The Bank of England held interest rates at 4.25% but signalled that further cuts may be on the horizon. While this can present opportunities for those looking to refinance, borrow, or invest, getting the best deals is all about how prepared you are.

Credit Scores

Whether you’re applying for a personal loan, a business overdraft, or a mortgage, your credit score is key. A better credit profile often gives you access to lower interest rates, better terms, and higher borrowing limits.

It’s not just personal — businesses are being judged too. Especially if you’re running a small or cash-heavy business, you need to show the banks that your income is consistent and traceable. This means banking regularly. If you’re taking in cash, deposit it frequently. Banks and lenders want to see a clear money trail, and this trail heavily influences their decisions.

Identification

A number of people come to us facing delays simply because their names don’t match across official documents. Whether you’ve been married, divorced, or just changed your name, your passport, driving licence, utility bills, and bank statements should all align.

Why? Inconsistent ID records can drag down your credit score or delay financial approvals, especially when you're trying to refinance or borrow.

Budgeting

When it comes to credit scoring and financial health, the basics still matter. Set a budget, pay on time, and don’t miss repayments. These small, consistent habits are the biggest contributors to long-term financial strength.

Payback Criteria

Lenders are getting stricter. Working capital requirements have increased. Before, many banks were happy if you had 1.5 times your loan payment obligations in working capital. Now they want to see 2 times making it so much harder to obtain a loan.

For example, if your business has monthly loan and interest payments of £1,000, you now need at least £2,000 in working capital a month to be considered financially stable in their eyes.

This change is a big deal for small businesses or anyone looking to re-finance.

Plan Now to Take Advantage

• Review your credit score and dispute any error
• Align your ID documents (especially name consistency)
• Build your working capital reserves if you’re a business owner
• Start comparing re-mortgaging or refinancing options now
• Speak to a financial adviser or broker who can help position you before rates change
• Planning ahead is key

Being prepared isn’t just about having money, it’s about showing lenders that you manage it well. The most successful borrowers and businesses are the ones who plan ahead.

If you need help with your credit, your documentation, or just planning your next financial move, we’re here to support you every step of the way.

2019 has not been the easiest of years for many of our clients, the lengthy political and economic uncertainty is making the general public think a lot more about spending their hard-earned money.  Small businesses are having to renegotiate with their suppliers and look at all their costs to ride the storm we find ourselves in at the moment.

Not ones to sit down and wait for things to happen, this blog is about refinancing. 2019 may not have been the best year, but let’s not sit and see if 2020 will be better. Now is the time to review your finances. Autumn is a great time of year to look at this, you’re halfway through the financial year, summer is over, and Christmas is around the corner, the end of the year will be here before you know it.

So, what is refinancing?

Refinancing is the process of replacing an existing loan with a new loan. Typically, people refinance so they can get a better deal on their current loan. For example, you may be able to get a better interest rate than what you are on currently, saving you money. Refinancing also depends on your credit score, current deal and many other factors.

You may also have some assets in your business currently tying up cash and want to get a loan to put more liquid cash into the business, to allow you to put some plans for 2020 into practise right now.

Why refinance?

If you have a loan or a mortgage, it is worth speaking to the provider for refinancing. Some potential advantage of refinancing includes:

• Lowering your monthly payments. You can then put to use your extra saving to pay off other debts or towards your saving goals.
• You can combine your debts into one with some refinancing options. This is good so you know exactly when payments need to be made.
• Usually able to negotiate lower interest rates.
• Cashflow is tight but you have some assets that can assist you gain some cash to put back into the business.

Studies have shown that trying to negotiate a better refinancing deal tends to save people money and a lot of stress. Some questions to ask yourself is if you are paying too much monthly on any equipment that you could possibly lower or if you are too dependent on your bank overdraft as it is one of the most expensive bowing methods. Knowing where all your finances lay can help you budget and with the extra cash you can invest in yourself or your business.

The Employment Tax laws are changing again, and they will take place from 6th April 2018. It is important that all employers are aware of these changes and consider how this will impact your company. You should also make any necessary communication with your staff.

Auto Enrolment

All employers will have to provide a workplace pension for all staff members that qualify by the April 2018 deadline and most already do.

Take a look at the table below to see the minimum contributions that must be met by both the employer and employee:
 

For more information on work place pension please visit the gov.uk website or click here

National Minimum Wage and Living Wage

There are different hourly rates of National Minimum Wage and this depends on the age of the members of your team. If staff are 25 years and over, then they will get the National Living Wage. As an employer you are legally obliged to pay the National Minimum and Living Wage.
 

