Negotiations are underway but there has been little reported on any agreements which have been made for the farming industries. The high standard of food standard and safety which is currently enforced by EU legal framework will need to be replicated, or even improved, so we don’t see a drop in quality. Animal welfare is also up for discussion as last year an EU animal sentience bill got rejected in Parliament.

UK farming also received a lot of EU funding – so hard pressed farming businesses may also be concerned about breaking even in the years to come following Brexit. Exporting fresh goods to the EU could possibly cost more, putting even more pressure on struggling farmers across the nation. The future of financing agriculture is dubious, leaving farmers in the dark about how to safeguard their business.

Here are some ways Brexit will impact UK agriculture and farming, according to The Soil Association.

Access to labour

Like all industries, food manufacturing and farming could be affected by the loss of skilled and unskilled workers from the EU, should they decide to return home or be unable to work legally in the UK. The entire food supply chain will be impacted if the labour pool is decreased.

Quality control

Whatever international trade deal is reached will impact the quality standards of UK products. For example if there is less competition from high quality EU food, UK producers may start cutting corners to reduce costs because they don’t have to remain competitive. We also need to ensure stringent standards on imports remain.

Additionally, currently EU law dictates what pesticides and chemicals can be used in UK agriculture. This poses a risk to post-Brexit farming if the same regulations and standards are not upheld or regulated.

Environmental impact

Farming is set to play a large part in the UK’s commitment to reduce carbon emissions by 80% by 2050, and the EU framework encourages farmers to reduce their environmental impact. Unless the majority of EU farming laws are voted into the new UK law, the environment could suffer.

Brexit offers the opportunity to re-evaluate UK farming and improve standards, but there are also immediate challenges which need addressing.

The post How will Brexit Affect Farming? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

1. Consider your staffing needs

It might not be the type of business which requires extra seasonal staff – however summer is always a busy time for staff holidays. In addition to the annual summer holiday, time off for weddings and music festivals, some employees may also need to take extra time off while the children aren’t in school. Evaluate your staffing needs so you don’t fall short over the busy period, and ask staff to get their holiday requests in early so you can plan ahead. You could always hire an apprentice or a young worker who is off school or college for the summer to fill staffing gaps.

2. Spring clean

It’s the perfect time for a bit of spring cleaning and as the old saying goes – it’s out with the old and in with the new. De-clutter work spaces, throw out old equipment and re-arrange the office so it’s more functional and encourages productivity. Get all those odd maintenance jobs done which you’ve been putting off, before you’re too busy!

3. Invest now

If sales projections show that sales increase in the summer months, then adjust your stock accordingly. Invest in extra stock now before it’s too late, and take advantage of bulk buy discounts rather than topping up throughout the season. You might also need to buy some new equipment or replace machinery which might not be able to cope with the increased workload. If you don’t have the upfront cash to pay for these purchases, consider savvy financing options such as merchant cash advance, invoice factoring or asset finance. Can you risk having to turn down orders?

4. Promotions

Everybody loves a summer promotion! Do your calculations ahead of time to figure out what promotions you can offer throughout the busy period to stay competitive. You don’t always have to be the cheapest around, but offering 3 for 2 promotions or free gifts with certain purchases can keep customers loyal. Think about your customer’s need over the summer season and how you can fulfil them.

Plan ahead for busy periods and you’ll be sure to reap the rewards.

The post How to Prepare your Business for Summer appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

While the Financial Conduct Authority increased the regulations surrounding payday loans in 2015, payday lenders still advertise themselves as an alternative to traditional bank loans and boast that they can send the money within minutes of approval. Due to this, they are a tempting option to those requiring a quick injection to their businesses or personal cash flow.

Find out why pay day loans should be a last resort for your business finance.

The High Cost of Quick Money

Payday loans are intended as a short term loan for an unexpected financial burden according to the lenders’ websites and adverts. They also highlight how payday loans are for everyone even if they have a history of bad credit or CCJs. The money is instant and promised to be paid into accounts quickly if approved. However, the ease of accessing this money comes at a price: a very high interest rate.

