Tag: Asset-Based Finance (page 2 of 13)

How to prepare your commercial fleet for winter

20th November 2019 / admin / Comments Off

Prepare your fleet of commercial vehicles for the colder weather to keep them running efficiently through the winter months.

Treacherous wet, icy and windy weather can pose significant problems for drivers and fleet managers during the winter.

The key to keeping your fleet operating smoothly during this time is good preparation.

Service

Putting your fleet through a thorough inspection or service prior to the cold weather kicking in can help to pick up any problems or damage to the vehicles. Making sure your fleet is in tip-top condition and are all topped up with engine oil and wiper fluid can help to prevent accidents and costly down-time once the bad weather hits.

Inspect tyres

When inspecting your vehicles, be sure to pay careful attention to the condition of the tyres which need to be in excellent condition to manage wet and icy roads. Look out for signs of damage or excessive wear and make sure they are pumped up with enough air.

Winter tyres

Many fleet managers use winter tyres if their fleet are likely to be visiting remote areas frequently. Winter tyres have better grip and can help to reduce the risk of accidents and breakdowns in ice and snow.

Educate drivers

One of the best ways to keep your fleet safe during the winter is to educate your drivers in how to drive in poor weather conditions. Refreshing their knowledge of safe stopping distances and how to adjust their driving for snow and ice can help to minimise breakdowns and accidents.

Emergency packs

Always make sure that your fleet are kitted out with winter survival packs for when they’re out on the road. At minimum, all emergency kits should contain a blanket, de-icer, scraper, torch, high visibility jacket, and extra screen wash.

If you have concerns about the condition or efficiency of any vehicles in your fleet, then it can be a good idea to update them before the winter season.

If you require financial help or advice with updating your commercial fleet, 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 financeservices.

To plough or not to plough?

20th September 2019 / admin / Comments Off

Humans have been ploughing the earth to grow food since the beginning of time, so why are some farmers now choosing to turn their back on this traditional technique?

Some farmers are now embracing new ways of working as they believe ploughing to be bad for the environment.

Ploughing and the environment

It is thought that dragging a plough through the earth several times a year disturbs the soil and the living organisms within it, which then has a negative effect on soil quality.

What’s the alternative to ploughing?

“No till” farming is a method of farming which eliminates ploughing and minimises soil disturbance. Instead, farmers ensure that soil is never left bare. As soon as one crop is removed, “cover crops” are planted to protect the soil and keep pumping nutrients into it.

This method also prevents earthworms and other important organisms from being disturbed, so that their numbers can grow, resulting in more nutrient-rich soil with improved structure and drainage.

Benefits of no-till farming

No-till farming can benefit both the environment and the farmer, here are just some of the benefits:

Reduces soil erosion.
Improves soil quality.
Builds soil organic matter.
Saves time on ploughing.
Reduces cost of labour and fuel.
Improves water absorption.
Reduces greenhouse gas emissions.
Natural weed control.
Healthier crops due to nutrient-rich soil.

What machinery is required?

Farmers undertaking no-till farming use a piece of machinery called a cross slot drill which drills seeds directly into the unploughed ground. Although the initial cost of the equipment is similar to that of tillage machinery, the operating costs are far less.

For help financing the purchase of agricultural equipment, speak to our team at Richmond Asset Finance on 0113 288 3277. We provide a variety of asset finance and agricultural finance services to help your farm business to grow and develop.

4 benefits of switching to electric commercial vehicles

4th September 2019 / admin / Comments Off

Switching from petrol or diesel commercial vehicles to electric vehicles is not only a practical change, but a cost-effective one too.

As concerns about climate change and the environment mount, businesses are under increasing pressure to make more environmentally conscious decisions.

Electric vehicle technology is rapidly evolving, and electric vehicles are now becoming a more practical, attractive and accessible option for businesses of all shapes and sizes.

Many businesses are put off making the change because the initial outlay for electric vehicles may seem high when compared to comparable petrol or diesel models. However, the low running cost of electric vehicles offsets the initial expense and makes it a cost-effective decision in the long-term.

It is also an extremely worthwhile investment when you consider the difference in will make to your business’ carbon footprint.

Here are the 4 top reasons your business should consider switching to electric commercial vehicles.

Low running costs– Generally, the cost of running an electric vehicle is cheaper than the cost of running a petrol or diesel vehicle because electricity is cheaper per mile than fuel.

