tag:blogger.com,1999:blog-1906010032639060962024-03-19T17:36:27.954+00:00Fiducia BlogFiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.comBlogger68125tag:blogger.com,1999:blog-190601003263906096.post-24642380209019920822022-02-27T07:04:00.002+00:002022-02-27T07:04:48.153+00:00Commercial Mortgages Are More Than Meet The Eye – Literally!<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgUjfpKFQ9YjH5EVMI9o-Y9TAe0c0xVb8B1DlARYCDeOWgxp5YwjBVKMakJWdnVQmo1MhSi6N-d4uXsM1bgC5oohuOlga5Nl96umfJ3RLAzwSBlGI6uvQhvirG6CTKz1Dic8DUaAjlrlV5jGN2iPomIqD9xddnIAbZtsp5x6GLaYvqyOQa9pUddzreF=s640" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="426" data-original-width="640" height="213" src="https://blogger.googleusercontent.com/img/a/AVvXsEgUjfpKFQ9YjH5EVMI9o-Y9TAe0c0xVb8B1DlARYCDeOWgxp5YwjBVKMakJWdnVQmo1MhSi6N-d4uXsM1bgC5oohuOlga5Nl96umfJ3RLAzwSBlGI6uvQhvirG6CTKz1Dic8DUaAjlrlV5jGN2iPomIqD9xddnIAbZtsp5x6GLaYvqyOQa9pUddzreF=s320" width="320" /></a></div><br /><p></p><p class="MsoNormal"><span lang="EN-US">The term ‘commercial mortgages’ is a
wrapper for number of different property related finance products. As a
business we use it to describe a large amount of the work that we do for
clients – and the industry commonly uses this terminology.</span></p><p class="MsoNormal"><span lang="EN-US">The trouble with a single header for
multiple products – all of which are quite different in the requirements that
they meet – is that in the end the header becomes a bit like an acronym – and
you can’t remember what it actually means!</span></p><p class="MsoNormal"><b><span lang="EN-US">It
can be confusing that when we say ‘mortgages’ we are actually also including
short-term finance products; in this sense ‘mortgages’ refers to the fact that
all of these products are all secured on property.</span></b></p><p class="MsoNormal"><span lang="EN-US">So when Fiducia Commercial Solutions says
‘commercial mortgages’ what do we actually mean? And who can use them? Oh, and
what are they?</span></p><p class="MsoNormal"><b><span lang="EN-US" style="font-size: 14.0pt; mso-bidi-font-size: 12.0pt;">Commercial Mortgages:</span></b></p><p class="MsoNormal"><span lang="EN-US">Commercial mortgages are used to fund the
purchase, or refinance of, commercial, semi-commercial or residential
properties – and as we explain below the funding reason can be both to occupy
the building, and as an investment.</span></p><p class="MsoNormal"><span lang="EN-US">In general terms there are 3 main uses for
commercial mortgages:</span></p><p class="MsoListParagraph" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Owner-Occupier</b></span><span lang="EN-US">: The purchase or
refinance of the property where your company is currently trading, or the
purchase of a new property to move to and trade from</span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Commercial Investment</b></span><span lang="EN-US">: The purchase or
refinance of commercial or semi-commercial property that will be rented to
another company to trade from – essentially a commercial Buy-To-Let investment</span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Residential Buy To Let</b></span><span lang="EN-US">: An individual or
a limited company (‘SPV’ or Special Purpose Vehicle) can purchase residential
property to let as an investment, and professional landlords / Buy-To-Let
limited companies use these mortgages for the same purposes</span></li></ul><!--[if !supportLists]--><p></p><p class="MsoNormal"><span lang="EN-US">In case you were wondering, residential
properties are all part of the day job for Commercial Finance brokers! Just
wanted to throw that out there – as it does seem a bit of an oxymoron!</span></p><p class="MsoNormal"><b><span lang="EN-US">Easy
assumption is that all we would look at is commercial buildings – shops,
offices, pubs, restaurants, factories etc. But the ‘commercial’ applies to the
purpose, not the property.</span></b></p><p class="MsoNormal"><span lang="EN-US">Commercial mortgages are, just like residential
consumer mortgages, available with fixed or variable interest rates over a
range of years, and the amount that you can borrow is set as a ‘Loan To Value’
(LTV) percentage of the property value.</span></p><p class="MsoNormal"><span lang="EN-US">Existing property holdings with equity
value in them may be considered towards the deposit by some lenders as security.</span></p><p class="MsoNormal"><b><span lang="EN-US">Affordability,
Affordability, Affordability!</span></b></p><p class="MsoNormal"><span lang="EN-US">The amount that you will be expected to
have a deposit can vary according to different factors, including:<o:p></o:p></span></p><p class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo2; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>If you are a commercial
owner-occupier: the sector that you are in / your company’s recent financial
performance / they type of property you are financing<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>If you are a commercial
investor: the type of property you are financing / the sector that your tenants
are in / the amount of revenue generated from the lease/s<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>If you are a residential
investor: commonly come with a higher LTV than commercial property;
affordability driven by valuer’s confirmation of the achievable market rent,
which is stress tested against mortgage payments</span></li></ul><!--[if !supportLists]--><p></p><p class="MsoNormal"><span lang="EN-US">We want to cut through the acronyms and
smoke and mirrors to show that far from being some sort of ‘dark arts’, lenders
use the same process to evaluate your business as we all might do our own
personal finances.</span></p><p class="MsoNormal"><span lang="EN-US">With investment mortgages the maths is
relatively straightforward; you will have a commercial lease or residential
tenancy agreement in place with your tenant and the lender will ‘stress’ your
mortgage with simulations of interest rate rises to ensure that even if rates
were to rise from their current levels then the rental income still makes the
mortgage payments affordable.</span></p><p class="MsoNormal"><b><span lang="EN-US">Commercial
Mortgages for trading businesses have far more moving parts, as affordability
is based on the future trading performance of the business.</span></b></p><p class="MsoNormal"><b><span lang="EN-US">In
the absence of a crystal ball the lender has to use past performance as a guide
to whether your business can service the mortgage moving forward.</span></b></p><p class="MsoNormal"><span lang="EN-US">Again we can draw a similarity here with a
personal mortgage application – your prospective lender would want to know all
about your income, together with the other debt and outgoings that you have to
service regularly. From this they will derive how much ‘headroom’ you have in
your finances to be able to afford the mortgage.</span></p><p class="MsoNormal"><b><span lang="EN-US" style="font-size: 14.0pt; mso-bidi-font-size: 12.0pt;">Bridging Finance:</span></b></p><p class="MsoNormal"><span lang="EN-US">This effectively does what the name
suggests – bridges the gap from one point to another in a financial sense, and
are a short-term property finance product, between 3-24 months in term, but the
‘common’ term is 12 months.</span></p><p class="MsoNormal"><span lang="EN-US">At the end of the loan the ‘exit’ from the
loan for your company is the repayment of the loan from the disposal of the
property, or ‘re-financing the bridge’ with a long-term finance product.</span></p><p class="MsoNormal"><span lang="EN-US">Bridging loans can provide a quick route to
property purchase, and are commonly used to purchase property at auction and
for circumstances when the normal conveyancing cycle would take too long to
complete the purchase in the required time frame.</span></p><p class="MsoNormal"><span lang="EN-US">Bridging is a means to refurbish commercial
or residential property, or funds to develop property – from light / cosmetic
refurbishment of existing structures to ground up development of land.</span></p><p class="MsoNormal"><b><span lang="EN-US">‘Just’
for property transactions? Well, no.</span></b></p><p class="MsoNormal"><b><span lang="EN-US">Bridging
is of course based on property as the security for the loan, but the business
reason could be to release equity from a property already held by a business or
director. Therefore it could be said that bridging finance is a cash flow tool
for raising working capital too.</span></b></p><p class="MsoNormal"><span lang="EN-US">Given the specialist and short-term nature
of bridging loans, interest rates can be higher than traditional commercial mortgages.</span></p><p class="MsoNormal"><b><span lang="EN-US" style="font-size: 14.0pt; mso-bidi-font-size: 12.0pt;">Development Finance</span></b><span lang="EN-US" style="font-size: 14.0pt; mso-bidi-font-size: 12.0pt;">:</span></p><p class="MsoNormal"><span lang="EN-US">On the surface a complex area of finance –
but you can start to lift the lid on its application for you and your business
by looking at the amount of structural work that is required on your project.</span></p><p class="MsoNormal"><span lang="EN-US">Finance terms that are available to you
vary according to:<o:p></o:p></span></p><p class="MsoListParagraphCxSpFirst" style="mso-list: l3 level1 lfo3; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>the initial value of the
property / land (Purchase Price)<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>the costs and fees associated
with the development work (Cost Of Works)<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>the projected value of the completed
development (Gross Development Value)<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>your previous experience of
development</span></li></ul><!--[if !supportLists]--><p></p><p class="MsoNormal"><span lang="EN-US">Commonly used terms for variants of
development:<o:p></o:p></span></p><p class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo4; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Light Refurbishment</b></span><span lang="EN-US">: Cosmetic
refurbishment with no structural changes. Includes: Kitchens, Bathrooms,
Windows, Doors, Decoration and modernisation<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Heavy Refurbishment</b></span><span lang="EN-US">: Contains cosmetic
work, but usually renovation work including structural changes (internal walls)
or changes to the footprint of the property<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Ground Up Development</b></span><span lang="EN-US">: Commonly starts
from vacant land, can include demolition and rebuild projects</span></li></ul><!--[if !supportLists]--><p></p><p class="MsoNormal"><span lang="EN-US">Lenders are likely to look for projects
where planning permission is already granted, even if you might vary that once
you have acquired the site.<o:p></o:p></span></p><p class="MsoNormal"><span lang="EN-US"> </span></p><p class="MsoNormal"><span lang="EN-US">So
it is worth your knowing that ‘commercial mortgages’ isn’t a header for a
single product – and there is no ‘one size fits all’ solution.</span></p><p class="MsoNormal"><span lang="EN-US">But
that is where a commercial finance broker can add so much value to you – we can
listen to your full requirements and match you with the most suitable lender
and product from our large ‘whole of market’ panel of lenders.</span></p><p class="MsoNormal"><b><span lang="EN-US">We
do the legwork so that you don’t have to – how do you want to put the roof over
your business or investment?</span></b></p><p class="MsoNormal"><b>Mark Grant, February 2022.</b></p><p>
<span class="MsoHyperlink"><span lang="EN-US" style="font-family: Cambria, serif; font-size: 12pt;"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></span><b><span lang="EN-US" style="font-family: "Cambria",serif; font-size: 12.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "MS Mincho"; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-fareast; mso-hansi-theme-font: minor-latin;"></span></b></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-42750991833919346672022-02-19T08:06:00.002+00:002022-02-19T08:06:15.004+00:00Funding Your Business - From ‘Cradle to Grave’..<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhNOk_zFSJbSn4OJW-8_JUZraNDyvDE97rAXxuVG_2flHGQWEv6h_pQCr7WQgreayHJuIAy3WvbEmbrCIxzuTxjNqLv_-x8z2V7IwtwVqY1ksVcVSCieuV30RIORXyDJC78TGstIXOaczIFndp7NsKwP9Jgn44xbSGL_yCAoPi1TSsJ-Rr3n1renCyV=s640" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="426" data-original-width="640" height="213" src="https://blogger.googleusercontent.com/img/a/AVvXsEhNOk_zFSJbSn4OJW-8_JUZraNDyvDE97rAXxuVG_2flHGQWEv6h_pQCr7WQgreayHJuIAy3WvbEmbrCIxzuTxjNqLv_-x8z2V7IwtwVqY1ksVcVSCieuV30RIORXyDJC78TGstIXOaczIFndp7NsKwP9Jgn44xbSGL_yCAoPi1TSsJ-Rr3n1renCyV=s320" width="320" /></a></div><p></p><p></p><p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></p><p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">I’m not on this occasion talking about funding premises for an
early years’ childcare business, or a 30 bed elderly care home – but if you are
looking for that then my e-mail is at the foot of this Blog!</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A lot of companies start their trading process with either an
order from a client that they have to fulfil or having to ‘stock up’ on the
goods that they sell, because customers will expect a quick delivery after they
make a purchase.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Depending on the nature of their business, companies will either
buy raw materials that they manufacture or assemble to create finished and
saleable goods, or they will purchase ‘finished goods’ from a manufacturer or
supplier – packaged and ready for delivery to their customers.</span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">At this initial stage of their process how they fund the purchase
of goods or materials has to be thought through, in combination with how they
will get paid when they sell to their customers; therein lies the analogy of
‘cradle to grave’ in terms of a company’s trading process.</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trade Finance can be used to fit a wide range of business types:<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Purchase raw
materials or finished goods<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trade can be
with UK based companies as well as overseas<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Commonly
Trade Finance lenders are also experts in FX<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Goods can be
pre-sold, or to provide a stock for sale</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your business can improve prices and
terms from having the backing of a Trade Finance facility and being able to pay
earlier, and Trade Finance facilities can be flexible to accommodate deposits
if required on order and other costs including import VAT and shipping/freight
if these are applicable to you.</span></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In the
current environment, where companies are dealing with prices rising in their
supply chain, delays in receiving their orders and inflated freight and
transport costs, working capital can become strained without much notice.</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Funding the acquisition of goods or materials that are either
pre-sold or to provide you with stock leaves crucial cash in the business to
cover overheads and unexpected demands on the company.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The following are just general illustrations of how Trade Finance
can work for a business – and also how you could be covered from ‘cradle to
grave’ with Invoice Finance after you have sold your goods:<o:p></o:p></span></p><br /><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjQZzv_yGt1bHgTRfzVj5e3J4xCKwou5we_sMaiqKxEgb0GqZXVjrZD2BcD0VCfefWN--_-Fg1HTOIqvCk_Nhec2yOeCgHYXYaernDzrIjjg21letdIMOChGF3rVF3S2IAmOWJL-NPJnI_fyy1S_yOzOifnG7u2uWp9BylNmv1vMBKnYlkrtSGJuOP5=s757" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="557" data-original-width="757" height="235" src="https://blogger.googleusercontent.com/img/a/AVvXsEjQZzv_yGt1bHgTRfzVj5e3J4xCKwou5we_sMaiqKxEgb0GqZXVjrZD2BcD0VCfefWN--_-Fg1HTOIqvCk_Nhec2yOeCgHYXYaernDzrIjjg21letdIMOChGF3rVF3S2IAmOWJL-NPJnI_fyy1S_yOzOifnG7u2uWp9BylNmv1vMBKnYlkrtSGJuOP5=s320" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></p><p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Many Trade Finance lenders offer Invoice Finance facilities to
their clients for good reason – because they can then offer your business a
seamless process without causing a large cash call on the company at any stage
of your trading lifecycle.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">It of course depends on the nature of your business as to whether
Invoice Finance is suitable for how you deal with your customers – but if it is
suitable then Example 2 demonstrated that you could complete the entire
transaction without any significant draw on your cash flow.</span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A common objection to both types of finance is the cost of the
facility and funding these transactions; beyond the fact that lenders that we
work with offer extremely competitive rates on their facilities, I would
suggest that these are a great example of the ends justifying the costs of the
means.</span></b></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The cost of funding will slightly reduce your margin on the transaction
– but with very little effect on working capital, and consequently you are
still able to meet other demands that you face – as well as to fulfil any
opportunities that are presented to you.</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We understand that every step of ’getting stock’ to ‘getting paid
for stock’ can be a drain on your cash flow that you might not be able to afford
without funding support – and possibly an opportunity cost if it leaves you
unable to take up new opportunities.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> </span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">If you have a
supply chain, and supply customers, why not talk to us about where the ‘pinch
point’ is for cash flow in your business on your road from cradle to grave?</span></b></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Mark Grant,
February 2022.</span></b></p>
<p class="MsoNoSpacing"><span class="MsoHyperlink"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></b></span><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></p></div><br />Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-20976849198170295102022-02-12T17:34:00.003+00:002022-02-12T17:43:08.599+00:00Commercial Mortgage? Forget Location, it’s about Affordability, Affordability, Affordability!<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEh235lX5BuDAGy3kt1UJffQfJRMti1czDpGW8xAy15Z9_UG7zCDi98itul6TiYEZnyp7dE0Y2KorkphGJDjB7lB_iRk_dUc-D5hLyN07ilXkuadXabTfvAdZMNDa7z9vd7_ksrpz99xsoy34ve4o9-DXEfDb0Aeml_McqCOOiRiuaqZ8C12lRs2Zeo4=s640" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="494" data-original-width="640" height="247" src="https://blogger.googleusercontent.com/img/a/AVvXsEh235lX5BuDAGy3kt1UJffQfJRMti1czDpGW8xAy15Z9_UG7zCDi98itul6TiYEZnyp7dE0Y2KorkphGJDjB7lB_iRk_dUc-D5hLyN07ilXkuadXabTfvAdZMNDa7z9vd7_ksrpz99xsoy34ve4o9-DXEfDb0Aeml_McqCOOiRiuaqZ8C12lRs2Zeo4=s320" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US">We are seeing a lot of activity in
Commercial Mortgages – both owner-occupier and investment – and just like with
a personal mortgage it is logical to think that one of the primary things that
a lender will look at is whether you can afford to repay the mortgage – both
now and in the future.</span></p>
<p class="MsoNormal"><span lang="EN-US">We want to cut through the acronyms and
smoke and mirrors to show that far from being some sort of ‘dark arts’ it is the
same process they use to evaluate your business as we all might do our own
personal finances.</span></p>
<p class="MsoNormal"><span lang="EN-US">With a Commercial Investment Mortgage the
maths is relatively straightforward; you will have a commercial lease in place
with your tenant and the lender will ‘stress’ your mortgage with simulations of
interest rate rises to ensure that even if rates were to rise from their
current levels then the commercial lease still makes the mortgage payments
affordable.</span></p>
<p class="MsoNormal"><span lang="EN-US">Commercial Mortgages for trading businesses
have far more moving parts as affordability is based on the future trading
performance of the business.</span></p>
<p class="MsoNormal"><span lang="EN-US">In the absence of a crystal ball the lender
has to use past performance as a guide to whether your business can service the
mortgage moving forward.</span></p>
<p class="MsoNormal"><span lang="EN-US">Again we can draw a similarity here with a
personal mortgage application – your prospective lender would want to know all
about your income, together with the other debt and outgoings that you have to
service regularly. From this they will derive how much ‘headroom’ you have in
