farm selection of loan products that fits the bill for a farm start-up.

What is farm finance?

An all embracing term we use to describe all types of farm and agricultural finance we arrange in the rural and country business sectors, which can also be described as agricultural finance, equestrian finance, land finance and horticultural finance, a farm mortgage or farm loan. Farm finance can be provided for farms of any size (with our without a farmhouse), holiday complexes, caravan parks, caravan sites, estates, land, buildings, working farms, non-working farms, nurseries, garden centres, smallholdings, estates, fisheries, farm shops, riding schools and generally all manner of rural properties or in some cases not so rural.

Why Richmond Asset Finance?

A well-established and reputable company.
A great team that will help you with every query you may have.
Hands on and experienced.
We work in partnership with our customers to help them achieve their goals.
References are readily available.

Richmond Asset Finance adding value to your farm equipment

23rd March 2020 / admin / Comments Off

Richmond Asset Finance offer financing solutions for farm equipment manufacturers and suppliers in the processing, handling, and storage industries. Plus commercial and retail finance solutions so that distribution partners and authorised dealers have an efficient global distribution network.

Richmond Asset Finance is an all embracing business and we cover all types of farm and agricultural finance we offer to the rural and country business sectors and which can also be described as Agricultural Finance, Equestrian Finance, Farm Finance, Land Finance and Horticultural Finance. Finance can be provided for holiday complexes, caravan parks, caravan sites, properties with agricultural restrictions, land, buildings, working farms, non-working farms, and generally all types of rural type situations.

What purpose might be appropriate for farm finance?

Any legal purposes including but not being limited to repaying debt, repayment of an overdraft, diversification, working capital, business start ups, reducing outgoings, purchases of any kind and development of property or development of business.

Richmond Asset Finance are one of the most reputable sources of rural & farm finance in the UK. We guide and advise you throughout your application process, making sure your individual needs and circumstances always come first. Although we co-operate with a diverse range of banks and financial institutions, we are above all, independent. This means we always tailor a solution that best meets your requirements, not the banks.

We provide farm finance and refinance solutions, bridging finance packages, impartial advice, support and a level of customer service envied by our competitors.

UK banks set out details of Covid-19 mortgage holidays

20th March 2020 / admin / Comments Off

Households hit by coronavirus will not lose credit ratings if they delay payments as the government gives a 3-month mortgage holiday.

The unpaid interest will still be recovered later, but individual credit ratings will not be affected.

The Guardian has suggested that ‘firms will help customers the best way for the individual, but an automatic payment holiday may to always be the most suitable approach and may not be required by all customers’.

Full payment of the arrears will still assume an eventual full repayment of arrears. While a person is taking a payment holiday, the interest that would have been paid will still rack up, and the capital sum of the loan remains.

These holidays are not a long term solution but they are designed to help the temporary income shortfall. If this is a smooth and seamless process that will enable homeowners to self-isolate without having to worry about their mortgage payments then clearly it is a significant move in the right direction.

The Economic Impact of the Coronavirus Pandemic

17th March 2020 / admin / Comments Off

Shoppers across the country British shoppers have been greeted by empty shelves where toilet paper or canned food are usually stocked due to panic and bulking buying.

Shops are now opening earlier to allow elderly to do their shopping and doing their best keep up with the booming demand for certain products like cleaning supplies or toilet paper, but experts say all consumers have a role in making sure basic goods are available for everyone who needs them.

Most economists expect the long term hit to businesses and consumer spending because of COVID-19 will have long-term ramifications for the greater economy and potentially lead to a recession.

The chancellor, Rishi Sunak has unveiled a package of financial measures to shore up the economy against the coronavirus impact.

It includes £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs. Help for airlines is also being considered.

Manage Seasonal Fluctuations

10th March 2020 / admin / Comments Off

In business, seasonal fluctuations refer to the peaks and troughs in demand that correspond with different times of year. Most SMEs will experience this at some point, but certain industries can be subject to greater variations due to the nature of their trade. This is especially important during this time with the coronavirus pandemic effecting most businesses nationwide.

The upside is that these shifts are usually predictable, which allows companies to plan ahead and put measures in place to ensure they can fulfil customer requirements however as people and businesses are now learning, it’s not always that easy. It is prudent to review what your business can do to manage cyclical demand effectively.

Here are a few things you can do to control changes in the economic market.

Manage cash flow

During peak seasons, try to reserve cash for the quieter months so you have sufficient funds available all year round or in times of need. Aim to plan at least six months ahead by using historic sales data to forecast levels of supply and demand, although, cases like this are hard to predict. This will help you to better recognise trends in consumer behaviour and account for this in your sales projections.

Control inventory

Regularly monitoring levels of stock can reduce wastage and therefore save costs. Coincide orders with peak periods, so your company does not have surplus stock when business is slow.

