Aug
06 Banks warned again as they prepare to announce big profits

We wrote recently in our blog post “Banks to be pressured to increase business lending” how the Business Secretary, Vince Cable, was putting pressure on the banks to do more to lend to businesses. This pressure looks set to increase massively as the Chancellor, George Osborne, has joined the call with many banks set to report their profits shortly.

Mr Osborne has told the banks it is their “economic responsibility” to increase lending and also to curb what are seen as excessive bonuses with strong profits expected to be announced at many banks this week. It is thought that all of the banks will confirm that they are now back “in the black”. HSBC, the first to report, have confirmed profits of £7billion in the first six months this year!

In response the banks are putting their case to the government to show how lending has improved and that the majority of businesses who want finance are able to get it. Their argument is that many businesses are focusing on repaying existing debt and tightening their belts in these difficult times rather than taking on extra borrowing. They also say that new regulations make the process more difficult for them.

Many businesses have a different story to tell, with banks who were previously falling over themselves to lend money in the boom years now disinterested and making it near impossible to get a business loan at affordable rates.

The true state of the business lending market is probably somewhere in between. Business loans are available but, like the personal lending market, mainstream lenders are extremely cautious and want only the cleanest of applicants with almost cast-iron guarantees of repayment. For everyone else utilising the services of a business loan broker such as Yes Business Loans may be the best answer.

Categories: Business , Economy , Financial

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Jul
29 Banks to be pressured to increase business lending

Vince Cable, the government Business Secretary, has warned banks that they are not acting in the national interest, failing to increase lending to businesses. The banks argue that there are loans available but many cautious business owners are not applying.

Mr. Cable has made it clear that the government are currently monitoring the situation and if it does not improve sufficiently in the near future more bank regulation may be needed. This may be in the form of bonus restrictions or loan guarantee schemes.

Mr. Cable is looking into a range of measures to improve the flow of cash to businesses. However many business owners do not want to take out business loans where the high rates of interest make it difficult for them to afford repayments. Perhaps the business secretary should be pressing for banks to reduce rates offered to customers first.

Finding the best rate business loans could save your business money each and every month. Whilst high street banks insist they are lending to businesses it is certainly at a price and many business owners would be better looking at an independent business loan broker who have access to multiple lenders to secure the best deals.

A quick enquiry to them will show you whether they can offer you a better rate than your bank. They are also useful if your business has had credit problems in the past or been turned down elsewhere. By utilising a broker you have access to specialist lenders looking for your type of business.

Categories: Business , Economy , Financial

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Jul
15 More businesses relying on credit cards

A recent survey from the Scottish Government suggests that around one third of Scotland’s small businesses are relying upon credit cards to keep their business going. Most are using corporate credit cards but some are using their own personal credit cards. Either option is likely to attract extremely high interest rates if the full amount is not paid off at the end of the month.

Many businesses that have approached their banks for funding have been turned down. Whilst business lending from banks has improved since 2008, at the height of the financial crisis, it is still difficult to get a business loan from a traditional high street lender.

Another option for businesses is to approach a broker, such as ourselves, who have access to a number of different lenders. Each lender has its own acceptance criteria and if one cannot help your business it is very likely that another will.

We keep abreast of all of the latest business loan rates and plans to enable us to quickly fit a loan to your individual circumstances. We can guide you through the application procedure and help with paperwork and other requirements from lenders.

Already been offered a business loan? Still get in touch with us to see if we can offer you a better rate. A few pounds per month saving can add up over the course of your loan term and it’s better the money is in your pocket rather than the banks!

Categories: Business , Economy , Financial

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Jul
07 Any purpose business loans

We deal with all types of businesses and can provide business loans and finance for a variety of reasons. Some typical examples of our any purpose business loans are as follows:

1. New equipment

As technology advances new equipment becomes available which may improve the efficiency of your business. As the years go by your old equipment wears out or breaks. In either of these situations a loan for new equipment would help your business.

2. Refurbishment

Offices, shops, pubs and restaurants will from time-to-time require “doing up”. Business loans for refurbishing your property are available.

3. Property purchase

If you want to buy a property to house your business loans are available to fund buying the property in question.

4. Buying a new business

If you wish to buy a business that is already trading there will be a cost involved. We can help you fund buying a business.

5. Bridging Loans

You might have a property on the market and are awaiting sale and you need to release the cash tied up in it, you may need to move quickly in the property market or have had a last minute hitch, or bought a property at auction and only have 14 days to complete.

These are just some of the ways we can help you with business finance. Whatever you need money for, contact Yes Business Loans – we are here to help your business.