your finances to be able to afford the mortgage.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Debt
Coverage Ratio (DCR)</span></b></p>
<p class="MsoNormal"><span lang="EN-US">I did say that we wanted to cut through the
acronyms – so it’s high time that we started to use them!</span></p>
<p class="MsoNormal"><span lang="EN-US">When a lender takes away your outgoings for
debt from your income, they will be left with the current ‘headroom’ in your
finances from which your company’s mortgage can be paid moving forward. But
there are still variables in this number such as your business turnover
decreasing, or your other costs or debt increasing.</span></p>
<p class="MsoNormal"><span lang="EN-US">So the lender won’t want to see that your
headroom is equal to (or less than) your future mortgage payments, but a
multiple of them. This is called your <b style="mso-bidi-font-weight: normal;">Debt
Coverage Ratio (DCR) </b>– and commonly lenders are looking for a DCR of 1.5x
to 2x.</span></p>
<p class="MsoNormal"><span lang="EN-US">Calculate your Debt Coverage Ratio (DCR):</span></p>
<p class="MsoNormal"><span lang="EN-US">Annual Net Income <b style="mso-bidi-font-weight: normal;">Divided By</b> Annual Debt Payments = Debt Coverage Ratio</span></p>
<p class="MsoNormal"><span lang="EN-US">For example:<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">£82,500 Net Income <b style="mso-bidi-font-weight: normal;">Divided By </b>Annual Debt Payments £45,000 = <b style="mso-bidi-font-weight: normal;">DCR of 1.83</b></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Using
the ‘right’ Net Income</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Of course it couldn’t be so easy that the
lender could just cherry pick a line from your company’s last set of filed
accounts and use that; oh no, they have to go and make us calculate another
number that they use in their affordability calculations too!</span></p>
<p class="MsoNormal"><span lang="EN-US">Your existing company accounts include
existing lease or mortgage payments but the lender is evaluating future
affordability of a new mortgage – so the ‘net income’ that they use will have
certain items added back onto it.</span></p>
<p class="MsoNormal"><span lang="EN-US">This generates what lenders generally call <b style="mso-bidi-font-weight: normal;">‘adjusted net profit’</b> or <b style="mso-bidi-font-weight: normal;">‘adjusted EBITDA’</b>.</span></p>
<p class="MsoNormal"><span lang="EN-US">We are not qualified accountants, so these
calculations really do stay on the ‘back of an envelope’ for our purposes. In
simple terms take the profit before tax and add back to that items such as:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo1; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Lease / Rent<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Depreciation<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Amortisation<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Directors’ Dividends</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Case
Study – ABC Ltd</span></b></p>
<p class="MsoNormal"><span lang="EN-US">We can take the case of ABC Ltd, and then
put into practice the above construction of the Net Income, and then use that
along with the debt in the company to derive their Debt Coverage Ratio (DCR).</span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo2; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>ABC Ltd. currently pays £40,000
pa commercial lease<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Annually ABC Ltd. make £15,000
in Asset Finance payments<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>They are applying for a 70% LTV
mortgage on a £465,000 purchase price, meaning a £325,000 loan, estimated by
the lender to be £32,000pa initially in annual payments</span></li></ul><div><br /></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjSQ_ZeJPq5IlAOdij7mmugPfRYl0c-R90mLTxDIVeK1IKnSiu9e1rBTi49sz9IAcHdQxiX3vyWr0jEkwQdBjkI9JVL-pLNpylih9UPFK_44Ahmsgcym0giV_DjayIq3ynIgBZmDdH664qn-XZD1R_hNu4gePCwXMzEfnvBLtPLos00vdlterPCcqc1" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="287" data-original-width="488" height="188" src="https://blogger.googleusercontent.com/img/a/AVvXsEjSQ_ZeJPq5IlAOdij7mmugPfRYl0c-R90mLTxDIVeK1IKnSiu9e1rBTi49sz9IAcHdQxiX3vyWr0jEkwQdBjkI9JVL-pLNpylih9UPFK_44Ahmsgcym0giV_DjayIq3ynIgBZmDdH664qn-XZD1R_hNu4gePCwXMzEfnvBLtPLos00vdlterPCcqc1" width="320" /></a></div><br /></div><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Accounting
for the pandemic impact</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Like a lot of businesses in the country,
ABC Ltd was Covid impacted, and so if we moved forward to the current period,
and included the financial year 2020/21, then that doesn’t present on its own a
Debt Coverage Ratio (DCR) that the lender would see as indicating
affordability.</span></p>
<div><br /></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgeU6UpS57UODRWlclN2E8H9JXYDzac2clfH6pQOuz5ZZYi5soO36Tqjpjp7lUusckL2wqbbVvyZMgyFor2softxKOiY8vltQfhOZpFqoIA2ydAHhbVl3Ki1Oy6rAbofCcPRzXREoBFtOXDo3FStPHNbTE7eqj3L1kZaquhCg8AFEFE6g68H8IwBAPm" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="381" data-original-width="486" height="240" src="https://blogger.googleusercontent.com/img/a/AVvXsEgeU6UpS57UODRWlclN2E8H9JXYDzac2clfH6pQOuz5ZZYi5soO36Tqjpjp7lUusckL2wqbbVvyZMgyFor2softxKOiY8vltQfhOZpFqoIA2ydAHhbVl3Ki1Oy6rAbofCcPRzXREoBFtOXDo3FStPHNbTE7eqj3L1kZaquhCg8AFEFE6g68H8IwBAPm" width="306" /></a></div><br /></div>
<p class="MsoNormal"><span lang="EN-US">The obvious addition to this table is the
fact that the lender will strip out Covid related grants and income that are
one off in nature, and this reduces the DCR to levels where the lender would
not arrive at a positive decision for affordability.</span></p>
<p class="MsoNormal"><span lang="EN-US">But we are now three quarters into the next
financial year for ABC Ltd, and thankfully into recovery mode for many business
post-pandemic restrictions, and so lenders are willing to include the accounts
for this new current financial year in their assessment.</span></p>
<p class="MsoNormal"><span lang="EN-US">The 9 months from April to December 2021
actually showed a 25%-30% increase on turnover compared to the 2019 and 2018
figures for the same period due to a ‘post restrictions’ surge in demand, and
so there is something here for the lender to work with and progress for ABC
Ltd.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
are seeing a lot of demand for, and activity in, Commercial Mortgages – and
armed with the accounts and facts we can work with lenders to find suitable and
affordable solutions for the roof over your business or for your commercial
investment property.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Mark
Grant, February 2022.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-858613565532458612022-01-30T08:14:00.002+00:002022-01-30T08:16:05.946+00:00Your Property Requirements, and Our First Assessment<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEh1319rCj6WwUoCY1DFHbDJOLpQOOxTBHYb06b703avfIV1TTgkLZ0p8U5f9BXOrtY1ee63q65iPKyfWPpOFDqgCi3kHHP4hH8Brk1NGF93jEvFDfdhUZl-UyyEqPAvSvuCgHrpURq-UJUT_gqthLtq4MxQR0bLtMRVHzEXc26AXXUcCyop6NAbwXw5=s640" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="454" data-original-width="640" height="227" src="https://blogger.googleusercontent.com/img/a/AVvXsEh1319rCj6WwUoCY1DFHbDJOLpQOOxTBHYb06b703avfIV1TTgkLZ0p8U5f9BXOrtY1ee63q65iPKyfWPpOFDqgCi3kHHP4hH8Brk1NGF93jEvFDfdhUZl-UyyEqPAvSvuCgHrpURq-UJUT_gqthLtq4MxQR0bLtMRVHzEXc26AXXUcCyop6NAbwXw5=s320" width="320" /></a></div><p></p><p></p><p class="MsoNormal"><span lang="EN-US"><br /></span></p><p class="MsoNormal"><span lang="EN-US">As soon as a client or introducer starts to
relay to us the details of property requirements, the cogs start to whirl as we
assess where the property sits with lenders’ criteria – and we aim to quickly
arrive at whether your expectations of the requirements can be matched with
what they are eligible for.</span></p>
<p class="MsoNormal"><span lang="EN-US">We don’t make any ‘decisions’ about
direction for you; we are here to ensure that you are aware of what options you
are eligible for, and to help you achieve the best outcome for your
requirements.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Investment
Property – The ‘Slam Dunk’</span></b></p>
<p class="MsoNormal"><span lang="EN-US">This point scoring analogy on either
Residential or Commercial investment properties not aimed so much at the
requirements being ‘easy’ to complete for you - it’s property, there are always
wrinkles to iron out.</span></p>
<p class="MsoNormal"><span lang="EN-US">The ‘Slam Dunk’ refers to the fact that you
are presenting a property that is either already occupied by tenants, or is
‘tenant ready’ with the ability to have tenants sign leases or ASTs on
completion.</span></p>
<p class="MsoNormal"><span lang="EN-US">Tenant ready? As part of the lender’s
valuation the surveyor will report on the condition of the property and confirm
that it is habitable, and ready to generate income to service the mortgage from
day one.</span></p>
<p class="MsoNormal"><span lang="EN-US">Our first assessment is listening out for
the properties where the client approaches us for a long-term mortgage, but
where the tenants won’t be able to rent from day one, and so rental income
won’t be there to service the mortgage.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Investment
Property – ‘A Lick of Paint and New Carpets’</span></b></p>
<p class="MsoNormal"><span lang="EN-US">We want to understand the degree of work
that will be needed to maximize rental income and yield for the client – and in
some cases a property may present as ‘tired’ for prospective tenant, and
require ‘freshening up’ before being let to ensure it achieves its income
potential.</span></p>
<p class="MsoNormal"><span lang="EN-US">Where works are really concentrated on
condition, presentation and decoration – covering for example bathroom suite,
kitchen, decoration and flooring – we have options where a long-term mortgage lender
can consider a short up front period to carry these works out.</span></p>
<p class="MsoNormal"><span lang="EN-US">We work with a Buy-To-Let mortgage lender
for example that can allow a 3 month up front window post-completion for such
light works to be carried out – with a limit of 10% of the purchase price to be
spent on them. You would have to provide the schedule of works to the surveyor
when the initial valuation is done for them to report on to the lender.</span></p>
<p class="MsoNormal"><span lang="EN-US">But where the works are so light is could
be a viable option to avoid the need for a separate initial short term funding
product to be put in place.<o:p></o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Owner-Occupier
Commercial Property – The ‘Short, Sharp Refurb’</span></b></p>
<p class="MsoNormal"><span lang="EN-US">As above with investment properties,
trading businesses can come to us with a current property that they lease or
own, and with a requirement to purchase new premises to operate from.</span></p>
<p class="MsoNormal"><span lang="EN-US">Many sectors can require premises to be
fitted out or refurbished to suit their operating requirements – from a hairdressing
salon to a logistics or warehouse operator.</span></p>
<p class="MsoNormal"><span lang="EN-US">We have worked with clients and lenders to
agree a short up front ‘cross over’ period where their new operating premises
is refurbished and fitted out while they still trade from their current
premises.</span></p>
<p class="MsoNormal"><span lang="EN-US">The outcome for the client is continuity in
trading, and so long as the requirements are signed off as viable in a short
timeframe at the point of valuation, lenders can be amenable to this.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">The
Refurbishment Property – “It Just Needs XYZ and We Can Be In There”</span></b></p>
<p class="MsoNormal"><span lang="EN-US">An extremely common catch for us in first
assessment – far more common than you might think – would be that clients
approach us for a long term mortgage on a property that is not habitable for
their purposes on day one.</span></p>
<p class="MsoNormal"><span lang="EN-US">This includes owner-occupier Commercial
properties, or Residential and Commercial investment properties.</span></p>
<p class="MsoNormal"><span lang="EN-US">Clients may not be aware that lenders won’t
lend a long-term mortgage where income is not available on day one to service
that mortgage from a lease or AST that they can see and understand during
underwriting – and they ensure that it is all confirmed to them at the point of
valuation.</span></p>
<p class="MsoNormal"><span lang="EN-US">The solution is for the client to put in
place short-term finance initially – Bridging Finance – and then refinance with
the long-term mortgage as the exit to that initial loan.</span></p>
<p class="MsoNormal"><span lang="EN-US">Bridging loans can be used for a varying
degree of refurbishment or conversion work on properties – and different
lenders will support varying funding, from purchase only to including the full
cost of the works:</span></p>
<ul style="margin-top: 0cm;" type="square">
<li class="MsoNormal" style="mso-list: l0 level1 lfo1;"><b><span style="mso-ansi-language: EN-GB;">Light Refurbishment</span></b><span style="mso-ansi-language: EN-GB;">
- Cosmetic refurbishment with no structural changes<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1;"><b><span style="mso-ansi-language: EN-GB;">Heavy Refurbishment</span></b><span style="mso-ansi-language: EN-GB;">
- Contains cosmetic work, but usually renovation work including structural
changes or changes to the property footprint<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1;"><b><span style="mso-ansi-language: EN-GB;">Ground Up Development</span></b><span style="mso-ansi-language: EN-GB;"> - Commonly starts from vacant land, can include demolition and
rebuild<o:p></o:p></span></li>
</ul>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Our
assessment of your requirements starts with what products or lenders you are
eligible for, and we then look to source options that provide the best outcome
for you and your property.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Why
don’t you talk to us about what more there is than meets the eye with your
residential or commercial property – and how we can help you to fund it?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Mark
Grant, January 2022.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></b></span></p><p class="MsoNormal"><span class="MsoHyperlink"><b style="mso-bidi-font-weight: normal;"><br /></b></span></p><p class="MsoNormal"><span class="MsoHyperlink"><b style="mso-bidi-font-weight: normal;"><br /></b></span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0United Kingdom55.378051 -3.43597327.067817163821154 -38.592223 83.688284836178838 31.720277tag:blogger.com,1999:blog-190601003263906096.post-38203220575913072302022-01-15T15:41:00.001+00:002022-01-15T15:46:59.842+00:00Could Your Business Recover Quicker or Grow More With Same Day Payment Terms?<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEj30iduXRUog3xen_otBFof8O23ejQZWoCllnXu627hUVb0wRmiau2HaT9fyxzPBjd82r6flC59zeSIAtZ-PIlMqCcxLX9a1S6DsS-bCZgtrBxMk1A2-FwTtMY_8lc4puDMK2Acw3QvN--I_5JTPjPnNxo9Bqx3tQAbJyulOe-TjKhWCx11YmD8whNj=s640" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="426" data-original-width="640" height="213" src="https://blogger.googleusercontent.com/img/a/AVvXsEj30iduXRUog3xen_otBFof8O23ejQZWoCllnXu627hUVb0wRmiau2HaT9fyxzPBjd82r6flC59zeSIAtZ-PIlMqCcxLX9a1S6DsS-bCZgtrBxMk1A2-FwTtMY_8lc4puDMK2Acw3QvN--I_5JTPjPnNxo9Bqx3tQAbJyulOe-TjKhWCx11YmD8whNj=s320" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><p></p><p class="MsoNoSpacing"><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">As you
plan for 2022 and beyond, what will allow your business to recover quicker or
grow more moving forward?</span></p><div class="separator" style="clear: both;">
<p class="MsoNoSpacing"><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Are
you resolving to ease the cash flow pressure on your business in 2022? How much
pressure would be lifted on your working capital if you could close the gap
between paying your overheads, wages, contractors etc and actually getting paid
yourself?</span></p>
<p class="MsoNoSpacing"><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">How
much more time would you have to get on with running your business, instead of
juggling your business’s finances?</span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">If you provide payment terms to your customers,
then you could be operating in some senses by watching the calendar for when
your invoices are settled.</span></p>
<p class="MsoNoSpacing"><b><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">How many more opportunities could you take on NOW if your business
operated on SAME DAY payment terms with your clients?</span></b></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">Cash flow or working
capital, however you want to term it, is what allows your business to operate,
trade and essentially exist. That sounds like an over simplistic statement, but
the reason why companies use cash flow forecasts is to stay one step ahead in
ensuring the flow of cash in their business.</span></p>
<p class="MsoNoSpacing"><b><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Cash flow provides for a wide
range of purposes such as wages, fixed overhead costs, paying suppliers and
increasing or diversifying your activities as business conditions dictate – or
opportunities present themselves. When cash flow dries up, your trading
activities can cease up, and this can prove terminal.</span></b></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Even if your company has not been directly
impacted by the pandemic, and suffered lower sales, productivity or even a
forced closure, it is highly likely that through your supply chain, staff or
customers you will have felt the effects in your cash flow; virtually no
business has remained directly or indirectly unaffected.</span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">And even in the extended periods since last
April when we may have felt that ‘normality’ was on the horizon, other factors
such as the global supply chain crisis, labour shortages and price inflation
have impacted the majority of companies in the economy.</span></p>
<p class="MsoNoSpacing"><b><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;"></span></b></p><blockquote><p class="MsoNoSpacing"><span style="font-size: 11pt;"><i>In the current economic environment it is very easy for you to
become the ‘stretched middle’ of the supply chain: <o:p></o:p></i></span></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><i><span style="font-family: Symbol; font-size: 11pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">your suppliers or manufacturers may have short or up-front payment
terms in advance of you receiving the goods or materials<o:p></o:p></span></i></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><i><span style="font-family: Symbol; font-size: 11pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">your clients may not pay you for delivered end product or services
for 2 to 3 months after delivery<o:p></o:p></span></i></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt;"><i>If that is repeated on every transaction that you do, can you
afford to keep funding that cycle plus other overheads for the months in the
middle? Or will that leave you stretched? Or worse?</i></span></p></blockquote><p class="MsoNoSpacing"><b><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;"></span></b></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Invoice Finance may not be the most suitable
product for every part of the economic cycle – but think of it another way:
what other financial facility will pay you for most of the work that you have
completed just a few days after you have completed it, when your customers
won’t be settling anything with you for another 60 to 90 days?</span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">We see this as the clearest demonstration of
the ends justifying the cost of the means – many businesses won’t be able to
manage without these facilities in the coming economic climate – and we
consider Invoice Finance will likely be one of the best cash flow conservation
tools available to companies.</span></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 11pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">It’s flexible and can adapt to
most sectors and business models; it fits with business conditions and
turnover, unlike the rigid structure of a business loan.<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 11pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Your company will need
continued support to ensure that waiting for invoices to be settled doesn’t
limit your activities – or your ambition.</span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">If your company has
an Invoice Finance facility in place you might be wondering how we could help
you. You may be able to benefit from an improved funding rate or lower costs?