By completing a quick online search of “payday lenders UK” a long list of potential companies appear each offering loans with interest rates of up to 1325% APR. A small loan of £400 over 3 months from one of the most popular lenders could cost £601 in repayments making it a very expensive method of borrowing money.

Alongside the high interest rate, there are additional fees for late payments, higher interest charged on missed payments and the threat of legal proceedings if the customer defaults on the loan.

The Payday Loan Trap

When clicking on a payday loan website, the ease of access to money is the most prominent feature. This does not take into account the individual’s ability to pay back the loan and many fall into the trap of taking on another loan immediately after paying one off. Recent reports highlight how payday loans are being used to pay household bills on a regular basis and how they have a negative impact on mental wellbeing. Payday loans may provide a quick boost of cash but the high repayments should be avoided by both individuals and businesses.

While payday loans are a quick method to access money, it is one that is costly to the wallet due to the exceptionally high interest rates. If you are a business looking for a loan, avoid the temptation of the payday loan lenders and try the loan calculator on our website or contact the experts at Genie Lending regarding your business’s needs. There are many alternative finance options available – even if you have bad credit or are a start-up without the years of accounts needed for a traditional bank loan.

The post Why You Should Avoid Payday Loans appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Are you a business looking for a method to increase cash flow and speed up access to money owed to you? Then invoice financing may be an option for you and your business. Invoice financing is where a business borrows money based on the amount due from the unpaid invoices from their customers. By doing this, cash can be accessed straight away rather than waiting for the invoice to be paid by the client. This quicker access to monies owed may allow you to grow your business quicker and alleviate any cash flow issues.

There are different forms of invoice financing known as invoice factoring whereby a third party company collects your outstanding invoices, or invoicing discounting where you collect the invoices yourself. This article will look at the ways invoice financing in general can be used to support your business.

71 days is a long time to wait for money that you need now. That’s where invoice financing can come in handy – allowing you access to upfront cash on money that is still tied up in the bank accounts of various customers and clientele. Invoice financing is a catch-all term which encompasses several different kinds of alternative credit; here’s a rundown on the four major ways you can use it to your advantage.

Factoring

Perhaps the most common type of invoice financing, this involves a financier or lender effectively “purchasing” the debt from your invoices. They will then forward a percentage of that debt (normally in the region of 85%) to you immediately, before taking control of collecting the debt from your customer. Upon collection, the remainder will be released to you, minus fees and interest (the specifics of which will fluctuate depending on the sums, timescale and risk involved).

Trading

Invoice trading is very similar to factoring in that it involves one party purchasing the debt in an invoice from another, but differs in that it allows a company to bypass normal forms of invoice financing (such as regulated financiers) in favour of private individuals or consortiums. It essentially takes the principles of peer-to-peer lending and applies them to invoices, and also allows the company to pick and choose which invoices they trade (as opposed to factoring, in which the entirety of the company’s accounts are often take over by the lender).

Discounting

Discounting is different from the previous two forms of invoice financing in that the company retains responsibility for collecting all debts from their customers. Instead of purchasing the invoices themselves, the lender simply offers the company a loan, using the invoice as collateral. The service, of course, involves a fee (normally decided as a percentage of the invoice amount) and potentially interest, in which regard it is similar to a traditional bank overdraft or loan – only with the use of invoices as collateral.

Receivables

The final method of invoice financing is known as a receivables-based line of credit, and involves creating an aggregate of the outstanding balance of invoices, accounts receivables and business assets to allow the company access to a fresh line of credit. With this approach, you are effectively using the net value of your business as collateral to obtain higher amounts of cash, thus enabling you to expand operations or stay competitive in an industry which requires a large amount of capital at once.

What does Invoice Financing Do?

1. Speeds up access to money

After invoicing a customer, it may still take some time for the money to be received into your business account. By invoice financing, the speed in which the money is accessible is dramatically increased. Invoice financing works by selling the invoice to an invoice financier who then will advance up to 90% of the invoice cost. Rather than waiting 30 – 90 days for the money to be in your business account, the money is accessible within a few days. When you are waiting on multiple invoices to be paid or have lots of outstanding invoices, this can prevent business growth.