Identify workforce needs

Establish how many employees you need in any given shift, month or season to maximise efficiency and organise staff contracts to reflect business levels. Employing temporary staff can provide additional support during busier periods and this strategy can also keep costs down during quieter months. This may apply to supermarkets and the NHS during this period when they need as much support as possible.

Review payment terms

Long payment terms and overdue client invoices can put a strain on your cash flow. Requesting shorter credit periods may prompt customers to pay for goods and services quicker, giving you adequate working capital to continue trading.

Tips for improving your HGV’s fuel efficiency

17th February 2020 / admin / Comments Off

Whilst you can’t control the price of fuel, you can control the amount you use with these driving tips for better fuel efficiency.

HGVs can guzzle up fuel, which isn’t only bad for your business’ budget, but also for the environment.

HGV drivers can learn to improve their vehicle’s fuel efficiency by making a few simple changes to their driving habits, here’s how.

Use cruise control

Most modern HGVs are equipped with a cruise control function for keeping the vehicle running at a constant speed. Reducing unnecessary fluctuations using cruise control can help you to save a significant amount of fuel.

Plan the route

Careful route planning can help you to get from a to b quickly and efficiently, preventing you from using unnecessary fuel whilst getting lost and taking detours. It can also help you to avoid routes featuring sharp inclines which require more fuel to navigate.

Reduce speed

The speed that you drive at can have a significant impact on the amount of fuel that your HGV uses. Studies have shown that reducing your speed to an average of 50mph on the motorway can help to reduce fuel consumption by up to 20%!

Don’t idle

Whilst it may be tempting, particularly on very cold days, to keep your engine idling and your heater and radio switched on when you are stationery, this is one of the worst ways to waste fuel!

Avoid braking sharply

Hitting the brakes sharply and rapidly accelerating can both eat up fuel far faster than driving at consistent, steady speeds. Simply paying closer attention to what is happening ahead of you on the road and anticipating when to brake sooner can make for a smoother ride, use less fuel, and reduce the risk of an accident.

Sometimes, if you’re driving a very old HGV, then the most effective way of increasing its fuel efficiency is to upgrade to a newer model.

If you require financial help or advice with upgrading your HGV, speak to our team here at Richmond Asset Finance by giving us a call on 0113 288 3277. We provide a range of flexible vehicle finance and asset finance services.

Should I buy a used mini excavator?

10th February 2020 / admin / Comments Off

If you’re thinking about investing in a mini excavator, one of the first decisions you’ll need to make is whether to buy new or used.

Mini excavators have quickly become a must-have piece of machinery in the construction industry.

They offer the same level of performance as their larger counterparts, but on a smaller scale and with added benefits.

The biggest advantage of the mini excavator is its compact size, which allows for excellent manoeuvrability, even in tight spaces. Generally, they are also more affordable, fuel efficient, and easier to operate than wheeled, tracked or truck-mounted excavators.

New or used?

When buying a mini excavator, you may be able to save a significant amount off the initial price by buying used. This will also help you to avoid the cost of the vehicle’s initial depreciation, which can be as much as 20 to 40% in the first 12 months.

If you do decide that buying used is the right route for your business, then it’s important to do your research and know exactly what to look for when shopping for a used mini excavator to ensure that you’re getting a good deal.

What to look for in a used mini excavator

Before investing in a used mini excavator you’ll want to ensure that the machine has been well cared for, maintained, and still has plenty of life left in it.

Bear in mind that mini excavators generally have a maximum of about 10,000 hours of usage in them, and that’s only if they’ve been well maintained and not run into the ground.

Most experts will advise you to only buy a used mini excavator with fewer than 2,000 hours on the clock to ensure that you get your money’s worth from it.

A thorough inspection should be carried out on the mini excavator to check for signs of leaks, rust, excessive wear, dents, and repair welds, all of which could signal that there are problems with the vehicle.

If you require help or advice with financing a mini excavator for your business, speak to our team here at Richmond Asset Finance. We provide a range of flexible vehicle finance and asset finance services to help you to grow your business. To discuss your requirements in more detail, give our team a call on 0113 288 3277.

How to protect your tractor from theft

3rd February 2020 / admin / Comments Off

Your tractor is one of your farm’s most valuable and useful pieces of machinery, so it’s important to protect it from thieves.

Last year, rural crime in Britain hit a seven-year high, with theft of farm vehicles and livestock costing the UK £50m according to the insurance company NFU Mutual.

The report found that the sharp rise in rural crime was mainly caused by a huge increase in theft of tractors, quad bikes and farm vehicles, which rose by 26% between 2018 and 2019.

Tractors and other farm vehicles are often targeted by thieves because they have been left unsecured in an isolated and remote location, making them easy targets.