As you would do in your personal finances, it pays to look for alternatives
that may be more suitable and/or offer you improved terms.</span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">Several types of Invoice
Finance products are available, and we can help you identify the most suitable
solution for your business:</span></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Invoice Discounting </span></b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">- The simplest
form of invoice finance. You keep charge of credit control, and get paid up to
90% of your invoice’s value on the day that you issue it to your customer, with
the balance when they settle.<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Invoice Factoring </span></b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">– As per Invoice
Discounting, plus the lender manages your credit control - this can free up
your time to get on with running the business.<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Selective </span></b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">- You select
either the clients or the individual invoices to put into invoice finance, so
you only use the facility when your cash flow requires it.<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36pt; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Specialist Sector? </span></b><span lang="EN-US" style="font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">- Construction
Finance, Recruitment Finance and Professional Services Finance are just a few
examples of specialist products that could be tailor made for your sector.</span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">Please Ask Yourself
This Question:</span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin;">As you approach and
plan for the next 12-24 months, is it likely that you will ALWAYS have the cash
flow necessary to meet wage bills, pay suppliers, or grow your activities,
without the certainty of knowing that when you issue an invoice you will get
funded almost immediately?<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;"> </span></p>
<p class="MsoNoSpacing"><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Gain the financial confidence to drive your
business forward from here as if your client billing was all issued with same
day payment terms; Invoice Finance allows you to fund both outgoings and
opportunities with the business that you are already doing, and without
depleting your cash flow.</span></p>
<p class="MsoNoSpacing"><b><span style="font-size: 11pt; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Why not talk to me about how Invoice Finance can benefit your
business?</span></b></p>
<p class="MsoNormal"><b><span style="font-size: 11pt;">Mark Grant, January 2022.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><b><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></b></span><b> </b><b><span style="font-size: 11pt;"><o:p></o:p></span></b></p></div><p><br /></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-63217270780126465152022-01-08T08:00:00.003+00:002022-01-08T08:03:17.576+00:00Conserving Cash Flow in 2022 Is Self Preservation For Your Business<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEie8d1uRYylOBXs0N80conR3ruDYPvv9PcPN1dlJBV4w4kBX8Z8FydX9onqWkAkCvCxPR3gsx4Fs6-ligeHzJXMfBEsXMUePsBIXIWD5TeGb1uYduhlQuJoRuS3m6rRX8kKUJ8kJLzLRyGTsXR_0i3VvUe5aX9gtq0Wh_5gI_n0bJ4RCi8u3qML2VDj=s640" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="465" data-original-width="640" height="233" src="https://blogger.googleusercontent.com/img/a/AVvXsEie8d1uRYylOBXs0N80conR3ruDYPvv9PcPN1dlJBV4w4kBX8Z8FydX9onqWkAkCvCxPR3gsx4Fs6-ligeHzJXMfBEsXMUePsBIXIWD5TeGb1uYduhlQuJoRuS3m6rRX8kKUJ8kJLzLRyGTsXR_0i3VvUe5aX9gtq0Wh_5gI_n0bJ4RCi8u3qML2VDj=s320" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">As a business owner, director or manager 22 months into a global
pandemic, you will by now be very well aware that thinking about cash flow
conservation isn’t just in the court of your accountant, FD or accounts team;
it is about self preservation and keeping the doors of your business open.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The Covid-19 pandemic just presents you with one certainty – that
there are no certainties!</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We do not know the impact that changing seasons and new variants will
have on our business until they ‘happen’ to us – or what direct impact they
will have on our customers or suppliers – which in turn of course impacts you
as well.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Cash flow conservation is not a new concept – plenty of old tricks
like chasing your receivables, negotiating your payables, cost cutting to trim
the excess from your business costs etc.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">But this pandemic and its uncertainties have put an additional
urgency on ensuring you preserve a level of cash within the business where possible
– for whatever is around the next corner, and one certainty is that we are all
heading to another corner!</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"></span></i></b></p><blockquote style="text-align: left;"><blockquote><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">For
example, you probably couldn’t just roll out last year’s budget / cash flow
plans again for 2022 – did they factor in staff shortages in many sectors, the
global supply chain crisis and HGV/delivery driver shortages in the UK to name
just a few factors now on your radar?</i></b></blockquote></blockquote><p></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">So what could you consider to help you to conserve a level of cash
within the business while you still have overheads, delays to banking
receivables and expenses related to the business as you adjust or increase your
activities to meet the challenges of the times?</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">For some people this may be just a case of finding out what is
available to them in terms of finance products and tools – for others who might
have always previously managed their business without the need of finance it
might be a bitter pill to swallow, or a ‘last resort’ even.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Our very recent experience shows us that cash flow is the life
blood of all of the businesses that we are dealing with, and maintaining a
level to get you through this pandemic, or having a sufficient level to enable
you to expand your activities and grow, is worth sacrificing a small amount of
your margin to cover the cost of financing your business.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">As you look at a cash flow forecast for your business this new
year, factor in the tools that might be able to help you to conserve your cash
flow and spread the cost of all of your outgoings over the months and years
ahead; the same tools can also regulate your income to meet outgoings and
opportunities as you have them.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We wanted to provide some examples of commercial finance products
that can help your business to conserve cash flow and navigate out of the
current situation.</span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Several of these are available until June 30th 2022 under the
Government’s Recovery Loan Scheme (RLS) for eligible companies, alongside RLS business
term loans, so please talk to us today about the benefits this could provide to
<i>your business</i>.</span></b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Commercial Property Refinance</span></b></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your business may have commercial property that you own that has
an outstanding mortgage on, or is unencumbered with no debt outstanding on it.
In short you may have ‘equity’ in your property.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Commercial property for trading businesses will commonly be
‘owner-occupier’, the premises that they operate from; but some businesses also
own and lease out commercial property that other companies operate from –
‘commercial investment’ property.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Refinancing commercial property could be used to conserve cash
flow in more than one sense:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Refinancing your existing mortgage onto a new deal could improve
the rate of interest that you pay (reducing outgoings) or it could offer you
fixed rate protection for an agreed period (limiting your costs for that agreed
period)<o:p></o:p></span></li><li><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Refinancing commercial property to raise additional funds for your
business is doing so over an extended period (commonly 15 – 25 year terms) and
often at a significantly improved interest rate to those available on short
term business loans, due to the security that the lender has in your property</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We work with lenders who can also consider residential and BTL property
as security for loans for business purposes. This is not suitable or viable for
everyone (we and our lender partners operate a policy of responsible lending
when it comes to residential properties), but if it was it could significantly
improve your cash flow profile over a short term unsecured loan.</span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Receivables can Regulate your Cash Flow – Invoice Finance</span></b></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Invoice Finance may not be the most suitable product for you in every
part of the economic cycle – but think of it another way in trading out of the
Covid-19 pandemic: what other financial facility will pay you for most of the
work that you have completed just a few days after you have completed it, when
your customers won’t be settling anything with you for another 60 to 90 days?</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Without that immediate cash flow you will have to cover the cost
of wages, contractors, overheads, suppliers – and then if you have the
opportunity to take on more work or another project, do you have the cash flow
to do that now or will it have to wait until your customers settles in the
future?</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We see this as the clearest demonstration of the ends justifying
the cost of the means – many businesses won’t be able to manage without these
facilities in the current economic climate – and we consider Invoice Finance
will likely be one of the best cash flow conservation tools available to
companies.</span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trade Finance</span></b></p>
<p class="MsoNoSpacing"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Depending on the nature of their business, companies will either
buy raw materials that they manufacture or assemble to create finished and
saleable goods, or they will purchase ‘finished goods’ from a manufacturer or
supplier – packaged and ready for delivery to their customers.</span></p>
<p class="MsoNoSpacing"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trade Finance can be with UK based companies as well as overseas –
and if it is from overseas, then Trade Finance lenders are also commonly
experts in FX as well.</span></p>
<p class="MsoNoSpacing"><b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your business can improve prices and terms from having the backing
of a trade facility and being able to pay earlier, and Trade Finance facilities
can be flexible to accommodate deposits if required on order and other costs
including import VAT and shipping if these are applicable to you.</span></b></p>
<p class="MsoNoSpacing"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In the current environment companies need to conserve cash within
the business as working capital can become strained without much notice.
Funding the acquisition of goods or materials that are either pre-sold or to
provide you with stock leaves crucial cash in the business to cover overheads
and unexpected demands on the company.</span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Short Term VAT Loans</span></b></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">One quarter’s VAT bill was able to be deferred to March 2021 under
an HMRC scheme, for bills that fell due between 20 March and 30 June 2020 at the
start of the pandemic. Most firms then spread the cost of that repayment over
the following 2021/22 tax year.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">HM Treasury recognised that you need to conserve cash flow in your
business, and not have to settle that whole quarter in one payment – but how
does that help you with every other subsequent quarterly VAT bill that you
face?</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We have a lenders offering 12 week loans to help to settle some or
all of your VAT bill – you can repay weekly or monthly as suits you best – but
the big win for you here is conserving cash by spreading the payments and
keeping some liquidity for whatever might come next.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Once set up for one quarter’s bill, the facility can be easily
rolled when the next bill arrives – meaning that you don’t have to go through
the same level of funding application each time.</span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Lease or HP Over Buying For Cash?</span></b></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">None of us are going to trade out of this environment by standing
still – but when you are looking at new or replacement vehicles for your
business, you should conserve cash and use smart finance.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We work with expert partners who can not only source cars and
commercial vehicles, but who can source the most suitable Lease or Hire
Purchase (HP) deal for your company.</span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Whether you are looking for New or Used vehicles, a single vehicle
or entire fleet – using the right finance for your company in this environment
is the smart choice. Conserving cash within your business right now makes sense
– none of us know what is around the next corner or when we will need a cash
buffer.</span></b></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Tax efficient, AND better for the environment?? There are a range
of CO2 emissions bands, and your business can benefit from an increased offset
against profit the lower the CO2 output of your business vehicles. We recommend
that you take the advice of your accountant to understand the full benefits
available to your company.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">I’m sure that you can understand therefore that we have seen a
shift away from diesel cars being commonly used for business – we have seen
great interest in hybrid and electric models in the last year, and yes, Tesla
is very much on the scene as a business car!</span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Asset Refinance</span></b></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your business may have hard / soft assets, or stock, that is
unencumbered or with significant equity, that you might consider putting to
work to generate much needed cash flow for your business at this time.</span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We work with Asset Based Lenders who our clients use to access
cash that they already have but that is locked up in the existing assets of the
business.<o:p></o:p></span></p>
<p class="MsoNormal"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">If you are planning your budget and cash flow, why not talk to us
about how commercial finance products – some that you may not even have
considered – could help you to plan your way through 2022 and beyond.</span></b></p>
<p class="MsoNormal"><b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Mark Grant, January 2022.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></b></span></p><p class="MsoNormal"><span class="MsoHyperlink"><b><br /></b></span></p><p class="MsoNormal"><span class="MsoHyperlink"><b><br /></b></span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-50216592059357474132021-12-18T13:16:00.002+00:002021-12-18T13:16:27.052+00:00Fixing The Rate Of Your Commercial Mortgage – The Ship Hasn’t Sailed<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjCDIdi8E-_oDrNELSpXMb495dtaow5HnY8qzvzjLg208u9G_YsenYtRl7aG5jzoEQMH_MH3_SauAUgvP-A2oPRd9m7JUeDFlu_p0lIXARd7ppbV9pz-nZ9v-cOnCYPh4yA0yGS5P56Kau2Epm5bPdrklVTLn6mwDaSG2TNTQs77FP2YjaXT3RWMAuM=s640" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="566" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEjCDIdi8E-_oDrNELSpXMb495dtaow5HnY8qzvzjLg208u9G_YsenYtRl7aG5jzoEQMH_MH3_SauAUgvP-A2oPRd9m7JUeDFlu_p0lIXARd7ppbV9pz-nZ9v-cOnCYPh4yA0yGS5P56Kau2Epm5bPdrklVTLn6mwDaSG2TNTQs77FP2YjaXT3RWMAuM=s320" width="283" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US">A few days on from an interest rate hike
I’d ask you whether the benefits of looking to fix the rate of your commercial
mortgage still outweigh the down sides – and suggest that they do.</span></p>
<p class="MsoNormal"><span lang="EN-US">From twelve months ago, when the Bank of
England was sounding out banks and financial services companies on how prepared
they and their systems were for the chance of a negative base rate, we evolved
to an economy as we transitioned out of the pandemic restrictions of heated
demand and shortness of supply – also called inflationary pressure.</span></p>
<p class="MsoNormal"><span lang="EN-US">A near perfect storm of contributing
factors are driving a seemingly endless upward pressure on costs:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Demand outstripping supply of almost every raw material<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Delays in materials and manufactured goods in the supply chain
globally<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Record freight costs, and restricted availability of freight, to get
the same goods and materials to the UK<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Chronic shortage of HGV drivers within the UK to distribute at all
stages of the supply chain<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Combination of factors has driven energy costs up – and these are
still rising<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Several sectors of the economy suffering chronic staff shortages and
an inability to recruit</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span lang="EN-US"><b>As I write this we are heading back into
another possible economic storm caused by the new rapidly spreading Covid
variant, Omicrom. Already hospitality, retail, events and entertainment sectors
have had the rug pulled from underneath them when entering their busiest period
of the year – the path back out of the pandemic period is again not a straight
one.</b></span></p>
<p class="MsoNormal"><span lang="EN-US">Cost pressures are feeding through to
virtually every business in the economy – and these are not costs that UK
companies have much if any control over at all. And that brings me back to my
question – is it still a good time to fix the rate of your commercial mortgage?</span></p>
<p class="MsoNormal"><span lang="EN-US">If you feel that inflationary pressures are
going to mean that the next move in rates will continue to be upwards, then
fixing your mortgage at a currently available fixed rate would make sense.</span></p>
<p class="MsoNormal"><span lang="EN-US">And when we talk about price rises – energy
prices up 4 to 6 times, and many materials up 20%, 30%, 50% or doubling – then
the 5% CPI number for November would seem to be a very modest number that has
to move higher in the coming months?</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">But
psychologically, fixing your commercial mortgage rate is exerting control over
a major cost to your business – not to mention the physical roof over your
business!</span></b></p>
<p class="MsoNormal"><span lang="EN-US">If you are budgeting and forecasting for
your business for the coming year in 2022, then unfortunately with some costs
you might be as accurate with a coin toss as a calculator; but with a major
cost like the mortgage fixed for a 2 year or 5 year term (or longer) you would
be adding accuracy to your budgeting, and hedging against future interest rate
rises that would immediately add to the call on cash flow to your business if
you are on a variable rate mortgage.</span></p>
<p class="MsoNormal"><span lang="EN-US">Which takes us full circle to the question
of whether the upside to fixing the interest rate on your commercial mortgage
outweighs any downside.</span></p>
<p class="MsoNormal"><span lang="EN-US">Many of our clients are applying personal
finance logic to their commercial mortgage decisions – and deciding that fixing
the rate now removes the risk of increased costs if interest rates continue to rise,
at a time when they already face so many increases in costs that they have no
control over.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
help clients source the best commercial mortgage solution for their business
from our whole of market panel of lenders – why not let us help you fix the
cost of the roof over your company?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Mark
Grant, December 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-40291607179654268722021-12-12T09:45:00.000+00:002021-12-12T09:45:47.480+00:00Run A Business? Resolve To Give Yourself A Break This New Year.<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhaZzq9OHeUxQ4ThbF8JfY1mRjWfEFXwlyEQV8n-dV89dkP03zznFApcDfhGbD7M4muikRAWs4HjL6GuNy1mdsLulLahKai6vcm1Ba6E5-CX2nTMUwEkFFnun0yBy_WNlLj2YZkltEEjxQw-Iz9RkXRbannUxY9jLkXIxslTKSUaRhAnRb76aaE6lDF=s640" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="427" data-original-width="640" height="214" src="https://blogger.googleusercontent.com/img/a/AVvXsEhaZzq9OHeUxQ4ThbF8JfY1mRjWfEFXwlyEQV8n-dV89dkP03zznFApcDfhGbD7M4muikRAWs4HjL6GuNy1mdsLulLahKai6vcm1Ba6E5-CX2nTMUwEkFFnun0yBy_WNlLj2YZkltEEjxQw-Iz9RkXRbannUxY9jLkXIxslTKSUaRhAnRb76aaE6lDF=s320" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><p></p><p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">Like
everyone, I am hoping that the major supermarket chain’s advert “This
Christmas, nothing’s stopping us” is spot on, and the Omicrom variant does not
require further restrictions to come in to force that would limit our ability
to spend this year with family and loved ones.</span></p><div class="separator" style="clear: both;">
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">The
decorations have been up for a couple of weeks at our house, and my thoughts
have turned to New Year’s. </span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">And
not where the evening is going to be spent and who with, but what I will be
giving up on January 1st, and how many hours or days until I break this year’s
resolutions.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">And
over the month of December, I don’t go through this ritual alone; no, I will
join the office or WhatsApp banter about what I am giving up and how this will
be the year that I stick it out – and as usual I will place the side bets that
I will stick at it longer and more effectively than the colleague/friend
concerned.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">Ironic really, as most of the gambling is done as I
am pledging to cut down on…erm, a flutter on the football; or the number of
kilos I will shed is inflated and thrown out there as I wipe the crumbs from my
mouth of the latest mince pie I am sampling. (Why believe the Which? survey
when you can buy a box of mince pies from every supermarket and eat them
yourself?)</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">I
question, and have come to the conclusion, that New Year’s resolutions in this
format are actually bad for us: I do myself so much mental self-harm during the
aftermath of the latest ‘epic fail’ at sticking to them that I would have been
better doing everything in moderation in the first place. I’m fairly sure that
the excess in the run up and the resolution fail are fairly equally balanced in
terms of damage to me!</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">What
I need to do is give myself a break. One drink doesn’t mean I need to prop up
the bar the whole of January. A couple of left-over chocolates don’t mean that
I should carry on eating sweets for the whole month – because I will still be
having a very healthy month by recent standards if I just get back on with my
resolution.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">Business owners and management must approach the end
of 2021 with the same trepidation. No matter how well laid the plans have been
this year, the utterly unique and unpredictable nature of the economic
environment has made it virtually impossible for companies to have the right
plans and preparations in place for whatever happens next.</span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"></span></b></p><blockquote><b><i><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"></span></i></b><blockquote><i><b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Case in point: Demand.</span></b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"> Who foresaw the simultaneous scale of global demand
leading to chronic supply chain issues in the ‘just in time’ model – combined
in the UK with the fallout from the Brexit trade deal having completed;
suddenly whole sectors of the UK economy faced staff shortages and there was a
lack of haulage drivers to deliver the goods and materials that we could
source.</span></i></blockquote><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"></span></blockquote><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"></span><p></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">You
only have to look at the last two weeks to confirm that the one certainty of
2021 is that you cannot be certain of what comes next, and of exactly how that
will affect and impact you: 11 days ago additional mask wearing in shops and on
transport was going to be followed by an update in 3 weeks – 4 days ago we were
urged to work from home again…</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">But I
do believe that if we break down our company resolutions into manageable pieces
then we can identify a path through pretty much whatever gets thrown at us.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">By
this I mean don’t just have one strategy, one set of targets, one ‘Plan A’ if
you like, and if something derails that two weeks into January just throw your
arms up in acceptance that you have been knocked off your chosen course – and
accept whatever happens to you as a result.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">We
have seen this year that the companies who have fared better are those that
have been pro-active and have tried to get ahead of the game to find out what
their options are, what is available to them and how to make the most of the
situation that has been forced on them.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">We
are looking at 2022 as the year of the company that has the resolve to trade
their way out of the appalling economic conditions that the pandemic has
inflicted on us, but that has a flexible approach to how they achieve that. One
slip, one bump in the road, one resolution in their strategy that is not kept
through their own fault or events beyond their control, will not derail their
end game and targets.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;"></span></p><blockquote><blockquote><i>Business owners and directors have to give
themselves a break when things change out of their control next year, because what
might have been a ‘given’ in scenario analysis historically cannot be relied on
to repeat itself in 2022.</i></blockquote></blockquote><p></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">There are too many unknowns, too many consequences
of those unknowns – the only positive response will be to have the flexibility
to adapt to the new reality and move forward again from there.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">Flexible
resolve will put you in a position to always quickly adapt to the ‘Plan B’ that
at New Year’s you didn’t even realise that you needed yet – but business will
need this flexibility and positivity to keep the direction of travel forwards.
