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12.08.13 News Article


The UK Economy in Recovery: All it Seems?


In recent months, the news has been filled with stories that the world’s economies are finally making a recovery after the severe 2008-09 global recession, but what does this mean for the UK? With a contraction of around 7.2% in real Gross Domestic Product over the 5-quarter period, it was the worst recession Britain had seen since just after the First World War. Not only this but the looming threat of a ‘Double-dip’ recession meant genuine recovery looked unlikely for some time.


 

Now, in 2013, the UK economy appears to be making gains in a number of areas. Exports, for one, have risen over the past month, shrinking the global trade deficit by £0.6bn and there has been 1.4% growth in construction output1. In Q2, GDP has also seen a rise by 0.6% on the previous quarter, which may seem insignificant, however it is important to note that GDP, at £3.62tr accounting inflation, is 1.4%2 higher than the same period last year. 


 

Whilst growth may seem to be the future trend for the UK, it is still crucial for businesses to spend wisely as the UK economy is not out of the woods yet. The British Chamber of Commerce (BCC) says that despite recent gains, the trade deficit is still too high at £2.1bn3 and the new Governor of the Bank of England, Mark Carney, has kept interest rates at a record low of 0.5%, as unemployment levels remain high. This also coincides with the Eurozone in turmoil, which is hugely influential upon the UK economy as the EU is Britain’s biggest trading partner.

 

 

With this in mind, your business may want to consider asset finance on larger investments, such as company cars or haulage vehicles, in order to avoid tying up cash whilst the economy remains uncertain. Drop us a line on 0844 7702191 or email us at info@balancedfundingsolutions.co.uk to see what Balanced Funding Solutions can do for your business. 

 

 

1Source: Office for National Statistics, 2013 

2, 3Source: BBC News, 9th August 2013 

 

 

 

 


 

05.08.13 News Article


Why Banks Should Not Be The First Point of Call For Business Growth

 

Many businesses want to grow, but do not have the necessary funds available. Whether their business requires extra vehicles, machinery or equipment - the acquisition of these can make or break a business. 


If extra assets are needed and the funds are not available directly, many think of a bank as the first 'go-to' for funding. 


Here is why asset finance or leasing is worth considering when you need to acquire a new asset, rather than a bank; 


Bank Loans 


Borrowing from a bank will take up credit available to your company and will impact your overdraft facility. A lease is unlikely to have an impact on your credit. 


Asset Finance companies can't foreclose on the agreement whereas Bank Loans are repayable on demand. 


Bank Overdraft 


Overdrafts are not suitable for asset funding and should only be used in the short term. Interest on bank overdrafts is variable and repayment of bank overdrafts is on demand. 


Asset Finance agreements make budgeting much easier, as the payments and interest are fixed. With these predictable repayments, financial forecasts and cash flow becomes much simpler. 


If you'd like to discuss your financial options for business growth in further detail, please call 01264861275 or email us at info@balancedfundingsolutions.co.uk


 

 

 


 

02.08.13 News Article


Using Balanced Funding for Commercial Vehicles

 

 

Many businesses depend on vehicles to work, whether they be a Sole Trader needing a van to a Haulage Company needing a fleet of HGV's.

 

However, relying on costly assets raises several problems. You may not have the cash to buy new vehicles, and if you do tying all your money up in assets can cause cash flow problems. If you buy vehicles outright you're investing in something that will most likely deprecate in value. 

 

It's worth discussing commercial vehicle finance as there are several options available to businesses through independent funding solutions such as ours. 

 

Here are a few options that are available to businesses of all sizes;

 

Hire Purchase


Pay for your vehicle through fixed monthly payments. This also means a fixed interest rate and spreading the cost into segments will be easier for budgeting and wont give your financial controller a headache. 

 

You can put down a fixed payment of your choice into a deposit. A lot deposit means you don't have to tie up money that needs to be used elsewhere - like on staff wages!

 

Lease Purchase


This is similar to hire purchase but with a final balloon payment. It also offers lower monthly payments - which means you can get better vehicles for your budget! At the end of the agreement the balloon payment can be made to actually purchase the vehicle. 

 

Finance Leasing


Finance Leasing is a flexible and therefore popular method of funding commercial vehicles. They are usually calculated excluding the VAT price but attract VAT during the agreement. You may be able to claim VAT on your rentals. You aren't entitled to become the owner of the goods and can sell them at the end of the agreement retaining almost all of the sales proceeds. 

 

At Balanced Funding Solutions we have many funding options available and have masses of experience with finding the right deals and funding so that businesses can easily afford the commercial vehicles they need to operate their business and keep everything running smoothly. If you'd like advice on any of these topics please call us and we'll be happy to explain how we can help 01264861275 or email us at info@balancedfundingsolutions.co.uk

 

 

 

 

 


24.07.13 News Article


Guide to Hire Purchase

 

 

Buying assets is a major commitment for businesses and individuals alike. To manage cashflow and avoid tying up money in large deposits, it makes sense to spread the cost over time into smaller pieces. 

 

Hire purchase is an easy way to use an asset over a fixed period in return for regular payments. Hire purchase is paid as a fixed payment each month, which is perfect for budget management. 

