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How Will Brexit Affect UK Trade Deals?

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Brexit has been the hot topics in the UK for over two years. UK businesses have already made preparations for potential lower rates of trade due to leaving the European Union.

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.

How to Invest in Companies

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Investing in companies can be both highly rewarding and challenging. Successful investing isn’t easy, but if you follow a few fundamental principles, you’ll give yourself the best chance of success.

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Best Areas in The UK for Property Investment

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With several proposals in the London Plan to be unveiled later in November of this year, the tides of the property investment market remain unclear. The government’s commitment to reducing carbon emissions is seemingly leading to increased landowner contributions to the local government, making businesspeople think twice about purchasing property investments within the London area. With London multiplying concerning house prices and developments, what other areas of the UK are prime for opportunity?

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A Guide to Commercial Alternative Finance

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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 →

How to Start a Business in 2018

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New Year, new you, new business venture? Go for it! There’s never been a better time to follow your dreams and kickstart a successful business than today, as the sooner you get the ball rolling, the sooner you’ll be able to reap the rewards. Read more →

Reasons Why you May Not be Eligible for a Business Loan

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The majority of business owners require a business loan at some stage. It may be finance for a property refurbishment or extension, or capital to get the business off the ground and invest in machinery. Access to funding isn’t always simple though, and the eligibility for bank loans is becoming stricter.

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.

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How to use Leverage and Debt as an Investment Tool

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Do you think that debt can ever be seen as a sign of financial power and strength? Surprisingly, it can. Leveraging debt can actually be a good investment tool when executed correctly – when borrowing to invest and increase your income.

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. Read more →

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

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Debt is often seen as a bad thing to acquire, but in many situations it can actually be beneficial to borrow money. For example, lots of people have a mortgage or a car on finance – this is considered manageable debt as long as you can afford the long term repayments. Also, if you’re borrowing money in order to make a profit in the future, then surely this makes business sense? Read more →

How Alternative Finance Could Plug the Funding Gap Post Brexit

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Whatever you think about Brexit, there’s no denying that it will cause a funding gap for UK businesses. Billions of small business support comes from the EU, so once we officially leave the union it will no doubt have a huge impact on British businesses – what some people are referring to as a “funding black hole.” A report from the Federation of Small Businesses found that £3.6bn of funding comes from the EU, and as the UK government has not budgeted for a replacement regional fund, companies face a shortfall from 2021.

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.

Loan Matching: How to Find the Perfect Loan for You

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If you need a business loan, it can be really challenging to sift through the vast amount of information and criteria to find the right type of finance. First of all you need to decide which type of loan is best for your business, and then find a reputable lender guaranteed to accept your application. On top of all that, you also need to understand the pros and cons of lending from a bank or an alternative finance platform.

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.