Availability of Business Money dinner tickets

More tickets have become available for the Great Southern Business Money Commercial Finance Dinner on 6 February 2014.

The venue, The Thistle, Marble Arch, has had taken a cancellation today and can now move us into their larger ballroom giving us the opportunity to accommodate an additional eight tables/83 guests!

If you haven’t already booked and would like to do so please visit our events page or call me on +44 (0) 1458 253536 or +44 (0) 7966 529569, or e-mail: sophie@www.business-money.com for more details.

We hope you will join us.

Sophie Grove

Commercial Director

Britain’s brewers toast continued growth In volumes, as positive impact of beer duty cut continues

– Total beer sales up 0.8% in Q4 2013.

– Pub beer sales down 2.2%.

– Big boost for off trade, with sales up 3.9%.

British beer sales have increased for two consecutive quarters – the first time in 10 years – according to the latest quarterly Beer Barometer figures from the British Beer & Pub Association (BBPA). The increase in sales follows the Chancellor’s cut in Beer Duty in last year’s Budget – and strengthens calls for a duty freeze in the March Budget, says the BBPA.

Overall beer sales rose by 0.8% in the quarter, some 15.3 million extra pints on the same period in 2012. Beer sales in pubs declined at a lower rate, falling by 2.2%. Sales in the off-trade continued to grow, with the final quarter increase of 3.9% contributing to 2013 off-trade sales beating 2012 levels.

The renewed confidence felt by brewers will be further evidenced this week with the opening on Friday of a new £7m bottling plant from Burton-based Marston’s.

Brigid Simmonds OBE, chief executive, commented: “These figures demonstrate that cutting beer duty helps increase beer sales, stimulates industry investment and saves jobs.’

“We hope the Chancellor takes note and freezes beer duty in his next Budget to give a further boost to British beer and pubs.”

74% of SMEs’ websites are not mobile friendly

Mobile phone and tablet ownership is growing incredibly fast; research shows that tablet ownership has more than doubled in the past year with 63% of smartphone users using the internet on their phones multiple times a day. Businesses simply cannot afford to ignore this trend.

We know through speaking with our customers that getting a website set up the way you want can be a daunting task, even without adding the complexity of making it mobile-friendly. If you’ve put off making your website optimised for mobile, you’re not alone. Over the past few months we’ve audited 1,000 UK SMEs’ websites, across 10 different industries to find out how many are mobile-friendly and the findings reveal many small businesses haven’t looked at this area yet.

The research shows that almost three quarters (74%) of UK SMEs’ websites are not set up to enable customers to research and make purchases on mobile devices. It also found that a huge 88% of SMEs’ websites do not support viewing on the iPad (4th generation).

Small businesses have a great opportunity to gain a competitive edge if they are willing to take on the mobile challenge. For more advice about ensuring your business has a mobile-friendly website contact the hibu team.

The media alert providing an overview of the findings is available upon request by emailing: hibuUK@atomicpr.com.

London leads residential construction growth in the UK

Residential construction continued to grow in London at the end of 2013 according to a report released today. However, experts fear that the rate of house building will not keep pace with increased demand created by schemes such as Help to Buy.

The value of residential construction contracts in London totalled more than £506m in December, accounting for 31.2% of the overall contracts awarded for the sector – an increase of 11.7% from the same month last year. This is largely attributable to key projects such as the The Glebe, a £300m housing complex in Chelsea, the Tidal Basin Road scheme near Royal Docks worth £55m and the £30m Putney Plaza development.

These latest figures, taken from Barbour ABI’s Economic & Construction Market Review, are reflective of the sharp upturn in activity in the UK’s residential construction sector throughout 2013. UK-wide, the value of residential construction contracts has increased by a significant 88.2% in the last 12 months, with the total value of projects totalling £1.86bn in December.

On the findings of the report, Michael Dall, lead economist at Barbour ABI, commented: “Residential construction continued to grow in London at the end of 2013 and is a positive sign as we head into the first quarter of 2014. Private housing projects dominated the sector, accounting for three quarters of residential contracts awarded in December, while only a minority were for housing association or local authority projects.

