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January 21, 2020

Fintech firm Countingup blurs the lines…

Countingup, the UK’s number one small  business banking and accounting app, has launched a web based version of its  popular banking and accounting app for accountants, complete with profit and loss  reports.

Accountants can access, review and advise on their clients’ bank data as well as  interpret how their clients are performing using Countingup’s web-based  Accountant Hub. With bank branches closing in record numbers, the role of the  accountant continues to broaden to fill this void. Accountants are extending beyond  their core accounting work to also offer banking services and advice.

Tim Fouracre, founder and CEO of Countingup, said: “We’re excited to be at the  forefront of changing the accounting industry to bring accountants more into the  world of banking. Launching the profit and loss report in our web-based Accountant  Hub is just the beginning. Soon accountants will have the ability to create journals,  export a trial balance and submit an MTD compliant VAT return – all of this  functionality sitting on top of our business current accounts.”

It’s a busy time of year for accountants with the self-assessment tax filing deadline  looming on 31 January. The newly launched profit and loss report in Countingup’s  Accountant Hub makes it easy to complete a tax return for those clients who have  left it to the last minute. Many sole traders do leave it late. According to HMRC, 7%  of tax returns were submitted late last year.

Over 400 accountants have registered for the Countingup Accountant Hub to  access their clients’ bank transaction data. The Accountant Hub provides the  functionality to re-categorise transactions, view receipts, read notes about transactions, export the data and to analyse how the business is performing with a  powerful and flexible profit and loss report.

January 21, 2020

Burnout beckons for female small business leaders

A survey of 500 small business owners across the UK not only confirms the all-consuming nature of running a small business but has uncovered the differences between men and women in their ability to switch off from work. The survey by Purbeck Insurance Services, the provider of Personal Guarantee Insurance to small business owners across the UK found that just under half (46%) of female founders never switch off – even on holiday, compared to 38% of the men surveyed.

People running small businesses in the East Midlands appear to have the most difficulty switching off – 55% said they never switch off from work in the survey while small business owners in Scotland seem the most chilled – just 26% have work constantly front of mind.

For a good work life balance – avoid working in property development. A huge 67% of those working in property development never switch off, followed by construction (53%), legal services (50%) and retail (47%).

Purbeck is urging small business owners to find ways to take a break from work and if money problems are the root cause, to seek expert support without delay. Purbeck Personal Guarantee Insurance policyholders have immediate access to mentoring services if their business is facing financial difficulties, with the offer guidance on new funding, best practice tips from other businesses in a similar field and suggestions of additional income streams.

Todd Davison, MD of Purbeck said: “It can be lonely at the top when running a small business and many owners shoulder the financial risk by signing personal guarantees to secure funding for their enterprise. With such a prolonged period of economic uncertainty, it’s not surprising that many find it hard to switch off. However, it’s essential to maintain a proactive work/life balance. Spend time with friends, family, eat well, exercise and recuperate. Wellness and maintaining a healthy mindset can help to make you a more effective director of your business.

 

January 21, 2020

Octane Capital reprices following 2020 risk review

‘Product-less’ lender, Octane Capital, today announced it has reduced its risk rating given the improved outlook for the UK property market and broader political stability following the December general election result.

As a result, and with immediate effect, the lender will be lowering rates on its larger bridging, developer exit and refurbishment loans by as much as 2% per annum.

Octane’s product-less #3rdGen approach to structuring and pricing deals will ensure that many of its larger loans will now become some of the most competitive in the market.

Mark Posniak, managing director, Octane Capital, commented:

“Like other lenders, we regularly review the macro-economic outlook and felt especially compelled to do so in the New Year following the decisive General Election result. Our in-house view is that a new environment of greater political certainty will see a lot of pent-up demand for property come through, with subsequent upward pressure on prices. We also believe that the Bank of England will counter any continued economic weakness with monetary easing, providing a further boost to the property market through lower borrowing rates.”

January 20, 2020

FIBA partners with buy-to-let mortgage lender Landbay

The agreement offers our brokers a range of products appropriate for portfolio landlords, HMOs, MUFBs, first time landlords, limited companies and new build properties.

