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.

Bitcoin is the first and most well-known cryptocurrency. When the price of a single bitcoin reached over £14,000 in 2017, it generated global headlines before plummeting below £2,500 a year later. It hit a new all-time high in November 2020 as demand soared, proving a tumultuous trip for investors. Bitcoin continues to excite many people, but what is it, how does it function, and should you become involved?

What exactly is Bitcoin?

Bitcoin is completely digital money; there are no tangible bitcoins.

It’s not issued or managed by a centralised entity like a bank or the government. There are no go-betweens like brokers, and all transactions are performed electronically through exchanges. This speeds up payments and lowers transaction fees.

What is the mechanism behind it?

Bitcoin is an open-source project, which means that no one owns or controls it. All Bitcoin transactions are recorded on a shared public ledger known as the blockchain, but the identities of individuals who use it are kept private, so users remain anonymous unless they can be traced to a specific Bitcoin address. This lack of traceability bolstered Bitcoin’s appeal for usage on the dark web for illegal activity in its early days. Now rival cryptocurrencies with even greater anonymity are expected to be replacing it.

What is the best way for me to purchase Bitcoin?

To buy or trade Bitcoin, you must first download a digital wallet like Coinbase, Binance or Gemini, which functions similarly to a virtual bank account, onto your phone or another device. It creates a one-time-use address, similar to an email address that you may use to send and receive cash.

You can get the current price on various famous exchanges and websites, such as CoinMarketCap, or simply on Google Finance. Bitcoin was selling about £44,000 at the time of writing. Once you have Bitcoin, you may use it to pay for goods with your smartphone by having the other person scan a QR code in your Bitcoin wallet app with their device. You can also receive payments by tapping two phones together in the same way.

When you spend Bitcoin using a digital wallet, you pay a charge, but not when you receive money. It’s great for making quick overseas payments because there are no limits on how much you may send.

How to Make a Bitcoin Investment

Bitcoin and cryptocurrency supporters have a variety of reasons to be excited about the technology. Some people simply adore decentralised technology and feel it will play an increasingly important role in the global economy. Others are investors who are drawn to it because of its rapid rise.

Passive and active investing are the two primary investment strategies used by Bitcoin investors.

Buy and “Hodl” as a passive investment strategy

Bitcoin investors that utilise a passive investment approach “hodl” (hold on for dear life) hope the value of their coins will increase. They store it in a digital wallet and keep track of its value. Once they see a satisfactory return on their initial investment, they will convert Bitcoin for legal money.

While Bitcoin is incredibly volatile and does not provide any form of investment security, this passive investment technique of holding on is perhaps the safest way to invest in an explicitly risky asset.

Long and short positions are examples of active investment

Active investors use a more intricate strategy. They like the market’s turbulence and rely on significant price swings to generate quick profits. To make money, these Bitcoin investors constantly buy, sell, and trade the cryptocurrency. They typically buy Bitcoin when it is seen to be undervalued and then sell it when the value rises.

An investor who is pursuing a long position waits for the price to rise swiftly before selling before the price drops. An investor who wants to take a short position waits for the price of Bitcoin to drop, then sells it at a higher price and tries to buy it back when the price drops.

Both positions are extremely risky, and they require investors to try to anticipate and predict market movements, which is difficult for even the most seasoned investors to do.

Is Bitcoin a secure currency?

Unfortunately, there are a number of Bitcoin frauds out there. Criminals use malware to modify bitcoin addresses so they may redirect transactions to themselves, and fake exchanges exist that entice users in with the promise of inexpensive Bitcoins.

No one can take your money or make payments on your behalf, according to Bitcoin, because transactions are “protected by military-grade cryptography.” However, a number of exchanges have been hacked, resulting in the theft of Bitcoins. As a result, some Bitcoin users keep their funds offline, such as in “cold storage” on their computer’s desktop or in a hardware wallet like Trezor or Ledger, and even write down the security details on paper.

There is no safety net

Another thing to keep in mind is that there is no backup for lost Bitcoins from any organisation. When you keep cash in a bank account, you and the bank are equally responsible for keeping it safe. If you voluntarily hand that money to a con artist, you may find it difficult to retrieve it back. However, if the bank fails and you lose your money, you should be compensated for up to £85,000 under the Financial Services Compensation Scheme, provided it was a registered institution. If you forget your savings account login information, your bank can remind you or reset it. There are no such safeguards or warranties and no such help with Bitcoin and other cryptocurrencies.

However, certain exchanges and platforms are implementing their own consumer protections. For example, Coinbase stores its clients’ currencies offline. It provides crypto account protection up to the value of £150,000.

When utilising Bitcoin, it’s prudent to be sceptical and cautious and only transact through recognised exchanges. A list of more exchanges by region may be found on the official Bitcoin website.

Is Bitcoin subject to taxation?

