Tag: Types Of Business Finance

Commercial Funding from Richmond Asset Finance

9th June 2021 / admin / Comments Off

Commercial Funding is a type of finance solution which is catered towards commercial enterprises rather than individuals. It can also be referred to as ‘Business Finance’ or ‘Business Funding’.

If a business is looking to expand without heavily impacting on cash flow, commercial funding could be a viable option. At Richmond Asset Finance, we have built long-term relationships with several providers. As a result, we can offer tailored financial solutions that suit companies’ specific requirements.

Through experience, our expert team can simplify the funding process. We can provide a bespoke service for each business because we work closely with companies to understand their needs and circumstances. We put our clients’ needs first to provide the best advice and the right type of funding.

Types Of Commercial Funding

There are several different types of commercial funding, each one has its own specifications, so it’s important for companies to choose one which works best for them. Commercial loans are more suited to large organisations.

The different types of commercial funding vary significantly. They are mainly split by whether or not they require security or collateral.

Commercial Loans

When it comes to commercial funding, a commercial loan is usually the simplest solution for companies. It works like most loans with a company making regular repayments of an agreed amount for a specified period of time. Interest rates and additional fees will also be agreed on.

Commercial loans are broken down into Secure and Insecure:

Secured Loans

Usually cheaper as the lender is taking a lower risk
Use company assets as security

Unsecured Loans

Generally more expensive
Ideal for companies which don’t have assets to use as security.

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.

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.

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.

How AIA Can Help You Finance Your Equipment

4th January 2019 / admin / Comments Off

As we start the new year many of us will have plans to expand our business or perhaps look at new products and services. This may not be possible, however, without the extra costs involved in purchasing new equipment, new software and so on.

This extra cost burden can be off putting but if you take advantage of the Annual Investment Allowance (AIA) did you know that you can offset your investment in equipment and technology against tax?

Better still you can offset 100% of the investment against your taxable business income so not only do you get to improve your business operation and innovate, you can also reduce your tax burden at the same time. The allowance was also recently increased from £200k to £1million.

If you are planning to take advantage of the AIA this year you can use asset finance to spread the cost rather than invest all the cash in your business up front. This multiplies the benefit to your business.

The AIA was originally introduced in 2008 and the recent increase from £200k to £1million is designed to help stimulate investment in business at a time when it will be needed more than ever in the UK.

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.

Types Of Business Finance You May Not Have Heard Of

20th November 2018 / admin / Comments Off

Your idea of business finance may be a trip to the bank to get a business loan and this is the route most SME business owners will go down. However, there are plenty of alternative sources of finance to explore including some of the following you may not be aware of.

Asset Finance
Asset finance is ideal for businesses that require expensive equipment but lack the funds to go and pay for all the equipment needed upfront. Asset finance can come in many forms from vehicle finance to finance on machinery. Asset finance is also flexible and can be arranged in the form of a lease or higher purchase (hp).

Invoice Financing
Did you know you can use your unpaid invoices to gain finance? You can use those invoices as collateral for loans or you can sell them to an invoice factoring company. This means you can get your hands-on cash in advance without having to wait for invoices to be paid. This is a great source of funding if you need cash in a hurry but with invoice financing you will still need to collect the invoice payments yourself.

Merchant cash advances
Another way to get your hands on some cash fast is to use a merchant cash advance. With this form of business finance, you receive a lump sum of cash up front and you won’t need to make a fixed payment each month. Finance can be paid back daily weekly or it can be paid out as a percentage of your sales from credit and debt cards. The downside is this type of finance can be more expensive than other options.