(And like the Government, it may be a good idea to have a Plan C and D up your
sleeve too.)</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">So, I
will practice what I preach, and one custard cream won’t mean I have to beat
myself up like I haven’t eaten the whole biscuit tin. Just like your business
shouldn’t halt due to a cancelled order, staff absence or supply chain delays –
have the flexibility to see past that issue, adapt to whatever the new reality
is and stick to those resolutions as closely as you can.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">And
give yourself a break.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;"> </span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;">Mark
Grant, December 2021.</span></b></p>
<p class="MsoNoSpacing"><span class="MsoHyperlink"><b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></b></span><b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;"> </span></b><b><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-GB; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></b></p></div><p><br /></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-73263118569719650402021-11-27T09:55:00.005+00:002021-11-27T09:55:49.937+00:00FIDUCIA’S COMMERCIAL FINANCE SOLUTIONS<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFkAtQh_yIERu-aACNPhnSGs7jlnQ6wK3_kugwWzyiscyDQlrnEmxpeOC6D8F4JAoqpgghhHv_4TOkKgi1tsqAXfGu9c3vHQCsnJGjtYTzbu4LNMUvIrZvtTG_GSqZymkVM-tHqHxFjQQ/s640/Guide.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="640" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFkAtQh_yIERu-aACNPhnSGs7jlnQ6wK3_kugwWzyiscyDQlrnEmxpeOC6D8F4JAoqpgghhHv_4TOkKgi1tsqAXfGu9c3vHQCsnJGjtYTzbu4LNMUvIrZvtTG_GSqZymkVM-tHqHxFjQQ/s320/Guide.jpg" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><p class="MsoNormal"><span lang="EN-US">A Guide To Our Range Of Commercial Finance
Solutions For Trading Businesses From All Sectors, Property Investors and
Developers.</span></p>
<p class="MsoNormal"><span lang="EN-US">Fiducia Commercial Solutions can source a
wide range of commercial finance options for your company in products under
headings like Commercial Property, Investment Property, Development Finance and
Business Finance – but what does that mean in practice?</span></p>
<p class="MsoNormal"><span lang="EN-US">Gone are the days of approaching your bank
(as your only option) and choosing from the menu items of: Overdraft – Loan –
Mortgage.</span></p>
<p class="MsoNormal"><span lang="EN-US">To source the best outcome for your
requirements, and a suitable solution for you, we use a whole of market panel
of lenders: <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l6 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>High Street Banks <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Challenger Banks <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Product Specialist Lenders <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Peer To Peer <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Fintech</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span lang="EN-US">Some of our lenders you may not have heard
of, some only deal with commercial brokers and some of their products and rates
are exclusive to the commercial broker channel.</span></p>
<p class="MsoNormal"><span lang="EN-US">This is a guide to the commercial finance
solutions that Fiducia can access for clients – we can of course go into more
detail when talking through their suitability for your business, and your
eligibility for the lenders’ criteria.</span></p>
<p class="MsoNormal"><span lang="EN-US">Many can be used to manage and conserve
cash flow, and to help you trade out of the current environment or manage
demand in ways that you may not have previously thought about.</span></p>
<p class="MsoNormal"><b><span lang="EN-US">Commercial Mortgages</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Commercial Mortgages are used to fund the
purchase, or refinance of, commercial and semi- commercial properties. In
general terms, there are 2 types of Commercial Mortgages: <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo2; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Owner Occupied </b></span><span lang="EN-US">- The purchase or refinance of the property where the company is
currently operating, or the purchase of a new property to move to and operate
from. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Commercial Investment </b></span><span lang="EN-US">- The purchase or refinance of commercial or semi-commercial
property which will be rented to another company to operate from – essentially
a commercial Buy To Let.</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><b><span lang="EN-US">Residential Investment / Buy To Let</span></b></p>
<p class="MsoNormal"><span lang="EN-US">An investor may purchase, via a limited
company (“Special Purpose Vehicle” or SPV), an investment property as part of a
long-term investment strategy. These range from a single property to building a
portfolio of properties, BTL's to HMO's and MUFB's.</span></p>
<p class="MsoNormal"><b><span lang="EN-US">Bridging Finance</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Short-term property finance with faster
completion compared to traditional mortgage finance; the ‘Exit’ from the loan
is commonly the sale of the asset, or long-term re-financing. Multiple uses:
auction purchases / requirement to purchase quickly / refurbishment and
development periods / releasing equity to raise working capital.</span></p>
<p class="MsoNormal"><b><span lang="EN-US">Development Finance</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Finance terms available vary according to
the initial value of the property / land, the costs and fees of the development
work, the projected value of the completed development and your previous
experience of development. Variants include: <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l5 level1 lfo3; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Light Refurbishment </b></span><span lang="EN-US">- Cosmetic refurbishment with no structural changes. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Heavy Refurbishment </b></span><span lang="EN-US">- Contains cosmetic work, but usually renovation work including
structural changes or changes to the footprint of the property. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Ground Up Development </b></span><span lang="EN-US">- Commonly starts from vacant land, can include demolition and
rebuild projects.</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><b><span lang="EN-US">Recovery Loan Scheme</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Open For Applications to June 30<sup>th</sup>
2022 - The scheme replaces the government's original business support loan
schemes - Bounce Back Loans, CBILS and CLBILS: <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo4; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Term Loan </b></span><span lang="EN-US">funding starts at £25,001, up to 6 year terms <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Invoice and Asset Finance </b></span><span lang="EN-US">starts at £1,000 <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Commercial Mortgages,
Investment Mortgages and Bridging Loans </b></span><span lang="EN-US">also
available under the RLS<o:p></o:p></span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span lang="EN-US">The scheme is limited to £10m per company,
or £30m per group</span></p>
<p class="MsoNormal"><b><span lang="EN-US">Business Loans</span></b></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l3 level1 lfo5; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Secured Loans </b></span><span lang="EN-US">- The lender takes a guarantee to back the loan, which is normally a
tangible asset that a company owns like property, machinery or vehicles. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Unsecured Loans </b></span><span lang="EN-US">- With no tangible security backing the loan, these are riskier for
lenders – and this is normally reflected in a shorter term and higher interest
rate. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Revolving Credit </b></span><span lang="EN-US">- Similar to an overdraft, you agree a facility limit and term and
can ‘dip in and out’ depending on your needs. You only pay interest on the
funds that you draw down. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Merchant Cash Advance (MCA) </b></span><span lang="EN-US">- Using the regular income from Debit / Credit Card transactions to
help fund business borrowing, helping to smooth income in seasonal markets. No
fixed loan repayments, your repayments are tied to the volume of business you
take through card transactions. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Short Term VAT Loans </b></span><span lang="EN-US">- Lenders offer 12 week loans to help to settle some or all of your
VAT bill – you can repay weekly or monthly.</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><b><span lang="EN-US">Invoice Finance</span></b></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l4 level1 lfo6; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Invoice Discounting </b></span><span lang="EN-US">- The simplest form of invoice finance. You keep charge of credit
control, and get paid up to 90% of your invoice’s value on the day that you
issue it to your customer, with the balance when they settle. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Invoice Factoring </b></span><span lang="EN-US">– As per Invoice Discounting, plus the lender manages your credit
control - this can free up your time to get on with running the business. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Selective </b></span><span lang="EN-US">- You select either the clients or the individual invoices to put
into invoice finance, so you only use the facility when your cash flow requires
it. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Specialist Sector? </b></span><span lang="EN-US">- Construction Finance, Recruitment Finance and Professional
Services Finance are just a few examples of specialist products that could be
tailor made for your sector.</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><b><span lang="EN-US">Trade / Supply Chain Finance</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Trade / Supply Chain Finance is a revolving
facility that can be with UK based suppliers and manufacturers as well as
overseas, is flexible to accommodate deposits if required on order and other
costs including import VAT and freight if these are applicable to you. And if
it is from overseas, then lenders are also commonly experts in FX as well.</span></p>
<p class="MsoNormal"><b><span lang="EN-US">Asset Finance / Vehicle Leasing</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Asset Finance gives your business access to
the machinery, plant, equipment or vehicles that it needs to operate, without
the full initial outlay of their cost. It can also release value from assets
that you already own towards working capital and cash flow requirements: <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo7; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Leasing Finance </b></span><span lang="EN-US">- Your business doesn’t own the asset but agrees a lease usually for
a fixed term and payments. You are in effect renting the asset. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Hire Purchase (HP) </b></span><span lang="EN-US">- This allows your company to purchase an asset over an agreed term
with agreed regular payments – the asset is yours when all of the agreed
payments have been made. <o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Refinance </b></span><span lang="EN-US">- In simple terms, your company may own assets that are either
unencumbered or partially financed. Lenders will commonly lend up to 70% of
their current value less any outstanding finance.</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span lang="EN-US">From April 1 2021 for 2 years companies can
offset 130% of qualifying spending on plant and machinery against their taxable
profit in that first year under the Super Deduction tax relief scheme. Take
your accountant’s advice for your business, but it could be worthwhile re-
considering plans that had been shelved during the pandemic, or bringing
forward plans? <o:p></o:p></span></p>
<p class="MsoNormal"><b><span lang="EN-US"><br /></span></b></p><p class="MsoNormal"><b><span lang="EN-US">We are sourcing suitable Commercial
Finance solutions for trading businesses from all sectors, property investor
and developer clients, to help them achieve the best outcome for their
requirements.</span></b></p>
<p class="MsoNormal"><b><span lang="EN-US">Why not see what options are available
to you?</span></b></p>
<p class="MsoNormal"><b><span lang="EN-US">Mark Grant, November 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><b><span lang="EN-US"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></b></span></p></div><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-38964729045022557052021-11-13T12:40:00.000+00:002021-11-13T12:40:11.577+00:00Changing Business Bank Relationship – Benefits Can Outweigh The Effort To Move<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUcGiwC_FrGSIBKcSe9tzOtEgdQ2236Vd0TCQCWipOmSbgzV80U4QMaQLxtJeykSjlIa5jbGq7Rc4xbmdVwfU11ED1jrl3R7uqIcp-VWb9Ch8Lq_0XaXKo1CAmArdgo8muonV32h9Gm4s/s640/Piggy+Banks.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="384" data-original-width="640" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUcGiwC_FrGSIBKcSe9tzOtEgdQ2236Vd0TCQCWipOmSbgzV80U4QMaQLxtJeykSjlIa5jbGq7Rc4xbmdVwfU11ED1jrl3R7uqIcp-VWb9Ch8Lq_0XaXKo1CAmArdgo8muonV32h9Gm4s/s320/Piggy+Banks.jpg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Talking
to clients I have seen and heard the reluctance, dread and even fear at the
thought of moving their business banking relationship from one provider to
another. If you don’t understand what it involves, how much is taken care of
for you and how many benefits there could be for you, then it is an
understandable reaction.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Banks
may be surprised (and I hope would care) about the number of people
dissatisfied with their existing relationship, and the service levels and
finance solutions that they are currently provided with.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">With business banking we are
not talking about someone interested in a £50 cash back incentive for moving
their current account – the service and access to suitable finance solutions,
all in a friction free way for the company, makes an enormous difference to
their productivity, and in a lot of cases sanity!</span></b></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">As we
hopefully continue to move away from the pandemic period, raw in businesses’
minds are the early days of Covid-19; 6 hours on hold to talk to ‘anyone’ at
their bank – to get picked up and a ‘call back’ booked in for a few days later
– which never materialised.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Those
few days and beyond could well have been spent with their business closed, no
money flowing in and not just themselves but staff to worry about and look
after.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Ok, so
the loan schemes came in, some businesses started to open back up and the rest
we all know – but when they needed their bank the most, the bank was not accessible.
This has left a big mark on many businesses.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">There
are some great Relationship Managers in business banking, who know their
clients well and have worked with them in some cases for many years. But many
decisions that affect their clients – limits, facilities or just support as a
whole – are taken ‘above their pay grade’ by risk teams and committees not
connected with the business.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">In a time of wholesale
changes in banks’ appetite and criteria for funding UK business, your
Relationship Manager is no longer able in most cases to hold sway on many decisions
that affect you.</span></b></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">I want
to touch on a case study of a company that we helped to move their corporate
banking relationship and some other areas that may be a catalyst for you to
consider moving business banking.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Case Study</span></b></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We
worked with a manufacturing client, and helped them to move their business
banking from one high street group to another. The facilities moved over were:</span></p><p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US" style="font-size: 11pt;"><span style="font-family: Symbol;"> </span></span><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Core business banking<o:p></o:p></span></li><li><span lang="EN-US" style="font-size: 11pt;"><span style="font-family: Symbol;"> </span></span><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Invoice Discounting facility<o:p></o:p></span></li><li><span lang="EN-US" style="font-size: 11pt;"><span style="font-family: Symbol;"> </span></span><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Commercial owner-occupier mortgage<o:p></o:p></span></li><li><span lang="EN-US" style="font-size: 11pt;"><span style="font-family: Symbol;"> </span></span><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">A CBILS loan<o:p></o:p></span></li></ul><!--[if !supportLists]--><p></p><p></p><p class="MsoNormal">
</p><p></p><p class="MsoNormal"><span style="font-family: Calibri, sans-serif; font-size: 11pt; text-indent: -18pt;">With the
benefit of hindsight the company suffered no defaults on their debtors book,
but in the heat of the worst early months of the pandemic they did suffer late
payments – but were in open and frequent dialogue with their clients about the
situation.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Their
incumbent bank operates a system driven ‘auto-adjustment’ so that if their day
count for payment pushed over their 90 day limit, without any human
intervention the system automatically reduced their pay rate on invoices by 1%
for every day the day count was exceeded.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">And so
in May 2020, when their day count pushed 14 days over their limit, the system
immediately reduced their pay rate on invoices to 76% from 90% - the day before
payroll, and with no warning.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The MD
funded the payroll 1 day late, but everyone got paid. The bank repaid the funds
and lifted the pay rate back to 85% within a week – but understandably the
damage was done. Is this the issue with reliance on tech-driven decision making
and an account manager having 90-100 companies to look after?</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The
story ended well for the business, and they are now with a bank that works with
clients on far reduced ratios of account managers to businesses, and talks to
clients before any actions are agreed with them.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">They did
not raise any more funds by moving – but the banking now helps their business
work better – even an improvement in bank portal and connectivity with accounts
package has given them time back to get on with running the business.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">What Benefits Could You Gain
From Moving Business Bank?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">A bank that listens:</span></b><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> And this isn’t a shameless
plug for the ‘listening bank’! Some clients are facing a wall of indifference
to their current situation and path to recovery from Covid impact. ‘We are not
a story book banker’ has been quoted to one client…</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">A bank that supports what you
need:</span></b><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> You may
have a facility or type of finance that your bank just does not want to support
post-Covid. A good example of this is Invoice Finance, and in several cases
Invoice Finance for sectors like Construction and Project based work, where
there is contractuality to client agreements.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Online access and
connectivity that gives you time back:</span></b><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> Anyone that runs a business
can tell you that their most precious commodity is time – what could they do
with more of it in terms of productivity and more time to run their business?
The way that you business bank connects with you, offers you access to your
finances and funding, and expects you to interact on issues likes monthly
reconciliations can make a BIG difference to you as an owner or director of a
company.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">You ‘pivoted’ to trade out of
Covid – but your bank hasn’t pivoted with you:</span></b><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> Many businesses had to
adapt, change or add completely new areas of business to get through and trade
out of the pandemic – and so while your bank may have supported your previous
activities, it doesn’t cover everything that you do now. <o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">For
example, you always used couriers but now you make so many deliveries that you
need your own vans – but your bank doesn’t provide Asset Finance.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">So, Where Do You Start?</span></b></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">All of
the finance that we source is impartial and with no ties to any particular
lender at all. The same is true of our ability to fit your business, your
banking requirements and your aspirations moving forward with all of the
facilities open to you with another bank to your existing business banking
relationship.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Where do
you start? With a conversation with us – to discuss what you have in place,
what you are not getting that you want from your existing bank / what the
problems are – and what you see your best outcome as looking like.</span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Because
we know what is available from business banking providers, and how it can
potentially be packaged for you, we then do the legwork and present options
that are suitable. Leaving you to get on with the important job of running your
business.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">From our first conversation
forwards, you will get the support and reassurance that you are not having to
manage the process on your own – and that everyone is working to the same end
goal – the best possible outcome for your business.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Your business may really
benefit from a business banking move – why not invest a few minutes in a
conversation with us today to discuss how?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Mark Grant, November 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></b></span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-79797779334792970352021-10-30T16:12:00.001+00:002021-10-30T16:12:20.254+00:00Green Commercial Finance: Opportunity or Opportunistic?<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsUFxjknIGR51RiSZK7L4BSplPH4Jo0Djdzex2pH4TWSMmj1mc19zitfobKAmlIt3k9Dmh6KUnID-2XSTJcAK6cjUBVqd6X8r853GR_wN34DL9STGTt4Yg6_7StP9X-dqcL6b8cr4j51A/s640/Planet.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="624" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsUFxjknIGR51RiSZK7L4BSplPH4Jo0Djdzex2pH4TWSMmj1mc19zitfobKAmlIt3k9Dmh6KUnID-2XSTJcAK6cjUBVqd6X8r853GR_wN34DL9STGTt4Yg6_7StP9X-dqcL6b8cr4j51A/s320/Planet.jpg" width="312" /></a></div><br /><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US">As soon as anything commercial adopts a
‘Green’ label it may raise suspicion that something opportunistic is going on.</span></p>
<p class="MsoNormal"><span lang="EN-US">So, because I am publishing a blog on Green
Commercial Finance at the start of the week when the UN Climate Change
Conference, COP26, starts in Glasgow, let me deal with that issue first:<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">My hope is that how topical the subject is
this week may highlight the blog and gain a little more attention for the
conclusion that I have drawn.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">So
like an activist I will shake up the order of things here and reach my
conclusion for you at the outset: Green Commercial Finance is an opportunity to
play your part, as a business, in the far larger collective effort that is
required for us all to act on climate change together. As surely that is the
only way that we will succeed.</span></b></p>
<p class="MsoNormal"><span lang="EN-US">I have heard many eminent scientists and
experts detail the individual things that we can all do to help stop continued
damage to the environment. And a common objection to taking these actions has
been “but what difference can I make by doing that..”. But it feels like we are
at a tipping point where millions of people are prepared to increase the
actions they take, and action on that scale will have a positive impact.</span></p>
<p class="MsoNormal"><span lang="EN-US">The last generation has grown up in an age
where doing the right thing for the environment has been cost prohibitive –
from the cost of vegetarian alternatives in the supermarket, to the technology
that you could use at home to reduce carbon fuel usage, like solar panels.
