Interest rate anxiety? It's all relative...

As we move inexorably towards rises in our historically low base rate, it is natural that there will be some anxiety as to the outcome.

The reality, however is that for most of us ordinary folk - and small business owners, the impact will be relatively tiny - and here is why:

If Carlsberg did invoice finance...

Well, according to their adverts, it would probably be the best invoice finance in the world, so presumably they would start with some market research.

Our results suggest that they would be met with 2 overwhelming reservations from those contemplating facilities:

Personal guarantees - the most vexed of topics...

It has become pretty much a daily conversation - the opener to to almost every funding enquiry 'I/my client isn't prepared to offer a guarantee'.

First, the good news:

Modern funding - Buffer products

With increasingly positive economic news, businesses are looking for ways to make the most of emerging opportunities.

Unfortunately this is set against a backdrop of continued banking restrictions, particularly on overdraft funding.

In reality (and without getting over-technical), BASEL Banking Accord makes overdrafts deeply unpopular within the banking sector.

Most people are familiar with longer term options such as term loans, hire purchase, leasing and factoring.

Less well known is a wide range of short term or 'Buffer' product available from both private and crowd sources.

Case study - Sheet metal fabricator bought from receivership

BACKGROUND:

Based in Hampshire, this small business had traded for 23 years.

2 years ago the owner had bought out his partner using cash reserves within the company.

Unfortunately - whilst business had remained constant - they were hit with 2 substantial bad debts in quick succession.

Price wars - Who is your China?

In the world of engineering & manufacturing it would appear that China is the root of all price competition.


It hasn't always been thus - a large client of mine set up a heavily subsidised plant in Tunisia some 20 years ago. They moved to China when the subsidy expired and are now busily looking for the next cheap alternative.

Every sector has a 'China', so what is yours and how do you compete?

Case Study: Buying out a partner

The deal was introduced by the customer's accountant - a long standing contact of ours.


The customer was an established engineering firm looking to quickly raise cash to buy out a partner. The soured relationship was proving disruptive to the business.

The business itself had had some tough years but was on the road to recovery.

The engineering assets were very old.