At the same time, the amount of lending to businesses was down by a further 3.6%, despite attempts by the Bank of England to boost such lending in the form of the Funding for Lending Scheme.

The Funding for Lending Scheme (FLS) has been criticised for failing to boost lending since it began in August 2012.

The idea is that banks can borrow money at a discount from the Bank of England, providing they can show they have passed it on to customers in the form of loans.

The Bank has always argued that it will take some time to have an effect, particularly with lending to businesses. But we remain unimpressed by the scheme – businesses need access to funds now and don’t need to be put through unnecessary underwriting to get it.

Last month, the Bank announced that the scheme would be extended by an extra year, to January 2015.

If your business could benefit from a financial boost, bypass the banks and get in touch with us. We do what we say we do – lend money!

So many business owners are telling us how hard it is getting finance from the banks. A ‘risky’ deal in the bank’s opinion may just need common sense underwriting. We are making the most of the bank’s inflexibility, supporting businesses across the UK.

So far this month, we have helped a window manufacturer by raising funds against existing machinery, financed a new van for a local engineering company, and we have helped a haulage company switch factoring providers. And there is still a week left in May…

Here at ALG Finance, we can find innovative solutions for businesses to ease cash flow headaches. If you have a cash flow problem or think you might in the new year, why not get in touch to see if we can help – we will be only too happy to have a no obligation chat with you.

In the meantime, we wish you a very Merry Christmas and a prosperous New Year.

But what is the “AIA” we hear you ask?

The AIA is effectively a 100% first-year allowance for business expenditure on almost all plant or machinery (apart from cars) currently capped at £25,000 a year. It accelerates the tax relief on items that would otherwise receive relief spread over a number of years.

AIA replaced the ‘First Year Allowance’ scheme in 2008 as a method of simplifying the tax system for businesses and to incentivise investment. It is available to businesses regardless of their size or legal form.

What could this mean for you?

In short, if you are considering acquiring plant and machinery in the immediate future, consideration should be given to delaying until the new year to get the maximum benefit of the increased rate. However, you can still get in touch with us this year to get the ball rolling!

If you would like further information on this subject, please contact us.

Whilst some deals take a little longer to complete, we are committed to providing our clients with a streamlined service. Being an own-book lender, you can save time and hassle by cutting out the middle man. Get in touch today!

To CAPITALISE or not to CAPITALISE that used to be the question. Historically accountants would look to classify all expenditure as Profit & Loss items and reduce the profit and consequently the tax charge. This was due to the fact that tax relief on assets was received over a period of time.

Since the introduction of the Annual Investment Allowance in 2008 the goal posts have changed. Now we look to classify expenditure as Balance Sheet items as we can claim 100% tax relief on the majority of asset types in the first year up to £25,000. Therefore you can improve the look of your Balance Sheet but also obtain the tax relief in the year of expenditure.

For more information go to Manchester Accountants.

It is probably more true now than ever, and we are hearing of many cases where businesses are struggling to get their banks on board with their financial requirements.

If this is ringing a bell, get in touch, even if it’s just to have a vent. A problem shared is a problem halved…

Invoice finance involves a business assigning its customer sales invoices to a finance provider who can advance up to 85% of the sales value. Invoice finance providers vary greatly and have different specialities, so if you are considering invoice financing for your business, it is worth doing your homework to find one that suits you. Here are 5 key points to consider if you think your cash flow could benefit from some external help.

1. Your debtors could be your biggest asset
A company’s debtor book is fast becoming its most valuable asset, and the next best thing to cash. Having ‘cash’ tied up for long periods of time can cause problems, so the implementation of a structured invoice finance system can make a huge difference. You are effectively borrowing your own money – it is just that you have not received the money due to you yet.

2. External providers can chase your late payers for you
An invoice finance provider can take away the hassle of chasing late payments – they will have a team of experienced credit controllers who will deal with this for you, from issuing statements to your customers to collecting monies due on your behalf. Some business owners fear upsetting valued customers, so external help can provide an ideal solution.

3. A confidential service
Many businesses appreciate the anonymity offered by invoice discounting. Your customers need never know that you’re utilising this service, although the negative perceptions of using invoice discounting are fast disappearing as the number of businesses who see the benefits of using it increase and word of mouth spreads. It doesn’t mean you’re in trouble, it just means you want your money faster!

4. Reduce the risks to your business
The Insolvency Service reported on the 4th May 2012 that the number of business insolvencies had risen to 4,303 during the first 3 months of 2012, up 4.3 % on the same period last year. Therefore, it is more important than ever to protect your business with bad debt protection – a service designed to complement an invoice finance agreement which ensures payment in the event of the formal insolvency of the customer.

5. Talk to us
As there is such a wide range of financial products on offer it is important to understand what will suit you best. Invoice finance can help to solve the problems of slow paying customers, shortage of working capital and protect against bad debts. It is very much a case of financial products moulding to meet your needs and by working in partnership with us, we can find the ideal solution for you. We are always happy to talk through any ideas you have so get in touch today.

The number of well-established finance alternatives out there mean business owners can really shop around to find the best solution for them. We are always happy to discuss the various options available, so please do get in touch.