Invoice financing for SMEs

There has been a lot of publicity recently on the availability of finance for small to medium sized enterprises (SMEs), particularly focusing on traditional bank loans or equity investments.

However, as Hart Shaw notes, there are other forms of business funding which should also be considered as an alternative source of money for firms.

Invoice finance is a solution that is being increasingly used by companies to deal with late payments whilst also improving cashflow. This is where a finance provider pays an agreed proportion (usually 80-85 per cent) of approved invoices to the company on receipt of a copy of the invoice. The balance (minus a small charge) is paid upon client payment.

Patrick Abel, Corporate Finance Partner at Sheffield-based Chartered Accountants, Hart Shaw said: “With the economy growing, there has been a surge in demand for working capital in the SME sector that has created lots of opportunities for more invoice financing. Despite this, its current use is relatively low compared to ‘traditional’ sources of lending. In fact, only around 43,000 SMEs out of a total of nearly five million in the UK are currently using invoice finance.

“Whilst invoice financing is available from the banks and independent providers, one of the major problems is that there is a general lack of awareness by SMEs of the advantages of utilising this source of funding.”

For more information please contact Patrick on 0114 251 8850 or patrick.abel@hartshaw.co.uk.

 

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The Adviser – Summer 2013

Welcome to the Summer 2013 edition of The Adviser, Hart Shaw’s periodic client newsletter. This newsletter aims to introduce you to the people behind the services at Hart Shaw and give you relevant points of contact for our more specialist services.

Our lead article focuses on preparing your business for sale or succession and the importance of developing a long term plan in order to maximise business value.

We would like to introduce you to our new Business Recovery Partner, Emma Legdon, who was made a partner at Hart Shaw earlier in 2013 after being with the firm for 20 years. Emma’s article on the current state of the economy shows that the recession may not be as bad as feared and that there are positive signs on the business recovery front.

We also introduce our new VAT Adviser, Carla Davis who provides a very interesting article on the history of VAT now that it is in its 40^th year of taxation.

Hart Shaw’s Financial Planning department would like to inform company directors to a new tax efficient life insurance product which is now available.

We also have some important news for users of Sage 50 Accounts software.

Our guest article comes from Reynolds Trade Credit, a key business partner to Hart Shaw who discuss the credit insurance market and how this can help with risk management for businesses who are looking to grow in difficult times.

Finally, no newsletter is complete without a plug for our social media forums! If you would like to engage with Hart Shaw on a more regular basis please check out our Blog, LinkedIn, Twitter and Facebook feeds. There are some smart phone links on the front page which will direct you to these forums.

As ever, we really appreciate any feedback you can give us about this newsletter, our other communications and the services we provide so if you would like to get in touch please email us at adviser@hartshaw.co.uk.

Click here to download The Adviser

International Opportunities for Rotherham Companies

Have you considered international expansion?
Are you ready to export?
Are you looking for new export markets?

Rotherham Investment & Development Office (RiDO) is committed to helping assist Rotherham companies to explore potential international trade opportunities.

RIDO provides an advice and mentoring service in all areas relating to exporting and international trade including;

• Researching markets aboard to identify potential opportunities
• Sourcing potential suppliers, partners and customers
• Help to understand the business culture in target markets
• Identifying appropriate skills base within target markets
• Linking to UKTI and other outward bound international support services
• Supporting your international business plans

Advice is free and completely confidential to help you make informed decisions, and take advantage of international opportunities for your business.

Hart Shaw works closely with RIDO on numerous projects and these opportunities are available to micro businesses based in Rotherham, with up to 10 employees and sales turnover of up to £1.7m. Funding has recently been extended to March 2015.

If your business is based anywhere in Rotherham and ready to investigate potential international opportunities or expand into new global markets, RIDO’s advisors will be pleased to discuss your business developments in confidence.

For further information please call T: 01709 331133 or email international@ridobusinesscentres.co.uk.

Click here to download the information flyer.

Click here to visit the RIDO website.

SMEs urged to explore £5,000 cyber security grant

Small and medium-sized businesses (SMEs) should explore the option of bidding for up to £5,000 to improve cyber security.

