Despite this good news, British business owners are experiencing the highest inflation rate in a decade, as the repercussions from Covid-19 drive up the cost of raw commodities. Significant supply chain disruptions were occurring across the country by the end of 2021, and this is projected to continue well into 2022 due to the spike in inflation.

But, aside from a general price hike of 8%, how has the supply chain crisis affected other industries, and what has it meant to business owners thus far?

Logistics & Store Shelves

The UK has seen a severe scarcity of personnel trained to drive delivery vehicles due to new EU legislation, bad working conditions, red tape, and a backlog at driving test centres. Staff shortages have impacted various businesses, but none is more visible than in the HGV driver shortfall. As a result, shops such as Tesco and Asda began using photographs of asparagus, carrots, oranges, and grapes to cover gaping holes in food.

Chaos at gas stations was the most visible result. After BP warned in September that there were not enough tanker drivers to deliver fuel to some forecourts, panic-buying led numerous forecourts to run dry for days at a time. Despite the crisis passing quickly, fundamental supply chain issues such as a scarcity of HGV drivers continue to be a continual concern.

Construction

Around 800,000 people work in the building industry in the UK, either directly or indirectly, in the planning, design, and construction of new homes. Many construction firms were concerned about the recent workforce shortage. Wage inflation has been significant as a result of the labour shortages, which smaller construction companies have had a hard time absorbing. Bricks, timber, and cement are also highlighted by 78% of housebuilders as significant challenges to obtain, with costs soaring by 20% year on year.

Manufacturing

After the outbreak, many firms miscalculated demand for their products (and the materials needed to make them), resulting in supply chain bottlenecks that are nearly difficult to track. Most large manufacturing organisations have experienced significant delays in receiving the necessary materials required for product manufacturing.

Severe scarcity of semiconductors induced by supply chain fragmentation was of particular concern to the automotive industry. Manufacturing delays are caused by a lack of HGV drivers, shipping container delays, and a general lack of material availability. Before it is supplied to the automotive manufacturing assembly plant, one company might develop a semiconductor, another might produce the component, and yet another might embed it into a component (say, a steering wheel).

Warehouses and E-commerce

A number of big online merchants, most notably Amazon, attempted to anticipate the heightened demand inactivity for the holiday season by introducing “Black Friday” seasonal-type bargains for their most popular products in the hopes of reducing demand once Christmas arrived. Like other e-commerce companies, Amazon has invested in warehousing to offset Brexit and the supply chain disruption created by the epidemic, which has resulted in increased demand. However, this has resulted in a severe shortage of warehouse space, with Cushman & Wakefield claiming less than 50 million square feet of available warehouse space in the UK, the lowest level since 2009.

According to the Independent, the recent shortage of available labour, specifically warehouse workers, exacerbates the lack of warehouse space. Companies compete to fill thousands of openings by giving 30% or more staff raises. With shipping costs rising by as much as 480 per cent in the last year, the cost of transportation for smaller e-commerce retailers is sure to have a severe impact on already slim profit margins. Because most businesses have been unable to tolerate variable operating costs, they will now be compelled to pass these on to their customers.

In addition, delivery delays are likely to frustrate e-commerce customers in a sector where brands are only as good as their reputations. Online firms may lose sales and receive negative evaluations in the near future as a result of client needs for fast gratification. Some internet firms are expected to see their business fortunes deteriorate as end-user prices rise and unsatisfied customers rise in an already highly competitive sector.

What does this make?

The demand for items has surged since the outbreak, but supply chain disruptions make it harder to keep up. Many SMEs are having trouble because they have already paid for their items but have yet to receive them. This can wreak havoc on cash flow and put business owners out of money while waiting for inventory to arrive. And it is not just one sector that is impacted, but many, including goods producers. In the wake of these supply chain constraints, many SMEs are having trouble reconciling working capital and cash flow; for example, money spent storing commodities as a hedge against supply chain problems cannot be utilised to pay bonuses to staff or dividends shareholders. Similarly, if they have already paid for a product or material but it has not yet been delivered to the business, invoices may remain in limbo, leaving customers waiting for their product and business suppliers waiting for payment on a previous invoice for materials that the SME has not yet received.