A stolen tractor is not only very expensive to replace, it will also cost your farm business in downtime as well as causing you a headache.

Don’t leave your tractor or other valuable farm vehicles unsecured, use the following tips to protect them from criminals.

Always store your tractor indoors

Where possible, always store your tractor in a locked building. Not only will this make it harder for thieves to access it, it will also help to maintain its condition and extend its lifespan.

Secure your boundaries

Don’t leave your perimeter open to thieves, install a high fence to make access more difficult. If your property is too large to install a boundary around the whole thing, then ensure that the area or building that your tractor is stored in is secured by a fence.

Use a wheel clamp

Always fit a wheel lock on your tractor when it is not in use to prevent thieves from driving it away.

Fit an alarm and tracking device

Fitting your tractor with a motion-detector alarm is an effective way of deterring criminals and preventing theft.

Security mark your vehicles

Use a service like DataTag to get a unique security ID to mark your tractor with, making it easy to identify if it is ever stolen.

If you require help or advice with financing a new tractor, speak to our team here at Richmond Asset Finance. We provide a range of flexible agricultural finance services to help you to grow your business. To discuss your requirements in more detail, give our team a call on 0113 288 3277.

Maintenance tips to prolong your tractor’s lifespan

31st January 2020 / admin / Comments Off

Your tractor is likely to be one of your business’ most expensive assets, so it’s important to take the time to care for it to extend the lifespan of your investment.

These quick and simple tractor maintenance tasks can help to keep your tractor running costs down and prevent damage to prolong your tractor’s lifespan.

Regular inspections

One of the most important things you can do to look after your tractor is take the time to inspect its condition regularly. This will help you to spot any signs of wear or damage early on and take steps to repair it and prevent further damage. Check your tractor’s manufacturer’s manual for advice on how frequently it requires servicing and specific maintenance tasks to be carried out.

Store in a dry place

When your tractor is not in use it should always be stored in a dry place where it is protected from the elements. Being exposed to moisture for prolonged periods can cause your tractor’s parts to rust and corrode, causing damage and shortening its lifespan.

Clean the air filter

Your tractor stirs up a lot of dirt and dust as it is working, so it’s important to keep any eye on its air filters and clean them regularly. Blocked air filters can cause a build up of debris to gather on your tractor’s internal components, causing them to fail and shortening your tractor’s lifespan.

Top up the oil and coolant

Your tractor requires coolant to prevent it from overheating and oil to lubricate its moving parts. Without either of these liquids you could find yourself faced with expensive damage to your tractor’s engine. Create a maintenance schedule to help you to remember to check the levels of these important fluids regularly and top them up when necessary.

Check the tyre pressure

Without the right level of tyre pressure your tractor could end up working harder than it needs to. Check what the correct tyre pressure is in the manufacturer’s manual and get into the habit of checking the pressure regularly to keep your tractor operating efficiently and protect it from damage.

If you require help or advice with financing a new tractor, speak to our team here at Richmond Asset Finance. We provide a range of flexible agricultural finance services to help you to grow your business. To discuss your requirements in more detail, give our team a call on 0113 288 3277.

Benefits of wheeled excavators over truck-mounted excavators

25th January 2020 / admin / Comments Off

Could upgrading from a truck-mounted excavator to a wheeled excavator make your business more efficient?

Wheeled excavators are easy and affordable to operate and transport from one area to another. They are ideal for use in a variety of fields including forestry, construction, farming, landscaping and demolition. Their mobility also makes them an attractive choice for small contractors.

The core functionality of a wheeled excavator is just the same as a truck-mounted excavator, but instead of being mounted onto a truck they move around independently on their own wheels.

Long-term cost savings – Whilst the initial outlay for a wheeled excavator tends to be a little higher than for a truck-mounted one, they offer more long-term savings as they don’t require additional vehicles or machinery to move them from one site to another. Fuel costs for transporting a wheeled excavator are usually lower than a truck-mounted excavator too.

Increased lift capacity – Wheeled excavators typically have a better lift capacity than truck-mounted excavators, particularly when using a two-piece articulated boom.

Movability – Rather than having to be transported by a large, lumbering truck, wheeled excavators can simply be driven across the site or on the road from one location to the next, usually by the same person who operates them. The small and nimble size of the wheeled excavator also makes it more agile and manoeuvrable when working on-site, allowing it to work efficiently in tight spaces.

Versatility – Wheeled excavators are available with a variety of different attachments, including the mono-boom, two-piece boom, dozer blade, rototilt, cleanout bucket, and outrigger. The huge variety of attachments available for wheeled excavators makes them extremely versatile and reduces the need to invest in multiple machines.If you require help or advice with financing an excavator, speak to our team here at Richmond Asset Finance. We provide a range of flexible vehicle finance and asset finance services to help you to grow your business. To discuss your requirements in more detail, give our team a call on 0113 288 3277.