2. Helps grow your business

Invoice financing is flexible compared to traditional forms of borrowing like overdrafts or a traditional business loan. As invoice financing is based on actual customer sales, it will increase as your business grows and ensure a healthy cash flow.

3. Increases your business opportunities

By invoice financing, you can expand at a faster pace due to the availability of cash rather than waiting for invoices to come in. This means you can employ more staff, take on larger orders or even negotiate with suppliers due to having cash on hand.

4. Free up time

If you decide to pick invoice factoring, you can free up time by handing over the responsibility of collecting invoices to a third party. This provides you more time to focus on the business and passes the pressure of chasing up creditors to someone else. Small businesses waste a lot of time chasing invoices just to get paid for services – invoice financing takes away the hassle and ensures you get paid in a timely manner.

If you’d like to know about invoice financing and the options that might work best for you and your business, get in touch with the experts at Genie Lending who can advise you further on this exciting and innovative financing option.

Use the right kind of financing for you

Each of these forms of invoice financing can be a great way to access cash at short notice, outsource your invoice collection efforts and bypass the normal difficulties faced when obtaining credit from a bank. However, they can also have their own drawbacks and it’s important you weigh up carefully the pros and cons of each approach before settling on your chosen course of action.

At Genie Lending, we have extensive experience and a network of specialist trade finance providers within the UK with which we can help to make invoice financing work for you. For more information, get in touch with us today.

Updated: June 2018

The post How to Use Invoice Financing appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

If you’ve been turned down by a bank for a business loan in the past, here are five steps to ensuring you get the green light next time around.

Find out why

There are a whole host of reasons why a bank might not be willing to commit to a commercial loan: cash-flow issues, a lack of collateral or reasons entirely unrelated to your business itself, such as a risky market or an unfavourable current climate. When the bank informs you your application has been rejected, it’s unlikely they’ll elaborate on why – so be sure to ask them and get to the bottom of the matter.

Check your credit rating

One of the biggest reasons why a bank might not approve a commercial loan not mentioned above is a poor credit rating. Even if your business has a respectable rating, if your own personal one is lagging behind, it could affect your application. Request a credit report, look into and chase up any discrepancies and do your utmost to improve that figure going forwards, by paying off bills, credit cards and other outstanding debts on time.

Look into alternative options

A traditional loan might be the most well-trodden route to financing your company’s launch or expansion, but it’s not the only path open to you. Do your research and investigate the possibility of attracting funding via other means, such as the money-generating practice of invoice factoring or the increasingly-popular phenomenon of crowdfunding.

Consider your own assets

If you aren’t prepared to put up your own assets (such as a house or car) as collateral for your loan, you’re betraying a lack of faith in your own vision. If you don’t believe your project can succeed, why should a bank? Look carefully at what you own and evaluate the risks and benefits of introducing your assets into your next commercial loan application. It could make all the difference.

Don’t bank on the banks

The banking industry isn’t the be-all and end-all when it comes to securing a commercial loan to bolster your business. Consider enlisting the help of a commercial finance broker, who have the knowledge, expertise and experience to assess all of the options open to you and find the source of funding most appropriate for your unique situation.

The post I’ve Been Rejected for a Commercial Loan… What Next? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

The simple truth is that business loans are an integral part of expanding operations and fulfilling potential in pretty much every industry. Here’s a quick (and by no means comprehensive) rundown of various industries which use commercial loans, to give you an idea of their ubiquity in the modern business world, regardless of sector.

Manufacturing

With continual repair and maintenance costs for machinery and staff payroll and premises rental fees to worry about, manufacturing can often be a never-ending struggle to stay in the black. If a piece of equipment requires replacement, in particular, a loan can come in handy.

Construction

Since the construction business often entails an incredible number of different components to come together, there is often a hierarchy of contractors and sub-contractors long enough to make anyone’s head spin. As a result, there can be lengthy delays in invoice payment, which is why the construction industry often employs invoice financing or other forms of credit.

