Now more than ever, maintaining profitability is the goal of all businesses.
But with the day-to-day demands of running your company, it can be easier said than done. Knowing your business better, cutting costs, increasing efficiency and making your staff more productive all play a part.
Click here to see more on a video.
Click here to download a free trial of Microsoft's and find out more about how IT can save you money.
Source: Microsoft
www.ukba.co.uk
Showing posts with label asset finance. Show all posts
Showing posts with label asset finance. Show all posts
Monday, 30 March 2009
Friday, 27 March 2009
Small businesses are being hit by a steep rise in the cost of credit insurance taken out to cover bad debts
Many are finding they are unable to get cover at all.
Credit insurers have confirmed they are increasing premiums by up to 40% for clients who are renewing their contracts, and in some cases by much more. They are also refusing to provide cover for some operating in high-risk sectors such as retailing and construction and are turning away large numbers of new customers.
Credit insurance covers small firms for bad debts suffered if one of their business customers is unable to pay, usually because it has become insolvent. Without it, firms themselves are forced to take on the risk of customers not paying. If the amount owed is large and not paid, the business could be forced to close.
Shaun Purrington, regional director at Atradius, one of the biggest credit insurers in Britain, said: “It is fair to say that compared with six months or one year ago small businesses will find it more difficult to get credit insurance. I’m afraid that the appetite of credit insurers to write new policies has declined.
“Companies that come to us and ask for cover on firms [they wish to trade with] that are clearly in financial difficulties, or that are operating in very difficult sectors, will find it nearly impossible to get cover.”.....read more.
Source: TimesOnLine
www.ukba.co.uk
Credit insurers have confirmed they are increasing premiums by up to 40% for clients who are renewing their contracts, and in some cases by much more. They are also refusing to provide cover for some operating in high-risk sectors such as retailing and construction and are turning away large numbers of new customers.
Credit insurance covers small firms for bad debts suffered if one of their business customers is unable to pay, usually because it has become insolvent. Without it, firms themselves are forced to take on the risk of customers not paying. If the amount owed is large and not paid, the business could be forced to close.
Shaun Purrington, regional director at Atradius, one of the biggest credit insurers in Britain, said: “It is fair to say that compared with six months or one year ago small businesses will find it more difficult to get credit insurance. I’m afraid that the appetite of credit insurers to write new policies has declined.
“Companies that come to us and ask for cover on firms [they wish to trade with] that are clearly in financial difficulties, or that are operating in very difficult sectors, will find it nearly impossible to get cover.”.....read more.
Source: TimesOnLine
www.ukba.co.uk
Monday, 16 March 2009
European Investment Bank's €15bn fund for SMEs
In the current economic climate it is more important than ever to ensure that you are doing everything possible to increase your company's access to finance.
The European Investment Bank set up a €15bn fund in September, that the first UK banks signed up to in January, with the sole purpose of lending money to small and medium-sized firms at a discounted rate over the full term of the deal.
UK Banks signed up for the EIB's scheme include; The Royal Bank of Scotland/Natwest, Barclays Bank, Close Brothers, and most recently, Abbey. RBS is borrowing 250m, Barclays 150m and HBOS secured a 250m loan to lend to UK SMEs.
Any small and medium-sized business that employ less than 250 staff and have a viable business plan can apply to any of these banks for access to the EIB loan.
Find out more: click here.
www.ukba.co.uk
The European Investment Bank set up a €15bn fund in September, that the first UK banks signed up to in January, with the sole purpose of lending money to small and medium-sized firms at a discounted rate over the full term of the deal.
UK Banks signed up for the EIB's scheme include; The Royal Bank of Scotland/Natwest, Barclays Bank, Close Brothers, and most recently, Abbey. RBS is borrowing 250m, Barclays 150m and HBOS secured a 250m loan to lend to UK SMEs.
Any small and medium-sized business that employ less than 250 staff and have a viable business plan can apply to any of these banks for access to the EIB loan.
Find out more: click here.
www.ukba.co.uk
Sunday, 22 February 2009
Only One In 20 SMEs Confident Of Bank Lending
The number of business owners confident of being able to secure bank funding has plummeted from 73 to six per cent over the past year, according to a poll.
One in ten owners of small and medium-sized enterprises (SMEs) is turning to family and friends for cash, six times as many as 12 months ago, according to the survey of 505 business owners from asset-based lender Close Invoice Finance.
That implies that 540,000 businesses across the UK are borrowing from family and friends to keep afloat.
‘The relationship between banks and SMEs has collapsed, with severe repercussions for the sector as a whole,’ says David Thompson, CEO of Close Invoice Finance.