Funding11 may be able to assist you if the supply chain disruption has impacted your company. It simply takes 60 seconds to find out whether you are eligible by applying online on our website, whether it is to enhance cash flow, give a financial injection to raise working capital, or order new materials that are critical to your firm’s success.

British Business Bank created the Recovery Loan Scheme to support businesses recovering and growing after being disrupted by the coronavirus. Funding11 accepts applications from businesses of all sizes and sectors for funding under this scheme.

Business can use the money for any legitimate business reason, including expanding and investing in your company. The government backs Recovery Loans to the extent of 80%, but the borrower is solely responsible for the loan.

What does it mean to be “guaranteed by the government”?

If the lender is unable to collect the borrower’s loan, the government will compensate the lender. The government guarantee makes Recovery Loans more appealing, even though lenders are not required to issue them. Lenders have more confidence that they’ll get their money back if you can’t repay your loan because the government guarantees 80% of it.

What kind of financing may I get under the Recovery Loan Scheme?

The Recovery Loan Scheme covers a variety of business financing options, and what lenders have to offer will vary. The amount you can borrow is determined by your company’s unique circumstances and the sort of financing you seek.

You can borrow anything from £25,001 and £10 million for term loans and overdrafts. You can borrow anything between £1,000 and £10 million for invoice finance and asset finance.

Am I eligible for a Recovery Loan?

Businesses from any industry are eligible to apply, and there is no limit on the amount of money they can make. If your company meets the following criteria, you may be eligible for a Recovery Loan:

• Minimum of 2-year trading history
• The coronavirus has impacted the business
• Must be a limited company or limited liability partnership (LLP)
• Trading in the UK

If your company is one of the following, you are ineligible:

• ‘Collective insolvency proceedings’ are a type of bankruptcy that involves a group of people.
• a bank, an insurance company, or a reinsurer (but insurance brokers are eligible).
• a public-sector organisation
• A primary or secondary school that receives funding from the government.

Is it possible to apply for a Recovery Loan if I’ve already received a government loan?

Yes, indeed. You can apply for a Recovery Loan if you’ve already had or are getting lending from one of the other coronavirus guaranteed loan programmes. You must also meet all of the other eligibility requirements.

What is the procedure for applying for a Recovery Loan?

You will soon be able to apply for a Recovery Loan on our website, but in the meanwhile, you can call us at +44 (0) 203 475 9299 to make an application over the phone.

When I apply for a Recovery Loan, what documents will I need?

• The latest set of filed accounts
• Last six-month business bank statements
• Information about any other company loans or overdrafts

Is a credit check required to obtain a Recovery Loan?

Lenders will run credit checks on all candidates for government Recovery Loans. Lenders must also do fraud checks.

When must I begin repaying a Recovery Loan?

Your repayments on a Recovery Loan will begin right away. This contrasts with Bounce Back Loans and the Coronavirus Business Interruption Loan Scheme, which require no repayments for the first 12 months.

The length of time you have to repay the loan is determined by the sort of loan you take out. You have up to six years to repay term loans and asset finance, while you have up to three years to repay overdrafts and invoice finance.

What are the recovery loan interest rates and fees?

According to the rules, lenders choose their interest rates and fees, but the interest rate cannot exceed 14.99 per cent.

Funding11 interest rate starts at 4.3 per cent for a Recovery Loan and goes up to 12.1 per cent a year. With a Recovery Loan, you’ll have to pay any fees upfront, and you’ll be responsible for paying the interest from the beginning.

Is it necessary for me to provide a personal guarantee to obtain a Recovery Loan?

It depends on the amount of money you borrow. Personal guarantees are not required for Recovery Loans of less than £250,000. For loans of more than £250,000, however, lenders may require a personal guarantee, which means you and any other directors would be responsible for repaying the debt if your company fails. However, lenders cannot use your home (‘primary private dwelling’) as security no matter how much money you borrow.

What is the deadline for the government’s Recovery Loan Scheme?

The Recovery Loan Scheme will expire on December 31, 2021. The government will conduct a review at a later date. However, keep in mind that lenders have the option of closing applications sooner.