 

You can use hire purchase to use assets such as;

 

  • Cars
  • HGVs
  • Commercial coaches or busses
  • Plant and machinery
  • Expensive industrial equipment or machinery
  • IT equipment or hardware

 

There are different kinds of contracts. Some mean you own the asset once you have finished your payments, some mean you can rent assets on a short term basis. 

There are tax incentives to hire purchase contracts as there are no VAT payments on hire purchase agreements, which is often a huge saving on expensive assets. There is also the benefit of having fixed interest payments so there are no rises in cost. 

 

Read more about the benefits of our Hire Purchase solutions. 

 

 

Have you considered asset financing for your business? Let us know on 01264861275 or email us at info@balancedfundingsolutions.co.uk

 

 

 


16.07.13 News Article


Goodwood Festival of Speed 2013

 

This weekend has been all about cars. For cars aficionados and for the speed obsessed, this festival is a treat. Taking place over the summer each year, the Goodwood Festival of Speed is the biggest motoring garden party in the world and showcases some of the best vehicles of all time. 

 

The event, held between 12th and 14th July this year, brings together the most diverse range of cars, from the historic Porsche 911 cars, to a race car version of Continental Bentley GT3, to steam engines. It also featured luxury yachts this year. 

 

The festival marked half a century of Porsche 911 cars by displaying all the 911 models at the event, including the first one, the Porsche 901 launched in 1963.

The motoring festival saw current F1 giants such as Jenson Button, Lewis Hamilton, and former motor racing superstars Damon Hill and Nigel Mansell as guests. After the event, Hamilton tweeted:

 

'Fantastic day at #Goodwood #FOS. The weather was perfect and the support was amazing. Thank you to everyone that came'

 

Held at the Goodwood House in West Sussex, this year's theme was the celebration of the previous 20 years of Goodwood Festival of Speed. 

 

The hillclimb at Goodwood is undoubtedly the highlight of the festival. The course spans a route of 1.16 miles, rises up to 300ft, is technical and full of challenges. The race allows for a display of power and pace, with cars within a similar category being put up against each other. 

 

The hillclimb is in fact where the festival's roots lie, where in 1936 the Earl of March invited the Lancia Car Club to attempt a hillclimb challenge on the premises Goodwood House. 

 

Inspired by the incident, the present Earl of March decided, in 1993, to hold an annual celebration for this.

 

Tickets for the Goodwood Festival of Speed can be bought in advance each year, and if you love cars, you don't want to miss it next year.

 

 

Have you considered asset financing for your business? Let us know on 01264861275 or email us at info@balancedfundingsolutions.co.uk

 

 



09.07.13 News Article


Why use Asset Finance?

 

Although asset finance is the third most common source of finance for businesses, there are individuals or organizations that are unsure about what asset financing could bring to their businesses. 

 

Asset financing enables businesses to spread the cost of fixed assets over a period of time instead of making an outright purchase. 

 

Here are some of the top ways asset financing can benefit your business:

 

Don't settle for the second-best


Asset financing allows you or your business to secure the latest technology in fixed assets  instantly, without having you to wait till you have enough money, or worse, having you to settle for something that you can afford to pay for up front but doesn't quite meet your expectations. 

 

Minimal Impact on Cash Flow 


By spreading out your payment for your fixed assets, you can ease your business' cash flow, leaving ample amount of working capital in your pockets which you could be utilize to meet other needs. 

 

Keep your line of credit 


Choosing an asset finance over a traditional bank loan lets your business retain its overdraft facilities and other lines of credit, conserving capital which can be used for other purposes. 

 

Easier budgeting


With asset financing your business can simplify your budgeting by paying a fixed amount every month leading to a clear budget management. 

 

Tax savings


Unlike cash purchases, lease payments are business expenses and are therefore not taxable. So, by opting for asset financing, your business benefits significantly by becoming tax efficient. Asset finance in the form of operating lease or finance lease allow you to offset finance payments against taxable profits. 

 

Apart from letting you have the best when you want it, easing cash-flow, enabling tax efficiency, asset financing is beneficial for a business as it allows for a predictable budget and prevents uncertainties in business. 

 

Asset financing is undoubtedly the lifeblood of small companies, but it is equally essential for bigger businesses who are looking to conserve their capital to fulfill other needs. After all, even the most profitable businesses cannot survive with insufficient cash and cash flow problems.

 

 

Have you considered asset financing for your business? Let us know on 01264861275 or email us at info@balancedfundingsolutions.co.uk

 



28.03.13 £25 Billion Black Hole? 

Bank of England has warned that a dozen of the largest banks and building societies must raise another £25 billion whilst not falling short of there own lending targets, will they succeed?

 

In reaction, the goverments own Business Secretary Vince Cable has come out and said the capital raising may detract from the drive to get the economy moving.

 

At Balanced Funding Solutions we continue to grow month on month with our drive to increase general asset funding as we continue to work with specialist UK banks and finance companies who do not have any constraints on lending money.

 

Would you like to know more?

 

Click on the contact us link or give us a call on 0844 770 2191 

 


BMW X6 M (2012)
Direct from the dealer
PORSCHE CAYMAN S
Direct from the dealer
FERRARI F12 BERLINETTA
Direct from the dealer
MASSEY FERGUSON
Direct from the dealer
DAF HGV Vehicles
Direct from the dealer
JCB Plant Machinery
Direct from the dealer