As the regulatory and economic landscape of the buy-to-let market becomes more complex, lenders need to be flexible and expect to meet the needs of intermediaries and landlords alike. This partnership with Landbay demonstrates our commitment to supporting the mortgage market in the UK.

January 17, 2020

Simply launches Simply Market to sell third party assets

Simply, the SME funder, today announced that it has started to list third party assets on the Simply site, in a move to both expand the range of vehicles and machinery available to potential buyers and also help existing customers and partners sell the kit they no longer need.

Simply Market – an extension of Simply Stock, Simply’s own used assets for sale page – will take a curated approach in terms of how these items will be added. All equipment will be carefully selected, in a move to help keep quality high and finance will be available for purchased stock. The third-party assets will have an expiry date of one month, before they are handed back to the owner for alternative sales routes.

The initiative will grow organically and, over time, more assets will be added as Simply sees how popular certain pieces of kit are. Buyers will be able to search by asset type and location, and once they have found an asset they are interested in, a relevant sales manager will put them in touch with the seller.

Mike Randall, CEO of Simply, commented: “We set up Simply in order to support SMEs across the UK and, whilst funding is our heartland, we are always looking for additional ways to help customers and partners. Simply Market is a natural evolution of what we already do with Simply Stock – connecting assets with buyers. Buyers will now have access to a greater range of assets and sellers will be able to market their equipment to a wider audience. It’s all about creating a more efficient customer experience.”

January 15, 2020

NatWest announces new partnership to boost SME lending

NatWest has today launched a new partnership with Soldo, a pre-paid company card provider for small businesses, which will allow two of the bank’s ventures, Esme Loans and Rapid Cash, to be offered directly to Soldo’s customers, as the bank aims to increase lending to UK SMEs throughout 2020.

Soldo is a multi-user business expenses solution including Mastercard prepaid cards, a mobile user app and web console. Suitable for businesses of all sizes, it automates expense reporting while giving businesses complete control over how and where employees and departments can spend company money.

Through the new partnership, Soldo users will be able to apply for swift business loans of up to £250,000 via Esme Loans; or choose to borrow up to £500,000 as a flexible line of credit against unpaid invoices via Rapid Cash. Both services will be available directly from within its desktop app, offering quick and simple access to business lending. The partnership follows Rapid Cash’s integration with cloud-based accountancy software provider Xero in November, and is the latest fintech that Esme Loans has joined forces with over the past 12 months.

The partnership supports NatWest’s aim to support growth of UK SMEs with business lending in 2020, following confirmation last November that the lender had extended its growth fund to support small businesses to £8.2bn to help businesses grow, fund green initiatives and navigate the current uncertain business climate.

Andy Ellis, head of NatWest ventures said: “As one of the UK’s biggest banks for SMEs, we’re extremely keen to work with anyone that offers a unique, simple experience that makes it easier for our customers to run and grow their business. Soldo is a partner who do exactly that, whilst sharing our passion to do things differently for UK SMEs. We’re thrilled to be working with them.”

The announcement marks the latest in a string of recent partnerships the bank has struck with tech providers to broaden and improve its digital offering. Last year, Microsoft, Amazon and IBM were among the businesses which the lender teamed up with as it continues to invest in technology to support its 17m personal and business customers across the UK.

January 15, 2020

LendInvest extends BTL lending capacity for HMOs and MUFBs

LendInvest, the UK’s marketplace for property finance, has made key changes to its BTL product range, increasing the maximum loan size for all property types and introducing a new cash back contribution towards legal fees.

The lender has increased their definition of small HMO’s from up to 6 to 8 bedrooms, whilst increasing their definition of a large HMO from 9 to 15 bedrooms.

The maximum loan size for both large HMO’s and MUFB’s has increased to £3,000,000, with the definition of a MUFB changing from up to six units, to up to 10 units.

A large loan range has also been introduced for standard properties and small HMO’s, with products available for up to £2m at a maximum of 70% LTV.