Having faith in not only yourself but also your business is crucial to your success. We know how difficult it can be to handle cash flow over a long period as an established commercial finance brokerage in Canary Wharf.

The Root Cause Is Late Payments

It can be aggravating to owe any sum of money, let alone thousands or millions of pounds. The growth of SMEs in the UK has resulted in a substantial increase in the overall amount owed, which now stands in the millions. Receiving payment has become more complex than ever before, and coping with it can be a significant roadblock.

Many small businesses would depend on receiving a consistent income by monthly payments. If these payments start to fall behind or stop altogether, it’s a significant risk that could jeopardise their business’s potential success. We have many funding options at Funding11 that will alleviate this stress for you and your business, including invoice financing, which will guarantee your payment.

Profits are Low

When late payments are combined with low earnings, it can be disastrous for a company. The money they make from delivering a service is being lost due to unpaid invoices. The consequence of spending more money than is brought into the business is an insufficient profit margin. When this happens, owners may find it challenging to keep their company running normally, and the business will jeopardise their cash flow situation.

Inadequate Planning

When it comes to cash flow, if a business fails to prepare and budget its finances, its potential certainty will be jeopardised. The secret to success here is to make sure that all of your finances are in order and that you have a stable cash flow for a long time.

Your Organisation’s Growth

If you aren’t planning to develop your company, you are more than likely to be concerned about the future regardless of its type or size. A company’s development is the product of a lot of hard work, commitment, and perseverance. However, when customers refuse to pay their invoices on time, the company’s growth is stifled.

Cash flow helps a company to remain afloat, pay workers a salary, and provide a more comprehensive service to a wider variety of customers. If this fails to work, the company will struggle to succeed in their current market and be unable to advance.

Getting Rid of Cash Flow Problems

According to studies conducted in the United Kingdom, if all invoices were paid on time, the burden caused by cashflow problems would be greatly reduced. Even if a company is doing well and income is rising, late payments will put the owners under a lot of stress. If you don’t seek outside, competent help, resolving cash flow problems can be difficult.

Here is a suggestion we recommend. The Cash Flow Loans that we provide at Funding11 is a short and long-term funding solution that can provide a fast boost in money. Once this loan has been negotiated, the upfront investment will result in company advancements and ensure that the cash flow pressure does not worsen.

If your company is having financial difficulties, a commercial finance brokerage like Funding11 will support and assist. Visit the Funding11 website to confirm your eligibility in 60 seconds, apply online, or call us now at +44(0)020 3475 9299 to speak with a specialist finance consultant.

What Exactly Is The Recovery Loan Program?

As of February, the BBLS had funded £45.6 billion to more than 1.5 million SMEs, the CBILS had funded more than £22 billion to 92,449 businesses, and CLBILS had disbursed 705 loans totalling £5.3 billion. This highlights the government’s importance in finding a way to provide ongoing support for businesses as we move forward on the new post-covid and post-Brexit road map.

Sunak stated in his announcement, “Even with the new Restart Grants, some businesses will still require loans to see them through.” We’re introducing a new Recovery Loans Scheme to replace the Bounce Back Loans and Business Interruption Loans schemes, which are both coming to an end.”

Until the end of 2021, UK businesses of any size can apply for a loan between £25,000 and £10 million under the new recovery scheme. The government will guarantee 80 per cent of the loans. Asset and invoice financing of up to £10 million will also be available.

The new loan scheme is in addition to a £5 billion ‘restart scheme’ that began in April and will provide grants to help retail, hospitality, leisure, and personal care businesses reopen.

Pubs, restaurants, and salons will be closed until June will be eligible for up to £18,000 in grants.

The government has also promised additional self-employment grants, a three-month extension of the business rates holiday, and the furlough scheme’s extension until the end of September.

When can you apply for Recovery Loan?

The scheme will go live on April 6th, 2021, and more information on how to apply will be available on our website.

Chancellor Rishi Sunak announced the following measures in his 2021 Budget: What you should know?

• Before the end of March, apply for the Bounce Back Loan Scheme (BBLS).
• Before the end of March, apply for the Coronavirus Business Interruption Loan Scheme (CBILS) though Funding11

How can Funding11 help?

