With the rise and adaption of mobile communication and browsing technology, consumer habits have also changed. Increasing numbers of people ‘shop on the go’ – they don’t want to go to different stores and shops to get what they need if they can see what is available on a little screen.

Why should you try fusion retailing?

Fusion retailing allows consumers to mix and match goods and services depending on what they require. As the high street evolves, large retail outlets such as Debenhams, House of Fraser and Next will have to meet changing consumer demand, otherwise they will disappear.

It also means that smaller independent stores will increasingly find more opportunity to develop and flourish in the gaps which will inevitably appear.

What is a fusion business?

Tesco, Asda and Sainsbury are all examples of a fusion store which has evolved from small independent chains of grocery stores into megalith retailers. Thousands of products and services all of which are linked by a single thread – everything a consumer needs under one roof for under their roof.

A fusion business is one that sells many products and services all of which are connected by a single thread. However, the aforementioned examples do not sell a wide selection of specialist goods and services. This is why over the next few years, small independent stores that are able to fill in the gaps, will be able to build up a loyal following, transforming the high street in the process.

Innovation

It is better to have a fusion business because you can get creative and let your imagination run wild as much as you want. Fusion business can hold your ideas together without ripping apart at the seams. For example – when you want to have pottery next to kitchen utensils it is possible because it can fall under one theme: home and lifestyle.

Loyalty

When you are a one-stop provider, most likely your customers will use your brand for everything he orshe needs than transfer to another business. Even if the other goods/services the consumer needs from you is priced higher than another competitor, the most likely scenario is that he/she will stick with you.

How to do it?

Think of a business plan with a singular theme. Then, you can combine eclectic products and services that harmonise well and centre around that particular theme. Example of themes can be beauty, fashion, or lifestyle. It is up to you what goods/services you want for your fusion business

There is no time like the present. Fusion retailing is a developing trend which has great potential.

The high street has exciting times ahead.

Our team at Genie Lending are dealing with a wide range of business and retail enquiries each week. We’d love to speak with you – so fill out our enquiry form or give us a call today.

The post What is Fusion Retailing and Should You Try it? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

But will all go downhill from here? Trade deals are integral in sustaining industries from raw material manufacturers to suppliers, but how will Brexit dictate the economic balance of the UK-EU partnership?

Currency at stake?

The pound was overvalued before the Brexit vote, which is why so many speculators and those in the know made a fortune betting against the pound.

Typically, the value of a currency is in part affected by the consensus of its economic current and future standing. Some experts had, before the leave vote, analysed the post-Brexit landscape and subsequently made the prediction that it will preempt a ‘slowing down’ of the economy.

However, these are probably the same ‘experts’ who predicted half a million job losses, an emergency budget and an extra £3,500 a year cost to every household in the UK should we vote to leave the EU.

Customs and trade?

Once the UK leaves the EU, it has to leave the customs union and take back control of the national economy once and for all. In practice, this could mean little difference to how things operate now. German carmakers, French wine producers and service companies which own significant stakes in our infrastructure will not stop trading with us overnight. It is not in their interests to block trade, neither is it our interest to reciprocate.

Countries such as Canada, the United States – in fact, any country which is not in or going to apply for membership of the EU trades freely with the EU. Why should the case be any different for the UK post-Brexit leave date?

What does the future hold in store?

Although Brexit will mean the UK is formally leaving the EU, under article 50 of the Lisbon treaty, the UK is still allowed to renegotiate a new trade relationship with the EU within a minimum of two years.

It is in the interests of the governments of the countries of the EU that a new trade deal is developed. However, the current mindset of some business owners, trade associations and, sadly, many of our elected representatives and unelected peers is one of defeatism and failure.

To sum it up, the future of trade between the UK and the rest of Europe will carry on with little effect. If there is any slight downside, that will be more than compensated by our new freedom to trade freely with other nations without the shackles of a protectionist treaty holding us back.

Business opportunities will be thriving in specific areas after Brexit has happened. We will undoubtedly be pleased to speak with you regarding any commercial finance enquiry. So contact us today with your requirement.