While not fully there yet, the scale of demand for greener solutions to
everything helps relatively quickly drive the cost of the choice down. Heat
source boilers probably the next example of this?</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">And
so we turn to Green Commercial Finance, and why you can and should look to
access it.</span></b></p>
<p class="MsoNormal"><span lang="EN-US">First let’s cover the commercial issue –
‘what is it going to cost you?’ – at a time where even with the largest will in
the world to play your part, it’s been a hard couple of years during the
pandemic, and you are already seeing costs increasing from every angle.</span></p>
<p class="MsoNormal"><span lang="EN-US">The answer is nothing, and in fact the
opposite. In any situation where your business is going to enter into the
expenditure regardless, then Green Commercial Finance incentivises your
expenditure to have a positive impact environmentally.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">In a
nutshell, your funding is discounted to incentivise you to do the right thing,
and play your part.</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Areas where incentives are available
include, but are not limited to:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Property development – Tools to
help to enhance the energy performance of new build, converted or refurbished
property<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Property investment – Enhanced
rates applied to higher rated properties on energy performance, which are
better for your tenants as well as the environment<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Vehicles and transport –
Funding for investment in low carbon and all electric, including supporting
charging infrastructure<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Reduction in waste and/or
improvement in recycling ratios<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Investment in infrastructure,
machinery, plant, property and processes to lower carbon and greenhouse gas
emissions<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Investment to improve water and
energy efficiency<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Support for companies who
deliver positive environmental impacts for regional areas and communities</span></li><li> Eco-efficient or circular
economy activities</li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Waste management and recycling sector<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Renewable energy – multiple
subsectors including Solar, Wind, Hydro, Waste, Heat Pumps</span></li></ul><p></p>
<p class="MsoNormal"><span lang="EN-US">A bit like the scale of the problem, there
is a very long list of activities and types of investment that are covered
under Green Commercial Finance – but I take great encouragement from the fact
that there are so many ways for you to be rewarded for playing your part.</span></p>
<p class="MsoNormal"><span lang="EN-US">Far from an opportunistic blog to piggy
back onto this week’s headline news about the COP26 conference, this is just
the start of us playing our part by helping UK businesses source greener
funding. And to be clear – we don’t earn anything more by pointing you in this
direction, and in some cases it may be the opposite – but that is not what
drives our work for you.<o:p></o:p></span></p>
<p class="MsoNormal"><br /></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
are told that we are at the point where ‘putting change off’ will make that
change too late.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Don’t
put off playing your part – ask us how to use Green Commercial Finance in your
business TODAY.</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Mark Grant, November 2021.</span></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-84197221274754375282021-10-16T16:24:00.006+00:002021-10-16T16:26:20.614+00:00What Is An Appointed Representative in Commercial Finance?<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3PuAEIqQBwieqovqxIVeULQAtU2Yk_wZW3M0977_XVd8ndYZuF7vquf6XMZq_u4_XSdmwSrbDa07F6TtdJGF_3FdwqJIoKq7caTBbqIwxw9gjDUOPV2zck9bQaWurQQ6O3PtBA0SHBbI/s640/Network.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="640" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3PuAEIqQBwieqovqxIVeULQAtU2Yk_wZW3M0977_XVd8ndYZuF7vquf6XMZq_u4_XSdmwSrbDa07F6TtdJGF_3FdwqJIoKq7caTBbqIwxw9gjDUOPV2zck9bQaWurQQ6O3PtBA0SHBbI/s320/Network.jpg" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">I guess
that I should be clear what I mean when I say ‘Appointed Representative’ or
‘AR’ as it will be easier to retype many times here!</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><b>An
Appointed Representative in financial services is a person or company that is
authorised to carry out specific types of activity under the regulatory
umbrella of another firm that is directly authorised by the FCA.</b></span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Why
might you do that rather than be directly authorised yourself? Headline reasons
are cost, together with monitoring, administration and reporting activities
that comes with direct authorisation, and for which you are wholly responsible
as an FCA directly authorised firm.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">So as an
AR of a company that is themselves directly authorised, your costs are lower
and most if not all of the administration of your authorsation falls to your
network provider – BUT that is not to say that you don’t have obligations to
uphold.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">As an AR
network provider we are vouching for the person and firm that is an AR of our
network – that you are solvent, reputable and trustworthy, and that you will
uphold the regulations relating to the area in which you operate and carry out
your business in a compliant manner.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">In short, it’s our neck on the block!</span></b></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Our own
authorisation and reputation are affected by your conduct as an AR – so
therefore we put the time in to ensure that:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="margin-left: 54pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">you are
trained in both our approach to clients and the areas in which you will operate<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">each
case is conducted in a compliant manner<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="margin-left: 54pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">you
access the necessary CPD and compliance training annually</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The most
common examples in the UK of AR networks are in residential mortgage broking.
There are multiple network providers in residential mortgages – underlining how
well the process works, and we see examples of one man bands up to 40 or 50
advisers where the model is beneficial to the business.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We have
the good fortune to work with one of the largest, and in our (slightly biased?)
opinion best, residential mortgage networks in The OpenWork Partnership. We are
one of only a couple of partners that their residential mortgage brokers can
introduce Commercial Finance cases to.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Which in
turn brings me to our own AR network – the Fiducia Commercial Finance AR
Network.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Being a
Commercial AR on our network could be a full time self employed role or a part
time role alongside your existing business – in other words it could be a
totally new venture, or it could compliment your existing business and network.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">To us it
means a partnership and collaboration – we have a vested interest in ensuring
that:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="margin-left: 54pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">you are
trained fully in all aspects of your role<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">you are
aware of your compliance obligations, and you have the tools and systems to
carry them out<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="margin-left: 54pt; mso-add-space: auto; mso-list: l1 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">you keep
current in updates and changes in the commercial finance market and products</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The
partnership and collaboration goes beyond the set up, induction and kick off of
your AR activities; <b style="mso-bidi-font-weight: normal;">we have a USP as an
AR network provider that positions us head and shoulders above most of the
market - we do the same job that you do!</b></span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The
Fiducia CommercialAR Network offers you a cost effective route to authorisation
and a lot MORE beyond.</span></p>
<p class="MsoListParagraphCxSpFirst" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
lenders and products on a whole of market panel where some funders only accept
authorised brokers<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
protection for your business with PI Insurance coverage<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
access to your sector, lender and product information and personal development
tools via NACFB membership<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
choice and suitable solutions for your clients<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
compliance, finance, system and admin support<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
business support from the Fiducia broking team<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
regular commercial finance news and views from industry experts<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="margin-left: 54pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">MORE
lender and products updates + regular network BDM webinars</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are not</span></b><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> a commercial finance brokerage that has just
set up an AR network as a sideline without putting in the ongoing and long-term
support.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are not</span></b><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> a franchise that takes a large up front
payment in return for a couple of webinars and a manual that points you towards
your promised six-figure salary – because believe me if it was that easy then
that’s where I would be and not blog writing this weekend!</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are not</span></b><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> ‘working the numbers’ and just getting as many
people through the door because then dissatisfied leavers don’t affect us too
much.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are commercial finance brokerage that works with
our ARs to provide them with the tools and support to enable them to help their
clients – and not just at the outset, but on an ongoing basis.</span></b></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Especially
in the current period of recovery, and what we hope will be the worst of the
pandemic behind us, support from a team experienced with getting deals over the
line that aren’t always straightforward could be the difference to being a
successful AR.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">That’s what being part of the Fiducia AR
Network could mean for you – being part of something bigger that you can lean
back on for support in multiple ways whenever you need to.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Take the first step towards being a successful
commercial finance broker by talking to us about the Fiducia Commercial AR
Network.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Mark Grant, October 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:mark@fiduciagroup.co.uk">mark@fiduciagroup.co.uk</a></span></span><span lang="EN-US"> / 07854 382700</span></p></div><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-86281630091296182762021-10-09T07:37:00.000+00:002021-10-09T07:37:33.869+00:00‘Just-In-Time’, or Just Late? - We Can Fund Your Supply Chain<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjKu9BabHNouP-MDoVA6_GuhL2nB7If3KlOjpfKgePXm47EexHRporj93RpyR2QApQeiMfKBZLukSZrwc2wjWAdFDYJLK0EM2ydVn5l03NOzajjK0SRtFH1ciLalZ_i8DRyPnEXHJR5eM/s640/Stopwatch.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="590" data-original-width="640" height="295" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjKu9BabHNouP-MDoVA6_GuhL2nB7If3KlOjpfKgePXm47EexHRporj93RpyR2QApQeiMfKBZLukSZrwc2wjWAdFDYJLK0EM2ydVn5l03NOzajjK0SRtFH1ciLalZ_i8DRyPnEXHJR5eM/s320/Stopwatch.jpg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A supply chain blog hardly needs any introduction or context at
the moment – you cannot turn on your TV, head to the supermarket or go to get
petrol without having the issues front and centre in front of you.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Of course the majority of UK businesses aren’t in the petrol
forecourt business or the supermarket game – BUT the issues around delays and
inflated costs in supply chain are affecting virtually every UK company.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The UK supply chain landscape is suffering some chronic issues:<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l2 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Costs increases in energy, raw materials, parts and stock can’t
always get immediately passed on to customers<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l2 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Staff shortages widespread in food processing, retailers,
agriculture and hospitality to name just a few sectors<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l2 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Wages for new hires and temporary staff spiralling, poaching and
hiring bonuses prevalent<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l2 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A shortage of drivers in logistics, and the cost of haulage and
freight transport at record levels<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l2 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Covid case levels stubbornly stuck in the mid to high 30,000’s
daily for the third month</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">If major firms (with presumably deeper pockets than the average
business) are restricting trading operations, imagine the effect these issues
are having on SMEs broadly in the UK and the drain on their cash flow from long
delays and far higher costs.</span></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your company
needs suitable funding that fits in to the cycle of business and trade that you
are doing. <o:p></o:p></span></b></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Using cash for supply chain in this environment is not
sustainable. <o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Taking a business loan to finance your supply chain just puts
fixed payments immediately into the calendar – and you are probably starting to
repay before you have been able to receive payment from end customers.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We help UK businesses fund their supply chain from within the UK
and overseas with Supply Chain Finance and Trade Finance, and wanted to lay out
how broadly it can help business in a variety of sectors in the UK economy –
especially at the moment.</span></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">How can
Supply Chain Finance and Trade Finance help you?</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Let’s lose the common misconception first – Supply Chain and Trade
Finance can be for stock, materials or goods sourced within the UK, as much as
it can be used the purchase of raw materials and finished goods or parts
internationally.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trading with suppliers or manufacturers can begin with either an
order from a client that you have to fulfil, or having to ‘stock up’ on the
goods that you sell because your customers will expect a quick delivery after
they make a purchase.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Depending on the nature of their business, companies either buy
raw materials that they manufacture or assemble to create finished and saleable
goods, or they will purchase ‘finished goods’ from a manufacturer or supplier –
packaged and ready for delivery to their customers.</span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">How can the finance be used?</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Supply Chain and Trade Finance can be used to fit a wide range of
business types:<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l1 level1 lfo3; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Purchase raw materials or finished goods<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l1 level1 lfo3; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trade can be with UK based companies as well as overseas<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l1 level1 lfo3; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Commonly finance companies are also experts in FX<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l1 level1 lfo3; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Goods can be pre-sold, or to provide a stock for sale</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your business can improve prices and
terms from having the backing of a trade facility and being able to pay earlier;
Supply Chain or Trade Finance facilities can be flexible to accommodate deposits
if required on order, and other costs including import VAT and freight /
haulage if these are applicable to you.</span></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Is the cost
of taking finance justified for your business?</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In the current environment companies need to conserve cash within
the business as working capital can become strained without much notice.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Funding the purchase of goods or materials that are either
pre-sold or to provide you with stock leaves crucial cash in the business to
cover overheads and unexpected cash calls on the company.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">This is especially true when supplementary costs like transport or
freight may now be a multiple of what you had first budgeted for when pricing
the project or order.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A common objection to arranging finance
is the cost of the facility and funding these transactions; beyond the fact
that lenders that we work with offer extremely competitive rates on their
facilities, I would suggest that these are a great example of the ends
justifying the costs of the means.</span><span style="font-family: "Calibri Light", sans-serif;"> </span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The cost of funding will slightly reduce
your margin on the transaction – but with very little effect on working
capital, and consequently you are still able to meet other demands that you
face – as well as to fulfil any opportunities that are presented to you.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><br /></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">If you buy materials or goods in the UK or from overseas, don’t
let that be the reason you cannot accept new business or orders, or take up any
new opportunities.</span></b></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Why not get in touch and discuss how we can support you with
suitable Supply Chain or Trade Finance options?</span></b></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">How do you want to be supplied?</span></b></p>
<p class="MsoNoSpacing"><b><span lang="EN-US" style="font-family: "Calibri Light",sans-serif; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Mark Grant, October 2021.</span></b></p>
<p class="MsoNoSpacing"><span class="MsoHyperlink"><b><span lang="EN-US" style="font-family: "Calibri Light",sans-serif; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></b></span><b><span lang="EN-US" style="font-family: "Calibri Light",sans-serif; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><span style="mso-spacerun: yes;"> </span>/ 01636 614
014</span></b></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-25299826049794734102021-09-25T08:02:00.003+00:002021-09-25T08:02:55.842+00:00Is It A Good Time To Fix The Rate Of Your Commercial Mortgage?<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyPoC8XMaByNir1y87rqSpPo_tO4D4iMij2EiU4Pc7JBwVgOzWD6zOQ5Up7t5RYgxmIr_fg9ExhDJFycO6mjR_CL_cjVlCZc_1jfbZKYF3GiQPQnmI-fvFO22fLUOK5StsOHv8yv024QQ/s640/Interest+Rates.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="606" data-original-width="640" height="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyPoC8XMaByNir1y87rqSpPo_tO4D4iMij2EiU4Pc7JBwVgOzWD6zOQ5Up7t5RYgxmIr_fg9ExhDJFycO6mjR_CL_cjVlCZc_1jfbZKYF3GiQPQnmI-fvFO22fLUOK5StsOHv8yv024QQ/s320/Interest+Rates.png" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US">Far from any claim to have the crystal ball
on when and how much interest rates will change, the question is pointing to
whether the benefits of looking to fix the rate of your commercial mortgage now
likely outweigh the down sides.</span></p>
<p class="MsoNormal"><span lang="EN-US">From twelve months ago, when the Bank of
England was sounding out banks and financial services companies on how prepared
they and their systems were for the chance of a negative base rate, we have
evolved to an economy as we transition out of the pandemic restrictions of
heated demand and shortness of supply – also called inflationary pressure.</span></p>
<p class="MsoNormal"><span lang="EN-US">A near perfect storm of contributing
factors are driving a seemingly endless upward pressure on costs:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Demand outstripping supply of almost every raw material<o:p></o:p></b></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Delays in materials and manufactured goods in the supply chain
globally<o:p></o:p></b></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Record freight costs, and restricted availability of freight, to get
the same goods and materials to the UK<o:p></o:p></b></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Chronic shortage of HGV drivers within the UK to distribute at all
stages of the supply chain<o:p></o:p></b></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Combination of factors has driven energy costs up, in the case of
wholesale gas by 6 times – and these are still rising<o:p></o:p></b></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span><b>Several sectors of the economy suffering chronic staff shortages and
an inability to recruit </b></span><span lang="EN-US">– I did linger over the
advert for a cabbage picker on Friday afternoon, annual salary equivalent to
£62,000 basic</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span lang="EN-US">Cost pressures are feeding through to
virtually every business in the economy – and these are not costs that UK
companies have much if any control over at all. And that brings me back to my
question – is it a good time to fix the rate of your commercial mortgage?</span></p>
<p class="MsoNormal"><span lang="EN-US">If you feel that inflationary pressures are
going to mean that the next move in rates will be up and not down, then fixing
your mortgage at a currently available fixed rate would make sense.</span></p>
<p class="MsoNormal"><span lang="EN-US">And when we talk about price rises – energy
prices up 4 to 6 times, and many materials up 20%, 30%, 50% or doubling – then
the 3.2% CPI number for August would seem to be a very modest number that has
to move higher in the coming months?</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">But
psychologically, fixing your commercial mortgage rate is exerting control over
a major cost to your business – not to mention the physical roof over your
business!</span></b></p>
<p class="MsoNormal"><span lang="EN-US">If you are budgeting and forecasting for
your business, then unfortunately with some costs you might be as accurate with
a coin toss as a calculator; but with a major cost like the mortgage fixed for
a 2 year or 5 year term you would be adding accuracy to your budgeting, and
hedging against future interest rate rises that would immediately add to the
call on cash flow to your business if you are on a variable rate mortgage.</span></p>
<p class="MsoNormal"><span lang="EN-US">Which takes us full circle to the question
of whether the upside to fixing the interest rate on your commercial mortgage
outweighs any downside.</span></p>
<p class="MsoNormal"><span lang="EN-US">Many of our clients are applying personal
finance logic to their commercial mortgage decisions – and deciding that fixing
the rate now removes the risk of increased costs if interest rates rise, at a
time when they already face so many increases in costs that they have no
control over.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
help clients source the best commercial mortgage solution for their business
from our whole of market panel of lenders – why not let us help you fix the
cost of the roof over your company?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Mark