Funding11 will help you navigate the application process through our relationships with lenders made in the past few years.

Processing your loan application with Funding11 will increase your chances of making a successful application without wasting valuable time and resources within your company.

Get in touch to learn more about how Funding11 can help your company. Please call 0203 475 9299 to speak with one of our expert consultants.

To curb the rise in the number of new coronavirus cases, England entered a month-long national lockdown on Thursday, November 5.

The Financial Conduct Authority’s City Watchdog said that mortgage borrowers who have not yet applied for a payment deferral could do so for up to six months, while those who already have a payment deferral for a period can extend their payment holiday for up to six months.

Anyone who has already had a mortgage holiday for six months would not automatically be eligible for additional aid. “Mortgage borrowers who have already had the maximum deferral of payment should talk to their lender to agree on “tailored assistance.

This could include paying off each month only the interest accrued, or resuming payments but at a lower level than before.

When interest continues to accrue during a holiday period, those who can afford to pay should continue to make repayments, meaning that borrowers will pay back much more in the long run.

Nearly two million homeowners told their mortgage lenders in June that they could not meet their monthly repayments, with a monthly average of £755 being deferred.

“We will work with trade bodies and lenders on how to implement this as quickly as possible and will make another announcement on November 2,” the FCA spokesman said.

At this stage, those who are looking to take up or extend a mortgage holiday should not contact their lenders. “Lenders will soon be providing information on what this means for their clients and how to apply for this assistance,” he said.

The FCA is also considering whether a similar extension should be applied to high-cost loans.

Having a Business Credit Line is one of the most reliable sources of funds a business can gain access. Its the most convenient option to access finance that any company should have in the event of a decline in its cash flow. For any businessman, a business line of credit acts as an emergency fund, and that is why every business owner should have one.

Below is a quick overview of the business benefits of a business line of credit.

Cash Control

One of the benefits that a Business Credit Line has is that, unlike a bank loan, where they tell you how the cash needs to spend. Sometimes, the private lenders business loan also comes with strings (controlled use of funds) so that they can have control over how to use the cash. With Funding11 business credit line we don’t tell you how you will use your funds as long it’s for business use.

Flexibility

Having a business line of credit allows business owners to access funds whenever the need arises, unlike traditional business loans which are given to you as a lump sum. As they do not have a lot of cash on hand, it is very advantageous for small businesses. Instead, especially during emergencies, they would prefer to have access to cash from time to time. Another benefit of a business line of credit is that it allows business owners to handle cash flow better.

Builds Business Credit

Building a strong business credit history is advisable for a small business to make it easy to obtain business loans plus other forms of credit in the future. Using a Business Credit Line presents business owners with an excellent opportunity to build on their business credit by making all their payments on time. Make sure you repay on time if you have a Business Credit Line, as timely repayments will enhance your credit report.

Improves Business Cash Flow

The regular operation of the company is adversely affected whenever the cash flow into the business deteriorates. It is the primary reason why, when there is a need, a business owner should have access to credit. A company line of credit is one of the best methods that can inject money into the company during a financial crisis.

It has a Low-Interest Than Business Credit Cards

The interest rates charged on business credit lines vary but are comparatively lower than those charged on business credit cards and traditional business loans. The reality is that the lower the rate of interest, the lower the monthly repayment, which implies more savings. 

The purpose of any company is to make a profit, but if a large amount of revenue generated by the company is used to pay for loans, the business can not be profitable. With business credit lines, however, the low-interest rates allow you to reduce the cash outflow that keeps the company financially stable in the long run.

In conclusion, it is good to have a Business Credit Line so you can easily access funds to keep the business running. This is because it has no set rules on how to use it; it is flexible in terms and helps to build the business credit of your company.

Funding11, the UK’s fast-growing finance brokerage, offers hassle-free business credit line. We have everything your company requires and more with a 24-hour turnaround, high approval rates and cheap interest rates. 

Visit Funding11 website, and you can check your eligibility within 60 seconds for a Business Credit Line or call us to talk to an expert finance consultant now on +44(0)020 3475 9299.