In the United Kingdom and most other developed countries, Bitcoin is legal, but it is not legal money. If you own crypto assets such as Bitcoin as a personal investment, you may have to pay capital gains tax when you sell them because they are not eligible for an ISA (a tax-free savings and investing account). If you receive them as money from your company or mine them, they are also liable to income tax and National Insurance (create new ones). If HMRC believes you are profiting from cryptocurrencies as a company, you will be taxed similarly to companies.

Bitcoin is highly volatile. Thus it should not be a significant portion of your investment portfolio. If you have some spare cash, you don’t mind losing, you may be laughing all the way to the bank if you believe, as one notable investor does, that Bitcoin’s market cap will reach $5 trillion in the next decade.

Warning: We cannot tell you whether or not any type of investment is appropriate for you. Your capital may be at risk, and you may receive less than you paid in, depending on the investment you make.

Furthermore, the annual price reduction may not apply to all areas. The national average property price masks considerable regional variances, with the northwest, Yorkshire and Humberside, and Wales continuing to lead the way in house-price rise. This isn’t surprising given that these areas are not only more inexpensive than London and the southeast, but they also have more green space, which ties in with shifting customer mood and the demand for the greater area both inside and out.

Halifax’s findings were backed up by Nationwide Building Society’s house-price survey, which found that, despite the end of the complete stamp duty break, prices did not fall off a cliff in July, as many had predicted.

Low-cost borrowing

House prices are expected to continue growing as economic confidence grows, thanks to a lack of available properties for sale and low financing costs. They won’t rise as quickly as they have in the past, but they won’t sink any time soon either. We expect the strong housing market to continue even when the furlough plan is phased out, with borrowing at its lowest level ever.

In June, the Bank of England reported a jump in net mortgage borrowing, which reached new highs, as buyers attempted to take advantage of the stamp duty holiday before it ended at the end of the month. However, while this deadline drew buyers’ attention, individuals who missed the June 30 deadline have continued to complete purchases, knowing that they can still save money on stamp duty before the end of September.

As we approach August, the market is significantly calmer as many people take much-needed vacations. When people return from holidays and children return to school in September, observing how things take up again will be interesting. Will the last-ditch effort to take advantage of the stamp duty break result in a surge in transactions, keeping prices high?

How can Funding11 assist you?

According to the latest Bridging Trends data, the nearing end of the stamp duty holiday has fueled demand for bridging loans, as property owners and landlords take advantage of tenant demand to increase their portfolios in the second quarter. A short-term loan may be the best option for someone who needs money quickly.

We can bridging finance from £30,000 to £250 million at up to 75% loan-to-value with terms ranging from 1 to 36 months at Funding11. We can lend on residential, commercial or semi-commercial properties, and we can agree to loan in principle in as little as 4 hours. Please get in touch with us at ineedcash@funding11.com or 02034759299 for further details.

Savings rates are still low by historical standards. Still, they have been climbing since the spring as banks demand deposits from savers to support more lending as the economic recovery from the pandemic gains traction.

While easy-access rates are already back to levels not seen since the beginning of the year, the short-term fixed-rate bond market has experienced the most dramatic increase.

According to a saving website, one-year fixed-rate bonds have grown from 0.61 per cent to 1.1 per cent since mid-April. The five highest-paying accounts currently pay an average of 1.04 per cent, up from 0.76 per cent at the beginning of 2021.

Rates on 10-year UK government bonds, or gilts, have risen 361 per cent in the last year to 0.58 per cent, implying that they could increase even more. “Higher gilt yields can lead to higher savings rates as it’s an indication that the market is anticipating an increase in interest rates,” said Anna Bowes, co-founder of Savings Champion.

Investors can get better offers in the one-year Isa market, where rates have been lower.

The highest-paying 12-month fixed-rate cash Isa was 0.45% at the start of the 2021-22 tax year and has since risen to 0.715%, a 57 per cent increase in less than four months. Secure Trust Bank is in charge of this.

According to HMRC, the number of property acquisitions last month increased by 219.1% year on year to 198,240, as buyers rushed to take advantage of the stamp duty reduction.

Even though demand for homes may be waning, £29 billion in fixed-rate mortgages are set to expire in October, indicating that banks will still be in desperate need of cash.

According to the Bank of England’s latest results issued this month, lenders forecast more robust demand for borrowing from both households and small businesses between July and September.

According to Bowes, “there is some natural competition among a variety of providers wanting to obtain capital from savers for their lending requirements.” “The fact that savings rates are rising is good news for savers who are doing everything they can to avoid the negative consequences of inflation.”

Source: The Times

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.

An office building to the right of the station exit is being gutted from the inside out to emphasise the shift. It is the former headquarters of Thomson Reuters, with its iconic news ticker that runs along the exterior, dating back to the estate’s first revitalisation in 1991.

Newfoundland, a diamond-latticed glass tower that is the UK’s tallest private rental building, is now the first thing you see. It has a prominent position on the central dock. “We wanted it there so people would come out of the station and think, ‘I want to live there,'” says Alastair Mullens, the head of Vertus, Canary Wharf’s rental agency.