Grant, September 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></span><span lang="EN-US"><span style="mso-spacerun: yes;"> </span>/ 01636 614 014</span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-72688313224238174592021-09-18T07:31:00.001+00:002021-09-18T07:31:25.470+00:00Asset Based Lending – You May Already Own Your Funding Solutions<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8QjUGJwUr1Y3Kzk4W3ikPxxY9rU40MTpbaKDONjnnMhhMVWNWMkTxKFxiVkLCwvsxhpPDfRn2FtHEUNms5nY4KIldr2l3bseMFwD3F_kv7iNWyr0om5jFVp9aNw6kMNAoIJPs9ziDdNs/s640/ABL+Solution.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="359" data-original-width="640" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8QjUGJwUr1Y3Kzk4W3ikPxxY9rU40MTpbaKDONjnnMhhMVWNWMkTxKFxiVkLCwvsxhpPDfRn2FtHEUNms5nY4KIldr2l3bseMFwD3F_kv7iNWyr0om5jFVp9aNw6kMNAoIJPs9ziDdNs/s320/ABL+Solution.jpg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US">You start with a blank page to decide the
route down which your business can move to secure the funding that you need –
but commonly people do not consider that the page isn’t blank at their starting
point, and that is because of the assets that they already own within their
business.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">What
is Asset Based Lending?</span></b></p>
<p class="MsoNormal"><span lang="EN-US">You could define the purpose of Asset Based
Lending as leveraging the assets that you already own to enable, grow and
advance your business.</span></p>
<p class="MsoNormal"><span lang="EN-US">Asset Based Lending (ABL) is exactly what
is says on the tin – lending that is based on the assets of a business. This
includes:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Property and Land<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Stock<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Assets (such as machinery or
vehicles)<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Sales Ledger (Debtors Book)</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span lang="EN-US">By using ABL to raise all or some of your
required capital, the result is a bespoke finance solution based on your
business and not a ‘one size fits all’ off the shelf solution.</span></p>
<p class="MsoNormal"><span lang="EN-US">ABL leverages existing assets that may not
already be getting used to generate capital – so they are potentially more
efficient and cost effective than seeking unrelated and unsecured finance
separately.</span></p>
<p class="MsoNormal"><span lang="EN-US">Asset Based Lending can play a critical
role in both company acquisitions (MBIs) where the assets of your existing
business and the business that you are buying can be leveraged, as well as MBOs
where the existing management team can leverage the assets that they already
work with to part or fully fund their deal.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Property
and Land</span></b></p>
<p class="MsoNormal"><span lang="EN-US">A company can own a variety of different
property types or land, with or without planning permission. Where the business
has headroom in the equity of this property or land, they can release capital
with a secured loan.</span></p>
<p class="MsoNormal"><span lang="EN-US">For example:<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">A manufacturing business has a property
worth £1m on its balance sheet, with an outstanding commercial owner-occupier
mortgage of £300k.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">Subject to credit assessment of the current
trading performance of the business, they may be able to look to raise up to an
additional 40% of the property value, or £400k, through refinancing the
property.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">This type of secured finance will be at a
lower rate than unsecured finance that would be available, and a good example
of Asset Based Lending being more cost effective than a new or separate unsecured
loan facility.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Stock</span></b></p>
<p class="MsoNormal"><span lang="EN-US">A type of funding that will commonly be
looked at alongside another facility, such as Invoice Finance, but where viable
and relevant it can again help to release some capital in stock that is
currently just ‘sitting there’ where the business commonly holds it.</span></p>
<p class="MsoNormal"><span lang="EN-US">Typically Stock Funding will release 15% -
20% of the value of stock levels, where the business demonstrates that it holds
a fairly consistent level taking both sales and supply into account.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Assets
(such as machinery or vehicles)</span></b></p>
<p class="MsoNormal"><span lang="EN-US">In simple terms, your company may own
assets that are either unencumbered or partially financed. Lenders will
commonly lend up to 70% of their current value less any outstanding finance.</span></p>
<p class="MsoNormal"><span lang="EN-US">On its own unlikely to be funding the
complete finance requirement that you have, but like Stock Funding you could
get a valuable contribution from Asset Refinance.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Sales
Ledger (Debtors Book)</span></b></p>
<p class="MsoNormal"><span lang="EN-US">You can help to release working capital
towards your funding requirements by leveraging the outstanding customer
invoices of your business (your debtors’ book).</span></p>
<p class="MsoNormal"><span lang="EN-US">The debtors’ book is an asset of a
business, and when unencumbered it has the potential to release vital capital
towards the funding that you are looking to achieve.</span></p>
<p class="MsoNormal"><span lang="EN-US">This funding is then repaid through the
natural flow of turnover through the business, and not via fixed loan payments
every month, taken no matter what turnover the business is doing. This could
add a lot of value in the context of an ABL package of different types of
funding combined.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Packaging
an Asset Based Lending solution</span></b></p>
<p class="MsoNormal"><span lang="EN-US">The beauty of using ABL funding is that is
like a corporate tool box – or a funding “pick ‘n mix” almost. You literally
just pick up and use the elements that are suitable and add value to your overall
funding requirements.</span></p>
<p class="MsoNormal"><span lang="EN-US">To that end the funding does not have to be
sourced all from one lender – and the ability to piece it together from more
than one funding source can help you to achieve improved terms and rates – and
ultimately the most suitable outcome to fund your acquisition.<o:p></o:p></span></p>
<p class="MsoNormal">We have experience of using both single and
multiple lenders to provide funding options for clients, and combining Asset Based
Lending where necessary with further funding facilities such as Term Loans and
Trade Finance to complete the required commercial finance package.</p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
work with clients to understand the funding requirements and their underlying
business, doing all the legwork to source suitable solutions and to help them achieve the best outcome for their requirements.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">How
do you want to finance your business?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Mark
Grant, September 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></span><span lang="EN-US"><span style="mso-spacerun: yes;"> </span>/ 01636 614 014</span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-81031167620984403342021-09-12T06:54:00.002+00:002021-09-12T06:54:32.648+00:00Fiducia's 'Commercial View' - The Podcast - September 2021<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZ4ZNbiMZ2O6gSqSm9JX7ewUVx62uxD53q341TuXHTfnRcwBHUpTrhQ34jpj9XodDUCsjl_IGH3B6MrEwjmICmB3HwWgWn2xZ3ea4lSkrXUTrAfC2R5SPcZb5OuKEqml4C271Mg5zoAEA/s940/Fiducia%2527s+Commercial+View+-+The+Podcast.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="788" data-original-width="940" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZ4ZNbiMZ2O6gSqSm9JX7ewUVx62uxD53q341TuXHTfnRcwBHUpTrhQ34jpj9XodDUCsjl_IGH3B6MrEwjmICmB3HwWgWn2xZ3ea4lSkrXUTrAfC2R5SPcZb5OuKEqml4C271Mg5zoAEA/s320/Fiducia%2527s+Commercial+View+-+The+Podcast.png" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span style="color: black; font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Schools are back this month - and so is
Fiducia's 'Commercial View' podcast, looking at news and trends in UK property
and the commercial finance market:</span></p><p class="MsoNormal"><span style="color: #2b00fe; font-family: Calibri, sans-serif;"> <o:p></o:p></span><a href="https://open.spotify.com/show/1PzCdJnpsWPtd3TIjVu2Yh" style="font-family: Calibri, sans-serif;"><span style="font-family: "Times New Roman",serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">https://open.spotify.com/show/1PzCdJnpsWPtd3TIjVu2Yh</span></a></p><p></p><p class="MsoNormal"><span style="font-family: Calibri, sans-serif;"><o:p></o:p></span></p><p>
</p><ul type="disc">
<li class="MsoNormal" style="color: black; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Delighted
to hear the Commercial View this month of Jonathan Sealey, CEO of Hope
Capital who discusses the changing face of the UK property landscape, and
how their product ranges have adapted to meet client' demand. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: black; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Property
repurposing, conversion and refurbishment are taking a far bigger slice of
the short term lending market post-pandemic - we look at why. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: black; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Without
the benefit of a crystal ball to assess affordability of commercial
mortgages, lenders are sharpening their pencils and diving deep into past
performance to shine light on the road ahead - we look at how. <o:p></o:p></span></li>
<li class="MsoNormal" style="color: black; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Trading
Businesses will share a lot of common issues as they trade out of the
Brexit and Covid period - we identify the issues and look at how we could
help mitigate them in some ways. <o:p></o:p></span></li>
</ul>
<p class="MsoNormal"><span style="color: black; font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";"><b>We would welcome the opportunity to help source
suitable solutions for your commercial finance requirements - please drop us a
mail to info@fiduciacommercialsolutions.co.uk or call in on 01636 614014. </b><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: Calibri, sans-serif;">Have a good month.</span></p>
<p class="MsoNormal"><span style="color: black; font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p><br /><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-83277293490256123822021-08-21T09:00:00.000+00:002021-08-21T09:00:49.191+00:00“The One Where The Chicken Didn’t Cross The Road”<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiw27jvbc6X8YqkyuGXseLFJAabeUCZea0l1EQ2_FX83LEAxke7jLSJ25VIiXzzFxhED2NhcWqz8n29_Slqe2NnmCJ-qSqPMZa4DLvyJEICjjCSvOwxVTW1mWMZraqt914yM5FBf71UHtw/s1920/Chicken+cross+road.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1275" data-original-width="1920" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiw27jvbc6X8YqkyuGXseLFJAabeUCZea0l1EQ2_FX83LEAxke7jLSJ25VIiXzzFxhED2NhcWqz8n29_Slqe2NnmCJ-qSqPMZa4DLvyJEICjjCSvOwxVTW1mWMZraqt914yM5FBf71UHtw/s320/Chicken+cross+road.jpg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Even by my own low standards, this may be taking mixing metaphors
and analogies a little too far – ‘Friends’ episode titles, fast food and
chronic issues in UK supply chains. But given the high profile examples in the
last week, it seemed to hit the spot.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Nando's announced that it had been forced to shut 40 restaurants
(10% of it's chain in the UK) last week due to staff shortages at food
processing suppliers - hot on the heels of KFC UK reducing its menu the
previous week due to supply delays.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The UK supply chain landscape is suffering some chronic issues:<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Staff shortages widespread in food processing, retailers and
hospitality<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A shortage of drivers in logistics, and container freight costs at
record levels<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l1 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Covid isolation issues still not out of the economy after further
easing of rules last week</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">I have talked to a client this week who had a short notice and
urgent order in from a client, and needed to source the product from Holland.
He was quoted 4 weeks in shared haulage – or a dedicated lorry that week at 5
times the standard haulage costs. How do you rate his chances of maintaining
any margin in the deal in the required timeframe?</span></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"></span></b></p><blockquote><b style="mso-bidi-font-weight: normal;">If the major
firms are restricting trading operations, imagine the effect these issues are
having on SMEs broadly in the UK and the drain on their cash flow from long
delays and far higher costs.</b></blockquote><p></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">We help UK businesses fund their supply chain from within the UK
and overseas with Supply Chain Finance and Trade Finance, and wanted to lay out
how broadly it can help business in a variety of sectors in the UK economy –
especially at the moment.</span></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">How can
Supply Chain Finance and Trade Finance help you?</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Let’s lose the common misconception first – Supply Chain and Trade
Finance can be for stock, materials or goods sourced within the UK, as much as
it can be used the purchase of raw materials and finished goods or parts
internationally.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trading with suppliers or manufacturers can begin with either an
order from a client that you have to fulfil, or having to ‘stock up’ on the
goods that you sell because your customers will expect a quick delivery after
they make a purchase.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Depending on the nature of their business, companies either buy
raw materials that they manufacture or assemble to create finished and saleable
goods, or they will purchase ‘finished goods’ from a manufacturer or supplier –
packaged and ready for delivery to their customers.</span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">How can the finance be used?</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Supply Chain and Trade Finance can be used to fit a wide range of
business types:<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Purchase raw materials or finished goods<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trade can be with UK based companies as well as overseas<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Commonly finance companies are also experts in FX<o:p></o:p></span></p>
<p class="MsoNoSpacing" style="margin-left: 36.0pt; mso-list: l0 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Goods can be pre-sold, or to provide a stock for sale</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Your business can improve prices and
terms from having the backing of a trade facility and being able to pay earlier;
Supply Chain or Trade Finance facilities can be flexible to accommodate deposits
if required on order, and other costs including import VAT and freight /
haulage if these are applicable to you.</span></p>
<p class="MsoNoSpacing"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Is the cost
of taking finance justified for your business?</span></b></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In the current environment companies need to conserve cash within
the business as working capital can become strained without much notice.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Funding the purchase of goods or materials that are either
pre-sold or to provide you with stock leaves crucial cash in the business to
cover overheads and unexpected cash calls on the company.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">This is especially true when supplementary costs like transport or
freight may now be a multiple of what you had first budgeted for when pricing
the project or order.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A common objection to arranging finance
is the cost of the facility and funding these transactions; beyond the fact
that lenders that we work with offer extremely competitive rates on their
facilities, I would suggest that these are a great example of the ends
justifying the costs of the means.</span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The cost of funding will slightly reduce
your margin on the transaction – but with very little effect on working
capital, and consequently you are still able to meet other demands that you
face – as well as to fulfil any opportunities that are presented to you.<o:p></o:p></span></p>
<p class="MsoNoSpacing"><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">If you buy materials or goods in the UK or from overseas, don’t
let that be the reason you cannot accept new business or orders, or take up any
new opportunities.</span></b></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Why not get in touch and discuss how we can support you with
suitable Supply Chain or Trade Finance options?</span></b></p>
<p class="MsoNoSpacing"><b><span style="font-family: "Calibri Light",sans-serif; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">How do you want to be supplied?</span></b></p>
<p class="MsoNoSpacing"><b><span lang="EN-US" style="font-family: "Calibri Light",sans-serif; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Mark Grant, August 2021.</span></b></p>
<p class="MsoNoSpacing"><span class="MsoHyperlink"><b><span lang="EN-US" style="font-family: "Calibri Light",sans-serif; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></b></span><b><span lang="EN-US" style="font-family: "Calibri Light",sans-serif; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><span style="mso-spacerun: yes;"> </span>/ 01636 614
014</span></b></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-83435137165629326782021-08-15T08:13:00.004+00:002021-08-15T08:15:20.233+00:00Are You Considering Buying A Company? We Look At Asset Based Lending To Fund Your Acquisition.<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9QnHwDO4-B_68Dw_pGDYx5AoFuZ8xS4NPirrZEX559ffbEWqcGjodAfIqYUnXNkKUpIAqSzcJdjFL0LjWVqFPQA2CYolSFDItFjx8czX4LJ_9HqRC_AHzVuOFkEi1kAVTyOlt93R3bEE/s2048/MBO+MBI.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1365" data-original-width="2048" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9QnHwDO4-B_68Dw_pGDYx5AoFuZ8xS4NPirrZEX559ffbEWqcGjodAfIqYUnXNkKUpIAqSzcJdjFL0LjWVqFPQA2CYolSFDItFjx8czX4LJ_9HqRC_AHzVuOFkEi1kAVTyOlt93R3bEE/s320/MBO+MBI.jpg" width="320" /></a></div><p></p><p></p><p class="MsoNormal"><br /></p><p class="MsoNormal">If you are looking at the acquisition of
another business (MBO), or the purchase of the business that you already manage
from its current owners (MBI), then top of your agenda will be your ability to
fund the deal.</p>
<p class="MsoNormal"><span lang="EN-US">We are not all fortunate enough to be
considering the acquisition of a FTSE 100 company – so the headlines about “all
cash” or “cash and share deal” transactions do not apply to the vast majority
of companies changing hands in the UK.</span></p>
<p class="MsoNormal"><span lang="EN-US">There may be an element of cash involved,
either that is on the balance sheet of a company involved, or from new or
incumbent directors in the business.</span></p>
<p class="MsoNormal"><span lang="EN-US">But as you look beyond cash for your source
of funding, is a term loan the best solution or even viable? We’d suggest that
you could do well to look at the assets of the acquisition company, or your
existing company if an MBO, to source a suitable solution.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">What
is ABL?</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Asset Based Lending (ABL) is exactly what
is says on the tin – lending that is based on the assets of a business. This
includes:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Property and Land<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Stock<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Assets (such as machinery or
vehicles)<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Sales Ledger (Debtors Book)</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span lang="EN-US">By using ABL to raise all or some of the
required capital for your acquisition, the result is a bespoke finance solution
based on the business and not a ‘one size fits all’ off the shelf solution.</span></p>
<p class="MsoNormal"><span lang="EN-US">ABL leverages the assets that one or more
businesses involved already have, but may not already be using to generate
capital yet – so they are potentially more efficient and cost effective than
seeking unrelated and unsecured finance separately.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Property
and Land</span></b></p>
<p class="MsoNormal"><span lang="EN-US">A company can own a variety of different
property types or land, with or without planning permission. Where the business
has headroom in the equity of this property or land, they can release capital
towards the acquisition that they are considering with a secured loan.</span></p>
<p class="MsoNormal"><span lang="EN-US">For example:<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">A manufacturing business has a property
worth £1m on its balance sheet that you are looking to acquire, with an
outstanding commercial owner occupier mortgage of £300k.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">Subject to credit assessment of the trading
performance of the business, you may be able to look to raise up to 40% of the
property value, or £400k, through refinancing the property, making a
significant contribution towards your business acquisition.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Stock</span></b></p>
<p class="MsoNormal"><span lang="EN-US">A type of funding that will commonly be
looked at alongside another facility, such as Invoice Finance, but where viable
and relevant it can again help to release some capital in stock that is
currently just ‘sitting there’ where the business commonly holds it.</span></p>
<p class="MsoNormal"><span lang="EN-US">Typically Stock Funding will release 15% -
20% of the value of stock levels, where the business demonstrates that it holds
a fairly consistent level taking both sales and supply into account.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Assets
(such as machinery or vehicles)</span></b></p>
<p class="MsoNormal"><span lang="EN-US">In simple terms, your company may own
assets that are either unencumbered or partially financed. Lenders will
commonly lend up to 70% of their current value less any outstanding finance.</span></p>
<p class="MsoNormal"><span lang="EN-US">On its own unlikely to be funding the
complete business acquisition, but like Stock Funding you could get a valuable
contribution from Asset Refinance towards the required total funding that you
have.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Sales
Ledger (Debtors Book)</span></b></p>
<p class="MsoNormal"><span lang="EN-US">You can help to fund the acquisition of the
business by either leveraging the outstanding invoices of your existing
business (your debtors book), or those of the target company in your
acquisition.</span></p>
<p class="MsoNormal"><span lang="EN-US">The debtors’ book is an asset of a
business, and when unencumbered it has the potential to release vital capital
towards the transaction that you are looking to achieve.</span></p>
<p class="MsoNormal"><span lang="EN-US">This funding is then repaid through the
natural flow of turnover through the business, and not via fixed loan payments
every month no matter what turnover the business is doing – which could add a
lot of value in the aftermath of your acquisition?</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Packaging
an ABL solution for your business acquisition</span></b></p>
<p class="MsoNormal"><span lang="EN-US">The beauty of using ABL funding is that is
like a corporate tool box – or a funding “pick ‘n mix” almost. You literally
just pick up and use the elements that are suitable and add value to your
transaction.</span></p>
<p class="MsoNormal"><span lang="EN-US">To that end the funding does not have to be
sourced all from one lender – and the ability to piece it together from more
than one funding source can help you to achieve improved terms and rates – and
ultimately the most suitable outcome to fund your acquisition.</span></p>
<p class="MsoNormal"><span lang="EN-US">We have experience of using multiple
providers over a single lender for clients, and combining ABL where necessary
with further funding facilities such as Term Loans and Trade Finance to
complete the required acquisition finance package.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
work with clients to understand the acquisition requirement, and the underlying
business/es involved in the transaction.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
do all the legwork to source suitable solutions to help the client achieve
their required outcome.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">How
do you want to fund your business acquisition?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US"><br /></span></b></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Mark
