Category: Asset Finance Benefits (page 3 of 5)

How farm finance products can help farms become more sustainable

The farming industry is under increasing pressure to operate more sustainably. Here’s how farm finance products can help farmers to achieve this goal.

Sustainability, climate change, and animal welfare are all hot topics. As vegan and vegetarian diets grow in popularity, more people are becoming interested in the environmental impact of agriculture, particularly the farming of cattle for beef.

What is sustainability?

To be sustainable is to look after the environment and renew resources at a rate equal to or in excess of the rate at which you use them. In order to become more sustainable, farmers must adopt environmentally friendly practices and find ways to improve the efficiency of their processes.

Which areas of farming can this be applied to?

When looking at the way you run your farm there are likely to be many areas where you could make improvements to become more efficient and sustainable.

Just a few areas you may identify include:

Feeding livestock.
Breeding livestock.
Manure management.
Looking after soil.
Tools, tech, and machinery.

Tools and equipment for agricultural sustainability

As well as changing and improving existing processes, farm machinery and equipment play an important role in a farm’s sustainability.

If you are using old or outdated machinery, upgrading could lower your farm’s environmental impact. Modern machinery is often built to be more intelligent and efficient with sustainability in mind.

Just a few sustainability problems that modern machinery can solve include:

Machinery that produces fewer emissions.
Machinery that consumes less power and uses fewer resources.
Machinery that can apply chemicals with greater precision.
Micro-sprinklers and drip irrigation technologies to save water.
Smart technology like crop sensors and drones to improve efficiency of processes.

Farm finance products to fund sustainability

Adopting modern farm machinery isn’t just about being kinder to the environment, it also makes good business sense. Working smarter and more efficiently will also help to save you time and money, making modern farm machinery and technology an excellent investment for the future.

If you need help financing new farm equipment, then there are a variety of farm finance products on the market to choose from. The farm finance product suitable for you will depend on your current situation.

Get in touch with our team of specialists here at Richmond Asset Finance for free farm finance help and advice by calling us on 0113 288 3277 to discuss your requirements in more detail.

Agricultural equipment that can help to lower ammonia emissions

10th April 2019 / admin / Comments Off

Farmers are being encouraged to invest in new agricultural equipment and tools to help them to lower their ammonia emissions.

Particulate matter is a type of airborne pollution made from a mixture of small solid particles and liquid droplets including organic chemicals, dust, and acids.

Particulate matter can be inhaled and has been linked to several health problems as well as damage to wildlife habitats and wild plant species.

Agriculture creates a large amount of ammonia emissions, which play a key part in the formation of particulate matter. Levels of ammonia and particulate matter in the atmosphere are monitored closely by DEFRA.

What causes ammonia emissions?

According to Farmer’s Guardian, around 87% of the UK’s ammonia emissions come from farming activity.

Just some of the agricultural causes of ammonia emissions include:

Manure application.
Livestock housing.
Sewage sludge application.
Manure storage.
Fertiliser application.
Livestock grazing outdoors.

Tackling ammonia emissions

Ammonia emissions from agriculture have been in the spotlight recently after the government launched aClean AirStrategyearlier this year to cut air pollution.

Farmers are being urged to invest in agricultural equipment and machinery that will help them to reduce their ammonia emissions.

To reduce emissions farmers need to find ways to retain the valuable nitrogen found within manure and slurry and then apply it using low-emission techniques.

Just a few types of agricultural equipment that can be used to lower ammonia emissions include:

Covers for slurry tanks and solid manure.
Specially designed livestock housing that reduces the amount of slurry exposed to air.
Low emission spreaders.

Funding agricultural equipment to lower ammonia emissions

You may be able to receive help and funding towards the costs of agricultural equipment to lower ammonia emissions through government schemes like the Clean AirStrategy, Countryside Stewardship Scheme, and Countryside Productivity Small Grant Scheme.

If you don’t qualify for funding or require further financial help, then Richmond Asset Finance provide a range of farming finance products to help you acquire the agricultural equipment you require.

To discuss your requirements in more detail, give our team a call on 0113 288 3277.

Why are so many UK farmers choosing to diversify?

30th March 2019 / admin / Comments Off

In today’s uncertain economic climate, many UK farmers are choosing to diversify their businessto boost their income.

