Finance for startups

When too much business is a nightmare, not a dream!

Imagine a company that has recently launched and business is going well. So well in fact that they are way ahead of target. This should be a dream situation, but it can cause big problem. 

How do you service a wave of new customers when the business is set up to supply just a fraction of these numbers?

When cashflow is a problem

A tight cash flow situation can mean the difference between accepting a lucrative order or not.

It’s a bit of a chicken an egg situation. The cash comes after the order has been fulfilled, but you haven’t got the funds up front to produce the goods.

This is a frustrating scenario that may sound familiar to you. Here's how we solved it for an aircraft manufacturer.

Lower interest rates and higher credit lines = Expansion

“We’re running out of funders”.

“We’ve made losses in the past and the funders won’t give us the credit we need”.

“The interest rates we’re being charged by the funders are far too high”

These are typical comments we regularly hear from Vehicle Hire Companies.

In our experience there is always a reason behind these problems. When you get to the crux of the matter we find that in most cases a solution can be found. 

 

Good news for the UK van industry

Record six months for the sector 

In July we financed 12 light commercial vans, so  we were not surprised to see figures released by the Society of Motor Manufacturers and Traders (SMMT) that the new UK van market recorded its fifth consecutive month of growth in June, with registrations rising by 2.7% to 36,700 units. 

This is a record first six months for the sector, with overall demand in the year up 3.0% to 191,996 units.

Heavier vans  and pick-ups drove June's growth, with registrations up 11.3% and 17.3% respectively, while smaller vans weighing less than 2.0-tonnes were less popular, with demand falling by a fifth (-19.7%).

These figures mirror our activity. With over 20 funders, we’ve been able to help many vehicle rental companies gain the extra access to finance they need to sustain the growth of their business.

The secret can be revealed

We recently gained funding for a BMW i8 Hybrid Supercar, but were not able to reveal where it was going to be based or what it was going to be used for until now.

  BMW i8 Hybrid Supercar

BMW i8 Hybrid Supercar

If you are in and around Park Lane you may spot this beauty, branded for Bill Plant's driving schooI.

Yes it's a car for learners! To be equipped as such it went back to Germany to have unique dual controls fitted. Two weeks later it arrived back in the UK to take up residency in South West London.

If you are considering financing your next car give us a call on 01403 258934 or contact us.

Germany's CO2 emissions reduction at a slow crawl

Our observations on dieselgate rumble on!

A senior government official in Germany has declared all new car registrations must be for emissions-free models from 2030.

Rainer Baake, German Deputy Economy Minister, has said that new cars will have to be emissions-free to enable his country to meet its CO2 reduction target of at least 80% by 2050. “The fact is, there’s been no reduction at all in CO2 emissions by transport since 1990,” explained Baake at a forum hosted by German newspaper Tagesspiegel.

EU vote and the automtoive industry

The automotive industry is broadly in favour of the UK remaining in the European Union, according to a survey by Autocar of the main players in this country.

As the UK gets ready to vote on 23 June on whether to stay in or leave the EU, the general sense is that the car industry backs the Remain campaign. This is particularly the case for car manufacturers with owners based on the Continent or overseas and plugged into a European supply base and sales channels.

Emissions: the on-going scandal

In the papers over the weekend we read diesel cars are emitting up to 14 times more pollution than previously thought amid warnings that manufacturers have been misleading the public.

The first government analysis of cars conducted following the Volkswagen emissions scandal found that all vehicles substantially breached limits on levels of deadly nitrogen oxide.

Autonomous vehicles: are they the future?

Just recently we hear the Google's self-driving car has been in an accident.  There have been accidents reported in the past, but this is the first where Google’s autonomous vehicle and its driver were equally at fault with the other vehicle; a bus.  

Thankfully no one was hurt. It was a minor incident where the autonomous vehicle and its test driver incorrectly assumed that a bus would slow or stop to let the car through. Although Google has said that the accident was “a normal part of driving”, it adds fuel to the debate about control and the relationship between the driver and the car.

 

Two new members join our team

Hot on the tail or our most recent member to the team, Mick Bushby, we are delighted to announce a further two new members.

Andrew (Andy) Williams and Nathan Goddard both started their careers at Lloyds TSB.  It was within Lloyds Commercial Finance and Five Arrows Business Finance (Principal Investments), which is the corporate private equity business of Rothschild Merchant Banking, that their experience in Asset Finance was gained.

Interview with Henry Hemsley

Q. As we enter 2016 how do you see asset finance support for SMEs?

A. The asset finance industry is gearing itself up for 2016. We have seen an influx of new lenders and also private equity investment in existing funders. They are, with very little exception, looking to increase their lending to the right customers.

Asset finance is a great solution for an SME.  Providing monthly installments are paid on time, apart from a possible asset inspection during the term of the finance, you will not receive any interference from the finance company and no additional charges. You are left to get on with running your business.