LendInvest BTL customers will also receive a £500 cashback contribution towards legal fees when they take out a 5-year fixed BTL mortgage for standard property types on products up to 75% LTV.

LendInvest’s two-year fixed rates currently start from 2.89%, and five-year fixed rates from 3.19%. ICR assessment rate is 5% across all products, with the exception of the 5 year fixed interest product which remains at 3.6%.

At the end of 2019, LendInvest expanded its BTL offering into Scotland in response to increasing demand for long-term property finance in the Scottish housing market.

Ian Boden, sales director at LendInvest, commented: “After a fantastic 2019 for our BTL product, we are excited to be hitting the ground running this year with a broadening of our product criteria. Ever eager to increase the flexibility of our product, we are confident these changes will put us in good stead for a busy 2020; and look forward to further increasing our loan volumes in the coming months.”

January 8, 2020

Gatehouse Bank announces rate reductions across entire buy-to-let range

Gatehouse Bank has today cut the rental rates on its entire buy-to-let (BTL) range, offering the largest reductions to international residents.

As part of the latest changes, the most significant rate reduction of 0.70% has brought the five year fixed term for international residents (individual and corporate) down to 3.99%. The two year fixed rental rate for these landlords has been reduced by 0.24% to 3.90%.

Today’s reductions apply to all of the Bank’s BTL, Houses of Multiple Occupancies (HMO) and Multi-Unit Freehold Blocks (MUFB) products, which are available to UK residents, UK expats and international residents buying individually or through corporate entities.

For UK Residents, the two year fixed term and five year fixed term BTL products see their rental rates cut by 0.10% to 3.19% and 0.24% to 3.65% respectively. The products for UK residents are available at up to 80% Finance to Value (FTV).

For UK expats, the two year fixed term is now 3.75% (down by 0.14%) and the five year fixed term is 3.99% (down by 0.46%).

Similar reductions are available for those UK expats and international residents investing in HMO and MUFB products which are available up to 75% FTV.

As a Shariah-compliant finance provider, all of Gatehouse Bank’s BTL products carry no early payment charges.

Gatehouse’s latest changes come after the Bank made several improvements to its BTL range over the last 12 months, including other rental rate reductions and improving its eligibility criteria to open products up to first-time buyers and new landlords. It also expanded its manual underwriting process to make it easier for contractors to qualify.

Gatehouse’s BTL products can cater for single units or portfolios up to £5m, and there is no limit on the number of properties for portfolio landlords.

Paul Stockwell, chief commercial officer at Gatehouse Bank, said:

“Last year we made our buy-to-let products more accessible by cutting rental rates and improving our eligibility criteria, and we are delighted to follow this up by further reducing our rental rates across the board.
“Our products have proved particularly popular with UK Expats, who benefit from our manual underwriting process and the flexibility this offers.

“We will continue to review our product offering and remain totally committed to taking the time to fully understand each customers individual circumstances to make informed financing decisions.”

December 17, 2019

Praetura launches £40m Professional Services Fund

Praetura, the group of companies that provides alternative finance to SMEs, is expanding with the launch of a £40m fund designed to provide rapid finance to professional services firms.

Praetura Enterprise Finance aims to support professional services firms – such as accountants, solicitors and other practices – and SMEs from other sectors with funding that can be approved within 24 hours.

The group believes SME-sized companies are currently underserved by traditional lenders even though they require a steady stream of capital to cope with cashflow challenges and to invest in new technology.

Praetura Enterprise Finance, which is led by director Paul Slapa and based in Chester, will offer clients access to competitively-priced funding provided directly and via a panel of lenders.

Paul, who previously led Wesleyan Bank’s direct lending division, said: “We believe there’s a clear gap in the market for professional services firms such as accountants and lawyers, which face distinct opportunities and challenges.

“Their models must grapple with working capital issues while their sectors are disrupted by technology and new market entrants. Without lenders that understand these factors and offer finance quickly, many firms will struggle to grow as quickly as they could.”

Praetura Enterprise Finance is aiming to provide £40m of financing to SMEs in its first year, offering funding solutions to cover short term liabilities, mid-term working capital issues as well as technology, equipment and other areas of investment in their businesses.