Government figures show that 62% of UK farmers are now diversifying into other business opportunities to top up the income they make from traditional farming.

According to Farming UK, of the 62% of farmers that have diversified, 94% of the schemes have been financially successful.

So, if you’re not yet diversifying, it may be worth doing some research and speaking with an expert about rural finance to find out if you can get some help with financing your diversification scheme.

Why diversify?

With over half of those farmers diversifying reporting that the income from their alternative business has become ‘vital’ or ‘significant’ to their farm, can farmers afford not to diversify?

Key factors that are pushing farmers in the UK to diversify include:

Disease in farm animals.
Increased competition.
Falling price of milk.
Subsidies falling away.
Brexit uncertainty.

As with any business, it makes sense for farmers to avoid putting all their eggs in one basket (excuse the pun).

With many farmers owning a substantial amount of land, it makes good business sense that they use all land and buildings owned to their full advantage. Diversifying into alternative markets like leisure and tourism and renewable energy allows farmers to boost their income.

Rural finance to aid diversification

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

Machine Finance Sector Up 9%

15th February 2019 / admin / Comments Off

Any thoughts of the manufacturing sector being hit by the uncertainty around Britain leaving the EU Certainly hasn’t been felt in the machinery finance sector where growth has hit 9% compared to the previous year.

Analysts say the UK asset finance market as a whole look set for a record period of growth in 2019 on the back of a broadly stable 2018. Last year saw a mixed pattern of growth in some sectors and declines in others. IT asset finance for example saw a fall of 32% while other sectors such as machinery and business equipment finances saw increases, the latter seeing 8% growth in the same period.

Machinery finance may well see further year on year growth in 2019 if manufacturing receives a boost and more business owners take advantage of the temporary tax benefits that will come as a result of taking advantage of new Annual Investment Allowance limits.

Machine finance can be particularly useful for investing factory machinery such as CNC machines, which can be expensive to purchase outright. Machine finance provides a way of investing in machinery without having to risk huge amounts of money which can be better used in expanding business operations, research end development.

Farmers – Are You Exploiting This Tax Allowance?

8th February 2019 / admin / Comments Off

It may not be all good news for farmers this year but there is one particular piece of news that every farmer should be aware of and that relates to an opportunity to take advantage of machine purchases with the help of the government.

Farm machinery is often a major purchase with tractors alone costing in excess of £100,000 so if these savings can be offset it has to be good news. Fortunately, the government stepped in to help farmers with a change to the Annual Investment Allowance that will go a long way towards helping farm businesses make some big investments in farm machinery.

The fact that the move isn’t permanent should alert farmers to take advantage before 2021. The AIA threshold was £200,000 in 2018 and this has temporarily risen to £1million for the next 2 years.

With a lot of uncertainty at present and for the future of some farms in the UK this allowance could make a difference. Specialist finance could help ease costs further for farm businesses and enable more investment to improve efficiency and explore new opportunities for farm business development in the future.

If you would like to find out more about farm finance contact one of our advisors today who will be able to help.

How To Avoid The Business Funding Post Code Lottery

30th January 2019 / admin / Comments Off

According to recent reports, where a small business is located can have a big impact on how likely it will receive funding. While some areas offer excellent prospects for funding others are virtually feeding of scraps according to statistics.

Figures from 2016 show that businesses that benefitted from the Bank Referral Scheme totalled only 900 out of the 19,000 that had been referred after failing to secure loans from high street lenders. Looking deeper into the stats just 75 of these companies was located in in the North West.

Looking at more recent figures from UK Finance, things haven’t changed much when it comes to loan approvals by UK region. All regions saw a year on year fall in loan approvals in the final quarter of 2017 apart from Wales which saw a 55% increase compared to 7.6% decline for England.

The statistics show banks still a have a long way to go before they have sufficient trust in lending to small businesses throughout the UK with the exception of Wales.

To get around this problem, businesses should consider alternative forms of business finance to support ambitious growth plans such as asset financing.

Are You Looking At The Right Asset Finance?

18th January 2019 / admin / Comments Off

According to the latest figures release by the FLA new asset finance business grew 9% in October 2018 compared the previous year. Many businesses will be benefiting from the boost this will contribute towards business development and growth but if you are considering joining the growing number of businesses who benefit from asset finance it is important to ensure you select the right asset finance for your business.