‘With banks now closing their doors to SMEs, owners are relying on friends and family for financial support, placing immense pressure on these most precious relationships,’ adds Thompson.
Last month the government set aside £10 billion to guarantee £20 billion of bank loans to businesses with sales of up to £500 million.
Source: http://www.growthbusiness.co.uk/news/business-news/996147/only-one-in-20-smes-confident-of-bank-lending.thtml
One in ten owners of small and medium-sized enterprises (SMEs) is turning to family and friends for cash, six times as many as 12 months ago, according to the survey of 505 business owners from asset-based lender Close Invoice Finance.
That implies that 540,000 businesses across the UK are borrowing from family and friends to keep afloat.
‘The relationship between banks and SMEs has collapsed, with severe repercussions for the sector as a whole,’ says David Thompson, CEO of Close Invoice Finance.
‘With banks now closing their doors to SMEs, owners are relying on friends and family for financial support, placing immense pressure on these most precious relationships,’ adds Thompson.
Last month the government set aside £10 billion to guarantee £20 billion of bank loans to businesses with sales of up to £500 million.
Source: http://www.growthbusiness.co.uk/news/business-news/996147/only-one-in-20-smes-confident-of-bank-lending.thtml
Tuesday, 17 February 2009
Survive the Downturn - Review Your Structure & Cost Base
Extract from ICAEW report: 8 Ways To Survive The Downturn
Find out how reviewing the structure of your business can help you survive the downturn and take advantage of the upturn when it comes.
Now is a good time to review the structure of your business critically. Do you have the right business model to see you through the recession and put you in the best possible position to take advantage of the upturn when it comes?
Current economic circumstances may present opportunities and allow you to make changes that were previously difficult or unpalatable. If you need to make savings, examine carefully how you can get the best value out of your business and enable your business to emerge leaner and fitter at the end of the recession.
Think long-term
Avoid making across-the-board or short-term cuts which may damage your business over the long term.
Focus on key areas and activities which are business critical for the future to ensure your business emerges in good shape from the recession. Are there activities you could stop? Is outsourcing, offshoring or relocation a possibility?
Consider spending cuts carefully
Consider carefully before cutting your spend in apparently ‘soft’ areas such as marketing, IT or corporate responsibility. Think about the value of expenditure not just its cost. For example, research shows that in a downturn the winners continue to invest in their brand and build their reputation and profile with their key stakeholders.
It has been well documented that ‘brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times’*.
Consider carefully which products and markets are most valuable to you. How can you reach these markets most effectively? Focus your activities and marketing investment to protect your most valuable markets and customers for the long term.
*John Quelch, Harvard Business School
Source ICAEW - full report can be downloaded by clicking here.
Find out how reviewing the structure of your business can help you survive the downturn and take advantage of the upturn when it comes.
Now is a good time to review the structure of your business critically. Do you have the right business model to see you through the recession and put you in the best possible position to take advantage of the upturn when it comes?
Current economic circumstances may present opportunities and allow you to make changes that were previously difficult or unpalatable. If you need to make savings, examine carefully how you can get the best value out of your business and enable your business to emerge leaner and fitter at the end of the recession.
Think long-term
Avoid making across-the-board or short-term cuts which may damage your business over the long term.
Focus on key areas and activities which are business critical for the future to ensure your business emerges in good shape from the recession. Are there activities you could stop? Is outsourcing, offshoring or relocation a possibility?
Consider spending cuts carefully
Consider carefully before cutting your spend in apparently ‘soft’ areas such as marketing, IT or corporate responsibility. Think about the value of expenditure not just its cost. For example, research shows that in a downturn the winners continue to invest in their brand and build their reputation and profile with their key stakeholders.
It has been well documented that ‘brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times’*.
Consider carefully which products and markets are most valuable to you. How can you reach these markets most effectively? Focus your activities and marketing investment to protect your most valuable markets and customers for the long term.
*John Quelch, Harvard Business School
Source ICAEW - full report can be downloaded by clicking here.
Monday, 16 February 2009
Survive the Downturn - Secure Your Funding
Extract from ICAEW report: 8 Ways To Survive The Downturn
Find out how reviewing requirements and exploring new sources of funding can help your business survive the downturn.
As the future becomes more uncertain, it is difficult to predict sales, profits and cash flows.
There is greater risk and the banks are likely to take a cautious approach to renewing facilities.
Review your funding requirements
It is essential that you regularly review your funding requirements over the next 12 months and beyond.
