September 28, 2011
Filed under: Small Business News — Alan @ 11:31 pm
Centric Commercial Future has issued a report saying that UK small to medium sized businesses are failing to take advantage of a lending gap which the Centre for Economics and Business Research is putting at around £30 billion.
Commercial finance, according to the report, is available to over 650,000 UK businesses. Commercial finance is a form of asset based lending which includes the discounting of invoices. By using this type of financing, companies are able to draw funds from machinery, stock and other company property. The trade body for the sector has said that the utilisation of this kind of lending is much lower than it could be.
The chief executive of Centric is John Onslow and he has commented, “The Bank of England said in their last Credit Condition Survey that there was a great difference between the amount of lending that was available to small businesses and the amount that they were actually taking advantage of. Many companies are not taking advantage of asset based lending and if they did so they might find that it could be very advantageous to them.”
Despite this general under-utilisation of asset based lending, the overall amount has increased since the start of the financial crisis. Since 2000 the amount of lending that has been asset based has doubled. Onslow also said that, “Asset based lending is a place that manufacturers can turn to if they have been turned down lending for another reason. This can be extremely useful if they need investment into the business but cannot find it elsewhere.”
Charles Davis, an economist has said, “This type of lending is a viable option for small and medium sized enterprises and if they are to use it then they will need to become well informed about how it works.”
September 27, 2011
Filed under: Business Finance — Alan @ 11:25 pm
Syscap, the IT finance provider, has said that government lending through the Government Enterprise Finance Guarantee scheme has greatly fallen off. Loan values from the government have fallen from over £720 million to over £430 million from the previous twelve months. Information on the latest quarter has indicated that the loan values are continuing to fall.
According to Syscap, the figure for the next year also look as if they will be disappointing and that the targets that have been set by the government are unlikely to be matched. £600 million has been allotted for lending in the next year but this will not be enough to meet targets.
Syscap argues that one of the reasons for the lack of lending is that the scheme does not including leasing finance. This is an important financing method for small to medium sized enterprises and its exclusion is a problem for them. Philip White is the chief executive for Syscap and has said, “Lending in the last two quarters is very disappointing and the Euro zone crisis is making businesses cautious. This means there is a great need for the government lending scheme and it needs to be made as effective as possible.
“Expanding the scheme to allow for lending for leasing would be a valuable step in ensuring that small businesses are able to create the jobs that are needed and give a boost to our economy.” The scheme currently means that 75% of loans that a small business takes the government will guarantee.
September 26, 2011
Filed under: Loans — Alan @ 10:36 pm
The manufacturers’ organisation EEF has recently announced that the lending situation for manufacturers in the UK has started to stabilise. Although there are improvements in lending, EEF has said that firms are paying for this by having increased costs. This is due to the fact that lending rates are remaining high and some are seeing increased rates on previous borrowing.
Lee Hopley is the chief economist at EEF and has said, “While we are seeing a movement in the right direction this is far from a perfect situation for borrowers. Firms are not expanding currently because of economic uncertainty and the fact that borrowing is remaining difficult is not helping matters.
The Independent Commission has recently advised the government to encourage more competition in the small business banking market and investigate the barriers that make it challenging for firms to switch their banks to find better deals.
The Confederation of British Industry has recently announced that manufacturers in the UK are readying themselves for a decline in business. A recent survey by the confederation has said that companies are not planning to expand but only invest in the replacement of current infrastructure rather than spending money on increasing capacity.
September 21, 2011
Filed under: Marketing — Alan @ 8:41 am
Sheryl Sandberg seems determined to do for Facebook the same as she did so successfully for Google. When she was at Google Sandberg was the VP of global online sales and operations, and was in a role that helped to build the company’s money spinning search and advertising business. Now that she is the Chief Operating Officer for the largest social network in the world she wants to do the same at Facebook.
She has a vision that the small businesses who joined the Google advertising program will spend big bucks advertising on the social network giant. The charge on advertising from Sandberg who is listed in the ‘Fortune 50’ as a D.C Powerbroker comes at a time when Facebook’s numbers have swelled to a mind blowing 750m, which represents an advertising bonanza.
Speaking in an interview at the Facebook headquarters where she is seated beside a graffiti style rendering of the co-founder Mark Zuckerberg, the 42 year old says that she believes that every small business should take advantage of the exposure they can get on Facebook. She added that she was not going to stop until they were all using to help their businesses grow.