The post How Will Brexit Affect UK Trade Deals? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Do some research – then do some more

Study the broker behind the business sale. The name of the broker behind the investment doesn’t have to be a big name BUT, a big brand broker backing a startup business certainly adds kudos and offers credibility to their client’s potential financial future.

Read and re-read the prospectus

Take a look over the company prospectus in detail. It will offer deep insight to:

• Who is running the company
• The company’s target market

There will often be substantial detail in the document. It will help you gain a much clearer picture of the risk versus the reward and help you decide between the following.

Caution wins the day

Anyone who wants to make money will always have to take some risk. Weigh up the pros and cons. Don’t be taken in by the promise of quick returns. If it sounds too good to be true, then it almost always is.

Set realistic targets

Be careful not to over-estimate your potential returns. It can be human nature to be overly-optimistic with such investments.

In the same way, returns on your investment, especially if the investment is with a new company, may come slowly. You should be aware that the failure rate with new companies is high, so factor this into your calculations.

Exit strategy

Think about at what stages you would be happy to sell or exit the business investment. It’s prudent to map out various scenarios in advance.

Finally

Your best resource in any investment is a financial adviser. He or she will be able to advise on the risk and reward.

Investing can be challenging, exciting and stressful but at the same time has the potential to be highly rewarding. As long as you prepare and research, risk can be substantially reduced, and the reward can be life changing for the better.

Our experienced team have the skills to obtain your funding requirements. Simply complete our Enquiry Form to see how Genie Lending can help you

The post How to Invest in Companies appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Here are a few places to consider in placing your housing investment to good use:

Glasgow

Glasgow is rated as having one of the highest ROI yields in the UK mainly due to their population primarily composing of 21-35-year-olds (roughly 28 per cent) of the total population in this Scottish city). Glasgow’s unfortunate slow house price growth in the past is precisely why they offer more affordable house prices compared to other cities in the UK. Since June of 2016, property prices have had a consistent rate of increase of 0.7% per month. For Glasgow to gain a significant rental yield, property prices are inversely correlated with rental value.

Milton Keynes

With Milton Keynes’ optimal location being roughly equidistant to Birmingham, Oxford, Cambridge and the city of London, finding rental in this area makes it a great fit for anyone who chooses to study or work in any of these areas. With the Chancellor’s proposal to improve transport between Cambridge, Milton Keynes, and Oxford, investors are sure to consider Milton Keynes as a prime spot for investment.

With the Government’s infrastructure investment, the potential lure for investors, young professionals, along with a combination of relatively cheap accommodation and convenient transport links bodes well for the future.

Birmingham

Birmingham still stands as a property investment hotspot even into Q3 of 2018. Recently ranked in 21st position concerning its overall investment prospects compared to its domestic and European competition, the report is a testament to Birmingham’s popularity. Commercial industries have taken an interest, as HSBC and HMRC are setting up offices based in Birmingham which is sure to attract young professionals who are looking for a place to earn and a place to stay.

Choices are ripe for the taking

Because of the London Plan draft proposals, the uncertainty of the market is lingering and casting some doubt for investors. Though the London’s plans for sustainability is slated to last for until 2036, it is unsure if it will mean a steady growth curve for the market or if things will take a turn for the worse before it gets better.

Regardless, there are other property areas ripe for investments while the extent of the ambiguity of London’s policies is yet to be set until this coming November.

Our experienced team have the skills to obtain your funding requirements. Simply complete our Enquiry Form to see how Genie Lending can help you.

Statistics from: https://www.onetouchinvestment.co.uk/news/buy-to-let-strategy/best-places-invest-property-uk-2018/

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Gone are the days of going cap in hand to the business banker clutching armfuls of finger in the air financial projections produced, at cost, by your accountant.  Gone also are the days of waiting interminable amounts of time jumping through endless banking hoops whilst our “local” banker presents funding cases to far flung decision makers.  Gone are the days of being forced to proffer more and more personal security to support the funding requests of a growing company.

With the SME denied the help of traditional banks, largely due to the outcome of the 2008 crash and the impact of the Basle Accords on bank liquidity ratios, but with demand for vital sources of working capital still there, the number of alternative finance providers ready to plug funding gaps has grown apace.

