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.
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Economy
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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
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Economy
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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!
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Economy
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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.
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Business
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Economy
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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%.
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Economy
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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:
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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.
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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
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Economy
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May
17 Affordable business loans available now
The new coalition government have declared that supporting the growth of
small businesses should be a core priority. In addition, the appointment
of Vince Cable as Secretary of State for Business, Innovation and Skills
has been welcomed by a number of business organisations including the
FSB and British Chambers of Commerce.
Ensuring the flow of credit to business will be key in getting business
moving again and kick-starting the recovery, as will government moves to
reverse the proposed National Insurance rise and increase tax thresholds
for low earners.
Whilst many businesses have been struggling to obtain a loan through
traditional high street lenders, Yes
Business Loans continues to lend to all types of business for any
circumstance. Our position as brokers leaves us ideally placed to
service business loans with a number of lenders to choose from.
Reversing the recent decline in business
lending will take time for the new Government but in the meantime
Yes Business Loans are open for business. We welcome all enquiries so if
you are a business looking for any type of funding please get in touch.
Categories:
Business
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Economy
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May
14 Election result bad for business?
A hung parliament and no sign of a strong government emerging in the
near future is a cause for concern for many businesses. The pound,
weakened as a result of the election result, is the biggest worry for
many business owners.
Lack of action on the deficit could also cause markets to lose faith in
the economy and put the UK’s credit rating under pressure, making it
more difficult to obtain business loans at a sensible rate. This in turn
would put pressure on investment and jobs.
Whilst it had looked likely that a Conservative/Lib Dem coalition was on
the cards, the option favoured by many businesses, it has also emerged
that the Lib Dems have been having secret talks with senior Labour Party
figures. We hope for a swift resolution so that whoever is in power can
start tackling the economic problems as soon as possible.
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Business
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Economy
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May
10 One million more self employed workers during recession
Nearly one in four of all self-employed workers have been their own boss
for less than two years, according to research carried out on behalf of
Kensington.
The survey found that 24% of people self-employed have been so for less
than two years. The research also found there are 5 million
self-employed workers in the UK, this means that 1.2 million people have
started working for themselves since March 2008, during which period the
UK economy contracted for six consecutive quarters.
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Economy
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May
05 Average house prices predicted to rise 5% during 2010
UK average house prices will grow to be 5 per cent higher at the end of
2010 than at the beginning despite the sluggish start to the year. The
average mortgage rate is likely to fall from a current APR of around 4%
to about 3% by Q1 2011, say cebr.
This is a key finding from the latest Consumer and Housing prospects
report published by the centre for economics and business research
(cebr) – one of the country's economics consultancies and respected
commentators on the UK housing market.
Due to the sluggish growth, cebr also forecasts that base rates will
average 0.5% over the next 18 months and will only rise slowly
thereafter.
Categories:
Economy
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Apr
19 Business counts the cost of Volcanic Ash
The ongoing problems with the Volcanic Ash cloud have made much of
Europe a no-fly zone since last Thursday. The financial problems this
has wreaked upon the airlines is obvious but there are many other
businesses suffering financially as a result.
Many businesses which rely upon goods from overseas are unable to
receive delivery as normal. Companies which rely upon the airports for
business, such as airport transfers, now have no business at all. The
airports themselves, who employ thousands, are also receiving no
revenue, as are all of the businesses located within their perimeters
now that they are closed.
Many business leaders, not to mention critical employees, are stranded
overseas, unable to get back to the UK. It is estimated that up to 6.8m
people have so far been directly affected by the travel chaos across
Europe.
Categories:
Business
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Economy
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Apr
08 UK economy facing serious risks
A report from the British Chambers of Commerce shows that a UK upturn is
still on course, but the recovery is weak and the economy is facing
serious risks.
The Q1 results are positive for the service sector, with most service
balances now in positive territory and most showing improvements. The
manufacturing results are disappointing, with many key balances
worsening and still in negative territory. The Q1 manufacturing
employment balance recorded a large decline, and moved significantly
into negative territory. It is encouraging that most Q1 export balances
improved, and they remain relatively strong for manufacturing.
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Apr
06 Confidence in the housing markets hits two and a half year high
81% (or four out of five) of UK homeowners think that property prices
will continue to climb over the next six months, according to the latest
Housing Market Sentiment Survey from property website, Zoopla.co.uk.
Optimism around the housing market outlook is significantly improved
from just one year ago, when less than one third of homeowners (30%)
expected house prices to rise.
Categories:
Economy
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Mar
26 Inflation in the UK falls to 3%
In the year to February, the consumer prices index (CPI) rose by 3.0 per
cent, down from 3.5 per cent in January.
The largest downward contribution to this change in the CPI annual rate
came from recreation and culture where prices were largely unchanged
between January and February this year but rose by 1.1 per cent a year
ago.
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Economy
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Mar
17 Demand for property on the rise
In the three months to January, tenant demand for residential property
continued to rise, reveals the RICS residential lettings survey November
09 - January 2010
A net balance of 16% more surveyors reported a rise in demand for
property than a fall. Within this, there was greater demand for houses
than previously, with 27% more surveyors reporting a rise. This compares
with 23% in the previous quarter. Respondents reported that demand for
flats continued to edge up although at less than half the pace of that
for houses.
Categories:
Economy
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