Paul added: “This is a large, underserved market currently, so we’re confident there’ll be strong appetite for our fund. Accountancy firms in particular are seeking to build relationships with funders to better support their clients, while other businesses want to know they have a supportive lender that understands their market.

“With a team of sector specialists, a relationship-led approach and a capacity to offer finance quickly and efficiently, we believe Praetura Enterprise Finance will appeal to ambitious firms across the professional services sector.”

Business development directors Craig Maddox and Jon Pearson and business development manager Jonathan Fletcher will support Paul.

The Praetura group of companies, which is headquartered in Manchester, was founded in 2011 to support SMEs across the UK with alternative debt and equity funding.

The group includes Praetura Ventures, its venture capital arm, Praetura Asset Finance, Praetura Direct Finance and Praetura Commercial Finance. Together they have supported SMEs with over £230m of funding.

December 17, 2019

New tech enables cash to remain king for Britain’s SMEs

Metro Bank is accepting registrations for its new on-demand cash collection and delivery service to support the 4.2 million UK SMEs that rely on cash.

The launch is the latest in a long list of innovations brought to the market by the Bank – from instant debit card printing in store and seven day a week opening hours, to helpful insights and nudges from the Bank’s mobile app. MCash will help ensure cash remains a viable option for SMEs and consumers.

Managed through Metro Bank’s mobile app, business customers will be able to log on and select a day for a cash pick-up and / or drop-off from as close as 24-hours away, and up to a week in advance.

Convenience and security remain top pain points for SMEs

Metro Bank customers currently make up to 250,000 trips to deposit or withdraw cash at Metro Bank stores every year, with cash deposits of more than £30 million made by SMEs at Metro Bank stores every month.

Managing cash can present both time and security issues for businesses. MCash promises to give SMEs back vital time to spend running and growing their businesses.

According to new research from Metro Bank:

  • One in three SMEs (34%) have to travel to their local bank at least once a week
  • Almost half (46%) of SMEs who have to deposit cash agree that depositing cash is a waste of their time
  • SMEs spend on average three working days every year just withdrawing or depositing cash at the bank
  • Having enough time is one of the top three issues that concern SMEs, alongside online security and maintaining a work-life balance.

The Bank’s research also reveals two in five senior decision makers at SMEs that handle cash (44%) have felt vulnerable carrying cash from their business, one quarter (27%) have been threatened, and a similar proportion (25%) have been robbed or physically harmed.

Paul Riseborough, chief commercial officer at Metro Bank, says: “MCash brings the latest technology to bear on an age-old problem – how to support SMEs that need to deposit and withdraw notes and coins.

“It’s another example of the game-changing digital innovations that Metro Bank is bringing to the market to help give our SME customers the edge in today’s competitive market.”

Natalie Ceeney CBE, chair of the Access to Cash Review, added: “Millions of people rely on cash in the UK – and while there’s been a lot of attention on ensuring consumers can get cash, it’s equally critical that they can spend it. Small businesses play a critical role in keeping cash viable, and we need to make it easy for them to keep banking cash, allowing them to remain flexible to consumer preference and to get on with their day-to-day business.

“I’ve long questioned why you can order a takeaway pizza on your mobile app, but a small business can’t get cash delivered direct to its door. Metro Bank’s MCash service is exactly the type of innovation we need to see to tackle this issue and keep cash a viable option for millions of consumers nationwide.”

This new service comes as Metro Bank sets about injecting much needed competition into the small business banking market – deploying the £120m funding it was awarded from the Capability & Innovation Fund alongside the Bank’s own investment to transform the UK SME banking experience.

Launched in partnership with RMS Group Services – a leading challenger provider of cash in transit services providing services across the UK and Republic of Ireland, Metro Bank will initially be accepting registrations from customers based within a 30-mile radius of six Metro Bank stores west of London. The service will continue to roll-out across Metro Bank’s 71-strong store network in 2020. The service will be available to sole traders and single director limited companies.

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