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

The post A Guide to Commercial Alternative Finance 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.

High street banks have a set of tough criteria for businesses who apply for a loan. Small businesses have a huge struggle with traditional business loans, and with a long application process it’s extremely frustrating to be turned down. It’s important to know what lenders are looking for, and whether it’s worth processing an application for a business loan. Here are some common reasons why your company may not be eligible for a business loan from a high street bank.

You’re a start-up or new business

If you’ve only been in business for a short time, then you won’t have the evidence that most banks require to take your application further. Lenders need to reduce their risk, so if you can’t prove that you can pay back any money you borrow then you are likely to be refused a loan. Obviously, start-up companies find this very difficult because they won’t be able to prove how much turnover they will be making. Banks usually have a minimum trading time for business loans, usually one or two years, so always check before starting the application as you could be wasting your time.

High risk industry

Sometimes you may be unfortunate in the sector you choose to operate. Banks view certain industries as high risk, and therefore don’t offer loans to businesses in these industries regardless of other factors. Conventional lenders will have varying terms on their restricted industries but you may find that car dealerships, nightclubs and fitness studios are classed as in volatile industries and therefore high risk.

Low credit score/bad credit

One of the most important elements of criteria to meet is the credit check. Banks will look at the credit history of both the business and you individual credit, to search for red flags. How you manage your personal financial commitments can give an indication at how well you manage the business finances. If you have adverse credit history then take steps to remove these from your credit report, and ensure the business isn’t taking on too much debt.

Not eligible for a bank business loan? Take a look at our alternative finance solutions, some of which are suitable for high risk businesses, start-ups and bad credit history.

The post Reasons Why you May Not be Eligible for a Business Loan appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Before taking on a commercial outlook, let’s first look at personal debt and how almost everyone uses it in everyday life. Most people have a mortgage, a car on finance, mobile phone contracts or credit cards, for example. We use these types of purchasing to manage our own personal cash flow or get a head-start. It would be impossible to have all of these things at once without spreading out the payments.

Debt can be used in the same way in business or in property portfolios. You may need a commercial mortgage to buy a business premises, lease a fleet of vehicles and use a credit card when necessary. You may have more cash flow issues in a business, because income can fluctuate month to month and can be unpredictable. There are also unplanned costs to consider, such as having to replace large machinery or renovate buildings. If you take out a loan and borrow money to invest in the business, and know you will be able to make the repayments and make more money from the improvements, then this can be classed as good debt.

How does leverage work?

Borrowing money for sound investments, in order to make more money, has long been a plan for getting richer. Leverage is a complex investment strategy which takes it one step further. It can refer to the amount of debt used to finance business assets, or the process of using borrowed money to increase the potential return on an investment.

Leverage is an important tool for businesses, which can be utilised to fund company growth. For example if a small business wants to expand its premises, it probably won’t have the cash available to do so. But the business owner is confident that the extra space will result in extra revenue, so they take out a business loan to carry out the work. When applying for a loan the provider may look at your current debt leverage to ensure it is manageable.

When considering the amount of leverage in a business, you should try the debt-to-equity ratio. This means calculating how many of your business assets (property, equipment, stock etc.) are financed by debt and how much is financed by equity or ownership. At the start of a business you may have a higher percentage financed by debt, but hopefully you can aim to reduce the amount over time.

The post How to use Leverage and Debt as an Investment Tool appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

When it comes to starting a business, few people will be able to launch a new company without a business loan or initial investment from funding streams. Start-ups have no choice than to borrow cash because capital is needed to start a business – but a successful business will be able to build from the initial loan and ensure they start to increase their return.

The average person can’t get through life without having to borrow at some point, whether it’s a credit card or a long term loan. Here are some reasons why taking out a business loan could be one of the best decisions you’ll ever make.

Build credit

The only way to build good credit is to lend and prove you can pay back creditors. You may have spent years trying to build up a good credit profile, but this only applies to you as an individual. So to build up good business credit, you’ll have to borrow cash in the name of the company. Credit building is important if you anticipate more borrowing in the future or pitching to investors. Of course, it is crucial to always make repayments on time or you could damage your credit score.

Growth opportunities

Most of the time, the only way to grow is to invest. And if you don’t have the working capital to invest in bulk stock orders, new equipment or a bigger business premises, then you can’t achieve business growth. If purchasing the latest machinery is going to improve your bottom line, then it may be worth getting in a little bit of debt for.

Keep up with market changes

If consumer trends change or the market you operate in is evolving, then your business needs to keep up. If you get left behind, your competitors will soon have your customers, and your company may be at risk of going bust. For example, a modern refurbishment in a local café can keep regular customers happy and attract new custom at the same time, or you may need to do some research and development to maximise your offerings and boost revenue. If you don’t invest in your business in the right way, it will soon be old news. Borrowing money to make necessary adaptations can save the business.

If you’re confident that you can pay back the business loan amount, then it’s usually a risk worth taking. Discuss the lending opportunities available with a loan broker, who can advise the best type of finance to apply for.

The post How Borrowing Money can Be the Best Decision You’ve Ever Made 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.

It can seem like a never ending maze, but help is at hand. Here are some ways to ensure you find the perfect business loan.

Impartial Advice

First of all you shouldn’t seek advice from a business or organisation which is offering any type of lending service. While they may be experts in the financial market, they could try and persuade you into a decision which benefits them instead of you. There are plenty of places where you can get impartial advice which is tailored to your personal situation and business. Government organisations such as the Money Advice Service has lots of online resources and offers free advice. You could also hire a financial advisor to help you make important decisions.

Define the Purpose

It’s really important that you define the purpose of the loan before going any further. Business loans differ from personal loans because you will have to state exactly how the finance will be used. The purpose of the loan could also dictate the type of loan you apply for, for example a commercial mortgage is specifically for property investment, while asset finance must be used for purchasing business assets. Make sure you have done some research and know exactly how much you need to borrow.

Finance Broker

Once you have a better understanding of the range of business loans available, it’s time to find the right lender. A commercial finance broker can act as a matchmaker, pairing you up with the ideal lender. Not only could you benefit from their market expertise, but a broker will save you a lot of time searching the web and making phone calls to a number of different lenders. When it comes to loan matching, brokers know best.

When it comes to commercial finance, there are so many options and it’s easy to feel overwhelmed. It is possible to find the perfect loan for your business, just be sure to do lots of research and don’t rush into any decisions.

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