“It is clear that, on a national level, Government initiatives such as Help to Buy and other measures designed to boost the private housing sector are clearly having a strong impact, with demand for secured lending for house purchases at its highest level since 2007. However, there is a concern that the demand for affordable homes in the public housing sector is outpacing the rate of construction, and at this rate, it is difficult to see how the Government will meet its aim of delivering up to 150,000 new affordable homes over the spending review period.

“Furthermore, while the increase in residential construction activity has had a positive impact on house prices elsewhere, the rise in prices for properties in London was recorded at 11.6% – nearly double the UK average. This has led some senior business figures to declare that Help to Buy is increasing demand for housing at a disproportionate rate, bumping up prices in the capital and fuelling concerns that the North-South housing divide is widening.”

The Economic & Construction Market Review is a monthly report designed to give valuable, current insight into UK construction industry performance. The Review is compiled from Barbour ABI’s records of construction data for every UK planning application, and key indicators, such as the Office for National Statistics’ Construction New Orders data.

The Economic & Construction Market Review will be published monthly and is available to download at: http://bit.ly/1eUKB9P

Positive shift towards growth but money and time still an issue when it comes to training

The latest research by the Forum of Private Business reveals that small businesses are shifting their training priorities from replacing lost skills and are concentrating on areas essential for future business growth.

The report highlights an increase in the amount of growth-related training businesses are undertaking, particularly in areas such as strategic management and business development. In comparison to the previous year 2013 saw a 5% increase in training to build capacity and a significant increase in strategic skills development, rising from 16% in 2012 to 28% in 2013. Alongside these growth skills, the report revealed that the number of businesses engaged in efficiency training and skill replacement fell by 9% and 13% respectively, indicating fewer redundancies and a more stable workforce.

As business confidence has grown over the past year, satisfaction with training has also improved. Small business owners highlighted to the national business group that 75% of businesses were happy with the focus of their training in 2013 up from 58% a year ago.

Despite these positive signs Forum members did report a number of barriers to training and skills development indicating that not all businesses were able to take advantage of the improving economic conditions. Nearly a quarter highlighted time as a major barrier to skills development and about 20% noted cost.

Time management skills topped the list of skills negatively impacted by the recession. 12% of businesses reported these skills had grown worse over the last five years with owner managers forced to take on additional responsibilities as redundancies were made. 39% of businesses also reported senior management skills had been neglected with time and cost being the major reasons why.

With lack of time to dedicate to skills development and difficulties funding courses, the Forum’s research reveals that a fifth of small businesses do not know how to overcome the barriers they face to training.

This concerning statistic is timely given the government’s Growth Voucher scheme launching today. The scheme, that will part fund up to £2,000 worth of business support for small firms, will provide every eligible business with a diagnostic to identify what strategic support would assist their business develop and grow. Whilst not all businesses will receive a voucher, the Forum hopes to see the diagnostic provide small businesses with a clear understanding of the types of training they need to maximise their growth potential.

Commenting on the report chief executive of the Forum, Phil Orford said:

“Getting the right skills for your businesses is imperative for any firm to grow. Small businesses have faced tough conditions over the past five years but this report suggests they are beginning to lay the foundations for renewed growth.”

On Growth Vouchers:

“It is important now that we support our small businesses to use the tools available to develop and grow. Growth Vouchers will go part of the way to providing financial support for some businesses but it is essential we build awareness of the wide range of business support and advice currently available.”

The vouchers will be available in five key areas including employing staff, leadership and management and utilising digital technology.

Support the valuers to save the market

Lenders should help maintain the competitiveness of the valuation sector by instructing their solicitors to withdraw confetti letters to valuers, where no further action has been taken. This should help to make PI insurance premiums more affordable. Panel managers should also be bound to a code of practice to ensure market transparency, according to the independently chaired Commission into the future of the valuation profession.

The independent report, commissioned by RICS in response to acute concerns throughout the property industry, has announced a series of recommendations to help ensure that the future of the valuation profession is sustainable. The Commission chair, Dr Oonagh McDonald CBE, studied written and oral evidence submitted by representatives from across the insurance sector, banking community and property industry to address the balance of risk and reward, and how best to maintain high standards in valuation. These elements, at their core, are vital for underpinning economic stability and consumer confidence in the UK and overseas.