The government’s Technology Strategy Board has recently extended its Innovation Vouchers scheme to create a £500,000 pot to help SMEs improve their cyber security by investing in outside experience.

Innovation Vouchers were brought in by the Department for Business, Innovation and Skills (BIS) to encourage SMEs to look outside their current network for new knowledge that can help them grow.

The grant of up to £5,000 is only available to businesses that are working with a new technology supplier for the first time and do not already have internal cyber security expertise.

BIS are also publishing new guidance to help SMEs deal with cyber security – helping to ensure that it makes up part of their internal business management procedures.

Last year it was estimated that 86 per cent of all small businesses reported at least one cyber security breach, up from 76 per cent the previous year.

Cyber security is an increasing challenge for small and medium sized businesses, and is a hurdle that must be overcome to ensure future growth.

This new package of measures introduced by the government will help SMEs take small but meaningful steps towards effective cyber security.

For further information, please contact Steve Bell, Head of Corporate Finance on T: 0114 251 8850 or email: steve.bell@hartshaw.co.uk.

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Hart Shaw Corporate Finance

Managing your business and its customers: Strategic steps to ensure business survival and long term growth in the current economic climate

A joint seminar with business experts Hart Shaw and Wosskow Brown.

We are all aware of the tough economic conditions at present in the UK. What you need to know is how to successfully manage your business through these difficult times in order to come out stronger and grow your business.

Business experts Hart Shaw and Wosskow Brown are teaming up to provide a timely breakfast seminar which focuses on how effective management of customers and suppliers can maximise recovery options and achieve growth. Topics for discussion include:

• Cash flow management
• Understanding your business
• The funding market
• Successful management
• Getting your terms and conditions right
• Effective debt collection
• Business survival strategies
• Recovery options available

Join Steve Bell, Head of Corporate Finance at Hart Shaw, Christopher Brown, Business Recovery Partner at Hart Shaw and Kiley Tan, Head of Commercial at Wosskow Brown over breakfast at Hart Shaw’s offices for a seminar that provides a crucial insight into how a thorough review of your business operations can ensure survival and long term growth.

The details are:

• Date: Wednesday 18^th April 2012
• Time: 8:00am for tea, coffee and breakfast sandwiches, 8:30am start and 9:30am finish with Q&A and optional networking until 10:00am
• Venue: Hart Shaw Building, Europa Link, Sheffield Business Park, Sheffield, S91XU

The seminar is FREE to attend and you are very welcome to bring a guest or a colleague.

To confirm your attendance please contact Brendan Hallat Hart Shaw on T: 0114 251 8872 or email: brendan.hall@hartshaw.co.uk. Places are limited so please book early to avoid disappointment.

We look forward to seeing you there.

Hart Shaw events

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JMC Aquatics Limited acquires aquatics division of Pedigree Wholesale Limited

JMC Aquatics Limited, the leading importer and wholesaler of ornamental fish and accessories, has acquired the aquatics division of Pedigree Wholesale Limited for an undisclosed sum.

Sheffield based accountants and business advisers, Hart Shaw and law firm Wake Smith, acted on behalf of JMC.

Pedigree Aquatics is based in a 14,000 ft² leasehold facility in Nottingham and has a broad base of trade accounts which will compliment the existing JMC business. Jane Flaherty, Managing Director of JMC, commented: “Pedigree is renowned for its quality and service and is a fantastic strategic fit with the core JMC business. The opportunity to acquire the Pedigree business made excellent strategic sense as it allows JMC to service a larger client base whilst maintaining the quality of our service. Already there is incredible enthusiasm amongst our customers and suppliers. The support we received from Hart Shaw and Wake Smith was invaluable and ensured that the transaction was delivered on time”.

Steve Bell, Head of Corporate Finance at Hart Shaw said: “As a long standing client of the practice we welcomed the opportunity to assist JMC with this transaction. It is clear that the acquisition of Pedigree is the first phase of a long term strategic plan to develop the business. The fact that we were able to structure a transaction that minimized the risk has meant JMC can take this first strategic step safe in the knowledge that the core business is secure.”