Categories: Business , Financial

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Jul
02 G20 leaders welcome UK budget actions

Leaders of the world's major economies are committed to halving their deficits by 2013. The actions taken in last week’s emergency budget by the UK Chancellor, George Osborne, have been welcomed by the G20 leaders at their summit in Canada.

With the UK having one of the largest deficits the need to take action early was imperative, confirmed by David Cameron in his press conference at the end of the summit - "For some people, particularly countries like Britain with the biggest budget deficit in the G20, that action has to be fiscally consolidated, it has to be sorting out our debts and our deficit so we get confidence in our economy."

The “tough but fair” budget measures have meant tax rises and spending cuts on a significant scale. These have been opposed by the Labour opposition as too much, too soon. Only time will tell.

For businesses, those dealing with the public sector could be worst hit as spending is set to be slashed by up to 25% in many departments. This will have a knock on effect on suppliers. Other business measures in the budget were generally welcomed by the business community as they could have been a lot, lot worse.

Business loans were unaffected by the budget and signs of recovery in the market continue with more lenders and money available.

Categories: Business , Economy , Financial

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Jun
28 Housing market receives boost due to scrapping of HIPs

The 2010 RICS Housing Market Survey headline net price balance for May increased from +19 to +22.

This is it's best level since January, buyer interest also continued to increase during the month. The new enquiries net balance edged up from +9 to +10. More significantly, the abolition of HIPs has resulted in a sharp increase in new instructions, with the net balance jumping from +11 to +21. This trend should also continue in the near future.

In response to a specific question, 73% of surveyors said that they expected the decision on HIPs to lead to a much higher level of new instructions with the increase in supply anticipated to be around 15%.

Categories: Economy , Financial

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Jun
14 Highest stock levels since Jan 08 due to increased seller confidence

According to FindaProperty.com the number of properties for sale in the UK has risen for the fifth month in a row, with stock levels now 145% higher than in January 2008.

Their research also shows that the scrapping of HIPs and worries over changes to Capital Gains Tax have convinced would be sellers to market their properties. Despite the increase in the number of property for sale, prices have also risen in June. The average home in the UK is now priced at £220,308, up 0.3% when compared to May (£219,748).

Categories: Economy , Financial

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Jun
02 Housing market gets boost with the removal of HIPs

The latest Agency Express Property Activity Index shows a massive boost for the UK housing market last month with the abolition of Home Information Packs (HIPs) which contributed to a significant increase in housing activity.

Ther was a 13.6% increase in the number of homes being put up 'For Sale' in May which was up a massive 89.4% on April 2009's level. It's the highest level seen for more than two years (since April 2008).

The number of properties Sold also increased in May by 8.6% on April and 17.0% up on May 2009. May's sales were the third highest monthly level since April 2008.

Categories: Economy

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May
24 Business investment rises 6% in first quarter 2010

Figures from the Office for National Statistics show that business investment for the first quarter 2010 is up 6% over the previous quarter. Whilst this is good news, the figure is still 11% lower than the same period last year. So we won’t get too carried away!

The 6% rise indicates an increase in business confidence, albeit small, and backs up our view that business lending is now becoming more available. The business friendly measures announced by the Government recently should further increase business confidence and continue the growth in business investment.

Hopefully the forthcoming budget will cement the pro-business view of the government and continue the rise in confidence and investment.

Is your business looking to invest? Say Yes to a business loan from Yes Business Loans. All types of businesses catered for and competitive rates and terms can be obtained for the majority of loan requests put to us.

Categories: Business , Economy , Financial

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May
19 Business awaits first coalition budget

The newly formed independent Office for Budget Responsibility will in future publish economic and fiscal forecasts in advance of the budget, rather than the government. These won’t be binding upon the Chancellor of the day but will be difficult to ignore politically.

The “emergency budget” of the new coalition government will take place on Tuesday 22nd June. In advance of this the government is expected to reveal how it will save £6bn this year in spending cuts.

Critics argue that cuts should be delayed due to the fragile nature of the economic recovery so far. However the Government looks set to press ahead straight away to reduce the colossal deficit of around £166bn.

Many economists are predicting a rise in VAT from the current 17.5%. This could rise as high as 20%, although the increase may be delayed for retailers to cope with the complicated changes needed to their infrastructure. A 20% rate of VAT could raise as much as £11.5bn a year for the Treasury.

There is also expected to be news on Capital Gains Tax (CGT) with some form of rise in the offing. Full details are not yet known although the rate for business assets is likely to stay lower than for personal assets, protecting perceived entrepreneurship.

Categories: Business , Economy , Financial

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