Printing and publishing

With the world of publishing often being dependent on unpredictable factors (such as the success of a potential best-seller, for example), access to credit can be at a premium. When the Next Big Thing comes along, printers and publishers often need capital without waiting for their last project to come through.

Transportation

A broad area, transportation covers everything from taxi firms and rail companies to airlines and delivery businesses. Invariably, those in the industry suffer unforeseen expenses from time to time, such as the breakdown of a vehicle or fluctuating prices of fuel, which can necessitate a loan to access capital at short notice.

Agriculture

Whether it be to invest in the latest agricultural technology, bring your farm into line with modern best practices or branch out into others fields like green energy, agricultural finance represents one of the biggest segments of the sector.

Energy

Speaking of energy, the power generation industry often involves expensive pieces of equipment and machinery, from monumental wind turbines to even bigger nuclear reactors. Of course, in addition to the high costs in purchasing and installing this equipment, it also requires constant maintenance and upkeep. That’s where a commercial loan can come in handy.

Catering

The leap from single enterprise to nationwide franchise is a large one – there are not many businesses which could manage it without the aid of a loan. On a smaller scale, the cash injection from a commercial loan could allow a restauranteur or publican to expand their premises, increase their outreach and enhance profit margins.

Retail

As with catering, expanding operations from a Mom’n’Pop store to a household name doesn’t happen overnight – nor does it happen without a substantial amount of capital. Loans can be instrumental in making that transition possible.

Consider a loan for your business

As you can see, businesses of all shapes, sizes and sectors require the monetary boost provided by a commercial loan to get their foot on the first rung of the ladder – or to expand their operations into pastures and markets new. To find out if a business loan is right for your company and for more impartial advice, get in touch with Genie Lending today.

The post Which Industries Use Business Loans? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Of course, launching a new business of your own can seem like a daunting prospect, especially for those with little or no experience in the sector in which they want to make their mark. Here’s a quick rundown of some basic steps you should take in order to make your entrepreneurial endeavours a success in 2018.

Draw up a business plan

First things first –do your homework. Put pen to paper and create a comprehensive outline of what your business will offer its customers, which demographic that target market comprises and who will be behind the wheel.

You’ll also need to analyse the current competition in the marketplace and identify unique selling points (USPs) which set your enterprise apart. Furthermore, you should make an estimation of how much capital you’ll need to get things off the ground and your overheads for the first few years. Those with limited experience in their chosen market may want to seek support from a savvy mentor here, since getting your sums right is all-important for the next step.

Get funding

Unless you have a sizable amount of capital to play with from the get-go, you’re almost definitely going to need some financial backing to get your project started. Your detailed business plan will prove invaluable here; convincing a bank or building society to invest in your potential is so much easier if you can prove you know what you’re doing and you’re equipped to succeed.

On the other hand, even the best prepared business plan might be given the red light by banks in the current economic climate. If that happens to you, don’t despair: non-banking loans are more popular than ever before and there are a range of alternative finance options to consider. The rise and rise of peer to peer funding and crowdfunding open up investment to a small group rather than a centralised bank, for example.

Craft an attractive online presence

Whether you plan to open a five-star restaurant or a web design company, you’re going to need an online presence to attract attention and establish credibility. In this modern age, if people can’t Google your business and access a webpage dedicated to its products and services, they’re not going to spend a single second before moving on to the most convenient competitor.

Devote time and resources to creating a user-friendly and aesthetically-pleasing website which will dazzle all comers and turn prospects into customers. This may take significant time, energy and money initially, but it’ll be worth its weight in gold once you’re up and running. The smallest enterprise in the industry can be successful operating out of a bedroom or garage – but not if it doesn’t have a corner of cyberspace to call its own.

Push the button!

Once you’ve laid the groundwork and your project is ready to launch, go for it! Just be mindful to avoid resting on your laurels and taking your foot off the accelerator – you’ll need to be constantly monitoring your performing and looking for new ways to grow your business if it is to truly flourish. Put in the hard yards, however, and the rewards will come rolling in.

The post How to Start a Business in 2018 appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

It can be really discouraging to have one or more applications for finance rejected, and not only that – it can harm your chances of lending from other financial institutions too. Always check the eligibility criteria, and don’t apply unless you know you tick all the boxes. Different lenders have different criteria, so shop around to find the right lender for you who is most likely to offer you a loan.