Barry Gregory, Partner at Wake Smith LLP, commented “Wake Smith has acted for JMC for many years and were delighted to have done so on this occasion. Working closely with Jane and Hart Shaw we were pleased to have been able to assist JMC in completing this exciting stage of their ongoing development plan”

Hart Shaw news

2011 – A very tough year

Anyone watching the news recently cannot avoid the general feeling of doom and gloom; the collapse of the Euro, inflation at 5% and minimal economic growth. In the face of these factors business continues to be challenging.

In a recent on-line blog someone asked whether the fact that the economy is not growing is relevant to your business? I would suggest that the answer has to be NO!

A client recently stated that he can’t waste time bemoaning the global economic crisis and the fact that funding is more expensive and restricted as all these factors are outside of his control. Every business faces tough decisions but those that are successful identify and actively manage factors that are in their control. In the past many businesses achieved success without having to try; sales were easy to achieve and profits and cash were generated. In 2008 things changed and since then we see continued pressure on margins and people chasing sales. Business owners have to work harder to seemingly stand still. In the face of these pressures we advise our clients to be as efficient as possible and manage costs. We help our clients identify their aspirations and ensure that each decision becomes a step towards those goals.

The continuing economic turmoil is leading many business owners to consider their next step. As the days of high multiples and inexpensive bank debt are long gone, our experience suggests that Vendors need to be open minded when looking at transaction structures. Many deals are being completed that include higher proportions of deferred consideration and therefore in order to generate value advisers have to look away from the straightforward and deliver innovative deal structures.

Transactions are now likely to include deferred consideration, share options, loan notes, earn outs and deferred purchase. Comparing offers with a mix of consideration takes skill with the focus on long term value at the expense of short term certainty.

Our prediction for 2012 is that the economy will continue to present challenges. Our focus is on supporting all of our clients, ensuring they end the year in a stronger position than when they started. Uncertainty and caution will continue to suppress the transaction market but we expect to see a steady flow of deals, however to secure the deals Vendors have to be open-minded.

Steve Bell, Head of Corporate Finance at Hart Shaw.

T: 0114 251 8850, email: steve.bell@hartshaw.co.uk.

Hart Shaw Corporate Finance

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Access to finance help for Yorkshire businesses

Yorkshire companies are set to benefit from a special event featuring experts from the banking and finance world aimed at helping them secure funds for business growth.

Law firm Irwin Mitchell is hosting the event as part of its 2011 Autumn Seminar Series in order to discuss and promote business innovation and growth within the region.

The free event, “It’s All About The Money”, on Tuesday 4th October will give companies the opportunity to find out about all aspects of business finance.

Financial specialists speaking at the event include:

• Hart Shaw – Steve Bell, Head of Corporate Finance will talk about the ‘fundamental challenge’

• Lloyds Banking Group – Chris Perkins, Relationship Director and Paul Varley, Senior Manager Commercial will give tips on how to work with your bank and an update on the banking sector

• Finance Yorkshire – Ian Howson, Investment Manager, Business Loans and Ash Chopra, Investment Director, Equity Linked Finance will talk about gap funding and how Finance Yorkshire can help businesses

• Yorkshire Association of Business Angels – Catherine Kennedy, South Yorkshire Ambassador will cover ‘Angel investment – where does it fit and what you need to know to get it’

• The FD Centre – Andy Collier, Regional Director will talk about the role of the finance director in maximising your chances of getting the funding you need from the correct sources

James Bullock, Partner in the Corporate team at Irwin Mitchell, hosting the event, said: “Business owners tell us that access to finance is one of the biggest issues at the moment. There are many good companies who are looking to grow and need some injection of capital in order to give them a boost. However there are ways to get access to funding and this event aims to arm people with the information and knowledge to be able to improve their chances of securing the help they are seeking.

“There is a great line up of speakers and we urge people to take advantage of this fantastic free event.”

This event is being hosted by Irwin Mitchell at their Sheffield office from 8am till 11am.