Businesses come in all shapes, sizes and hues and, as a consequence, every business has its own unique funding requirements.  Alternative finance providers have emerged to focus on specific segments within the SME funding mix.  This is great news for the SME exploring its funding options, but the myriad of potential solutions does create its own challenges and the plethora of new players delivering multiple options can make it somewhat overwhelming for the uninitiated to tread a well planned path through the maze of new finance providers.

In an unstable economic climate banks are less likely to lend – especially to risky business investments. In today’s unpredictable financial market, it is becoming more and more difficult to get approved for a bank loan, which is why the trend for alternative finance solutions keeps on growing. Without these alternative funding options, many businesses would have ceased trading or would-be successful property investors wouldn’t have been able to buy a second property.

In 2014, a record £1.74 billion was raised through alternative finance models. So isn’t it time you found out more about it?

Advantages of Alternative Finance

Many alternative finance solutions are ideal for SMEs or start-ups, not just because they will struggle to receive traditional funding, but because they can also benefit from better terms.

• Ease of application
• More chance of guaranteed acceptance
• Flexible funding and repayment options
• More favourable terms for the business

Read on for a comprehensive guide of the commercial finance services available.

Types of Alternative Finance

There are many different variations of alternative finance, and it’s crucial to choose the right model for your business. There’s also hundreds of different platforms to apply for alternative finance depending on which specialist funding you choose. Some brokers will specialise in all types of alternative finance. Here is a basic rundown of some of the most popular alternative finance solutions.

Business loans

Whether you need a short term cash injection to cover the costs of staff wages and stock, or you’re investing in a new business premises, a business loan could help. An alternative finance provider can raise finance for business owners without the traditional application process at the bank which can take weeks to approve.

Bridging finance

Need to raise some capital at short notice? With bridging finance you can have the cash in your bank at very short notice, to buy a property at auction or solve your cash flow problems before a large payment is to be made. Bridging loans can be up to £20 million but need to be repaid within 12 months so this is a short term option.

Invoice finance & invoice trading

Many SMEs have a cash flow problem because invoices take too long to be paid and there are constant outgoings to pay. With the help of invoice finance, businesses can release the cash straight away to be used elsewhere and keep money running through the organisation. This type of finance is fairly low risk because you won’t be borrowing any more money than you’ll have coming in.

The time when a company was obliged to hand over the whole of its debtor book to a factor or invoice discounter is long gone as is the time of restrictive contracts from which it is prohibitively expensive to escape.  For companies trading on credit terms with their customers, it is now possible to sell invoices on in a selective manner, entirely at the SME’s discretion, to a pool of individuals or institutions again through a funding platform. Funds are then received immediately to a pre defined percentage of the invoice’s value with the balance less fees being received at invoice collection delivering instant cashflow from working capital tied up in unpaid invoices.  Structures also exist that enable 2 or 3 year loan arrangements, either fully amortising or bullet repayment, driven by the value of the SME’s debtor book.

Peer to peer lending & crowdfunding

Peer to peer lending is an attractive alternative finance solution for commercial borrowers. In most cases you’ll receive a better interest rate and it works the same as a traditional loan – the only difference is you’re lending from individual investors rather than a financial institution. Banks aren’t the only financial institutions with large sums of money to lend. Wealthy individuals can be matched with small businesses to offer an alternative source of funding with more flexible terms.

Debt transactions between individuals and/or institutions facilitated by a platform.  Many individual contributors make up the sum ultimately borrowed with terms between 6 months and 5 years typical. Interest rates can vary from as low as 9% or as high as 18-20%, dependent on the quality of the proposal.  Funds can be delivered in a matter of a week or so in some instances with potentially very little in the way of business plans/budgets being required.  With many platforms in the market, it is essential to work with a platform that will accept the credit risk of your business and present your funding proposal to potential lenders.  If going down this route, do your homework as the character of each platform is very different…

As implied, the sale of a proportion of your business to a number of individual and/or institutional investors in return for investment.  Again, there are a number of platforms who facilitate these types of transaction and they each are different in nature and what type of deal they are looking to propose to their investor base.