Further recommendations include:

• Valuers should be able to purchase PI insurance for individual valuations to help boost valuer numbers and better manage their risk

• Mortgage lenders should bear the cost of valuing a property during the purchase process

• Panel managers should be subject to an RICS-managed code of practice

Dr Oonagh McDonald, chair of the independent report, said:

“The commission was put together to make sure the property valuation market in the UK is fit for purpose and able to properly meet the needs of the general public. Having consulted extensively with people from right across the property, insurance and finance industries, I have come up with some recommendations to make sure this happens. I would like to see a change to the way that lenders charge for valuations and to ensure that those who actually assess a property’s worth are in a position to operate properly and are treated fairly. If valuation as a profession is going to be viable for years to come, lenders need to instruct their legal representatives to withdraw negligence claim letters if no action is being taken against those who value the property. Furtherm

An authoritative business banking report – huge choice and costs less than 20 years ago

An authoritative business banking report – huge choice and costs less than 20 years ago

In its 21st annual review of business banking, Business Money the industry journal in commercial finance and banking, has highlighted the wide, and ever growing, range of facilities available to the business owner/manager.

A highlight of the review, sponsored in 2014 by the Forum of Private Business, was that business bank charges have actually reduced over the last two decades at a time when all other overheads have risen, in the case of a first class postage stamp, by 140%.

Interviews with senior executives, Steve Matthews from an established provider, RBS/NatWest, and Jason Oakley, from a feisty newcomer, Metro Bank, offer a sharp contrast, but emphasise the choices in a fiercely competitive market.

Business Money editor, Robert Lefroy, commented: “The business banking arena in the UK is being reshaped by crowd lending, a continual stream of new challengers like TSB, Williams & Glyn’s, Aldermore, Shawbrook and more are arriving all of the time along with a host of hi-tech card-only account providers, trade financiers and invoice finance houses. The technology that has driven down business bank charges is now making far more flexible and accommodating lending facilities available to companies. As it is, 70% of all bank loan requests are being met with an approval and nobody wants to see the reckless lending that would create another raft of toxic loans.”

For a copy of the report please contact Sophie Grove on 01458 253536 or sophie@www.business-money.com.

Broker battle for help to buy mortgages heats up

Prospective property owners across the UK have been given a significant boost this week as a number of new and attractive help to buy mortgages have been placed on the market for them to choose from. The new deals are part of a price war that is emerging between some of the country’s largest mortgage providers as the final phase of the Help to Buy initiative comes into play.

Barclays is currently top the list of new offerings with its 0% fee and three year, 5.35% fixed rate offering representing great value for all young prospective homeowners out there. For those who wish to fix in for longer, Barclays also have a 5.49%, five year deal that is set to be released this week, and will enable borrowers to attain up to 95% of their property’s value due to the bank being registered on the government’s Help to Buy initiative.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The second stage has had a slow start, but as more lenders come on board, competition is driving a price war and pushing rates down. Lenders are offering more choice and improving the rates on offer, although they remain slightly higher than those for buyers with a bigger deposit.”

The second phase of the government’s flagship housing scheme was enacted back in October and has sought to revitalise a property landscape that has been stagnant since the start of the economic downturn back in 2008.

The scheme entails the government guaranteeing 15% of high loan to value mortgages given out to borrowers in return for banks lowering deposit requirements to 5% and distributing mortgages out of up to 95% of a houses worth. And its popularity and scale has increased dramatically in the past 3 months, with the initial 42 products being offered by banks expanding to 145 across a multitude of different financial organisations.

Another great Help to Buy deal is offered by Virgin Money, who at 5.39% for a three year fixed rate deal represent great value as well for anyone who wants to shield themselves from potential interest rate rises in the future. Similarly to Barclays offering there is no fee charged for acquiring the mortgage whilst a number of cash back incentives make it potentially more desirable that Barclays latest deal.