Places are limited so people wishing to attend should email melanie.parker@irwinmitchell.com or call 0114 274 4489 as soon as possible.

Click here to view Hart Shaw’s events calendar.

It’s all about the money!

For perhaps the first time ever we are giving you the opportunity to find out about all aspects of business finance – and it’s for free!

Give us just a few hours out of your busy schedule and you will hear from the following financial specialists:

•  Hart Shaw – Steve Bell, Head of Corporate Finance will talk about the ‘fundamental challenge’

•  Lloyds Bank – Chris Perkins, Relationship Director and Paul Varley, Senior Manager – Commercial will give tips on how to work with your bank and an update on the banking sector

•  Finance Yorkshire – Ian Howson, Investment Manager, Business Loans and Ash Chopra, Investment Director, Equity Linked Finance will talk about gap funding and how Finance   Yorkshire can help businesses

•  Yorkshire Association of Business Angels – Catherine Kennedy, South Yorkshire Ambassador will cover ‘Angel investment – where does it fit and what you need to know to get it’

•  The FD Centre – Andy Collier, Regional Director will talk about the role of the finance director in maximising your chances of getting the funding you need from the correct sources.

It will be time well spent!

This event is being hosted by Irwin Mitchell at their Sheffield office.

Places are limited so reply as soon as possible to ensure you don’t miss out.

Event details: Venue: Irwin Mitchell Riverside East 2 Millsands Sheffield S3 8DT

Click here for map

Date: Tuesday 4th October 2011

Timings:

• 8:00am registration, breakfast and networking
• 8.30am seminar starts
• 11:00am close

To register your place please contact Brendan Hall, Marketing Co-ordinator on T: 0114 251 8872 or email: brendan.hall@hartshaw.co.uk.

Hart Shaw forthcoming events

Money Matters – Hart Shaw’s Summer 2011 newsletter

The summer issue of the Hart Shaw newsletter, ‘Money Matters’ is now available to download for free from our website. 

Money Matters, Summer 2011 newsletter from Hart Shaw

Our newsletter starts with the news that from 6 April 2011, anyone with tax irregularities involving offshore affairs could face a penalty of up to 200%. If this is an area of concern for you, it is important to make sure all your affairs are in order as HMRC mean business! Significant new penalties are also in place for the late filing of the 2010/11 self assessment tax returns and the late payment of tax due. Our article ‘I’m late…’ explains further.

HMRC are also taking a close look at loans made to directors of family companies which have been written off to see if they give rise to a national insurance liability. ‘All a-loan against HMRC’ looks at the arguments HMRC put forward to win their case. Our article ‘Van-tastic’ reviews the tax position on employer provided vans as this has also become an area of interest to HMRC.

With the new tax year now underway, we look at how the new level of personal allowances and national insurance changes impact on the individual tax payer.

Our newsletter does contain some lighter news! Business owners may wish to take advantage of the grants and funds available to help businesses to grow and owners of agricultural property will enjoy reading ‘Relieving the IHT burden’.

In addition to the newsletter you will find special briefings where we look in more detail at:

Pensions 2011/12 – the changes explained

Every so often UK governments tackle the thorny issue of the amount of tax relief which it is appropriate to allow for contributions into a pension scheme and the extent of taxation when the funds are withdrawn from a scheme when the taxpayer retires. The Finance Bill 2011 sets out new limits on the amount of tax relief that may be available but also introduces relaxations to the system of accessing the funds in retirement.

Our briefing sets out the main features of the new regime including points to consider in planning for retirement and taking your money in retirement.

Business Travel and Subsistence – What you can and cannot claim

Travelling and subsistence expenditure incurred by the self-employed or by employees can give rise to many problems. If travelling and subsistence expenses are incorrectly claimed it may be some years before HMRC review your tax returns. An overclaim could therefore lead to additional tax, interest and possible penalties.

Our briefing highlights the main areas to consider in deciding whether tax relief is available on these expenses

Please contact us if you have any questions regarding any of the articles we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome any feedback you could give us.

Please click here to download your copies.