5 reasons to invest in a mini excavator

15th January 2020 / admin / Comments Off

Are you using your excavator to its full potential, or could you do the same job using a mini excavator?

Mini excavators are practical, affordable and hassle-free pieces of machinery.

Whilst they’re not always suitable for largescale jobs, if you can get away with using a mini excavator over a bigger wheeled, tracked or truck-mounted excavator then there are plenty of benefits to be had.

Manoeuvrability

The mini excavator is the perfect piece of machinery for working in small or tight spaces. It offers the same level of performance as a larger excavator but in a more compact and practical design. The small size of the mini excavator makes it nimble and agile on-site and means transportation is simple and hassle-free.

Easy to operate

Mini excavators tend to be very simple and intuitive to operate, reducing the amount of time required to train an operative to use the machinery and minimising the risk of errors being made.

Cost-saving

Mini excavators are more affordable to purchase and operate than their larger counterparts. They also offer higher fuel efficiency and lower fuel costs. Their relative ease of operation means training operatives will cost your business less time and money.

More environmentally-friendly

The small size and increased fuel efficiency make mini excavators more environmentally friendly to run than larger excavators. They also produce less noise pollution, making them ideal for use in noise and pollution sensitive areas.

If you require help or advice with financing a mini excavator for your business, speak to our team here at Richmond Asset Finance. We provide a range of flexible vehicle finance and asset finance services to help you to grow your business. To discuss your requirements in more detail, give our team a call on 0113 288 3277.

4 signs it’s time to replace your tractor

5th January 2020 / admin / Comments Off

Is your tractor holding your farm business back? Here are four signs it’s time to replace your tractor.

Whilst a new tractor may be a big expense, using outdated machinery can seriously impact your farm business’ profitability, so it’s important to know the signs that may indicate that it’s the right time to bite the bullet and invest in a new tractor.

Your business is growing or changing

As your business grows and evolves so will its requirements, and you may find that your existing tractor’s capabilities no longer cut it. If you now have more crops than you used to, you may require a tractor with a higher capacity to get the job done more efficiently and save time and money. Equally, if you have diversified into farming a new crop, you may find that you require a new tractor with different capabilities.

You’ve used it for 12,000 hours

Check how many hours you’ve racked up on your trusty tractor. It is generally agreed that standard-sized tractors have around 12,000 hours of use in them, whilst compact tractors have considerably less. If your tractor has done over 12,000 hours, it could be reaching the end of its lifespan.

It keeps needing repairs

If your tractor keeps breaking down or needing maintenance, this could also be a sign that it has reached the end of its lifespan. Rather than shelling out regularly to have it repaired, it may be more cost-effective to simply invest in a new machine.

It uses old technology

If your tractor uses outdated technology, it could be holding your business back from reaching its full potential. New agritech is being developed at a rapid pace and tractors are constantly being made smarter and more efficient. Investing in a tractor that uses modern technology could help to boost your business’ productivity and profitability.

Ideas for supplementing your farm income during the festive season

28th December 2019 / admin / Comments Off

Cash-in on Christmas by diversifying your farm business during the festive season.

According to NatWest, two thirds of farms have now diversified their business to generate alternative revenue streams throughout the year and boost their income.

Many farms that have successfully diversified report that their additional ventures have become a vital part of their business.

Whilst the winter months are typically much quieter for agricultural businesses, with a little creativity they can offer excellent opportunities for exploring new business ideas.

Here are a few of our favourite ideas for diversifying your farm business during the festive period.

Holiday letting

Many families and friends book holidays and weekends away to meet up and celebrate together over the Christmas holidays. Rather than letting unused land or farm buildings stand empty and unused during the winter months, why not convert them into holiday lettings. This can be particularly lucrative if your farm is in a scenic location.

Grow Christmas trees

Nothing beats the smell of a real pine Christmas tree, and according to the British Christmas Tree Growers Association over 7 million trees are sold in the UK each year. Choose a type of fir tree that will thrive in your farm’s land and soil type and start growing fir trees to sell locally each Christmas.

Run Christmas events

If you’ve got the land and buildings, why not run a series of festive events for the public in the lead up to Christmas? Popular activities and events could include turning a kids’ petting zoo into Santa’s grotto, running kid’s Christmas craft activities or adult wreath making workshops.

Turkeys and geese

Rearing free-range turkeys and geese can provide an additional source of income around Christmas time when demand for high quality meats for Christmas dinner soars.

To find out if you can apply for rural finance to help with your diversification project, get in touch with our team here at Richmond Asset Finance to discuss your plan in more detail.