Posts
Types of Agricultural Finance
Running a farm is very different from running another type of business. Agricultural businesses require a large amount of land, a lot of expensive machinery and numerous vehicles. Furthermore, farming funding is under question after Brexit, along with international trade, so farmers know the road ahead will be rocky. To keep afloat, more and more farmers are turning to agricultural finance as a means of staying in business.
If you are thinking of starting a farm, or your current agricultural project needs some TLC, your first line of thinking will be funding and financing. Although some farms are eligible for rural grants and government funding, much of these are supported by the EU.
With Brexit going ahead early next year, farmers may not be able to rely on this funding for much longer and should seek information about other funding options.
Agricultural businesses can be successful when they are in the right location and offer produce which is in demand. However, these rural projects require a lot of investment to get off the ground, which can be difficult to find. If your farm needs a funding injection, or you need some capital for a new rural site, there are many alternative financing solutions you could be eligible for.
A Guide to Commercial Alternative Finance
Born in the United States of America, the alternative finance revolution has landed on our shores in the last couple of years and raising finance for the SME will never quite be the same again. It is forecast that by the end of 2015, the altfi market place will have issued new loans of well in excess of £4 billion.
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. Read more →
What can Asset Finance be Used for?
Many businesses from a whole host of industries rely on asset finance to spread the cost of expensive goods and grow the business. Not many companies, especially smaller firms, have large amounts of cash to buy essential equipment or machinery upfront – so asset finance allows them to purchase items on a lease basis. Asset finance can prove invaluable to sectors which rely on specialist equipment such as farming, construction and manufacturing.
Asset finance can be a suitable solution for companies who have been refused a bank loan. The only difference between a traditional loan and asset finance, is you have to set out how you will use the money and what will be purchased. What you buy is referred to as an asset. Anything of value which a company requires to conduct business can be classed as an asset. Read more →
Beat the Big Banks with Alternative Finance
Sometimes in life it’s better to go with the ‘alternative’ option. It could be an unconventional route to your dream career or simply a distinct taste in music, but for many of us the alternative seems like the right choice. When it comes to lending, alternative finance options are becoming mainstream thanks to big banks refusing funding to the majority of start-up businesses.
The conventional banking system simply isn’t working for most of us. Without alternative finance providers offering solutions such as peer-to-peer lending, crowdfunding and asset finance, most businesses wouldn’t be here today. These alternative finance specialists are plugging the gap the banks can’t fill, and giving a boost to the economy. Read more →
The Basics of Cash Flow Funding
All businesses suffer hard times at some point – but that doesn’t mean they’ve reached the end of the road. The costs of running a business are always increasing, and sales are unpredictable, which is often a disaster waiting to happen. Many businesses have seasonal trading issues and struggle to find cash at certain times of the year. Whatever the cause of cash flow woes, most SMEs have them.
Cash flow funding is a solution to the problem. There are various forms of finance which can help businesses better manage their cash flow and avoid the downward spiral into debt. Alternative finance providers offer direct solutions to help companies balance the books, without high interest loans. The right cash flow funding solution depends on the type of business and its finance needs. Here are the main types of funding available for cash flow purposes. Read more →
How to Free up Funds with Asset Finance
Without asset finance, many companies wouldn’t be able to afford to invest in new machinery or take advantage of market opportunities without the cash in the bank. According to the Finance & Leasing Association, in 2016 £30 billion was provided to businesses and the public sector representing almost a third of UK total investment in machinery, equipment and software. Read more →
5 Ways to Secure Business Finance
If you’re starting up a business or your company needs a cash injection, then you’ll need to apply for business finance. Bank lending figures are continuing to fall, so you might be wasting your time applying for a business loan from a bank. However, entrepreneurs have found plenty of other ways to secure business finance so don’t despair – simply choose one of the options which sound suitable for your requirements. Read more →
Best Ways to Invest in Your Business
Many business owners want their venture to grow and flourish – but it’s very difficult to achieve without a cash injection. Unless an individual has a way of self-funding a new business, through personal savings or an asset to sell such as a second property, they almost certainly have to take out a loan. Alternatively they look for an investor but will then have to share profits, which some business owners don’t like the idea of. Read more →