For certain firms which have needed to borrow money from time to time, the commercial finance market has long become a mystery. Far gone are the times of only walking into the local bank and finalising with the bank manager a handshake agreement. Despite their best efforts, banks are barely able to meet the enormous capital demands that Uk companies have.

Inevitably, private lenders have succeeded in filling this supply void. It has also created problems for borrowers, except in terms of predatory loans and other ills. Moreover, many lending firms do not have the requisite expertise at their disposal to understand all the complexities of a commercial loan. That is where specialised financial brokers come into play.

There are also many factors why you should use the services of an experienced and reliable brokerage.

What Is a Finance Broker before we start?

Many individuals have don’t have a clear understanding of what finance brokers do, especially those who have not borrowed money before.

A finance broker is, in the simplest of words, a competent organisation (a person or a company) experienced to give specialist financial advice and fit the loan criteria with lenders acceptable offers.

Brokers work in nearly every sphere of lending, from small-scale private finance to large-scale corporate financing. Commercial finance brokers (such as Funding11) specialise in helping companies find the right type of financing arrangement.

Although the finer points of whether you can use a broker’s services will be covered below, it should be enough, for now, to conclude that a professional broker will help the company navigate hard cash and/or credit crunch scenarios.

Why does it not always work to contact a lender directly?

Not so long ago, having a business loan used to be a simple matter. Only call the nearest bank branch or high street lender, let them know the needs and get approved for one of their easy-to-use ready-made finance products.

However, the simplicity of this framework was at your expense. It’s undoubtedly a bad idea for a company to venture into a retail finance contract because it is not only more expensive but does not bring to your attention all the potential choices you can pick from.

Furthermore, it is a lengthy and time-consuming method to contact lenders directly, regardless of how easy it might appear to be. You have to restart the entire thing twice if a lender turns your application down, leading to numerous soft and hard credit checks that leave their fingerprints in your credit report. Here’s why your loan application is given a boost by using a professional broker.

Brokers find it simpler, faster and simpler to borrow

As we just mentioned, contacting a lender directly for a business loan may not always be the right option. Not only does it quickly drain your money, it often almost inevitably leads to an unequal bargain for you.
By making the whole financing process more straightforward, more accessible and smarter, commercial finance brokers help you escape this situation. For example, Funding11 is among the handful of brokers out there who have an impeccable track record of turning around loan requests within 24 hours.

Also, all reputable brokers expect to manage your personal information with the utmost respect. You are in charge, at all times, for your application when you use the services of a broker.

You will select through products you would never have seen before

Perhaps the most substantial advantage of using commercial finance broker services is this. They may only provide quotations that are derived from the products they already offer when you contact a lender directly. For flexibility, there is no space, and you will always have to compete with incompatible loan products and to save the day.

For, e.g., if you get qualified for bridging finance and only lump-sum business loans are proposed by the lender, they will present you with a deal that makes no sense in terms of the criteria.

We cannot avoid this question when dealing with a broker. Most lenders partner with brokers primarily and offer broker-only financing options that would not be open to you if you wanted to tackle them on your own.
To guarantee that you collect deals from UK-wide lenders, you should go a step forward and collaborate with a full business commercial finance broker such as Funding11.

Brokers will save money for you

You shouldn’t be if you’re thinking with broker fees and prices. Often, brokers working with specialised lenders may obtain offers that are much cheaper than their retail counterparts. Eventually, in the context of more reasonable interest rates and smoother disbursements, the money you save outweighs the broker fees you might be expected to pay.

A responsible broker like Funding11 will never charge you undisclosed fees and upfront fees. Before you accept any offer of financing, you will know precisely how much you will pay.

Specialist loans you can access

Usually, specialist lenders are small to medium-sized lenders that provide just extremely tailored financing items such as bridging financing, credit line and construction finance.

So that it saves lenders a lot of stress, both of these expert lenders prefer exclusively to work with brokers. Using the services of a broker, in turn, helps you to unlock offers from professional lenders.

Working with an expert broker also ensures that the broker will have invaluable industry knowledge and guidance, making that even more satisfying with any loan bid.