If you have a term loan or overdraft, be aware of any covenants or other conditions and constantly monitor how close you are to breaching them.
Prepare thoroughly if a review is coming up of any of your financing facilities.
Have contingency plans in place
If limits might be threatened ’think the unthinkable‘ and have contingency plans in place, such as the sale of assets.
When re-negotiating overdraft and loan facilities, be aware that banks are taking different approaches to interest rates, fees and charges. You may also be asked to give a higher level of security or a personal guarantee.
Explore different sources of finance
Make sure that you fully consider all types and sources of finance such as asset finance and invoice factoring and discounting. You might need new sources of finance if negotiations with your current providers prove difficult.
It is worth investing time talking to people about new sources of finance. Are there any funds available from the Government or local agencies?
These are unprecedented times and some larger businesses are offering their suppliers finance to maintain an increased supply of goods, so it’s worth exploring all your options.
Source ICAEW - full report can be downloaded by clicking here.
Find out how reviewing requirements and exploring new sources of funding can help your business survive the downturn.
As the future becomes more uncertain, it is difficult to predict sales, profits and cash flows.
There is greater risk and the banks are likely to take a cautious approach to renewing facilities.
Review your funding requirements
It is essential that you regularly review your funding requirements over the next 12 months and beyond.
If you have a term loan or overdraft, be aware of any covenants or other conditions and constantly monitor how close you are to breaching them.
Prepare thoroughly if a review is coming up of any of your financing facilities.
Have contingency plans in place
If limits might be threatened ’think the unthinkable‘ and have contingency plans in place, such as the sale of assets.
When re-negotiating overdraft and loan facilities, be aware that banks are taking different approaches to interest rates, fees and charges. You may also be asked to give a higher level of security or a personal guarantee.
Explore different sources of finance
Make sure that you fully consider all types and sources of finance such as asset finance and invoice factoring and discounting. You might need new sources of finance if negotiations with your current providers prove difficult.
It is worth investing time talking to people about new sources of finance. Are there any funds available from the Government or local agencies?
These are unprecedented times and some larger businesses are offering their suppliers finance to maintain an increased supply of goods, so it’s worth exploring all your options.
Source ICAEW - full report can be downloaded by clicking here.
Sunday, 15 February 2009
Survive the Downturn - Think Cash
Extract from ICAEW report: 8 Ways To Survive The Downturn
Find out how managing cash flow and access to capital and funding can help you survive the downturn.
Managing cash flow and access to capital and funding are critical to all businesses – more so in difficult times.
It is important to keep updating your cash flow forecasts and examine your debt cycles, stock and overhead levels and working capital.
Be proactive
Be proactive in managing your cash. Put cash flow and financing on the agenda for every management meeting.
Consider what you can do to improve your sales in a declining market:
* Can you reduce your stock levels quickly to boost cash?
* How reliant are you on your major customers and suppliers?
* How robust are your credit control procedures?
* If you are ’cash rich‘ do you need to conserve this cash or could you use surplus cash for the longer term benefit of the business?
Minimise your tax liabilities
It’s more important than ever to minimise your tax liabilities where possible and ensure that you are paying the correct amount of tax. Make sure all capital allowances and expenses have been claimed. Are you taking maximum benefit for all losses?
If you have difficulties making your tax payments, talk to HMRC before they become due; it may be possible to agree repayment deals without suffering any surcharges for late payment.
Talk to your financiers
It is vital that you talk to your current financiers before you get into difficulties. If you delay telling your finance providers about changes in your circumstances, they will lose trust in your future forecasts.
Source ICAEW - full report can be downloaded by clicking here.
Find out how managing cash flow and access to capital and funding can help you survive the downturn.
Managing cash flow and access to capital and funding are critical to all businesses – more so in difficult times.
It is important to keep updating your cash flow forecasts and examine your debt cycles, stock and overhead levels and working capital.
Be proactive
Be proactive in managing your cash. Put cash flow and financing on the agenda for every management meeting.
Consider what you can do to improve your sales in a declining market:
* Can you reduce your stock levels quickly to boost cash?
* How reliant are you on your major customers and suppliers?
* How robust are your credit control procedures?
* If you are ’cash rich‘ do you need to conserve this cash or could you use surplus cash for the longer term benefit of the business?
Minimise your tax liabilities
It’s more important than ever to minimise your tax liabilities where possible and ensure that you are paying the correct amount of tax. Make sure all capital allowances and expenses have been claimed. Are you taking maximum benefit for all losses?
If you have difficulties making your tax payments, talk to HMRC before they become due; it may be possible to agree repayment deals without suffering any surcharges for late payment.
