There is an old Banking saying that you should never ‘throw good money after bad’. Much in the same way that a gambler shouldn’t chase their losses, it’s a variation on the age-old adage that sometimes you need to know when to quit. Many small businesses will be facing some tough decisions in the upcoming months. With inflation in double…

While an arrangement to borrow money for a business is between a client and the lender, there are numerous other individuals involved to help the process with many needed before the application is even considered. In fact, I would say that the success of an application and drawdown facility for a business is dependent on the ‘power team’ in place…

The Governments various COVID support measures are expected to cost approx. £500B once completed (various sources) but this doesn’t give the full picture when it comes to support for SMEs where there is a considerable amount of uncertainty about the final bill and will remain so for many years. There is also doubt over how these measures will impact on…

One of the recent hot topics relating to the CBILS and Business Bounce Back Loan Schemes (BBL) was the absence of a personal guarantee for a majority of these loans for Limited Company borrowing. It has been a standard requirement for a majority of Limited Company lending that a personal guarantee from at least one director is in place to…

So many of us own our own residential property but so few own the freehold premises which our business trades from! So, Why Should I Purchase My Own Commercial Premises? It’s commonly said that in the UK we are a nation of homeowners, in contrast with our European friends who prefer generally to rent their homes. Despite this, a vast…

If My Bank Won’t Finance My Business, Where Else Can I Go? Bank bashing has become a national pastime since the financial crash of 2008. The sight of bankers receiving a taxpayer bailout while continuing to pay themselves bonuses, plus the public scapegoating of the likes of Fred Goodwin made these institutions public enemy number one. Even now, over a…

Once you have made the decision to purchase a business, your next question probably turns to practicalities- how do you make it happen? A major part of this is likely to involve funding the project, which may in turn involve raising finance to facilitate this. The method of raising funds for buying a business depends on a number of factors…

The New Government Business Recovery Loan Scheme – An Overview! With the end of the Bounce Back Loan and CBILS Scheme, the Government announced the launch of the Recovery Loan Scheme beginning in April 2021. The key differences for the new scheme are as follows: There is no turnover threshold unlike the previous schemes Fees and interest are payable immediately,…

If your business seems to be stalling due to insufficient funding and is starved of cash, why not treat it to a cash injection? There are many reasons why a cash injection for a business is the right decision for a business owner to take, but sometimes the reason can seem bigger than the solution. Here are some scenarios where…

It is vital for business’s to keep on track with growth, performance and financial planning. New Year Business Resolutions might include: • Review and update your business plan, every small business must be guided by a business plan. … • Consider your staffing needs for the New Year. … • Check in with your customers. … • Revisit your pricing.…

Will the UK lose its financial standing once it leaves the European Union? This is a question that is currently on the minds of politicians, businesses and employees both inside and outside of the UK. Businesses, looking on from the outside, will also be keen to understand what it will mean for their investments. While no-one currently has the answer…

Ten years ago, failure of financial systems caused crisis and a economic disaster. Since the crisis, the Bank of England has been building a safer system supported by 2 factors – First, it has been given responsibility for the supervision of individual banks and building societies. Second is the creation of an authority in the Bank with new powers –…

The latest SME Finance Monitor, from insight agency BDRC, shows 32 per cent of the 130,000 firms interviewed were aware of P2P lending in the fourth quarter of 2017 When combined with crowdfunding, awareness of these forms of finance was 46 per cent. This was up from 36 per cent at the start of 2017. P2P provides a new platform…

Are you a Manufacturing company and having trouble in getting approved for finance? The manufacturing industry can take a little time to turn a profit because of the requirement to spend a large capital on materials and general production prior to sales. Getting a small manufacturing business off the ground requires some significant support from lenders. What financing options are…

We recently supported a new client that was introduced to JB via an accounts firm. The client was a wholesaler, had been established for 20 years with an impressive turnover of 4m with £100k profit. Looking to refurbish their property with a figure of 150k in mind, the client began to explore what options were available to them, starting with…