There are many reasons why a finance application isn’t approved – it could be a basic issue with paperwork, or the lender may think your business is too much of a risk. Many people are confused as to why their application was rejected, and it’s important to find out the exact reason from the bank. Here are some of the most common reasons why business loans are rejected.

Bad Credit History

There may be something in your personal or business credit history which has flagged up and caused the lender to be cautious. It’s a good idea to find out your credit score and get a copy of your credit rating before applying for any type of loan. There are various steps you can take to improve your credit score, and sometimes these small actions can make a big difference.

Cash Flow Issues

All businesses have ups and downs, and you may have seasonal fluctuations in revenue. However, if you have ongoing cash flow problems and spend a lot of time in an overdraft, this can signal that you can’t yet manage loan repayments. Finance is often refused if lenders don’t believe a business is in a strong financial situation.

Short Trading History

Because banks are being extremely cautious and limiting credit at the moment, they are not considering start-ups or fairly new businesses. They want to see years of financial records, so if you’ve only been in business for a year or two then this could be the reason why the lender has considered you as a risky investment.

Just because you’ve been rejected by the mainstream banks doesn’t mean you no longer have access to finance. There are many other options to explore, even if you are have a short trading history or an adverse credit history. Talk to our alternative finance advisors today to discuss the options open to you and your business.

The post How to Make Sure your Finance Application Isn’t Rejected appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

A broker understands the evolving world of business finance, and has positive relationships with a range of lenders. They can also introduce to new opportunities you may not have considered, including a variety of alternative finance solutions.  With the right loan broker, you could simplify your options and make sure you choose a competitive finance deal which is right for you. The term loan broker can be quite daunting for many people, especially if it’s the first time they are applying for long or short term finance. Some bad apples in the industry may have given loan brokers a bad name, however as specialists in financial solutions, they can do all the work for you to find you the best deal. Whatever you need a loan for, take a look at why you should consider a financial broker.

What is a Broker?

The financial market is saturated with different credit providers and lenders to choose from. A loan broker is generally an advisor, who can present different lenders to a client and help them make the right decision. They negotiate with different financial institutions and lenders on the client’s behalf, to arrange a suitable loan or credit solution. Basically, a broker shops around and does all the leg work for an individual, and then suggests the financial option which is most appropriate for the purpose of the loan and the circumstances involved.

Some loan brokers are specialised in a certain type of loan – for example you can hire the help of a mortgage broker when looking to buy a home. As another example, Genie Lending are commercial finance brokers specialising in alternative finance solutions.

Finding a Trustworthy Broker

As loan brokers are paid a fee by lenders and financial providers, they could have a tendency to suggest those who are offering more commission. Brokers should put the clients’ interests before their own, but how can you be sure? The best way to trust a broker is to check they are regulated and accredited by official financial authorities. You can usually see on a broker’s website which bodies regulate them, such as the FCA, ICO and Financial Ombudsman Service.

Commercial Finance Brokers

When you’re looking for a variety of options to funding your business, it’s quicker and easier with a broker. Anybody can go to a bank and apply for a loan, but if you want more chance of success you’ll have to think outside the box. Alternative finance solutions are growing in popularity, thanks to the ease of peer to peer lending and other options. If you’re considering going down this path, then you will need a broker to introduce you to individual lenders or they may have access to a crowdfunding platform.

If you’re looking for a trustworthy and efficient commercial broker, look no further than Genie Lending – call our team today for more information.

What to Check For?

The world of commercial finance is complex, and difficult to navigate without a broker. But how do you pick the right one? Here are some things to consider when choosing a commercial finance broker.

1. Check they are accredited

There is no point making enquiries with a broker unless they are accredited by a professional financial body – any finance broker without an accreditation should bring up a red flag. Who is making sure they are working responsibly, and in their clients’ interests? Most financial companies should be regulated by the FCA, and you should also look out for the NACFB logo (National Associations of Commercial Finance Brokers). Brokers registered with the NACFB have to follow a Code of Practice, so usually offer the best service.