Most business owners opt for asset finance when much like taking on any other type of business loan they require funding. For example, they may wish to lease an asset if they want to spread the cost over its lifetime. This avoids the pitfalls of rapid depreciation of assets.

Asset finance however comes in many forms including finance lease, hire purchase and it is important to compare these against other products such as commercial loans. While the benefits of asset finance are often clear it is worth consulting a qualified expert to discuss what is best for the business both in the short and long term.

You will find a wealth of information on the different options available on our website or you can give us a call and speak to one of our advisors to find out how asset finance can work for your business.

Asset Finance New Business Rises 9%

5th January 2019 / admin / Comments Off

According to the most recent figures released by Finance & Leasing Association (FLA) new business in the asset finance sector increased by 9% year on year in the month of October. This indicates that Brexit uncertainty hasn’t put off firms looking to use asset finance to grow and develop their businesses.

With asset finance covering several sectors, some areas have shown even more spectacular growth than the overall figure suggests. Machinery finance for example showed growth of 16% compared to October 2017 while business equipment finance was up 29% which is nearly one third up. The commercial vehicle sector also saw an increase of 23%.

These figures represent a strong end to the 2018 which began with similarly positive increases in new business in the construction and agricultural asset finance sectors. The asset finance sector is on course for another record-breaking year which will come as welcome news as bank lending to business continues to show a decline in loan approvals across much of the UK.

Despite the good overall news, technology equipment finance saw a fall in new business which pushed the overall figure down. It will be interesting to see if growth in new asset finance business is maintained in 2019.

Farm and Agricultural Finance

5th December 2018 / admin / Comments Off

With the uncertainties surrounding Brexit Farming in the UK faces an equally uncertain future depending on any deal eventually reached with the EU. Whichever way the deal goes the farming industry will almost certainly lose out on EU subsidies and this will make funding an even more important consideration in the future. So how can specialist agricultural finance help?

Agricultural finance plugs the funding gap
Many traditional sources of farm finance disappeared following the financial crisis of 2008 putting farm businesses under increased pressure to find alternatives. Agricultural finance is an attractive alternative aimed specifically at the industry.

Agricultural finance can be secured against real assets
Farming and agricultural businesses will often possess more assets than other business types making them ideal for asset finance. Assets such as land and property gives farmers an opportunity to use these assets to save or invest in their businesses.

Agricultural finance loans offer flexibility
Today farmers often need to diversify to survive. Areas such as renewable energy can provide some potentially lucrative opportunities to generate extra revenue. Agricultural finance enables farmers to invest in these types of projects and minimise risks at the same time.
If you would like to find out more about agricultural finance contact us today to find out more.

Mixed Results For Asset Finance

26th April 2018 / admin / Comments Off

Following several consecutive months of growth, the latest figures released by the Finance and Leasing Association (FLA) reveal mixed news for the asset finance market in the 12 months to February 2018.

The two sectors that have performed strongly according to the latest data are Plant and Machinery Finance and IT equipment. The former saw a 5% increase in asset finance while the latter saw a 13% increase suggesting these sectors are more willing to explore alternative sources of finance in the current economic climate. The same can be said for the manufacturing and the agricultural and construction sectors.

Two sectors that have not performed well in the 12 months to February are commercial vehicle and surprisingly business equipment which had seen growth up until this point. Commercial vehicle finance saw a 5% drop while business equipment saw a 20% fall.

Despite these mixed results, the underlying health of the asset finance sector remains strong and continues to offer businesses a less risky alternative to banks loans and other traditional forms of lending.

If you would like to find out more information on how asset finance could help with your own business investment, contact us today for advice.

Business Confidence On The Rise

27th February 2018 / admin / Comments Off

Analysis from several financial services firms of business confidence levels points towards an improving picture. Businesses are said to be more optimistic about future growth although they are still cautious about the year ahead.

The rise in confidence levels at the start of this year brings a halt to months of decline and has perhaps been buoyed by news of a strengthening pound and the prospect of Brexit not being as bad for the economy as everyone expected.

While businesses have plans to invest in the future, it is also true that bank lending to businesses fell by £1bn during the month of December 2017. Loans to businesses in the SMEs sector saw a significant drop too falling at their fastest for three years.

Alternative finance, meanwhile, has been the sector to benefit from the continuing sense of caution with businesses reluctant to take on new debts to fund any expansion plans they may have.

