Category: Asset Finance Can Help Your Business (page 3 of 4)

New technology and machinery that could transform farming

20th March 2019 / admin / Comments Off

Advancements in technology mean that we could soon see smart farming dominating the agricultural industry.

Farmers are likely to become increasingly reliant on farm machinery finance to help them gain the new machinery and equipment they require to keep pace with technology and stay competitive.

Just a handful of the high-tech agricultural equipment set to automate farmers’ jobs include:

Sensors– Sensors can be used on the land or in machinery and equipment to gather and share information and data. Sensors can be placed in fields to gather data about the condition of the soil, or in machinery to track information about yield or condition of machinery. This information can then be accessed by the farmer from anywhere, allowing them to make the relevant changes necessary to optimise crop growth.

Drones– Drones are already being used by farmers in the US for a variety of tasks including monitoring crops and spraying chemicals.

Driverless tractors– Automated, driverless tractors can operate all day and all night, to get the job done quicker and more efficiently. Future farmers may also be able to link their tractors to sensors and drones, giving them access useful information about the field that they’re working.

Robot pickers– Picking crops is a labour-intensive task which can be completed quicker and more efficiently with the help of robots that work 24/7. Using robot pickers would also significantly reduce labour expenses.

To find avoid getting left behind, find out more about our farm machinery finance options by giving our team a call on 0113 288 3277.

Why Is The Machine Finance Market Growing?

19th February 2019 / admin / Comments Off

Machines are critical to growth in the manufacturing sector but they are often expensive and can eat into business profits without some form of financial help.

Traditionally business owners turn to the bank to provide straightforward business loans to help if there is insufficient cash in the business to purchase machines. Even if there is enough cash to buy a machine, a loan can be a more sensible way to buy equipment particularly if there is risk attached in making large investments as there often is in business. However, business loans from banks also come at a cost and interest rates can be high.

Having multiple loans can also leave a business vulnerable in a downturn and restrict any cash flow available to grow the business. Machine finance is growing in popularity because it unlocks funding when you need it.

So if your business requires a new machine that will cut down the amount of manual labour required to get jobs done such as a CNC machine, machine finance can help you acquire that machinery at a minimum upfront cost.

This means you get the benefit of improved efficiency and profitability while spreading the cost. It can also be tax efficient now that the government has increased the annual investment allowance. So it comes as no surprise that the machine finance sector has grown 9% year on year.

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.

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.

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.

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.

Why SMEs Need Asset Finance More Than Ever In 2017

6th March 2017 / admin / Comments Off

If anyone had a crystal ball back in June 2016, it is unlikely they would have been expecting to see strong UK economic growth by the end of the year.

Fortunately despite a steep drop in the value of GBP and its continuing weakness, the UK economy has been surprisingly robust, confounding the expectations of analysts.

While this is welcome news for most of us, strong economic growth can be something of a double edged sword for SMEs. On the one hand there is the potential to grow the business and take advantage of the positive economic environment.

On the other there is the need to maintain the balance of cashflow and investment in the business. The cost of a sudden increase in new orders can put pressure on cashflow unless business owners can ease this problem with finance.

A range of finance options will be on the table for companies that find themselves in this position but one of the more sensible options is asset finance.

Asset finance can help business owners grow their businesses with fixed periodic payments rather commit upfront cash or apply for an overdraft from the bank.

Business Lending To Manufacturers Falls

9th December 2016 / admin / Comments Off

Despite the current low levels of interest rates on loans, lending to manufacturers slowed in the year to October 2016, declining by 5.2% according to the latest statistics released by the Bank of England.

Does this signal the start of a more cautious approach to lending amongst manufacturing businesses post Brexit? It’s too early to say but uncertainty doesn’t appear to be having any impact on consumer borrowing, which increased by 10% in the same period.

Although manufacturing only accounts for a tenth of the UK economy today, the divergence in lending figures suggests that consumers are happy to keep on borrowing in advance of expected price hikes in 2017 when the fall in the value of GBP against the dollar and other currencies starts to bite.

Despite making up a smaller part of the UK economy than it once did, the manufacturing sector may be in a for a tough time due to its reliance on foreign imports. This could be exacerbated further if the government pursues a so-called hard Brexit, which could result in tariffs when trading with EU nations.

Manufacturing wasn’t the only sector to see a decline with total business lending also falling by £8.2 billion month on month. This fall was largely due to a decline in loans to the financial services sector.

How Asset Finance Can Stop Your Business Falling Behind

7th November 2016 / admin / Comments Off

If you want to win in business the most important thing to do is stay in the race.

You hear this all the time from football managers who are under pressure to bring home league titles. Winning is always a case of staying in the race whether that is in the lead or at least keeping in touch with the leaders.

This is sometimes hard to achieve for smaller businesses that lack sufficient cash to purchase the latest equipment they need to compete on a level playing field. The harsh reality is that businesses that have the resources will simply mop up all the available clients if they are able to provide a faster and more efficient service.

The key thing from a business point of view then is to continuously invest in new equipment. However rather than commit lots of cash up front and put your business operations at risk, asset finance is a way to fund the growth of your business without digging deep into your working capital.