Reduced maintenance costs – Electric vehicles are functionally simpler and have fewer moving parts than their non-electric counterparts, making them considerably cheaper to maintain.

Environmentally friendly – Investing in electric vehicles will help your business to meet its environmental and social responsibility. As well as producing no CO2 or harmful greenhouse gasses, electric vehicles reduce air and noise pollution. Making the switch will help your businesses to reduce its carbon footprint and become more sustainable.

Employee satisfaction – Electric vehicles, particularly when used primarily for short trips around the city, are convenient and comfortable to drive. As well as using state-of-the-art technology, electric vehicles are smooth-running, emit zero fumes, and are virtually silent, providing the driver with a relaxing and pleasurable ride.

Need some help financing one or more commercial electric vehicles? Here at Richmond Asset Finance we provide a range of flexible vehicle finance and asset finance services to help you to grow your business.

For more information about our services, or to discuss your requirements in more detail, give our team a call on 0113 288 3277.

What are the benefits of using hire purchase?

25th August 2019 / admin / Comments Off

Need to purchase an asset, but don’t have the money to buy it upfront? Take out a hire purchase agreement to receive the asset now and pay for it in affordable instalments.

Hire purchase is a popular type of asset finance popularly used by businesses to buy vehicles, machinery and equipment.

Whilst you are still paying for the asset, the creditor is the legal owner, but once you’ve finished your payment plan it’s all yours.

Here are just a few of the benefits of buying an asset using a hire purchase agreement:

No need to pay a large sum of money upfront– Whilst you may be required to put down a small deposit, the cost will be nothing like paying for the asset upfront. This is particularly useful if it’s a large and unexpected cost, like a vehicle or key piece of machinery breaks down.

Flexible and affordable payments– Hire purchase allows you to spread the cost of the asset over a set period, so you’re paying off a small, affordable sum each month.

Protect your cashflow – Spreading the cost helps you to look after your business’ cashflow. Healthy cashflow is essential for developing and growing your business.

Own the item at the end of the payment plan – At the end of the payment plan, the asset is yours to keep!

Immediate use of the item – You can start using the asset immediately, meaning no expensive downtime whilst you save up the funds.

High quality asset– Many businesses find that they are able to afford vehicles and equipment of a much higher quality and specification through hire purchase than they would have if they were paying upfront.

Fixed interest rates– Hire purchase interest rates are fixed, meaning no uncertainty on costs, helping you to keep your cashflow stable.

No VAT on monthly repayments– VAT is paid upfront by you along with any deposit required. You will then re-claim the VAT in your regular payments.

For more information about our hire purchase agreements, or to discuss your requirements in more detail, give our team here at Richmond Asset Finance a call on 0113 288 3277.

Hard assets and soft assets explained

21st July 2019 / admin / Comments Off

Assets can be roughly divided into two categories, hard assets and soft assets, do you know the difference between each?

Asset finance helps businesses of all shapes and sizes to acquire the assets they require to grow and be prosperous.

The types of assets that your business requires to move forward will depend on a variety of factors including your industry, your business plan, and how established the business is.

Generally, assets are said to either be hard assets or soft assets.

Hard assets

Asset finance is most commonly used to acquire hard assets. Hard assets are usually physical, high value items that are essential to a business’ operation. This could include the following:

Commercial vehicles
Manufacturing equipment
Printing presses
Machinery
Construction vehicles
Plant equipment
Engineering equipment
Agricultural machinery

Financing hard assets provides finance companies with good security as the assets tend to retain value for many years, even at the end of their lease.

Soft assets

Soft assets may be more difficult to obtain with asset finance as they pose a bigger risk to the finance company. Soft assets are lower value items and have little or no value by the end of their lease. Examples of soft assets include:

Computer hardware and software
Office furniture
Security systems
Air conditioning systems
Electronic Point of Sale systems

If you require soft assets, then you may still be able to acquire them using asset finance by providing some additional security. This could include a deposit towards the asset, a director’s guarantee, or securing the asset with another existing asset to offset the risk. However not all asset finance companies will provide funding for soft assets.

Find out more about our asset finance solutionshere at Richmond Asset Finance by giving our team a call on 0113 288 3277 to discuss your requirements in more detail.

Asset finance market continues to show signs of growth

15th July 2019 / admin / Comments Off

After a record-breaking year for asset finance in 2018, the flourishing industry continues to show signs of growth for 2019.