There a number of attractive offerings on the market currently that like Help to Buy have low deposit requirements. West Brom building society currently has a 90% loan to value offering that allows borrowers to fix in for two years at 3.64%, representing excellent value. Similarly Yorkshire building society offers a multitude of 95% loan to value mortgages with one particular 4.99%, zero fee, and three year deal particularly catching the eye.

The question however is whether you actually need a 95% loan to value mortgage, because whilst it might seem financially beneficial and viable right now, it might be far more difficult to uphold payments on time moving forward in the future. You should strenuously analyse your finances and see if you can contribute more from your savings when looking for a mortgage so you borrow less and end up paying less interest.

IGF unveils financial glossary for SMEs

IGF Invoice Finance has published a glossary of terms designed to cut through the jargon of the invoice finance industry. The glossary is a practical guide for small and medium sized business owners to help them make sense of the industry specific and widely varied terminology used by commercial finance providers.

IGF, an independent commercial finance company, is working with a range of SMEs across various industries, from manufacturing to construction to printing, to help them achieve reliable long term cashflow solutions based on agreements that all parties understand. The glossary has been developed from IGF’s years of experience as an antidote to the, sometimes jargon heavy, corporate financing sector.

Tracy Ewen, managing director at IGF, said: “Even within the invoice finance industry, the terminology can vary widely from each provider for what is essentially the same product or service. For finance to drive growth within SMEs, it needs to be based on an open dialogue between the business and the financial provider and a clear understanding of the agreement reached. When it comes to financing a business, eliminating ambiguity is a must, and in this case, it’s not difficult to achieve.”

To obtain a free copy of the glossary, please email: callmeback@igfgroup.com

Number of 18-24 year olds starting a small business doubles in the past 12 months

– Once bitten, twice shy: More than two thirds of business owners said they were unlikely or would never want to work for someone else again

– With great responsibility comes happiness: Two thirds of micro-businesses owners are happy or very happy being their own boss

The number of people between 18 and 24 either starting a small business or freelancing almost doubled in the past 12 months, according to a survey of micro and small business owners conducted by online freelance marketplace PeoplePerHour.

The figures revealed that the 18-24 year old demographic was the fastest growing age group on the PeoplePerHour website, with a 97% rise in new micro and small business owners registering on the website in the past year. The range of businesses they were running was wide and varied, but the top three sectors in terms of numbers were internet-based businesses, apps and retail.

As part of the survey, PeoplePerHour asked small business owners across all age demographics how they felt about running a business, especially in the current climate. More than two thirds (70%) said it was not easy and that the next six months would be make or break. When asked what they would do if the business failed, almost half had the ‘if at first you don’t succeed’ attitude, and said they would start another business.

It seems that being your own boss really does lift the spirit, however hard it gets or stressful it can be. Because, when business owners were asked how they felt about being their own boss, almost nine out of ten (87%), said they were happy or very happy with being in control of their own destiny. And more than half (54%) of those surveyed said they were never or unlikely to consider working for someone else again.

Asked why they started a business in the first place, a third (33%) of those business owners questioned said they started working for themselves for a better work life balance, more than a quarter (26%) wanted to pursue a hobby or passion, while 14% said it was because they were unable to find full-time employment.

On growing the business, when business owners were asked if they were looking to grow or consolidate over the next 12 months, the majority (78%) said they were keen to grow despite the adverse economic conditions.

Xenios Thrasyvoulou, founder and CEO of PeoplePerHour, said: “The barriers to starting a business have never been lower, and this could be one of the main reasons we’re seeing such a big rise in the younger generation choosing to take the self employment route earlier on in their careers.

“The key to this growing trend of new small business owners, not just amongst 18-24 year olds, but across generations, is how easy and cheap it is now to set up a business and build a client base from scratch. The emergence of online platforms like PeoplePerHour that provide access to a global pool of potential customers, just a mouse click away, as well as providing easy access to experts, means starting your own business is not as daunting as it once was.

“Our research shows that despite the stresses and money worries that are often associated with starting and growing a business, the rewards and overall satisfaction that people get from being their own boss, clearly helps overcome many of the obstacles standing in their way. The dream of being an entrepreneur is no longer just that.”