Asset finance

There are many different types of asset finance, and this solution works well for industries such as farming where businesses have expensive equipment to purchase and maintain. Business owners can free up cash in their assets to use elsewhere, or spread the cost of machinery over a length of time. Secure a comfortable loan by lending against company assets such as machinery, vehicles or equipment. It is a way to release cash tied up in business assets for you to use elsewhere.

Pension Led Funding

A good pension is a valuable asset which can be used to secure an alternative business loan. Mechanisms which allow SME owners to use their pension funds to invest in their own businesses within a HMRC approved and potentially tax efficient environment.

Merchant Cash Advance

Take card payments as part of your sales? If so, you could benefit from a merchant cash advance. This is an innovative funding solution which is related to your monthly turnover in card payments. You repay the funder through a percentage of your daily card receipts so it a short term solution reducing the chance of long term debt.

Interested in the benefits of alternative finance solutions but not sure which lending option is right for your business? Well you’ve come to the right place. Here at Genie Lending we specialise in a variety of alternative finance options which can be tailored to your business needs. From short term and long term loans, secured and unsecured business loans to commercial and buy to let mortgages, we’re guaranteed to have a suitable option.

Updated: May 2018

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Whoever you turn to for a business loan is not going to look favourably on an investment that they can’t see a return on, so it’s your job to convince them that you have what it takes to succeed.

Criteria Lenders Look For in Your Business

In particular, here are a few criteria that lenders will be on the lookout for:

• Have you drawn up a comprehensive business plan, complete with a summary of your operations and your projected earnings and outgoings for the next two to three years? Preparation is key.
• Market awareness. Similarly, you’ll want to include a rundown of the size, demographic and growth opportunities of your target market, as well as the state of play regarding your competition. What sets your business apart? Sell yourself.
• Remember to make clear what you need the loan for and how it will affect your business. Whether you want to take on more staff, move to a bigger office location or expand your customer portfolio overseas, it’s imperative to stress the value in this transaction – for both of you.
• Credit rating. All the business acumen in the world won’t win a loan if you have a poor credit history – after all, the shiniest colander leaks just as much water as the shoddiest one. Sort out your finances before you lay out your aspirations before a lender.
• Cash flow. Again, you’ll need to show that you’ve not only managed your debt repayments in the past, but that you’re well equipped to do so again. Accurate data on your revenue and outgoings (both current and projected) is vital to breeding confidence in your business.
• If you already have substantial assets belonging to your business, a bank will be more inclined to look favourably on lending you money than otherwise. This can act as a guarantee that they can recoup their outlay in the worst-case scenario.

Tick all the boxes on this checklist and you stand an excellent chance of being approved for credit from any lender you approach. However, the economic slump of the last decade has meant that more and more people are turning to alternative finance solutions to obtain the funds they need to help their business realise its full potential.

With that in mind, just remember that there are plenty of other options out there if the traditional route doesn’t bear fruit. Asset finance, peer to peer and crowdfunding are all increasingly popular methods of alternative finance that may well be right for you… and the criteria listed above will be just as beneficial on those fronts, as well.

The post What Criteria Do Lenders Look for in a Business? 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.

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We’ve put together this useful short guide to the pros and cons of alternative finance options and traditional bank loans.

Alternative finance options

Because there are so many different types of alternative finance available, it is hard to group them all together and differentiate the pros and cons. However here are some general points to note:

• Speed and efficiency – applying for an alternative finance loan is quick and efficient compared to the long process at high street banks. If time is not on your side, an alternative finance provider can help
• Specialised providers – while national banks work with a wide variety of businesses, many alternative finance providers have specialisms. This means they will understand your business model and needs better than a general financial institution
• Tailored options – banks offer standard loans and commercial mortgages, while the alternative finance sector provides a range of solutions for all types of SMEs. Find something ideal for your finance needs, from asset finance to a merchant cash advance. You may also be able to benefit from flexible repayment options.

The main downside to using this type of funding is the higher level of risk. Instead of borrowing from a large financial institution which is fully regulated and protected, you will be lending from individual investors or a group. Also, the risk is high on the side of the investors which means interest rates can be higher with some products.