In 2018 the asset finance market grew by 3%, hitting a new record level, with new business totalling over £33 billion.

As we entered 2019 the financial insecurity of Brexit was looming and it seemed uncertain whether this growth was sustainable, but statistics so far this year have shown continued growth.

Figures recently released by the Finance and Leasing Association (FLA) show that asset finance new business, for deals of up to £20m, grew by 6% in May compared to the same month last year. New finance for plant and machinery grew by 8%, as did commercial vehicle finance.

This follows the news that new business is up by 8% for the industry in the first five months of 2019.

It appears that more businesses than ever are turning to the asset finance industry this year for help growing their business.

In fact, according to the FLA, in the first quarter of 2019 the percentage of UK equipment investment being funded by asset finance stood at 38%, the highest it’s been for more than a decade.

It’s easy to see the appeal of asset finance to businesses. Acquiring assets and repayment is affordable, fast and uncomplicated when compared to applying for a traditional bank loan or overdraft.

Asset finance is currently the third most popular form of business finance after bank overdrafts and loans, helping thousands of businesses to obtain the assets that they require to develop and grow.

Here at Richmond Asset Finance, we provide a variety of flexible finance solutions including asset financeand refinance. For more information about any of our services, or to discuss your requirements in detail, give our team a call on 0113 288 3277.

Advantages of asset finance…

8th July 2019 / admin / Comments Off

…when compared to traditional bank lending

Businesses that cannot afford to pay large costs up-front can use asset finance as an affordable and flexible means to acquire the assets they require to drive growth.

So, why choose asset finance over a traditional bank loan?

Asset finance has several key advantages over a bank loan, let’s take a look at them in more detail.

Asset finance does not require a perfect credit history– Banks usually have strict lending requirements and will not always accept new businesses that lack credit history or have a poor credit rating. Unlike banks, asset finance lenders do not require a perfect credit history, each applicant will be considered on their own merits.

Applying for asset finance is generally quicker– Applying for a bank loan can be a lengthy and time-consuming process involving examining your financial history, performing credit checks and even creating a business proposal. Applying for asset finance is generally much quicker and more straightforward.

Cashflow benefits– Unlike bank loans, asset finance payments are usually fixed, so there’s no need to worry about rising interest rates. Payments can be spread out throughout the asset’s useable life, making paying for the asset affordable and reliable, and freeing up your working capital to improve cashflow.

Little or no security required– Asset finance is generally less risky than a bank loan or overdraft, so less security is required in order to attain it, making this type of finance particularly useful for start-up businesses. Usually the assets you are acquiring as part of the deal are security enough. If you cannot make payments at any point, then the finance company will simply take back the asset.

Asset finance companies often specialise– Asset finance companies often specialise in working with businesses within particular industries. This gives them a deeper understanding of how the businesses they work with operate and the challenges they face, allowing them to offer the most suitable solutions.

Here at Richmond Asset Finance we help businesses to gain the assets they need to succeed and flourish. Just some of the type of assets we will consider financing include commercial vehicles, engineering equipment, plastic and woodworking injection equipment, packaging and labelling machines and agricultural machinery and vehicles.

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

Using rural lending to diversify…

29th April 2019 / admin / Comments Off

…into alternative livestock and crops

Rural lending opportunities could help farmers to boost their income by giving them the means to diversify into alternative livestock and crops.

Many farmers are feeling the pinch of increased competition, Brexit uncertainty, and the falling price of milk. In an uncertain economy and a changing industry, diversifying can bring in a valuable source of extra income.

According to Countryfile, over half of the UK’s farmers have now diversified in some form.

Some farmers are choosing to diversify into very different areas like leisure and tourism, which require significant investment to set up. Diversifying into alternative crops and livestock is less of a jump, uses existing skillsets, and is often more affordable.

Alternative livestock and crop ideas

Here are just a few popular alternative livestock and crop diversification ideas to inspire your new venture.

Goat or sheep milk.
Quail or duck eggs.
Wild boar.
Ostriches.
Angora rabbit wool.
Llama or alpaca wool.
Edible flowers or herbs.
Pharmaceutical crops.
Free-from crops.
Pumpkins.
Christmas trees.

Rural lending opportunities

For many farmers, diversification is becoming a necessity to stay afloat rather than an option. Whilst diversifying can be daunting, the results can be exciting and rewarding.