Grant, August 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></span><span lang="EN-US"><span style="mso-spacerun: yes;"> </span>/ 01636 614 014<o:p></o:p></span></p><br /><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-55688138339226742832021-08-08T07:08:00.002+00:002021-08-08T07:08:45.911+00:00Fiducia's Commercial View - The Podcast - August 2021<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9BJb30nhMxONmAERk3ju7L8A2dfBiPfMMyhySyWwH7LQ4dzhpLLu2oOIy_samQRThyw7-a6rWTq9kdgxW2CJfJv6HW0VSgcIR6cqWxrIqz4qSVyN7PIHtRmv5bv3WSJYzN3HTjH-XOqc/s940/Fiducia%2527s+Commercial+View+-+The+Podcast.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="788" data-original-width="940" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9BJb30nhMxONmAERk3ju7L8A2dfBiPfMMyhySyWwH7LQ4dzhpLLu2oOIy_samQRThyw7-a6rWTq9kdgxW2CJfJv6HW0VSgcIR6cqWxrIqz4qSVyN7PIHtRmv5bv3WSJYzN3HTjH-XOqc/s320/Fiducia%2527s+Commercial+View+-+The+Podcast.png" width="320" /></a></div><br /><p></p><p><a href="https://anchor.fm/mark-grant23/episodes/Fiducias-Commercial-View---August-2021-e15j9qp" target="_blank">Fiducia's Commercial View - The Podcast - August 2021</a><br /></p><p></p><p class="MsoNormal" style="background: white;"><span class="public-draftstyledefault-block"><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";">We have seen
increasing demand for, and activity in, a diverse range of Commercial Finance
products this month.</span></span><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="915qd-0-0" style="box-sizing: border-box;">We
felt that these HOT funding areas were worthy of our attention in August's
edition of Fiducia's Commercial View Podcast:</span><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background: white;"><b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="7ms60-0-0" style="box-sizing: border-box;">Owner-Occupier
Commercial Mortgages</span></span></span></b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="7ms60-0-1" style="box-sizing: border-box;"> -
With trading businesses increasingly back in action and planning for the future
we have seen strong demand to fund the roof over their own company.</span><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background: white;"><b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="4iqoj-0-0" style="box-sizing: border-box;">Commercial
View with Allica Bank </span></span></span></b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="4iqoj-0-1" style="box-sizing: border-box;">-
We ask our panel lender about the reaction to their Commercial Mortgage rate
promotion, and what it has told them about SMEs' outlook.</span><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background: white;"><b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="dsrcj-0-0" style="box-sizing: border-box;">"It
Ain't Heavy, It's Just Refurb.."</span></span></span></b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="dsrcj-0-1" style="box-sizing: border-box;"> - With the
residential property market remaining RED HOT, we weigh up all the options to
add capital value to investment properties.</span><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background: white;"><b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="1u5k1-0-0" style="box-sizing: border-box;">Recovery
Loan Scheme - An Update</span></span></span></b><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="1u5k1-0-1" style="box-sizing: border-box;"> -
4 months into the scheme we ask if it is helping UK businesses, and whether you
know all the ways in which clients can access it.</span><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background: white;"><span class="public-draftstyledefault-block"><span data-offset-key="456jd-0-0" style="box-sizing: border-box;"><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><span data-text="true" style="box-sizing: border-box;"><span data-offset-key="456jd-0-0" style="box-sizing: border-box;">We
look forward to the opportunity to find suitable solutions to your requirements
in the coming month.</span></span></span></span></span><span style="color: #292f36; font-family: "Arial",sans-serif; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p><br /><p></p><p>Mark Grant, August 2021.</p><p>info@fiduciacommercialsolutions.co.uk / 01636 614014</p><p><br /></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-91155161186017739802021-07-25T07:42:00.001+00:002021-07-25T07:58:14.781+00:00Commercial Mortgages – How Lenders Assess Affordability<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisGPh-X9C3_3_gi9FChyphenhyphenwz8iJ3kbIBiEIqNXndNsVgKk76dyIshrUl2lbHBpZpY9kwg1BsxI82lH9QwOHsvNFC_b3EVyUM7keO-abWeIdsy1bEX2fPRqKdoj3f9D-H667XJliAzgx9wiU/s2048/FCS+working+out+numbers.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1367" data-original-width="2048" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisGPh-X9C3_3_gi9FChyphenhyphenwz8iJ3kbIBiEIqNXndNsVgKk76dyIshrUl2lbHBpZpY9kwg1BsxI82lH9QwOHsvNFC_b3EVyUM7keO-abWeIdsy1bEX2fPRqKdoj3f9D-H667XJliAzgx9wiU/s320/FCS+working+out+numbers.jpg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US">We are seeing a lot of activity in
Commercial Mortgages – both owner-occupier and investment – and just like with
a personal mortgage it is logical to think that one of the primary things that
a lender will look at is whether you can afford to repay the mortgage – both
now and in the future.</span></p>
<p class="MsoNormal"><span lang="EN-US">We want to cut through the acronyms and
smoke and mirrors to show that far from being some sort of ‘dark arts’ it is
the same process they use to evaluate your business as we all might do our own
personal finances.</span></p>
<p class="MsoNormal"><span lang="EN-US">With a Commercial Investment Mortgage the
maths is relatively straightforward; you will have a commercial lease in place
with your tenant and the lender will ‘stress’ your mortgage with simulations of
interest rate rises to ensure that even if rates were to rise from their
current levels then the commercial lease still makes the mortgage payments
affordable.</span></p>
<p class="MsoNormal"><span lang="EN-US">Commercial Mortgages for trading businesses
have far more moving parts as affordability is based on the future trading
performance of the business.</span></p>
<p class="MsoNormal"><span lang="EN-US">In the absence of a crystal ball the lender
has to use past performance as a guide to whether your business can service the
mortgage moving forward.</span></p>
<p class="MsoNormal"><span lang="EN-US">Again we can draw a similarity here with a
personal mortgage application – your prospective lender would want to know all
about your income, together with the other debt and outgoings that you have to
service regularly. From this they will derive how much ‘headroom’ you have in
your finances to be able to afford the mortgage.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Debt
Coverage Ratio (DCR)</span></b></p>
<p class="MsoNormal"><span lang="EN-US">I did say that we wanted to cut through the
acronyms – so it’s high time that we started to use them!</span></p>
<p class="MsoNormal"><span lang="EN-US">When a lender takes away your outgoings for
debt from your income, they will be left with the current ‘headroom’ in your
finances from which your company’s mortgage can be paid moving forward. But
there are still variables in this number such as your business turnover
decreasing, or your other costs or debt increasing.</span></p>
<p class="MsoNormal"><span lang="EN-US">So the lender won’t want to see that your
headroom is equal to (or less than) your future mortgage payments, but a
multiple of them. This is called your <b style="mso-bidi-font-weight: normal;">Debt
Coverage Ratio (DCR) </b>– and commonly lenders are looking for a DCR of 1.5x
to 2x.</span></p>
<p class="MsoNormal"><span lang="EN-US">Calculate your Debt Coverage Ratio (DCR):</span></p>
<p class="MsoNormal"><span lang="EN-US">Annual Net Income <b style="mso-bidi-font-weight: normal;">Divided By</b> Annual Debt Payments = Debt Coverage Ratio</span></p>
<p class="MsoNormal"><span lang="EN-US">For example:<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US">£82,500 Net Income <b style="mso-bidi-font-weight: normal;">Divided By </b>Annual Debt Payments £45,000 = <b style="mso-bidi-font-weight: normal;">DCR of 1.83</b></span></p><p class="MsoNormal"><span lang="EN-US"><b style="mso-bidi-font-weight: normal;"><br /></b></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Using
the ‘right’ Net Income</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Of course it couldn’t be so easy that the
lender could just cherry pick a line from your company’s last set of filed
accounts and use that; oh no, they have to go and make us calculate another
number that they use in their affordability calculations too!</span></p>
<p class="MsoNormal"><span lang="EN-US">Your existing company accounts include
existing lease or mortgage payments but the lender is evaluating future
affordability of a new mortgage – so the ‘net income’ that they use will have
certain items added back onto it.</span></p>
<p class="MsoNormal"><span lang="EN-US">This generates what lenders generally call <b style="mso-bidi-font-weight: normal;">‘adjusted net profit’</b> or <b style="mso-bidi-font-weight: normal;">‘adjusted EBITDA’</b>.</span></p>
<p class="MsoNormal"><span lang="EN-US">We are not qualified accountants, so these
calculations really do stay on the ‘back of an envelope’ for our purposes. In
simple terms take the profit before tax and add back to that items such as:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo1; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Lease / Rent<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Depreciation<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Amortisation<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Directors’ Dividends</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US"><br /></span></b></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Case
Study – ABC Ltd</span></b></p>
<p class="MsoNormal"><span lang="EN-US">We can take the case of ABC Ltd, and then
put into practice the above construction of the Net Income, and then use that
along with the debt in the company to derive their Debt Coverage Ratio (DCR).</span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo2; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>ABC Ltd. currently pays £40,000
pa commercial lease<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>Annually ABC Ltd. make £15,000
in Asset Finance payments<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span>They are applying for a 70% LTV
mortgage on a £465,000 purchase price, meaning a £325,000 loan, estimated by
the lender to be £32,000pa initially in annual payments</span></li></ul><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"></b></p><div class="separator" style="clear: both; text-align: center;"><b style="mso-bidi-font-weight: normal;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjInDYEbC24ANCqsqvNdlQxvC8l5GSIfKu5fD3ul_NyEJ1JrNfBGx49ed0CwuV3k9lLm1YVBPy0KgLBgzgFtgDNqRWeuF_1csUme-0NGyjfmz_N3R2LXphGlOiSQgQt-ZMVTWBdBbaE7bk/s725/ABC+Ltd+DCR+1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="490" data-original-width="725" height="238" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjInDYEbC24ANCqsqvNdlQxvC8l5GSIfKu5fD3ul_NyEJ1JrNfBGx49ed0CwuV3k9lLm1YVBPy0KgLBgzgFtgDNqRWeuF_1csUme-0NGyjfmz_N3R2LXphGlOiSQgQt-ZMVTWBdBbaE7bk/w353-h238/ABC+Ltd+DCR+1.jpg" width="353" /></a></b></div><b style="mso-bidi-font-weight: normal;"><span lang="EN-US"><br /></span></b><p></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Accounting
for the pandemic impact</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Like a lot of businesses in the country,
ABC Ltd was Covid impacted, and so if we moved forward to the current period,
and included the financial year 2020/21, then that doesn’t present on its own a
Debt Coverage Ratio (DCR) that the lender would see as indicating
affordability.</span></p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9765BN8xkCI_5m5Qs9HwVrO91VW8IRnvGkwfO1vBr17XyO7GIoMYjTBjMtjo2YFLsCRec43fWNiKXJ4XH7sf8V5pvjIFBtNyNOvIqxQLqtPi3Igh8I8gCO9wu06G8vS0s3yX-KII1ZXc/s751/ABC+Ltd+DCR+2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="557" data-original-width="751" height="261" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9765BN8xkCI_5m5Qs9HwVrO91VW8IRnvGkwfO1vBr17XyO7GIoMYjTBjMtjo2YFLsCRec43fWNiKXJ4XH7sf8V5pvjIFBtNyNOvIqxQLqtPi3Igh8I8gCO9wu06G8vS0s3yX-KII1ZXc/w352-h261/ABC+Ltd+DCR+2.jpg" width="352" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><span lang="EN-US">The obvious addition to this table is the
fact that the lender will strip out Covid related grants and income that are
one off in nature, and this reduces the DCR to levels where the lender would
not arrive at a positive decision for affordability.</span><p></p>
<p class="MsoNormal"><span lang="EN-US">But we are now a few months into the next
financial year, and thankfully into recovery mode for many business
post-pandemic restrictions, and so lenders are willing to include the accounts
for this new current financial year in their assessment.</span></p>
<p class="MsoNormal"><span lang="EN-US">The April to June quarter 2021 actually
showed a 25%-30% increase on turnover compared to the 2019 and 2018 figures for
the same months, and so there is something here for the lender to work with and
progress for ABC Ltd.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
are seeing a lot of demand for, and activity in, Owner-Occupier Commercial
Mortgages – and armed with the accounts and facts we can work with lenders to
find suitable and affordable solutions for the roof over your business.</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">How
do you want to get funded?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Mark
Grant, July 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span lang="EN-US"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></span><span lang="EN-US"><span style="mso-spacerun: yes;"> </span>/ 01636 614 014</span></p><p></p><br />Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-36938060643145498892021-07-10T13:49:00.002+00:002021-07-10T13:51:22.201+00:00What Should An Appointed Representative Network Mean For You?<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghrI8w9RH6v8LZvl9KRuyLsF2VVK14tweZkQ0iG1YWSyHU5nwjoB7aflzxXDGWRV5DgM8EX8rs3VkmwQAHOuuAhII7BRbHRb3QbZnBlDCfhIXJOeMijH5s3aKJSeJZPBetLTjACKi76Jc/s1401/AR+Network+Proposition.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="799" data-original-width="1401" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghrI8w9RH6v8LZvl9KRuyLsF2VVK14tweZkQ0iG1YWSyHU5nwjoB7aflzxXDGWRV5DgM8EX8rs3VkmwQAHOuuAhII7BRbHRb3QbZnBlDCfhIXJOeMijH5s3aKJSeJZPBetLTjACKi76Jc/s320/AR+Network+Proposition.png" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">I guess
that I should be clear what I mean when I say ‘Appointed Representative
Network’ or ‘AR’ as it will be easier to retype many times here!</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">An
Appointed Representative in financial services is a person or company that is
authorised to carry out specific types of activity under the regulatory
umbrella of a firm that is directly authorised by the FCA.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Why
might you do that rather than be directly authorised yourself? Headline reasons
are cost, together with monitoring, administration and reporting activities
that comes with direct authorisation, and for which you are wholly responsible
as an FCA directly authorised firm.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">So as an
AR of a company that is themselves directly authorised, your costs are lower
and most if not all of the administration of your authorsation falls to your
network provider – BUT that is not to say that you don’t have obligations to
uphold.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">As an AR
network provider we are vouching for the person and firm that is an AR of our
network – that you are solvent, reputable and trustworthy, and that you will
uphold the regulations relating to the area in which you operate and carry out
your business in a compliant manner.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"></span></p><blockquote>In short,
it’s our neck on the block!</blockquote><p></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Our own
authorisation and reputation are affected by your conduct as an AR – so
therefore we put the time in to ensure that:<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="text-align: left; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span lang="EN-US" style="font-family: Wingdings; text-indent: -18pt;"><span style="font-family: "Times New Roman"; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"><span> </span><span> </span></span></span><span face="Calibri, sans-serif" lang="EN-US" style="text-indent: -18pt;">you are trained in both our approach to clients
and the areas in which you will operate.</span></li><li><span face="Calibri, sans-serif"> </span>each case is conducted in a compliant manner.</li><li><span face="Calibri, sans-serif"> </span>you access the necessary CPD and compliance
training annually.</li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The most
common examples in the UK of AR networks are in residential mortgage broking.
There are multiple network providers in residential mortgages – underlining how
well the process works, and we see examples of one man bands up to 40 or 50
advisers where the model is beneficial to the business.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We have
the good fortune to work with one of the largest, and in our (slightly biased?)
opinion best, residential mortgage networks in The OpenWork Partnership. We are
one of only a couple of partners that their ARs can introduce Commercial
Finance cases to.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Which in
turn brings me to our own AR network – the Fiducia Commercial Finance AR
Network – and back to my original question: What should an AR network mean for
you?<o:p></o:p></span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">To us it
means a partnership and collaboration – we have a vested interest in ensuring
that:</span></p><p class="MsoNormal"></p><ul style="text-align: left;"><li><span face="Calibri, sans-serif">you are trained fully in all aspects of your
role.</span></li><li><span face="Calibri, sans-serif">you are aware of your compliance obligations,
and you have the tools and systems to carry them out.</span></li><li><span face="Calibri, sans-serif" style="text-indent: -18pt;">you keep current in updates and changes in the
commercial finance market and products.</span></li></ul><p></p><!--[if !supportLists]--><p></p><p class="MsoNormal">
</p><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The
partnership and collaboration goes beyond the set up, induction and kick off of
your AR activities; <b style="mso-bidi-font-weight: normal;">we have a USP as an
AR network provider that positions us head and shoulders above most of the
market - we do the same job that you do!</b></span></p><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Beyond
the compliance, administration, finance and systems support that you receive as
an AR, your membership of the network should provide you with the <b style="mso-bidi-font-weight: normal;">business support </b>that you need from
when you start out to when you are established but working on complex cases.</span></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are not</span></b><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> a commercial finance brokerage that has just
set up an AR network as a sideline without putting in the ongoing and long-term
support.</span></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are not</span></b><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> a franchise that takes a large up front
payment in return for a couple of webinars and a manual that points you towards
your promised six-figure salary – because believe me if it was that easy then
that’s where I would be and not blog writing this weekend!</span></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are not</span></b><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> ‘working the numbers’ and just getting as many
people through the door because then dissatisfied leavers don’t affect us too
much.</span></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We are commercial finance brokerage that works with
our ARs to provide them with the tools and support to enable them to help their
clients – and not just at the outset, but on an ongoing basis.</span></b></p><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Especially
in the current period of recovery, and what we hope will be the worst of the
pandemic behind us, support from a team experienced with getting deals over the
line that aren’t always straightforward could be the difference to being a
successful AR.<o:p></o:p></span></p><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p> </o:p></span></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">That’s what being part of the Fiducia AR
Network means for you – being part of something bigger that you can lean back
on for support in multiple ways whenever you need to. We share your goal of
wanting you to be a successful commercial finance broker – as an AR of The
Fiducia Commercial Finance Network.</span></b></p><p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Mark Grant, July 2021.</span></b></p><p>
</p><p class="MsoNormal"><span class="MsoHyperlink"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-spacerun: yes;"> </span>/ 01636
614 014</span></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-88083289049091491482021-07-05T07:00:00.000+00:002021-07-05T07:00:16.347+00:00Fiducia's 'Commercial View' July Podcast<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMzBlKu70sJJ8KjbfYUDRKnyOJDzVBzFe6cBc_g5_w8GTQvom5zayiIg_iQzpFOcz1FcVxvTZtaCW_nqZy49axVWcG9gNM3h8d9Wqa7JjO0Fcxw5EkWbmPKLNQh7hLQL5fZY95lRpD4c8/s940/Fiducia%2527s+Commercial+View+-+The+Podcast.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="788" data-original-width="940" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMzBlKu70sJJ8KjbfYUDRKnyOJDzVBzFe6cBc_g5_w8GTQvom5zayiIg_iQzpFOcz1FcVxvTZtaCW_nqZy49axVWcG9gNM3h8d9Wqa7JjO0Fcxw5EkWbmPKLNQh7hLQL5fZY95lRpD4c8/s320/Fiducia%2527s+Commercial+View+-+The+Podcast.png" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal" style="background: white; vertical-align: baseline;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">The
weather may have cooled off, but sectors of the lending market are still hot,
and we are seeing strong demand for both Commercial and Investment funding.</span></p>
<p class="MsoNormal" style="background: white; vertical-align: baseline;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">We
have some great topics to cover in July's <b style="mso-bidi-font-weight: normal;">'Commercial
View' Podcast</b>:<o:p></o:p></span></p><p class="MsoNormal" style="background: white; vertical-align: baseline;"><a href="https://open.spotify.com/episode/3aCAIrXJS5V8gzawcArgtg">https://open.spotify.com/episode/3aCAIrXJS5V8gzawcArgtg</a></p>
<p class="MsoNormal" style="background: white; vertical-align: baseline;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">- <b>Just
How Semi Is Your Commercial? </b>Continued strong demand in residential
property sets a value on how your Semi-Commercial property is divided.</span></p>
<p class="MsoNormal" style="background: white; vertical-align: baseline;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">- <b>Commercial
View with West One Loans</b> - We ask the lender about the level of demand
for Bridging and Development finance - and how their appetite for business has
changed post pandemic.</span></p>
<p class="MsoNormal" style="background: white; vertical-align: baseline;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">- <b>Lender
Criteria -</b> The devil, and your funding outcome, is in the detail as we
discover.</span></p>
<p class="MsoNormal" style="background: white; vertical-align: baseline;"><b><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">-
Cashflow Conservation</span></b><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> - Limited companies almost without exception
will be recovering or growing with demand, and we look at how commercial
finance can support that.</span></p>
<p class="MsoNormal" style="background: white; vertical-align: baseline;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">We
look forward to the chance to discuss your requirements this coming month.</span></p><p class="MsoNormal" style="background: white; vertical-align: baseline;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><br /></span></p>
<p class="MsoNormal">info@fiduciacommercialsolutions.co.uk </p><br /><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-74903373309702898722021-06-27T08:10:00.002+00:002021-06-27T08:10:19.982+00:00What is a Commercial Finance Broker?<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheTwVvJ4EeDOGQRWvSRdeGWGk4erPk-Fru2aWevaedZMHX40s2h_g39hH3rhCif7OWSL13ElGjLkGkcdcAiZo6i3uSlGBTsw2DECrj6X17Q-fSlZI0sr2hE-oH71GZCrQUp5Hyjwid4ts/s1280/Commercial+Finance.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="807" data-original-width="1280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheTwVvJ4EeDOGQRWvSRdeGWGk4erPk-Fru2aWevaedZMHX40s2h_g39hH3rhCif7OWSL13ElGjLkGkcdcAiZo6i3uSlGBTsw2DECrj6X17Q-fSlZI0sr2hE-oH71GZCrQUp5Hyjwid4ts/s320/Commercial+Finance.jpg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal">And what do they offer to a company that’s looking to put
finance in place?</p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;">Fiducia Commercial
Solutions</b> works on a very straightforward ethos – we work with clients to
understand their requirements, source the most suitable funding solutions for
them and to achieve the best possible outcome for their business.</p>
<p class="MsoNormal">Beyond that being sound bites on our commercial blog or on
our website or on social media, we take some far more concrete steps to
underline the sincerity of this for us as a company.</p>
<p class="MsoNormal">Fiducia Commercial is directly authorised by the FCA, a