Bank loan options

• Safe and predictable – a bank is the first point of call for many people to apply for a loan. It’s a safe place and you know the financial institution is accountable and credible.
• Fixed interest rates – banks have the power to offer slightly lower interest rates than other lenders for certain products, and fixed interest for the loan term. Some alternative finance providers will try and match the interest rates of the banks but it’s not always possible as it’s down to individual lenders.

While a bank loan seems like a great choice, the main con is that the majority of SMEs and start-ups will not be eligible to apply. There is a long application process with lengthy paperwork, and businesses usually have to be established and profitable with the support of historical accounts. To get a business bank loan you’ll probably also need strong credit and capital to secure the loan.

Want to find out more about your alternative finance options? Contact our commercial finance brokers today.

The post The Pros and Cons of Bank Loans & Alternative Finance appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Some businesses are set back after being rejected from a bank, and give up on finding the funding they require. Nevertheless others keep trying, and many have found suitable financial solutions from the alternative finance market. Non-bank loans are gaining popularity firstly because SMEs are being pushed into this type of lending by the banks who refuse to lend to them. Secondly, alternative finance providers can provide a wider range of finance and sometimes match the interest rates of high street banks.

What are the reasons for SMEs being refused a bank loan?

In the Close Brothers report ‘Banking on Growth: Closing the SME Funding Gap’ which is based on a survey of 1,000 financial decision makers in UK SMEs, the main reasons these small enterprises were refused finance were:

• Cash flow not strong enough
• Banks not lending to SMEs at all at this time
• Not enough capital
• Business plan not strong enough

With many high street banks not even considering SMEs for loans, or having extremely strict criteria, it is easy to see why other forms of lending have grown in popularity.

Non-bank loans: challenging traditional lending

Thankfully for start-ups and SMEs, new products have become available on the alternative finance market. Peer to peer lending, crowdfunding and asset finance allow small businesses to access vital capital in order to grow and succeed. These “non-bank loans” and unconventional forms of finance are acting as a lifeline to British start-ups which wouldn’t be able to trade without a significant cash injection.

But it’s not just snubbed SMEs who are turning to alternative finance – the market is thriving and supporting a range of businesses, investors and individuals. In 2015, it grew 84% according to Nesta, to £3.2 billion. Many alternative finance providers offer a multitude of advantages to small businesses in addition to being more accessible. The SME-friendly loans are forms of fast cash – sometimes applications can be approved and the money transferred the same day. Some forms of finance can also offer lower interest rates and more flexible repayment terms because you’re not tied to a bank.

Want to find out more about non-bank loans? Speak to our experts at Genie Lending today.

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So without the help of a bank loan, how can a start-up get off the ground? Start-up finance is a niche and can be a difficult uphill struggle, but there are a range of investment options to explore as a new business. Securing the funding is a vital step to launching your business idea – here are some ways to finance a start-up business.

Government backed loan

Believe it or not, the government has noticed how difficult it is for start-ups to be approved for finance, and has launched some initiatives to keep new businesses forming. A government-backed start up loan lets you borrow up to £25,000 at a low interest rate, while offering free business support. You might also be eligible for local funding depending on your location and the type of business you plan to launch.

Alternative finance solutions

A traditional loan isn’t the only way start-ups can access finance. Thanks to the rise in alternative finance solutions, businesses can apply for peer to peer lending and other specific products which can be tailored to fir each individual business. Of course, start-ups can also take their idea to the worldwide web on platforms such as Kickstarter, or search for angel investors. If you’re determined enough, you’ll find a provider or investor to approve your finance.

Business overdraft

If you don’t need a large sum of money to get the business started, it might be worthwhile using a bank overdraft. However it’s always important to work out how much you will be charged for using the overdraft facility, and how long you’ll rely on it before turning a profit. Overdrafts are put in place for short term lending, and can be very expensive if you stay in the red for a long period of time.

Borrowing cash as a start-up is risky business, but be persistent and you should be able to secure finance from somewhere, or someone. If you need help exploring the options give the Genie Lending finance experts a call.

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