One Canada Square, the flashing pyramid that was once the icon of Canary Wharf, is now battling for space on a skyline packed with residential glass towers.

Over the last two decades, the Canary Wharf Group, a public company that owns more than eight million square feet of riverside real estate in east London, has built more office space in the capital than any other developer. Still, it has spent years trying to persuade people that Canary Wharf has a life outside of work.

Almost every major homebuilder in the country has a signature residential skyscraper on the outside of the estate. The competition was already strong, but after the epidemic, Canary Wharf’s ability to pitch itself as a place to live is critical to its future.

Companies may want to minimise or eliminate their office space if working from home. Even part-time becomes the standard. In March, for example, the newspaper publisher Reach made homeworking permanent for the bulk of its employees, closed its City of London headquarters, and reduced from two floors to one in One Canada Square. Others may decide to follow. According to Knight Frank’s newest London office market study, prime office rentals have decreased 5% in the last year — 4% in the West End and 3% in the City — and corporations are searching for 69% less space.

Canary Wharf Group has also submitted designs for further houses, including Park Place, a tower next to Newfoundland on the middle dock, and North Quay, which is near to the now-open Crossrail station. However, the exact number of flats is still to be determined.

Newfoundland, 8 Water Street, and 10 George Street are the three buildings for private tenants, and One Park Drive, 10 Park Drive, and 20 Water Street are the three towers for private homeowners.

“This isn’t a spur-of-the-moment decision; it’s what we’ve always desired. The shopping centre turned it into a retail destination, and the intention was always for people to live on the estate,” explains Brian Death, the Canary Wharf Group’s head of residential.

The capital is currently challenging to sell; buyers are looking for space and greenery in traditional London towns and the boroughs outside the City. At the same time, according to Nationwide, housing prices in Canary Wharf have increased by barely half of what they have in the rest of the country this year.

Before the pandemic, 80% of the units at Ten Park Drive, the company’s first residential development, were sold, and roughly 15 people are moving in a week. It’s part of Wood Wharf, a new neighbourhood set to open in 2028 with 3,600 new houses.

One Park Drive, a sleeker, upscale hotel-like skyscraper designed by Herzog & de Meuron that resembles a nibbled corn cob with bites pulled out for balconies, sits nearby. However, the swimming pool and gym are located on the first floor rather than the basement, allowing inhabitants to practise downward dog while taking in the beauty of the Thames. Serenity isn’t cheap; a studio at Ten Park Drive costs £715,000, while a one-bedroom property at One Park Drive costs £840,000.

International customers, in particular, value the estate’s private security because their children frequently reside in the property while studying in London. According to Death, about 45 per cent of customers are from outside the United States, but many have been hesitant to buy at this price point without seeing it first because they haven’t been able to travel.

Some people have chosen to rent. For example, international renters account for about 30% of tenants in Newfoundland, where a studio starts at £1,928 per month. To live there, the tenant would require a gross annual income of £57,840, according to rentright.co.uk.

Service charges for the gym, top terrace, and lounge, an automatic wine dispensing machine, are included in the rent. There are also guest suites that can be reserved. It’s great for corporate tenants — employees who are deployed overseas for a few years on the company’s dime — but the majority of them fled and flew home or moved back in with relatives during the first lockdown, according to Chestertons’ Canary Wharf division.

This, combined with the abolition of short-term rentals like Airbnbs, resulted in a 125 per cent surge in rental homes on the market between June and December of last year. But, according to Chestertons, oversupply caused average rents to drop by much as 30%. Its Canary Wharf office recently let a two-bedroom flat for £2,050 PCM, 23% less than in 2019.

According to Richard Davies, head of lettings at Chestertons Canary Wharf, “there were people who were living in zones 3 or 4 thinking now I can go and live in Canary Wharf and get an excellent bargain.” “Landlords have been unwilling to agree to a three- or four-year tenancy because rents have plummeted so much. They want them for a year, and then they’re out.”

This indicates that investors believe rents will eventually revert to earlier levels. Davies has witnessed a “big rise” in international student interest in the last three weeks, while at Vertus, Mullins believes inquiries are back to February 2020 levels.

The agency will negotiate lengthier tenancy agreements as the sole landlord, but it will not reduce rents during the pandemic. Despite rumours that 10 George Street is only 60% full, Mullins adds, “We didn’t want to get into a race to the bottom merely to get full occupancy.”

One building stands out around the corner from One Park Drive: a mid-rise, industrial warehouse-style structure that appears to have been custom-built for brick-loving British customers.

Eight Harbord Square, an 11-story building, is set to put on the market this autumn. There are 82 open-plan flats with no walls, except those around the toilet, with a lower service charge and fewer flashy amenities.

These large, loft-style flats, modelled after fashionable former textile factories in Spitalfields and Shoreditch, are for “people who prefer the notion of living in a warehouse conversion” but could do without the leaking roofs and single-glazing, according to Death. Crittall has even been engaged to build the windows.

Canary Wharf’s transformation continues, and it may even be stylish in its next incarnation.

Source: The Times

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.