Apprentices are entitled to the apprentice rate if they're either aged under 19, or, aged 19 or over and in first year of apprenticeship. Apprentices are entitled to the minimum wage for their age if they are both aged 19 or over and have completed the first year of their apprenticeship. More information can be found here or if you want to see previous years minimum hourly rates

If you would like to speak about these changes that are to come in to place or what steps you need to take, then please call us on 02920 653995

I see alot of business owners going into owning a business and under selling themselves.  

We all have different reasons for going into business.   You might be looking to be in charge of your own destiny.  You have a great idea that youve always wanted to pursue.  You lost your job and want to create your own or have a redundancy package that you want to re-invest.

Whatever your reason use these tips below as at the end of day,  if youre not making a profit your dreams and aspirations fall by the way side.

Protect Your Margin

Your margin should be enough that it not only covers the direct cost of your product or service materials and labour, but allows you to make a profit to cover overheads and leave a profit/ or income for yourself to grow and develop the company.

There is a market price for every kind of product or service, ie what your customers will pay for your product or service.  Stay ahead of the competition, know what they are doing, offer something different to stand yourself apart.

The margin itself

Costing your product or service is a vital project in itself. 

Be aware of the percentages your industry can attain.  If your in the food industry aim for a minimum of 3 x your costs, manufacturing products maybe lower between 60 and 100% depending on your product or market.

If you are making a product, Costs include
Materials, Labour, Energy

Keep this exercise in mind at regular intervals, at least every six months.  Energy and cost of materials do fluctuate, you need to be on top of that.

For the labour cost, time yourself making the product, as you get busier, look at ways of saving time.

Ie a machine might do the job faster than you, you might be able to buy in part of the process.

Manufacturing sites, keep a close eye on this with the use of computerised stock systems, using either FIFO or Standard Costing methods.  They see first hand any fluctuations, look into any big fluctuations, up or down.

You can also replicate this using a manual method .

Service Provider
Your service is likely to be mainly labour cost.

Experience and judgement always help when costing up a particular job.  But always keep an eye on the actual time it has taken to complete the exercise.  Keep timesheets at all times and for everything connected with that client.  You will be building up a record in order to raise the sales invoice, plus you will be staying up to date and applying realistic costs when quoting for work.

Cost savings

Save yourself cost of sale by buying direct from the Wholesaler, negotiating the prices.  More volume should equal better discounts.

Try and buy local where you can, your carriage costs could be saved.

Saving labour time, by knowing  your time elements to the job, using machinery where possible.  Time management.

Don’t price yourself too cheap.  Remember you need to be selling at a profit.

Offer added value and up sale marketing, to make higher margins.

Split your products up by margin, ie get the selling mix right, volume on lower margin, less of the higher margin.   

What constraints do you have
Do you have only limited capacity of manufacturing space, limited number of appointments available put day.  Put this into your budget, not just numbers.

If you can improve your margin to a realistic target, you will see the positive result on your bottom line, and hopefully in your pocket too.

Set yourself goals, you can always do better.  Keep that mind set, it’s a great planning tool.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own.  It is not intended to be used to make all of your business decisions but as a guide only.

We covered looking at your balance sheet some time ago, and wanted to refresh you on why it is so important.

Building up your balance sheet can help you with your future with the business, if you were ever to sell your company on to a potential buyer, this is an important area that the buyer will be looking at.

Its not just about profitability and turnover, the balance sheet is an indication that you are growing your branding, a business that has thought about strengthing and building up the balance sheet is worth considerably more than one that focuses just in the present.  ie turnover and profit.

The example we have below, is fine for a small business and will probably have a good credit score as its positive in both the net current assets (Working Capital) and the overal value.

But if youre talking about a business thats worth selling you are going to need a plan, this could be a 5-10 year plan, its certainly not short term.

Will need to be assets in both the fixed assets sections and current assets, this could be by buying equipment or machinery to make yourself more efficient and do a higher volume, buying a company with skills or equipment that brings Goodwill into the assets section, quite a lot of larger companies do this, they purchase mailing lists, and client lists, from smaller companies, to rapidly increase their net worth, and increase turnover.  

Current assets would be building up your turnover, and therefore your debtors increasing. Keeping an all important eye on the costs, and keeping the creditors to a reasonable level.

Long term liabilities are usually loans that are paid more than one year ahead, and maybe the director loans, if the owner hasnt taken back all of their investment.

The balance sheet value needs to increase tenfold, and self sacrifice for the owner is a must for this kind of exercise.  Its not all about your current year anymore, but your long term future, and future sales opportunity.  Think of it as a potential pension plan?  Investment for the house by the sea, whatever your dream future this is your opportunity to make it a reality.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.