Asset finance takes away some of the risk involved in borrowing from banks and allows a business to use its assets to access funding.

Business that rely on importing and exporting into the EU will be watching closely to see what happens over the next 12 months and it is unlikely the mood of caution will be lifted during this period.

Is Now A Good Time To Invest In Your Business?

10th November 2017 / admin / Comments Off

As another year reaches a conclusion, you may be thinking about what the new year will bring as most business owners are. This coming year things are predicted to be less certain than they have been for several years so is now a good or bad to time to be thinking about investing?

A lot will depend on the sector your business operates in. Each sector will have its winners and losers as a result of Brexit but recent positive news coming from the manufacturing sector shows that there has been some benefit from the fall in the value of the pound.

This makes the UK’s exports cheaper and attracts higher levels of demand. The growth picture for the economy as a whole however is not quite so rosy with growth slowing down even though unemployment levels are at their lowest since the 1970s.

The conclusion to be drawn from all this is that we rarely see all the balls in alignment when it comes to economies so paying too much attention to bad news can discourage investment at just the time when it is needed.

Many people were predicting a slump following the results of the EU referendum but this hasn’t materialised – at least not to anything like the degree anticipated. If you are a business owner looking to play safe and invest, then asset finance may be the option to get the best of both worlds by protecting your cashflow and making the most of your assets to fund growth next year.

Increased Demand Predicted For UK Business Finance Scheme

10th October 2017 / admin / Comments Off

According to statistics 71% of business owners will only try one lender when seeking finance for their business. This means that many of those businesses could be missing out on potential sources of alternative finance.

A government scheme introduced in November last year hopes to solve this problem for business through a bank referral scheme. The scheme encourages banks to pass on the details of applicants who failed to secure funding to alternative providers.

This effectively gives those businesses a second chance to secure alternative finance and it appears a growing number of those businesses are benefiting as a result. More than 8,000 businesses were referred via the scheme in the first 9 months following its introduction. It has to be said, however, this still represents only a small minority of the 50,000 businesses turned down for loans each year in the UK.

The availability of finance for businesses to fund growth and expansion is extremely important to the UK economy and any initiative which provides more options to businesses to secure that funding can only be good news.
The key to the success of these schemes is awareness and by encouraging the banks themselves to help in the process, the whole process for SMEs is set to become a lot less daunting for SMEs.

SME Business Savings Fall

12th August 2017 / admin / Comments Off

SME business savings have fallen overall according to a recent study, however some sectors have seen savings increase.

Ahead of economic uncertainty and news that house price growth is stalling around the UK, it is perhaps surprising to hear that businesses are putting away less in business savings accounts.

Compared to last year, SME businesses are putting away 20% less over all according to research from the Hampshire Trust Bank. The average amount held in savings accounts by SMEs is currently £446,000 which is some way below the £556,000 recorded in 2016.

So is it a case of businesses digging into their savings more this year? There was nothing highlighted to suggest this was the case and in the IT and communications sector the opposite was true and firms were putting more away in savings with an increase of 5% overall on 2016. This was however the exception with charities and accountancy firms having 39% and 69% less held in savings respectively.

IT firms were said to be building average cash buffers of £843,000 putting among the biggest savers of all SME businesses.

The study indicates the need for business owners to understand the importance of protecting their businesses against economic uncertainty but it is also important to ensure that the best returns are made on those savings by shopping around for the best rates.

Is Asset Finance An Option For Startups?

11th April 2017 / admin / Comments Off

Asset finance is often seen as something a more mature business might consider when they are looking to grow and expand, however it can be just as useful for a startup needing that extra boost to get things off the ground.

Another reason asset finance can be good for a startup is the relative ease with which it can be sourced compared to raising money from other sources. Raising money from the bank for an unproven startup can be a difficult task yet there is still that need to establish a solid financial platform to enable the business to survive.

Asset finance is available in many forms including leasing hire purchase, refinance and specialist funding. What all these different forms of asset finance have in common is they protect your cashflow.

Lack of cashflow coupled with unmanageable debt is a recipe for disaster in a business and if you have a business that may rely on one or two big clients, then you may be vulnerable if one or both decides to pull the plug.

Asset finance will at least enable you to spread the cost of borrowing over a longer period to protect your cashflow and continue to grow your business.