Asset finance can be a flexible and reliable way to help you achieve your business objectives without making a huge sacrifice. If you would like to talk over your options with us we will be more than happy to help advise on how asset finance can work for your business.

What is the Annual Investment Allowance?

11th October 2016 / admin / Comments Off

Our clients often ask us what Annual Investment Allowance (AIA) is and why it’s important when we first have a discussion about asset finance. Here’s a brief guide to what it is and how it can help.

AIA is actually a type of tax allowance to encourage businesses of all sizes to invest in new or used plant and machinery to help them grow. The 100% allowance applies to expenditure up to £200,000 during the year of purchase.

This acts as a great incentive for business owners who may be considering investing in say new machinery to improve productivity. However, there are exceptions that are not included in the allowance including land buildings and cars.

If you are keen to grow your business we can advise you on all sorts of ways to use asset finance to achieve your growth ambitions. We can also advise on the likely tax implications and perhaps reveal some allowances you may not have been previously aware of.

Every business situation is unique and the process depends on whether you intend to buy or lease and the amount of finance you need. Asset finance can be used to acquire a new fleet of vehicles or upgrade your IT systems. Whatever your requirements, our advisors will be happy to talk to you.

Asset Finance News You Might Have Missed Over The Holidays

12th September 2016 / admin / Comments Off

August is a usually one of the quitter months in the business calendar, however this year there have been a few things happening in the UK asset finance industry you may not be aware of.

Far from taking it easy over the holidays industry regulators have been busy finalising reports and consultations which will have implications for the asset finance industry.

One important announcement came from the Bank of England which announced that it would introduce a new scheme to replace Funding for Lending. The new scheme called Term Funding Scheme will involve lending money to banks on the understanding that banks will continue to up their lending to businesses and households.

Post-Brexit, the economy needs all the help it can get to try and stave off a slide into recession as uncertainty over the UK’s trade relationship with Europe continues. While the fuss over Brexit seemed to have died down a little in August as everyone waits to see what the outcome will be, this may well be the calm before a storm that is likely to be felt in all areas of the economy.

One other piece of news was a HMRC proposal to scrap certain salary sacrifice tax benefits which includes the possibility that car salary sacrifice benefits may be withdrawn.

Benefits gained from pension saving, childcare and the Cycle to Work scheme will remain eligible under the new proposals.

What Type Of Asset Finance Is Right For Your Business?

11th August 2016 / admin / Comments Off

Asset finance is an umbrella term that covers a variety of options for businesses that need to protect cash flow or find ways to buy new equipment and machinery without the high initial costs. So what are the options for businesses and which one is most likely to suit you?

HP or lease purchase
If your aim is to buy equipment for your business and eventually own it outright, then HP or lease purchase is a good option. You will be able to pay off the cost either in lump sums or structure repayments to suit your cash flow.

Finance lease
If ownership of equipment or machinery is less of a concern then finance leasing gives you the option to rent it for an agreed period. With this option you can offset your rental payments against your tax liability and less of your money will be committed up front protecting your vital cash flow.

Sale and leaseback
This option allows you to release money tied up in assets. This cash can then be put back into the business.

Operating lease
You may require specialist equipment only for a short period to satisfy the needs of a short term contract for example. In this case an operating lease offers flexibility and you can rent equipment for the period where your business needs it.

Contract hire
This is one way to avoid the costs of owning depreciating assets.

Contract purchase
This works in a similar way to hire purchase but you won’t be required to take the option of ownership at the end of the agreement.

Brexit Increases the Importance of Asset Finance to Businesses

11th July 2016 / admin / Comments Off

The asset based finance industry has been growing at an impressive rate in recent years and Brexit will do little to put the brakes on that growth as uncertainty about the economy weighs heavy on business owners’ minds.

It is now more important than ever that businesses plan finances in preparation for an uncertain future. It is also understandable that many will be cutting back on investment in new staff and acquisitions until the impact of Brexit on the economy becomes a bit more clear.

The immediate impact of Brexit on businesses is for now confined to sentiment. This sentiment may well snowball into a new recession that affects everyone. If one business reduces its investment, then it is inevitable that suppliers will be affected.

For cautious business owners, now may be a good time to look at asset based finance which can help fund new equipment purchases when liquidity needs to be preserved.

The costs for businesses that buy raw materials outside the UK will find that their margins will become more and more squeezed with each drop in the value of sterling. While the pound’s fall in value will benefit exports, it will also push up inflation. Let’s keep our fingers crossed that it will all turn out okay in the end!

How To Boost Your Startup With Asset Finance

6th June 2016 / admin / Comments Off

Owning a startup can become a rollercoaster ride of success and adversity you must overcome to be one of the small percentage of new businesses that make it to their 5th year of trading.

One of the biggest challenges for a startup is having enough cash to continue operating as a business. Often there will be issues with dwindling cash reserves, poor cashflow or both.

Having one or both of these problems together can cut off the life support of any business, so it is crucial to try and establish a solid financial base from the outset so that you can survive any storms that come your way.

Unfortunately it isn’t always that simple. Startups often have the cost of new machinery, equipment or even software eating into business profits. Asset finance solves this problem by turning those assets into cash so that the business can continue trading and costs can be spread over a longer period of time. This provides vital breathing space or more time to become established.

To see how asset finance can help your business contact us today.