For most farmers, taking the plunge and deciding to diversify is aprofitable decision. Some farmers even find that their side-project grows into their main business. However, finding the funds to set it up in the first place can be challenging.

Rural lending opportunities provide farmers with the means to expand and grow their business. Whatever your circumstances, it is worth speaking with a specialist rural lending business like our team here at Richmond Asset Finance to find out more about how our short-term and long-term rural lending services can help you to grow your business and income.

To discuss your vision in more detail, receive free help and advice, or find out what rural finance options are available to you, 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.

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.

Business diversification ideas for farmers

12th March 2019 / admin / Comments Off

If you’re ready to join the 62% of UK’s farmers that have diversified from traditional farming, we’ve come up with a few alternative income ideas to inspire you.

With farmers in the UK facing many challenges, diversifying the products and services that they offer is a sensible way of branching out and boosting income.

Many farmers are making better use of the land and buildings that they own, adding new arms to their business that are outside of traditional farming.

Some of the most popular business types that farmers are diversifying into include:

Camping and caravan sites.
Bed and breakfast.
Renewable energy.
Petting farm.
Cattery or kennels.
Farm shop and café.
Toddler group or kid’s parties.
Riding lessons.
Alternative crops/farming.
Craft workshops.

According to government figures, UK farms that have diversified bring in an average of £10,400 extra revenue per farm. With these kinds of figures, can you afford not to diversify?

A good place to start, is to assess your existing business and identify any physical resources or skills that you could be making better use of.

Funding for diversification

If you require help funding your diversification project, it’s best to plan and develop your ideas before applying for agricultural finance.

Carrying out thorough research and creating a detailed business plan can help to reassure lenders and get them onboard with your vision.

At Richmond Asset Finance we have over 10 years’ experience helping farmers to gain the agricultural finance they need to grow their businesses. Get in touch to discuss your project in more detail by calling us on 0113 288 3277 to find out if we can help.

3 key things to consider when applying for a farm loan

5th March 2019 / admin / Comments Off

Thinking about applying for a farm loan? Check that you have prepared this key information first.

At Richmond Asset Finance we aim to make applying for a farm loan as simple, quick and pain-free as possible.

Our farm loans have helped numerous farmers to gain the agricultural assets they need to grow and thrive.

Before applying for a farm loan it’s helpful if you can prepare key information about your business and its plans, to increase your chances of securing finance and speed up the process.

The three key things that lenders will look at when deciding whether to grant finance are:

Business plan– Being prepared is key to securing a farm loan. Having a business plan and financial projections all planned out can help to reassure lenders that you’ve thought things through and get them onboard with your vision.

Creditworthiness– Before applying for finance you should find out how your credit rating is looking. Funders are more likely to invest in businesses that they deem to be less risky, but that’s not to say there won’t still be a financing option for you if your credit rating isn’t great, it’s just best to know where you stand from the start.

Financial information– When applying for a farm loan you will be required to give evidence of your current financial situation. This may include copies of your bank statements, balance sheet, cash flow statement, and details about existing assets.

At Richmond Asset Finance we have over 10 years’ experience helping farmers to successfully secure farm loans to grow their business. We can advise you on everything you need to make your farm loan application successful. Just give our team of experts a call on 0113 288 3277 and we’ll be happy to help.

Looking for Alternative Tractor Finance?

25th February 2019 / admin / Comments Off

Here’s How Farm Finance Can Help

Growing a farm business much like any other business is no easy task if a business lacks the finance to fund growth. For these farms it is almost inevitable that financial help will be required at some point to grow the business.

Tractors are a critical component in the day to day running of a farm and one of its most important pieces of machinery. An unreliable or outdated tractor can impact on productivity and efficiency as well as cost the business money much as the opposite is true if you are purchasing a good, reliable up to date model.

A tractor can cost in excess of £250,000 which is a substantial sum for any business and even standard models can cost in the region of £80,000. So, like any investment decision, buying a tractor will require a careful assessment of the improvements it is likely to bring to the business and how it will impact on the bottom line.

Tractor purchases can be made in the form of lease or HP arrangements that provide farm business with a more flexible way to purchase machinery they need. Even if the business has sufficient finance to purchase these machines outright it, asset finance can still offer flexibility and help protect funds for a rainy day.

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.

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.