2. Sector specialities

Many brokers have a specialist in a certain sector, whether it’s sourcing agricultural finance or experience in investment property.  If you work in a particular niche, then it could be worth searching for a broker who understands your industry. However, many brokers are comfortable working within a number of different sectors but you should tell them about your business before making a decision.

3. Ask for references

Before you buy any goods or services these days, it’s a good idea to gauge the happiness of past clients. Look out for testimonials and real reviews of the broker on third party sites or social media pages. If you can’t find any of these in the public domain, you could always ask for references from the loan broker themselves. It could also help to seek out references from a similar business, so you have proof of a success story within your sector.

How can a loan broker help my business?

To some people a loan broker can be a bit old fashioned; you might think it’s an outdated career because you can simply apply for a loan yourself. It’s not until you start researching and trying to compare rates that you might find out the reason why businesses often hire a broker.

Think of a loan broker as a travel agent – someone who helps you compare different products and puts you in touch with the right people to get the best deal. Some might argue that travel agents are obsolete now that you can book the majority of holidays direct, online. However some people will always decide to rely on the travel agent for two things – expertise, and a quality service which saves time.

So how can a loan broker help businesses with funding?

Save time and effort

The lending landscape is incredibly vast, and unless you’re a financial expert it can be difficult to understand. Instead of wasting hours on end researching the most appropriate loan for your business, you can entrust this task to a broker. This way you can get on with running your company, while you let somebody else arrange the funding for it.

Favourable rates

Just like a travel agent may be affiliated with certain airlines or hotels, a loan broker will also have contacts. They work hard to find you the very best rate, by submitting your details to a range of lenders and seeing if any provider can offer a special rate. You might only have time to compare two or three rates, whereas a loan broker could compare dozens, some of which you’d never heard of.

Expertise and knowledge

Loan brokers are experienced in all the banking and financial jargon that you might not understand. You never want to sign for a loan when you don’t understand the terms and conditions fully – the broker would be able to explain everything clearly and save you agreeing to loan terms you’re not happy with. Take advantage of the expertise and recommendations offered by a commercial loan broker. They will also have a broad knowledge of the alternative finance market, and a host of different options you may wish to explore. A broker may be able to introduce you to a new form of lending you weren’t familiar with, which could save time and money.

Ready to work with a loan broker? Give our friendly team a call today and we’ll find the perfect funding source for you.

Picking a loan broker is a big decision, so don’t just select the first one you come across.

The post How to Pick a Loan Broker appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

High street banks have been reducing eligibility for some time, especially to new businesses in desperate need of capital. This has led to a booming alternative finance market, offering what banks would deem ‘high risk loans’ to start-ups and businesses without years and years of accounts. So, is it getting easier to get a loan? The answer depends which lender you’re applying to.

Loans from finance-brokers

A business loan broker can help companies secure finance from a range of lenders and financial institutions. If you’ve applied before but been rejected by the big banks, finance-brokers can match you with the ideal business loan. Depending on the industry you work within, sometimes it is more effective to lend from a dedicated loan company or finance provider which specialises in loans for your type of business.

A loan broker can search through all the available loans your business is eligible for, and recommend the best deal. So if you’re tired of rejection and the long application process of the high street banks, contact a commercial finance broker.

Alternative Finance Lenders

The primary reason it’s becoming easier to secure a loan is because of the alternative finance market. Even though businesses can’t rely on the banks to support their growth, alternative lenders are offering viable solutions to help small businesses flourish.

These lenders offer bespoke finance solutions tailored to each business, rather than a standard business loan. For some people these solutions are even more attractive than a loan, as finance options such as invoice finance can reduce the chance of ongoing debt.

Crowdfunding and peer to peer lending has gained traction in the past decade, mainly offering entrepreneurs an injection of capital to get their business of the ground. Other commercial finance options include merchant cash advances and asset finances.

It’s easier to get a loan if you know where to ask – speak to Genie Lending today to find out what commercial financial solutions we can offer.

The post Is it Getting Easier to get a Loan? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.