Facebook will next week be unveiling a plan aimed at getting all small businesses hooked. The company are planning to offer free advertising credits of $50 to 200,000 small businesses. Facebook advertising works on a click system where a set rate is predetermined for each click, for example 5 or 25 cents. Everytime a person clicks on an ad the advertiser is charged the set amount.
Facebook will be picking up the tab for the first $50 worth of clicks on the ads who are part of its offer. While these may seem at first glance like small potatoes, it’s actually the core of a great advertising revenue strategy and could justify an enormous IPO.
September 20, 2011
Filed under: Business Finance — Alan @ 8:36 am
It seems that despite the promises the government made to end the oligopoly of big business as far as IT is concerned, they are still ignoring the SME’s. The government in the UK is doing less business with SME’s, small and medium sized enterprises, that is was just a few months ago, despite the promises that Francis Maude the cabinet minister made earlier this year.
A the first meeting of the working group known as the ‘New Suppliers to Government’, which the Cabinet Office put together, the members clearly highlighted that the aspirations of the government to place 25% of all its business with SME’s was in direct conflict with such projects as the Efficiency Review by Sir Philip Green, which is pushing for consolidation within the chain of supply.
Mark Taylor, who is the CEO of Surius as well as being the lead for the ‘New Suppliers to Government’ work group said that there were two competing factions within the government. One is the stated commitment by the Cabinet Office to get more involvement with SME’s, but the other tension within the government is pushing a different direction.
The Efficiency Review, which was published in October 2010, stated that the government would be able reduce its spending by taking such measures as squeezing its suppliers, becoming a single purchaser and finding consolidation in the supply chain.
Taylor says that the problem with this programme was that the number of people they bought from would be greatly reduced, thus giving smaller amounts of custom to a few large suppliers.
Taylor also added that this can often be an effective way of cutting costs through scaling down economies, it wasn’t appropriate in every sector. As far as IT goes, great innovations are coming from the smaller companies, and these can help the government to reduce expenditure through open source resources and agile technology.
September 17, 2011
Filed under: Small Business News — Alan @ 10:32 pm
More than 90% of all European businesses are SMEs and their role within the economy is often underestimated. SMEs contribute more than 50% of the value added tax generated by businesses in the EU. This sector has an important role in building the economy. Along with their main role in research and development and being responsible for economic growth, SMEs may be considered as the backbone of the economy.
According to the latest growth figures, the economy has slowed down between April and June and further growth could prove difficult if businesses do not make changes to their existing practices. While IT is seen as an ideal opportunity many are reluctant to embrace this and see the technology increasing capital costs and the retention of inherited IT systems.
This was the case in the past but with new developments in on-device and on-demand services like mobility and cloud computing, speedy ROI from technology is achievable by any business irrespective of its size.
SMEs must continue to streamline and evaluate their cost of operation wherever possible to ensure their business maintains its smooth running and efficiency. By employing strict control measures, SMEs can ensure maximum cash flow as well as maintaining the best return on their investment.
It is essential for SMEs to concentrate on four main spheres to increase their chances of success rather than merely surviving in the competitive business world. Besides continual examination and adjustments of operating costs, SMEs needs to remember the customer is of paramount importance and customer retention is vital in ensuring their survival.
SMEs must remain versatile and alert in changing market conditions. They should have the ability to respond to changes more quickly than larger companies. Finally the SMEs need to develop an infrastructure which will work in the future and support growth within the business.
September is a major time of year in the fashion world and some would say the most important month of the year. It is the time that stores are releasing their winter collections and the September catalogues are coming out which will indicate the seasons trends.
London fashion week will be occurring soon and will see some of the latest trends in women’s wear and well as a day showcasing the latest in men’s fashions. The exhibition will be at Somerset House which will be transformed into an exhibition with some 150 designers showcasing their latest outfits. There are many other venues all over London which will displaying outfits for the fashion week.
Jonathan Saunders is going to be one of the key people at the event as he has recently been named Scottish designer of the year. He will be sure to impress people at the shows with his collection of creative prints and clashing colours. Paul Smith will also be a great attraction with his oversized blazers.