Talk to your financiers
It is vital that you talk to your current financiers before you get into difficulties. If you delay telling your finance providers about changes in your circumstances, they will lose trust in your future forecasts.
Source ICAEW - full report can be downloaded by clicking here.
Sunday, 1 February 2009
Cashflow forecasts
A cashflow forecast is an essential management tool. You need to know what monies are owed to you at any one time and when payment is likely to be received. You then need to know what bills you have to pay and when – and reconcile the two to make sure you have enough cash to meet your outgoings.
“What we often find is that businesses come in asking to extend their overdraft facility because they are not being paid on time or they have suffered a bad debt. Often they leave this until the last minute – when they need the money rather than arranging an adequate facility well in advance. The reason why they are in this situation is usually because they don’t have an adequate cashflow forecast – or any at all. If you cannot prepare one of these yourself, ask your business advisor.”
Mike Ford, Senior Business Manager, North Staffordshire Business Centre.
Calculate the worst case scenario in terms of cashflow – and that is the facility you should be trying to arrange.
Also look at ways of reducing your need to borrow such as:
• Reviewing who you are extending credit to – and how much credit you are extending to each customer
• Reviewing how long you are allowing your customers to pay you – and seeing if this can be shortened
• Negotiating longer payment terms yourself – so you have longer to pay
Financing cashflow: the options
• Overdrafts: Ideal for day-to-day cashflow needs – but you may need to consider other options if you are near your limit, cannot arrange a larger facility, or want to reduce the monthly cost or free up your facility for working capital.
• Loans: These spread the cost of borrowing over a longer period – consider putting the element of your overdraft that is “solid debt” into a loan to free up your working capital.
• Invoice discounting: This will release cashflow more quickly. Invoice Finance can give you up to 90% of the invoice value when it’s issued, and the rest (less fees) when it is paid. It can provide bad debt protection too as the invoice discounter can assess your customers and set credit limits for each of them. If a customer becomes formally insolvent, you will be paid 100% of what is owed provided you trade within these limits.
• Asset financing/leasing: This can release cashflow tied up in depreciating assets such as company cars, computers and machinery and equipment. The finance is secured on the asset itself, freeing up your other security (often your property) to secure and raise other forms of finance. Installation, maintenance, servicing and insurance can all be included, making your life easier.
For free business planning software - click here.
For a free business plan template, click here.
For a free cash flow template, click here.
[Extract from Trading Through The Economic Downturn - published by NatWest - full Guide available by clicking here]
http://www.ukba.co.uk
“What we often find is that businesses come in asking to extend their overdraft facility because they are not being paid on time or they have suffered a bad debt. Often they leave this until the last minute – when they need the money rather than arranging an adequate facility well in advance. The reason why they are in this situation is usually because they don’t have an adequate cashflow forecast – or any at all. If you cannot prepare one of these yourself, ask your business advisor.”
Mike Ford, Senior Business Manager, North Staffordshire Business Centre.
Calculate the worst case scenario in terms of cashflow – and that is the facility you should be trying to arrange.
Also look at ways of reducing your need to borrow such as:
• Reviewing who you are extending credit to – and how much credit you are extending to each customer
• Reviewing how long you are allowing your customers to pay you – and seeing if this can be shortened
• Negotiating longer payment terms yourself – so you have longer to pay
Financing cashflow: the options
• Overdrafts: Ideal for day-to-day cashflow needs – but you may need to consider other options if you are near your limit, cannot arrange a larger facility, or want to reduce the monthly cost or free up your facility for working capital.
• Loans: These spread the cost of borrowing over a longer period – consider putting the element of your overdraft that is “solid debt” into a loan to free up your working capital.
• Invoice discounting: This will release cashflow more quickly. Invoice Finance can give you up to 90% of the invoice value when it’s issued, and the rest (less fees) when it is paid. It can provide bad debt protection too as the invoice discounter can assess your customers and set credit limits for each of them. If a customer becomes formally insolvent, you will be paid 100% of what is owed provided you trade within these limits.
• Asset financing/leasing: This can release cashflow tied up in depreciating assets such as company cars, computers and machinery and equipment. The finance is secured on the asset itself, freeing up your other security (often your property) to secure and raise other forms of finance. Installation, maintenance, servicing and insurance can all be included, making your life easier.
For free business planning software - click here.
For a free business plan template, click here.
For a free cash flow template, click here.
[Extract from Trading Through The Economic Downturn - published by NatWest - full Guide available by clicking here]
http://www.ukba.co.uk
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