Traditional trade finance or Invoice Financing was not appropriate for this transaction and the client was left with a gap in their cash flow.

By utilising an unsecured, revolving credit facility, the business is able to borrow, in a similar way to a traditional overdraft, to purchase the stock, only covering the interest until they are able to repay when the order has been fulfilled, and their invoice paid. At which time the facility is available to draw on again for any reason.

The facility was put together in a matter of days putting the client in a strong position to secure the contract ahead of competitors.

If your business has found funding difficult to obtain you can trust Genie Lending to go to every extent to provide the correct finance quickly, for the result you want. As well as the household names in the industry we have access to proven lending sources who you will not find on the high street. Our aim is to help UK SME’s obtain funding for all their business requirements, whether that be growth, acquiring premises, paying HMRC liabilities or simply working capital. Genie Lending can assist with complete finance solutions.

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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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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.

If you need a commercial property it’s important to weigh up the pros and cons of both renting and buying. It’s not quite as simple as buying or renting a house and there are other business concerns to consider.

What classes as a commercial property?

If you are trading within the building or using the property for any kind of business purpose, then it is a commercial property. Even if you live within the building (for example you buy aretail premises or pub with an owner’s flat above) it is still classed as a commercial property. Here are some of the most popular types of commercial property:

• Office
• Warehouse or factory
• Shops or retail units
• Pubs, bars and restaurants
• Hotels and B&Bs
• Farm buildings
• Nursing homes and private clinics

Buying VS Renting

If your business is expanding or you’re looking for your first office, you need to decide whether to buy or rent a property. Most small businesses start off renting a space until they establish their turnover and know what they can afford when applying for a commercial mortgage. Here are some advantages and disadvantages of renting:

Renting pros

• Minimum deposit required compared to a large cash sum
• Easier to relocate or upscale/downscale as needed
• No maintenance costs

Renting cons

• Your landlord could increase the rent, affecting cashflow
• You might not be able to adapt the property if needed
• You will never own the property as a business asset

Some businesses rent a premises as a stepping stone before buying a commercial property, while others simply prefer to rent long term. Many businesses only require a small office or studio, for example, which is easier to rent. However if you’re thinking of buying here are the pros and cons:

Buying pros

• You know your monthly payments – not dictated by landlord
• You own the building so can make whatever changes you like
• The property could increase in value

Buying cons

• You’ll need a large deposit
• You’ll be responsible for maintenance costs
• More difficult to relocate

If you’d like to find out more about commercial mortgages, get in touch with our commercial mortgage brokers.

The post Do I Need a Commercial Mortgage? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

What do you need to look for in a commercial finance broker? How do you know which company will offer the best deals and present you with all suitable options? How do you know which brokers are trusted in the industry and have been recommended by other businesses? Here are some top tips for choosing right broker for you.

Find a specialist commercial finance broker

You might not have a clue where to start when it comes to business finance – but if you have a general idea of the type of loan or funding you need, then find a broker which specialises in that. Most commercial brokers will be able to offer a wide range of finance options, but they may specialise in certain types. For example, there are alternative finance solutions experts which can help businesses match up with investors for peer to peer lending.

Make sure the broker is accredited

The financial services industry is very strictly regulated – and you should check if the broker is accredited by official bodies. Which organisations is it a member of? You’ll find that most brokers will make this information readily available on their website, and if not then it could be a sign to steer clear. Is the broker a member of the NACFB and the Financial Ombudsman Service? When brokers are backed by these organisations, it gives you peace of mind.

High acceptance rate

You don’t want to waste your time going through a number of brokers trying to find finance – so look for a high acceptance rate from the start. A commercial broker should be confident in their rate of success for obtaining funding for clients. If you’ve already been turned down by a traditional lender then you don’t want to keep being rejected, so pick a broker with a high chance of success.

Experience

How many years of experience does the broker have? What businesses have they worked for, and which lenders do they work with? It’s always a safe bet to choose a commercial broker which has relevant experience – read up on case studies and see what past clients have to say about them.

You could be putting your life in the hands of a commercial broker – be sure they are trustworthy.

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

If you’re wondering whether to ask lenders about taking out a commercial mortgage, read on to see the top five ways it could help your business.

1. Avoid rent increases

When you decide to start a business, you need to decide if you’ll start off renting a space or whether you should buy and own it. While it’s a big commitment to take out a mortgage and buy the business premises, bear in mind that the rent on city offices and shops is forever increasing. If you get the right type of low interest mortgage then you can avoid rent hikes and possibly save money in the long run. Many business owners start out renting and then look to buy a property once they are making a good profit.