Issa London is going to be a designer to watch as their signature dress is the very definition of glamour; the designer is also very popular with the Duchess of Cambridge. The line up by the brand is expected to include items in their style which utilizes silhouette dresses and vivid colours. If you are unable to get a ticket to the show, do not worry as there will be live streaming of the event all week.
Filed under: Business Finance — Alan @ 5:11 am
The FSB (Federation of Small Businesses) has recently said of the Independent Commission on Banking report that time is the most essential factor and its implementation should be rapid. This is a statement that is going to be of some encouragement to small businesses around the UK.
The FSB has said that the report should be put into practice, “as soon as possible.” John Walker is the chairman of the FSB and has said that the changes should be put into effect before the end of the current Parliament. His comments come from a survey that the FSB recently conducted that showed that the owners of small businesses think that the banking system needs to see reform.
Mr Walker has said, “Over 70% of the small businesses owners in the survey felt that more competition needed to be brought into the banking sector and of these all viewed it as essential for the future health of the entire sector. The reforms will see a safer and more secure banking system and the FSB urges the Chancellor to not make the reforms and less effective. All parties promised banking reforms before the election, now it is time for them to make this happen.”
September 13, 2011
Filed under: Legal — Alan @ 5:56 am
The HMRC, HM Revenues and Customs, are reminding both businesses and individuals about the new self-assessment penalties being brought in this autumn for late payments and returns. These changes will affect the self-assessment returns for the tax year 2010/11, and all future years.
The new penalties for returning your self-assessments late will be an initial fixed penalty of £100, and this will now also apply even if you owe no tax, or if you pay your tax on time. If you still have not sent in your return within a further 3 month period you will pay a daily penalty of £10, up to maximum of £900.
After 6 months, you will be liable to pay a further 5% of any tax due or £300, whichever is the greatest. After 12 months there will be another 5% or £300 payable, whichever is greater. In serious cases, they can actually penalise you by charging you 100% of your tax which is due.
The penalties for paying late differ from those for late returns. There are penalties after 30 days, 6 months and 12 months. These are all 5% of the tax that is going unpaid, and interest will also be charged. The deadline to get your tax return on by stays at 31st October for paper returns and 31st Jan for those who do it online.
If there is anything else you want to know about the new penalties, log on to twww.hmrc.gov.uk/sa/deadlines-penalties.htm. If you need and help or advice on completing your self-assessment tax return, you will find everything that you need to know by visiting www.hmrc.gov.uk/sa/
September 12, 2011
Filed under: General — Alan @ 10:23 pm
Global regulators have been called on by banks to adjust their plans for the closure of lending institutions who have failed. The banks have said that the current proposal doesn’t ensure cooperation between the regulatory bodies in the times of an international crisis.
The proposals, which were published in July have been criticised by the British Bankers’ Association for leaving to much scope for national regulators to just act in their own interests and this will come at the cost of overall stability.
The leaders of the worlds top 20 nations have asked the FSB to agree on how failing banks should be brought down in order to prevent more fall out than necessary to the rest of the financial system. There are two main options currently, one of which involves the sale of the banks assets. Another is for it to be dramatically scaled back in size and function as a smaller entity.
The new guidelines by the FSB require that banks will have to decide what should happen to them should they have a crisis. Angela Knight from the British Bankers’ Association has said, “The regulations need to be sufficient and clear and allow countries the time to implement measures.”
September 11, 2011
Filed under: Small Business News — Alan @ 7:20 am
The National Chairman of the FSA, or Federation of Small Businesses, has urged the Prime Minister not to water down the proposals that have been made for bank reforms. John Walker has written an open letter to David Cameron, urging him to carefully consider the findings in the ‘Independent Commission on Banking’ report, which is due to be published.
The report has pledged to reform both the structure and the regulation of the banking system, but Mr Walker believes that the Government many ignore the report’s recommendations, and make their decision based in the views of a small but influential group. The banking community has claimed that any reforms could have a detrimental effect on the already fragile economy, but a survey showed that 71% were in favour of action.
This survey was held amongst influential figures in the city and they feel that to take no action would be a big mistake on the Governments part. Mr Walker has commented on the rumours, saying that they had been promised a radical reform but it now appeared that, if they were lucky, they would get a ‘light’ touch regulation after 2015, and this simply wasn’t good enough.
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