Do your customers come to you with business finance you can’t deal with? We can help! JB Commercial Finance is fully authorised and regulated by the Financial Conduct Authority, and we are a proud member of the National Association of Commercial Finance Brokers. We are keen to assist with all: • Commercial Mortgages • Bridging Loans • Development Finance •…

Over the summer months, there are a lot of factors that might result in a business being forced to operate with a lack of resources. From children’s school holidays, family summer holidays and the increase in temperatures, these items can all play a part in the business’s performance. Solicitors/holidays, summer as an excuse It can be very frustrating if your…

Your business finance options may be expensive and somewhat limited If your small business is still in its early years, the chances of securing a loan from a traditional lending source can be quite unpredictable. Banks can sometimes disapprove even healthy small businesses, and will turn down if a credit score is not quite high enough. Why does bad credit…

Unsecured business loans – an update As many of you know, I get heavily involved in quick unsecured lending to businesses. It can be quite eye opening to them when they realise what’s available, the timescales involved and the ‘non-traditional’ forms of repaying these loans. In response to this, here is a quick bullet point summary of the current marketplace…

The UK’s economic growth is predicted to be between 1% and 2% this year and sterling is currently competitive in foreign markets. This means that there are excellent opportunities for businesses that want to invest in future growth. However, for many smaller businesses, finding the funds for these plans can be a challenge.  As well as business loans from the…

Whether you are considering borrowing to buy a house or for your business, one of the things you will need to consider is whether you want a fixed or variable rate loan. Fixed rate lending If you choose a fixed rate mortgage the interest you pay will stay the same for a set period which is usually between two and…

A few days ago we discovered the world’s favourite place for children’s toys and accessories had lost its magic. Many of the products that children love are still great favourites that sell well in stores and online, so what went wrong for Toys R Us? Wrong place In the early 1950s, when the Toys R Us started in America, out-of-town…

An economic recession is defined as a decline in gross domestic product (GDP) – the market value of the goods and services a country produces – for two or more consecutive quarters. In the USA private equity investors are predicting a downturn in the UK’s economy over the next two or three years as a result of Brexit. Is there any…

Whether you’re taking on the renovation of your own home or a property refurbishment project, short-term development finance can get you underway with funding for property purchases and building costs. Because you will add value by developing a property or site, you will be able to cover the cost of your loan by selling for a higher price or charging…

What is working capital finance? The UK’s economic growth is predicted to be between 1% and 2% this year and sterling is currently competitive in foreign markets. This means that there are excellent opportunities for businesses that want to invest in future growth. However, for many smaller businesses, finding the funds for these plans can be a challenge.  As well…

Economy finances – what would you like to know? For a start – what does it mean? In simple terms it’s about how decisions about money are made to make more money. The most critical factor is uncertainty, because financial markets are always changing. Or, to put it another way, it’s like your personal finances; you know you need to…

Changes to Dividend Tax From 6 April this year the tax-free allowance for people who receive income from dividends will be cut from £5,000 to £2,000. You will be affected if, for example, you receive dividends outside your individual savings account (ISA) allowance or pension. If you are a basic-rate taxpayer you will pay 7.5%. Higher-rate taxpayers will pay 32.5%…

The collapse of the countries second largest construction company, Carillion, has caused panic amongst many SMEs in the UK who were exposed to this toxic company. The knock-on impact will likely take several months (or years) to fully be realised, as many smaller businesses take on additional debt to survive or tighten their expenses to respond to bad debts or…

I was speaking to a reasonably well known local businessperson recently and he declared it a FACT that provocative marketing works. On further questioning it seems that they felt that by deliberately upsetting 50% of your potential audience then the other half will flock towards you and be desperate to pass business your way. In other words (to quote a…

I am writing this while watching my eldest son swim at a Leisure Centre on a Wednesday night. I usually use this time to either go to the gym or if I am trying to avoid that, do some work. Usually, this isn’t high intensity work but simple day to day tasks which don’t need to be done in working…