2. Refinance commercial property

This is another way of saving money for your business. Owning commercial property isn’t much different from owning your residential home – you’ll pay monthly payments on the mortgage, plus interest. Different lenders offer different deals, and sometimes you could save by switching to another mortgage provider and refinancing the premises. Bagging a lower interest rate could reduce your monthly payments and free up cash to spend on other areas.

3. Redevelop or renovate

Commercial mortgages are mainly used to buy business property, but the funds can also be used to redevelop a property. Should you wish to expand your premises or undergo a refurbishment, you’ll need a lot of money upfront. A commercial mortgage can cover these costs and the extra custom you’ll get from the expansion could cover the monthly repayments.

4. Capital gain

As with any type of property investment, look after it and you should benefit from capital gain over time. If the property increases in value from the time you bought it, this is another business asset. If there was ever a point when you wanted to sell your business or downsize, you could sell the property and earn extra cash.

5. Pay less tax

The interest payments on commercial mortgages are actually tax deductible. This means that business owners may be able to reduce the amount of tax they pay each year with a commercial mortgage.

Interested in finding out more about commercial mortgages? Get in touch with our business finance experts.

The post 5 Ways a Commercial Mortgage Could Help your Business appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

1. Borrowing from a family member

If you have a relative with some spare cash in the bank, and they have offered to lend you money to fund your business, then this could be a favourable option. Of course you will bypass the long application process and will probably have little or no interest to pay back. However, consider the implications if you can’t repay the loan, and how it could affect your personal relationship.

2. Peer to Peer loan

Rather than turning to a bank for a business loan, you could borrow from a private lender. The internet has made this more accessible, with online platforms providing borrowers with a range of affordable options. You might not be able to take out this type of loan if you’re not already trading, however crowdfunding platforms are often willing to fund start-ups.

3. Government start-up loan

If you’re launching a new company, then you may eligible for a start-up loan from the government. They offer an unsecured loan with a low interest rate, so it’s definitely worth looking at this option before shopping around for other business finance.

4. Asset finance

If you’re already an established business, then you could be able to borrow large sums of money against your assets. This means that you can get funding which is secured against your business assets such as vehicles or machinery. You can then use the cash where you need it most, such as replacing equipment or improving cash flow.

5. Angel investors

If you are prepared to give up a share in your business, then the angel investor route may be for you. Think of it as Dragon’s Den – you’ll have to create a pitch and encourage investors to believe in your business and its future. Many angels are entrepreneurs themselves so understand what you’re going through. If you don’t have good credit or have any assets to secure a loan, you may want to offer a percentage of the business instead.

Need to chat to a professional about business finance? Contact our friendly team today to discuss your options.

The post 5 Ways to Secure Business Finance appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

As an alternative finance solution, a merchant cash advance is available to businesses which have processed credit and debit cards for four months or more. It provides a fast and short term finance option, calculated by the average monthly card turnover. This type of finance is a perfect fit for pubs, restaurants, beauty salons, hotels and shops – but many other businesses can benefit too.

There are many advantages of securing a merchant cash advance – here are the top reasons to choose this alternative finance product.

Revenue based payments

One of the best parts of this solution is the flexible repayments. Because the finance is loaned from the amount of card payments, the lender will take a percentage of your revenue rather than a set monthly amount. Sometimes, other non-related card income is also taken into account. This means that this type of loan really works alongside a business – in months with higher sales you’ll pay back more, and when you’re having a quiet period your business funds won’t all be spent on repayments.

Likely approval

MCAs are based on positive cashflow rather than credit scores and risk evaluation. Therefore, lots of businesses that have been refused traditional loans will be eligible for this type of finance. If you take card payments on a daily basis, you will be able to make your repayments, so there’s a high approval rate.

Immediate cash

Typically, applying for a business loan is a long and tiresome process – even when you’ve been approved it can take weeks to receive the cash. With a merchant cash advance, you’ll benefit from almost immediate finance. Using a very quick application process using your card receipts, you could receive the sum in a matter of days.

Seize opportunities

Because MCAs are relatively easy to get and fast to process, they can help businesses take advantage of market opportunities. For example, if a company knows sales are going to increase (such as the busy Christmas shopping season) and need to buy stock or improve their premises, they can find the cash to do so while knowing they will be able to pay back the finance. Similarly, if there is an out-of-this-world discount on something you need to buy, it makes sense to buy it on the spot rather than saving up over time.

Would you like to find out more about merchant cash advances? Get in touch with our alternative finance experts.

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