badge that we wear proudly to demonstrate how seriously we take the integrity
of our business, and how we put how we treat our clients at the top of our
list.</p>
<p class="MsoNormal">We have been active members of the National Association of
Commercial Finance Brokers (NACFB) for some time – you cannot get more active
than our CEO having chaired the association!</p>
<p class="MsoNormal">We are market leading in the transparency of terms and
conditions and charges. And to emphasise this we hold a ‘security call’ with a
client just to go back over their requirements and priorities to make sure that
we have captured them correctly, as well as ensuring that they are happy with,
and have read and understood, all of our terms and conditions and paper work.</p>
<p class="MsoNormal">So what does this actually mean in practice?</p>
<p class="MsoNormal">All businesses are different, and even two firms in the same
sector or looking to fund the same type of property related transaction don’t
have the same finance requirements.</p>
<p class="MsoNormal">With trading company clients we take the time to fully
understand how a business works, its working capital needs and the challenges
it faces; this allows us to identify the solution, or combination of solutions,
taking into account the type of finance required and the costs to the company
that would be involved.</p>
<p class="MsoNormal">Lenders can use confusing terminology and jargon in their
product description, and the cost structure can be difficult to navigate if
you’re not fluent! And there are a lot of lenders and commercial finance
products out there. For example, our database has:<o:p></o:p></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span style="font-family: Symbol;"> </span>Commercial and Investment Mortgage, Bridging
Loan and Development finance lenders</li><li><span style="font-family: Symbol;"> </span>Unsecured and Secured Business Loan providers</li><li><span style="font-family: Symbol;"> </span>Asset Finance and Vehicle Solutions companies</li><li><span style="font-family: Symbol;"> </span>Invoice Finance lenders</li><li><span style="font-family: Symbol;"> </span>Trade and Supply Chain solution providers</li></ul><!--[if !supportLists]--><o:p></o:p><p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><o:p></o:p></p>
<p class="MsoNormal">Using a commercial finance broker helps you to cut through
the crowd and to identify suitable products and lenders.<o:p></o:p></p>
<p class="MsoNormal">And beyond ‘what’ we can do for you, we guarantee our
clients ‘how’ we will do it for them:</p><p class="MsoNormal"><b style="text-indent: -18pt;">TRUST</b></p>
<p class="MsoNormal">You can trust us to find the right solution for your
businesses and funding requirements.<o:p></o:p></p>
<p class="MsoNormal"><b style="text-indent: -18pt;">SECURITY</b></p>
<p class="MsoNormal">We offer ‘Whole of Market’ commercial financial services,
giving you the security of choice.<o:p></o:p></p>
<p class="MsoNormal"><b style="text-indent: -18pt;">CONFIDENCE</b></p>
<p class="MsoNormal">We do all the hard work sourcing the market and providing
you with the confidence that we can deliver the best terms available.</p>
<p class="MsoNormal">There is no comparison website out there where totally
independent, unbiased and suitable results can be obtained by a business owner
or director. We see many are promising indicative terms and decision in 2
minutes – but a consequence of the pandemic is that lenders’ criteria has and
continues to change very often, along with their risk appetite.</p>
<p class="MsoNormal">Commercial funding is not agreed without human intervention
– and indicative terms will be of rates available to ‘someone’ at best, and
they will worry about where they source your funding from once they have
engaged with you.</p>
<p class="MsoNormal">We do the leg work for you and use experience and product
knowledge together with our lender network to source and present the most
suitable options for you.</p>
<p class="MsoNormal">This leaves you to be able to get on with the important job
of actually running your business!</p>
<p class="MsoNormal">We are looking to maintain long term client relationships. Companies
grow, change and sometimes face their challenges over time. Having someone that
already understands the business and its journey to this point means that you
already have a partner in taking the next step, or fighting the next fire –
whatever is on the horizon for your company.</p>
<p class="MsoNormal">Finance is not everyone’s favourite subject, and can take
people at all levels out of their comfort zone – but business owners are
engaged with us when the conversation is about finance for their company:<o:p></o:p></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo2; text-indent: -18.0pt;"></p><ul style="text-align: left;"><li><span style="font-family: Symbol;"> </span>To resolve a problem that is eating away at them.</li><li><span style="font-family: Symbol;"> </span>To buy the property they have been paying rent
to a landlord for the last 5 years for.</li><li><span style="font-family: Symbol;"> </span>To find a lender because their bank of 10+ years
has just declined them..</li><li><span style="font-family: Symbol;"> </span>To get funding for more operating space because
orders have gone through the roof.</li><li><span style="font-family: Symbol;"> </span>To lease extra cars because they know if they
could get more salespeople in front of customers then the product would
actually sell itself.</li></ul><!--[if !supportLists]--><o:p></o:p><p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo2; text-indent: -18.0pt;"><o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo2; text-indent: -18.0pt;"><o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo2; text-indent: -18.0pt;"><o:p></o:p></p>
<p class="MsoNormal">People that we talk to are some of the most passionate and
engaged that we have ever worked with, because it matters so much to them –
they live and breathe their companies.</p>
<p class="MsoNormal">We can’t help but be inspired by that to provide the best
solution that is available to them.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;">We can’t make your company
profitable, increase your turnover, raise your credit score or double the
deposit that you have in the bank – but if the market sees you as viable for
finance then we will achieve the best outcome for you.</b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;">How do you want to
get funded?</b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;">Mark Grant, June
2021.</b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span><span style="mso-spacerun: yes;"> </span>/ 01636 614 014</p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-26831848935088315592021-06-19T14:48:00.000+00:002021-06-19T14:48:16.534+00:00‘Commercial Mortgages’ – So much more than the name suggests.<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7f5cfFlL_rys0NNYbyj_3ToeictAaurHaYDx1eklSTIRtyDifXX7c8FMhGb8LY69G-ZUcCnC8UOlOGCPZkwGoZOUdcvH13tTVyfDHUanMY5VO7xdPU6r8FYEb-Fhyphenhyphen1VmsaWyfrXhLDqw/s1920/FCS+Property+deal.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1920" data-original-width="1920" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7f5cfFlL_rys0NNYbyj_3ToeictAaurHaYDx1eklSTIRtyDifXX7c8FMhGb8LY69G-ZUcCnC8UOlOGCPZkwGoZOUdcvH13tTVyfDHUanMY5VO7xdPU6r8FYEb-Fhyphenhyphen1VmsaWyfrXhLDqw/s320/FCS+Property+deal.jpg" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span lang="EN-US">The name ‘commercial mortgages’ is a
wrapper for number of different commercial property related products. As a
business we use it to describe a large amount of the work that we do for
clients – and the industry commonly uses the same header.</span></p>
<p class="MsoNormal"><span lang="EN-US">The trouble with a single header for
multiple products – all of which are quite different in the requirements that
they meet – is that in the end the header becomes a bit like an acronym – and
you can’t remember what it actually means!</span></p>
<p class="MsoNormal"><span lang="EN-US">So when Fiducia Commercial says ‘commercial
mortgages’ what do we actually mean? And who can use them? Oh, and what are
they?</span></p>
<p class="MsoNormal"><b><span lang="EN-US">Commercial Mortgages</span></b></p>
<p class="MsoNormal"><span lang="EN-US">Commercial mortgages are used to fund the
purchase, or refinance of, commercial, semi-commercial or residential
properties – and as we explain below the funding reason can be both to occupy
the building, and as an investment.</span></p>
<p class="MsoNormal"><span lang="EN-US">In general terms there are 3 main uses for
commercial mortgages:</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Owner-Occupier</span></b><span lang="EN-US">: The purchase or refinance of the property where your company is
currently trading, or the purchase of a new property to move to and trade from.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Commercial
Investment</span></b><span lang="EN-US">: The purchase or refinance of commercial
or semi-commercial property which will be rented to another company to trade
from – essentially a commercial Buy-To-Let investment.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Residential
Buy To Let</span></b><span lang="EN-US">: A limited company (‘SPV’ or Special
Purpose Vehicle) can purchase residential property to let as an investment, and
professional landlords / Buy-To-Let limited companies use these mortgages for
the same purposes.</span></p>
<p class="MsoNormal"><span lang="EN-US">Commercial mortgages are, just like
residential consumer mortgages, available with fixed or variable interest rates
over a range of years, and the amount that you can borrow is set as a ‘Loan To
Value’ (LTV) percentage of the property value.</span></p>
<p class="MsoNormal"><span lang="EN-US">The amount that you will be expected to
have a deposit can vary according to different factors, including:</span></p><p class="MsoNormal"></p><ul style="text-align: left;"><li><span style="text-indent: -18pt;">If you are an owner-occupier: the sector that you are in / your
company’s recent financial performance / they type of property you are
financing.</span></li><li><span style="text-indent: -18pt;">If you are an investor: the type of property you are financing / the
sector that your tenants are in / the amount of revenue generated from the
lease/s.</span></li></ul><p></p>
<p class="MsoNormal"><span lang="EN-US">Existing property holdings with equity
value in them may be considered towards the deposit by some lenders as security.</span></p>
<p class="MsoNormal"><b><span lang="EN-US">Bridging Finance</span></b></p>
<p class="MsoNormal"><span lang="EN-US">This effectively does what the name
suggests – bridges the gap from one point to another in a financial sense, and
are a short-term property finance product, between 3-24 months in term, but the
‘common’ term is 12 months.</span></p>
<p class="MsoNormal"><span lang="EN-US">At the end of the loan the ‘exit’ from the
loan for your company is the repayment of the loan from the disposal of the
property, or ‘re-financing the bridge’ with a long term finance product.</span></p>
<p class="MsoNormal"><span lang="EN-US">Bridging loans can provide a quick route to
property purchase, and are commonly used to purchase property at auction and
for circumstances when the normal conveyancing cycle would take too long to
complete the purchase in the required time frame.</span></p>
<p class="MsoNormal"><span lang="EN-US">Bridging is a means to refurbish commercial
or residential property, or funds to develop property – from light / cosmetic
refurbishment of existing structures to ground up development of land.</span></p>
<p class="MsoNormal"><span lang="EN-US">‘Just’ for property transactions? Well, no.</span></p>
<p class="MsoNormal"><span lang="EN-US">Bridging is of course based on property as
the security for the loan, but the business reason could be to release equity
from a property already held by a business or director. Therefore it could be
said that bridging finance is a cash flow tool for raising working capital too.</span></p>
<p class="MsoNormal"><span lang="EN-US">Given the specialist and short-term nature
of bridging loans, interest rates can be higher than traditional commercial mortgages.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Development
Finance</span></b></p>
<p class="MsoNormal"><span lang="EN-US">On the surface a complex area of finance –
but you can start to lift the lid on its application for you and your business
by looking at the amount of structural work that is required on your project.</span></p>
<p class="MsoNormal"><span lang="EN-US">Finance terms that are available to you
vary according to:</span></p><p class="MsoNormal"></p><ul style="text-align: left;"><li><span lang="EN-US" style="text-indent: -18pt;">the initial value of the property / land (Purchase Price)</span></li><li><span style="text-indent: -18pt;">the costs and fees associated with the development work (Cost Of
Works)</span></li><li><span style="text-indent: -18pt;">the projected value of the completed development (Gross Development
Value)</span></li><li><span style="text-indent: -18pt;">your previous experience of development</span></li></ul><p></p>
<p class="MsoNormal"><span lang="EN-US">Commonly used terms for variants of
development:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 36.0pt; mso-list: l0 level1 lfo3; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Light Refurbishment</span></b><span lang="EN-US">: Cosmetic refurbishment with no structural changes. Includes:
Kitchens, Bathrooms, Windows, Doors, Decoration and modernisation.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 36.0pt; mso-list: l2 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Heavy Refurbishment</span></b><span lang="EN-US">: Contains cosmetic work, but usually renovation work including
structural changes (internal walls) or changes to the footprint of the property.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 36.0pt; mso-list: l2 level1 lfo2; text-indent: -18.0pt;"><!--[if !supportLists]--><span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">Ground Up Development</span></b><span lang="EN-US">: Commonly starts from vacant land, can include demolition and
rebuild projects. </span>Lenders are
likely to look for projects where planning permission is already granted, even
if you might vary that once you have acquired the site.</p>
<p class="MsoNormal"><span lang="EN-US">So it is worth your knowing that
‘commercial mortgages’ isn’t a header for a single product – and there is no
‘one size fits all’ solution.</span></p>
<p class="MsoNormal"><span lang="EN-US">But that is where a commercial finance
broker can add so much value to you – we can listen to your full requirements
and match you with the most suitable lender and product from our large whole of
market panel of lenders.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-US">We
do the leg work so that you don’t have to – how do you want to put the roof
over your business?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span style="mso-ansi-language: EN-GB;">Mark Grant, June 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span style="mso-ansi-language: EN-GB;"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></span><span style="mso-ansi-language: EN-GB;"><span style="mso-spacerun: yes;"> </span>/ 01636
614 014</span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0tag:blogger.com,1999:blog-190601003263906096.post-23847226531481208562021-06-12T06:47:00.002+00:002021-06-13T06:38:02.242+00:00Criteria – The devil (and your funding) is in the detail.<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRtU82oPpHuXqzEYmhHYrslFnFfG2J3HMYqZbK4ObhxZO7DwHVwM3_XPE_LfvhV27G4DZqqnOkr3b-r4BT-l3Yb1yqu9cmrYj3ceegawGFftNZ5izFk7RyvbtDxJ1qndGtGIdplWmVFxk/s2048/FCS+Working+on+finance.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1367" data-original-width="2048" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRtU82oPpHuXqzEYmhHYrslFnFfG2J3HMYqZbK4ObhxZO7DwHVwM3_XPE_LfvhV27G4DZqqnOkr3b-r4BT-l3Yb1yqu9cmrYj3ceegawGFftNZ5izFk7RyvbtDxJ1qndGtGIdplWmVFxk/s320/FCS+Working+on+finance.jpg" width="320" /></a></div><br /><p></p><p></p><p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Lender
Criteria – As the proprietors of the original commercial finance sourcing
system, Optimus, it is something that Fiducia knows a lot about.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">What are
Lender Criteria? They are the details of what lenders will and won’t
accept about a borrower and their requirements when they present an application
for funding.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">I
appreciate that when we are asked for ‘just a quick idea’ of what is available
for a client it is frustrating to either be told that we need to know more
about them and their requirements – or to be told a very wide ballpark or range
with a long list of caveats attached.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The
temptation as a broker would be to quote what you know is available to someone
out there, and what would be very attractive terms to get the ‘hook’ and
engagement from the potential client – and then worry about finding someone who
can justify that indication later.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">But that
is not how we operate – and it does the potential client no favours. It is a
number generated from thin air, with no relation to their circumstances or
requirements – and they could commit to a cost or transaction based on the
‘guesstimate’ that they were provided, which could leave them out of pocket if
the indicative terms cannot be delivered on.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">So when
we talk to a client to get enough details to secure an indication of terms,
there is still a caveat that the indication is subject to greater analysis of
their financials and the requirements – but we will have gathered enough
information to be able to match their requirements with eligibility criteria
for different lenders’ products.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Below
are criteria that we will cover with a client in an initial call to allow us to
make an initial eligibility check and indicate terms. These are by no means
exhaustive and are commonly just gathered in a conversation, so the client may
not even realise they are providing as much information to us as they are:</span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l3 level1 lfo1; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span style="font-family: Symbol;"> </span><span face="Calibri, sans-serif" style="font-weight: bold;">Geography </span><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">– which home nation is the client/property
based in?<o:p></o:p></span></li><li><span style="font-family: Symbol;"> </span><span face="Calibri, sans-serif" style="font-weight: bold;">Sector</span><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;"> – if involving a trading
business, what sector are they in?<o:p></o:p></span></li><li><span style="font-family: Symbol;"> </span><span face="Calibri, sans-serif" style="font-weight: bold;">Trading company</span><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;"> – how long has
it been trading, what exactly do they do and what is the recent financial
performance?<o:p></o:p></span></li><li><span style="font-family: Symbol;"> </span><span face="Calibri, sans-serif" style="font-weight: bold;">Business Finance</span><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">:<o:p></o:p></span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What type of product they require<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What size facility<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What is the business reason for the funding?<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l3 level1 lfo1; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span style="font-family: Symbol;"> </span><span face="Calibri, sans-serif" style="font-weight: bold;">Property finance</span><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">:<o:p></o:p></span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What type of building/structure is it? (Commercial/Semi-Commercial/Residential/Land)<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What type of finance do they require? (Owner/Occupier or Investment)<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What is the property value and what is their deposit/contribution?<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What variable of funding do they require? (Term/Fixed or
Variable/Interest only or Capital repayment)<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 72pt; mso-add-space: auto; mso-list: l0 level1 lfo3; text-indent: -18pt;"><!--[if !supportLists]--><span style="font-family: Wingdings; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">What other property is held in the background by the limited company
and/or directors?<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l3 level1 lfo1; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span style="font-family: Symbol;"> </span><span face="Calibri, sans-serif" style="font-weight: bold;">Credit</span><span face=""Calibri",sans-serif" style="mso-ansi-language: EN-GB; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;"> – Any adverse credit for
either the company or the directors?</span></li><li><span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"><span face="Calibri, sans-serif"> </span></span><span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span><span face="Calibri, sans-serif" style="text-indent: -18pt;">Anything else that we should
know up front?</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">You
would be amazed at what answers can come up on the last question – but
seriously, if we are aware and can make lenders aware of any ‘wrinkles’ up front
then it can make the proposal more likely to succeed than if the lender
discovers these issues late in the process.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">So what
do all of the above have to do with lender criteria? <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo4; text-indent: -18pt;"></p><ul style="text-align: left;"><li><span lang="EN-US"><span style="font-family: Symbol;"> </span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Not all
lenders lend to companies or on properties based in all 4 home nations.<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Lenders
will have sectors that they won’t lend to – common ones that are excluded might
be adult entertainment, munitions or gambling for example.<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Some
lenders have a minimum length of time trading required, or a minimum level of
experience with property or development.<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Lenders
all have a minimum and maximum loan amounts.<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Property
lenders don’t all lend on every type of building – some will only fund
investment, some only owner-occupier and some both.<o:p></o:p></span></li><li><span lang="EN-US"><span style="font-family: Symbol;"> </span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Lenders
vary in their appetite for any type of adverse credit – some won’t accept any,
others might accept it if it has been cleared for a defined period – someone
might accept an open credit event with a story!</span></li></ul><!--[if !supportLists]--><p></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The
final thing that I wanted to mention was the pandemic environment, and its
affect on lender criteria. Their risk appetite has changed and therefore their
lending criteria have changed.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We have
been updating our systems lender by lender to try to capture their current
criteria – a long process but critical because there are not many that will
have remained the same since pre-Covid.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">And
dauntingly we know that we will likely have to repeat the exercise again over
the next year because as the economy recovers and evolves again, so will lenders’ appetite for risk and that is what drives their lending criteria.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Beware
of the claims that someone (or their website) can match you with lenders in a
couple of minutes based on their systems that hold the criteria of hundreds of
lenders – I can guarantee that the criteria won’t be up to date across the
board.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">We see
large lenders shifting slightly their criteria on a monthly basis, and in the
odd case more often – so there is a manual check to be done and this is where
your commercial finance broker is earning their money working for you.</span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">So, sorry
for wanting to know a bit more up front about you and your requirements – but
my answer will then be based on your eligibility to lender criteria as we have
discussed it – and <b style="mso-bidi-font-weight: normal;">not </b>the best rate
available to someone, with me worrying about how I get that for you later!<o:p></o:p></span></p>
<p class="MsoNormal"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p> </o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">How do you want to get funded?</span></b></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Mark Grant, June 2021.</span></b></p>
<p class="MsoNormal"><span class="MsoHyperlink"><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><a href="mailto:info@fiduciacommercialsolutions.co.uk">info@fiduciacommercialsolutions.co.uk</a></span></span><span face=""Calibri",sans-serif" lang="EN-US" style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-spacerun: yes;"> </span>/ 01636
614 014</span></p><p></p>Fiduciahttp://www.blogger.com/profile/09544739066435001143noreply@blogger.com0