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.

It’s hard to give an overall view of whether in general the UK economy has improved or got worse since we started the process of divorcing the EU. Many reports focus on the value of the pound but there is more to measuring the economy than sterling markets. The state of the economy can affect house prices, employment levels and the risk factor for banks to lend money. If business growth slumps because of a lack of access to finance, this could also have disastrous consequences as we exit the union.

Let’s take a look at some of the most recent economic impacts of Brexit.

Pound devaluation

The pound has continued to slump against both the euro and the dollar – it’s currently at a three decade low against the US dollar. A fall in the pound isn’t noticeable to everyone just yet, but it is bad news for motorists or frequent fliers, and means imported goods increase in price. However, the weakness in the pound can have some benefits for UK exporters.

Inflation rise

There has been a steady rise in inflation ever since the leave vote was announced last June. This is because the pound’s sharp drop has made imported goods more expensive. In May 2017 inflation hit a four-year high at 2.9% which is never good use for consumers. Prices are rising faster than wages, which means households are under more pressure and there could be a rise in personal debt.

Trading and employment

Unemployment is at its lowest levels since the 1970s, so it seems as if Brexit is yet to have a negative effect on the jobs market. However, leave campaigners who had strong confidence in the strength of the UK’s exports have not been proved right. The nation’s trade performance has worsened,

even though the weaker pound has boosted some UK exports. Currently imports are rising and exports are falling as the UK struggles to push UK-made goods abroad.

Of course negotiations are still under way and the final deal, once agreed, will have the most impact on the economy. It’s important for British businesses to stay up to date with current developments and prepare for a future outside of the EU.

The post How has Brexit Impacted the UK Economy? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Additionally, the European Investment Fund (EIF) has shifted its focus away from the UK after the Brexit vote, leaving UK tech firms cut off from Europe’s largest source of capital venture funding. This is a huge blow to Great Britain’s tech start-up scene which is currently one of the largest in the world.

When the current EU funding pot runs out in 2021, it is essential that the government invests in local businesses – but that seems unlikely when they haven’t planned for it and have so many other pressing Brexit issues to deal with. So who or what will plug the funding gap? One thing is for sure – it won’t be the banks bailing us out.

Alternative finance solutions

The reality is that many small businesses and start-ups won’t have access to free business support and investment. We predict there will be a rise in personal investors, such as ‘Dragons’ or ‘Angel investors’ and many entrepreneurs will have to look for other ways of funding their business ideas. Business loans from the bank are rarely available to start-ups and the majority of individuals wouldn’t meet the strict criteria, leaving them little option when it comes to financing a business.

The alternative finance market has been providing non-conventional borrowing for businesses for years now, and the responsibility of post-Brexit business funding may fall there. Offering crowdfunding solutions, peer to peer funding, asset finance and unsecured business loans, these alternative finance providers could be the answer for SMEs, start-ups, businesses looking to achieve growth and entrepreneurs alike.

Because alternative finance solutions are tailored, a specialist finance broker can help identify the right financial product for each business. Although they will have to pay the loan back with interest on top, this type of finance is usually more favourable than the bank’s interest rates and the cash is often delivered a lot faster.

Do you worry about how your business will thrive without EU funding? See how Genie Lending can help.

The post How Alternative Finance Could Plug the Funding Gap Post Brexit appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Banks are reducing lending, which means securing any kind of loan from a mortgage to a business loan is now harder than it was before the vote. Virgin Money announced shortly after the Brexit vote that it will be delaying small business lending and no longer expanding into the unsecured lending market. However, the impact of Brexit won’t be truly felt until negotiations begin, and the big question is whether we will remain in the single market or not. What does it all mean for British businesses?

EU Freedoms

The main principle of the EU is freedom. Freedom of movement is one of the main things British voters were voting against, however the Union also allows free movement of capital. This enables European investors to invest in British businesses, and British businesses to raise funds in other countries if needed. Abandoning the free movement of capital could have a negative impact on business.

Higher Trading Costs

The majority of SMEs in the UK export to countries within the EU, and will want to continue to do so. However, business owners are now likely to face higher trade costs, whether we strike a Norway-style deal or leave the single market altogether. While this may open opportunities to export further afield, it is always easier to trade with our closest neighbours.

Less Competition for Banks

Without continental banks and overseas European investment, the only option SMEs will have is British banks. This immediately means these financial institutions have less competition, and will be able to overcharge SMEs with bulging interest rates. When competition dwindles, corporations can take advantage of customers which we have seen in all sectors.

Economic Uncertainty

Perhaps the largest problem for SMEs – and the entire nation’s economy – is the uncertainty which prompts currency volatility. An instable economy hits SMEs harder, because they are seen to be of higher risk to lenders. Banks will shift lending from SMEs to larger businesses, putting pressure on smaller businesses to find alternative funds.

If you own a small or medium sized business and are having trouble finding a business loan, take a look at our alternative finance options.

The post Business Loans and Brexit – What Does it All Mean? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.