Experience you can not acquire

A reputed broker carries years of experience with them that you can not place a numerical value on that.

Those brokers learn how to manoeuvre around challenging financial conditions that you would not otherwise be able to manage on your own.

A professional broker such as Funding11 will assist you if you want to fast-track your bridging loan, get a business loan amid bad credit background, get advice on an especially unusual valuation and planning approval issue, or tailor your repayment strategy depending on your income.

Brokers know your affordability best

Unfortunately, both borrowers and lenders have been able to downplay the value of recognising creditworthiness and affordability over the years, time and again.

This has paved the way, somewhat unsurprisingly, for unreasonably structured, excessively priced loans that verge on being predatory at times.

Having a broker for business lending means you stay free from this debt trap easily. Based on your income and your expenditure, brokers know how to judge your affordability better, helping them only to generate deals that are in your best interests.

Brokers could offer reliable financial advice

There is a world of differentiation between private equity and commercial equity, a point that many banking firms do not take into consideration when applying for a loan.

Impaired judgement and uninformed decisions lead to failures, if not decades that the creditor has to deal with for years. By seeking financial advice from a responsible broker, such as the Funding11, you can get around this problem.

Summing up – Here’s why you should use a commercial finance broker

• Save time and stress
• Full market-wide offers
• Save cash and inject that saved money in the business
• Broker knowledge and expertise
• Stay away from expensive interest rates

Choosing a broker for commercial finance-things to bear in mind

Now that we’ve briefly talked about what a commercial finance broker can bring you to the table, it’s time to see what you can look for when selecting one.

There are no criteria or rules set in stone here, but the following points will help you make the decision which is a responsible and knowledgeable decision.

Are they affiliated with some reputed trade organisations?

This isn’t precisely an unnegotiable thing, but it also gives you a clear understanding of the broker’s role in the industry.

Look for any certifications and memberships that provide the activities of the broker with legitimacy.

Funding11, for instance, is a proud member of FIBA, one of the UK-wide brokers fast-growing Financial Intermediary and Boker Association.

Do they responsibly treat your data?

All organisations have to work responsibly with the personal details and any data they receive. That is even more so for brokers who need to gather sensitive personal and financial information from you.

Look for the data security policies and/or privacy policy tab when you visit your broker’s website. It is usually found in the website’s footer section.

Usually, a professional broker is GDPR Compliant and licenced with the Office of the Information Commissioner (ICO).

For instance, Funding11 website is entirely compliant with GDPR and registered with the ICO.

What they are specialised for?

Many brokers out there work hard to combine their industrial equivalents with personal finance goods. This is not generally a smart decision because, in terms of product versatility and range, Funding11 is far more stable.

It’s a decent starting point if your broker provides solely commercial finance items such as business loans, bridging financing, construction financing and credit line, among others.

Have they got full market access?

The market can be compared by all market brokers to find lenders who can give you quotes. This has an enormous favourable influence on the borrowings in the long term.

How does it work

To understand how their services work, ask your broker the following questions:

1. Are you going to need a visit to their office?
2. What paperwork is involved in the process?
3. Can you send, online, the required document?
4. On your submission, what is the turnaround time?

What are the fees for brokers?

It’s essential to know and understand all about the fees and expenditures that you’re going to have to pay. Although some brokers have no-obligation quotes, even if you decide not to accept the loan offer, others require you to pay a processing/administration fee.

It is also necessary to know and understand when, before you apply, after you apply or after you accept an offer, the charges will come in. Working with a responsible brokerage means working on your terms and conditions.

It is never worth it to get into a finance deal that is not cut out for the needs of your business. Not only will you be expected to borrow more than you actually should, but you will also miss out on a range of features that you can get from specialist lenders.

Funding11, the UK’s fast-growing finance brokerage, makes your life simpler by finding the right kind of loan offer for you. From all-purpose commercial finance solutions, our commercial finance services cover a broad range.

We have everything your company requires and more with a 24-hour turnaround, high approval rates, cheap interest rates and flexible repayment.

Visit Funding11 website, and you can check your eligibility within 60 seconds and apply online or call us to talk to an expert finance consultant now on +44(0)020 3475 9299.