It is reported that the British Business Bank has launched the Growth Guarantee Scheme. This aims to Provide access to finance for UK SMEs. The scheme is expected to support around 11,000 smaller businesses between July 2024 and March 2026. To date, 41 Lenders have been accredited for the scheme, with more to follow! Of these 20 are ready to accept applications.

The scheme’s terms remain broadly unchanged from its predecessor. This was the Recovery Loan Scheme. Under the scheme Lenders will provide various types of finance. These will include term loans, overdrafts, asset finance, invoice finance, and asset-based lending. Facilities will be provided up to a maximum of £2m per business. Size of Loan will, however, vary depending on the type of finance. Businesses that have taken out previous loan schemes will also be allowed to access the Growth Guarantee Scheme.

iBOSS Comment:

If you would like to know more about the new scheme &/or need help in submitting an application then call us at iBOSS (The Independent Business Owners Support Services) on 07770 866 955, e-mail to info@theiboss.co.uk or complete our enquiry form.

#governmentloanscheme #Growthguaranteescheme #recoveryloanscheme  #financeforgrowth

The Times reports that small businesses have seen an increase in profits by 6.5% in the first quarter of 2024. This is despite a decline in revenues. According to Sage’s small business tracker, companies have been cutting costs to bolster profitability. It states, however, that many are waiting for a more stable economic and political climate before making investments.

iBOSS Comment:

A regular review of costs & expenditure should be a standard procedure for any well-run business. Any resultant cost reduction is normally to be encouraged, unless that is, it would seriously affect future growth potential. This is Where the Team at iBOSS can be of considerable assistance. Between us we have many years of experience in reviewing company operations with a view to maximising returns. If you are interested in an impartial review of your business’s operation call us on 07876 503830 and ask for a free consultation on the services we offer. Alternatively complete the enquiry form by clicking on this link.

#costreduction #reducebusinesscosts #businessefficiency

It is reported that UK manufacturers’ confidence is at its highest level in a decade. Businesses are seeing  signs of a real economic turnaround. A survey by Make UK, reports that both output and orders have improved. Thus confidence has reached a rating of level 7 (on a scale of 1 to 10). This is only the second time it has reached this level since 2014. This is due in part by Manufacturers being hopeful that interest rates will fall as inflation cools. One benefit is that, with demand soaring and optimism increasing, more businesses expect to recruit over the next few months. The manufacturing sector is expected to outpace overall growth this year. Growth is forecast at 1.2% compared to 0.9% across the broader economy.

iBOSS Comment:

Encouraging news that reflects what we have been hearing from the marketplace. One hopes that the results of the pending UK elections will not have an adverse effect on this optimism. Are you are looking to grow your business? Do you need help with planning &/or finance for that growth? If you do, then call us on 07876 503830 for a free consultation.

UK businesses organisations are urging the future Government to be far more proactive in helping firms to adjust to changes in the global economy. The Confederation of British Industry wants the next government to deliver a programme of targeted subsidies. The purpose: to help firms adopt new technologies. Meanwhile, the British Chambers of Commerce (BCC) has called for the appointment of an ‘AI champion’ to mastermind the uptake of new technologies among SMEs. The Director of policy at the BCC, said this will require “long-term buy-in from our politicians.”

iBOSS Comment:

This is indeed a matter of vital importance for the future of the UK economy. It is essential that businesses thrive and that our exports grow. The objective: to reduce the current balance of trade deficit. This is the only real long-term solution to release all the extra finance needed to achieve all that the politicians are currently talking of funding. All they currently appear to be contemplating is simply ‘shuffling the deckchairs on the Titanic’. One hopes that both politicians and the UK media will pay serious attention to this. If you need help and advice on growing your business call Phil on 07876 503830. Alternatively complete the enquiry form on our web site.

One of the established ‘alternative’ lenders to SMEs, iwoca, has published a new Broker survey. This claims that the main high street banks are expected to further reduce funding for SMEs. They claim that 77% of SME finance brokers believe high street banks will decrease their appetite to fund small businesses. It also says that 86% of brokers expect to see increased demand for SME finance in the next six months. However 68% believe that, in spite of this the high street banks will still reduce access to working capital for SMEs.

Analysis of Bank of England data shows that 77% of gross lending went to larger firms last year. In contrast the total value of lending by the big banks to SMEs in the first quarter of 2023 has fallen. This is by more than £1bn over the same period i.e. from £15.5bn in Q1 2023 to £14.2bn in Q1 2024.

iBOSS Comment:

The decline in lending to SMEs by high street banks has led to a rise in the popularity of specialist lenders. Some 59% of SME lending now comes from outside the big banks. These specialist lenders have proliferated, particularly since covid, with iwoca being just one of them. Indeed this has raised a new problem. That is to determine which of the ‘alternative’ lenders offers the best option for a particular business. Here is where our associate company BFS, with their experience going back over 20 years, can be instrumental. They can ensure that the best funding option(s) is chosen. For a free consultation fill in their enquiry form at www.bufinserv.co.uk or e-mail enquiries@bufinserv.co.uk and they will get back to you.

#businessfinance #alternativecommercialfinance #businessloans

According to the Office for National Statistics (ONS) the decision-making skills of the worst-performing UK SMEs were well below average in 22/23. They were more likely to make guesses when faced with challenges than make decisions based on business analysis. The survey found that, although management had made an improvement on the previous year,  family-owned businesses had lower scores compared to those run by career managers. Interestingly foreign ownership had a positive impact. The main barriers to improvement were being too busy, not seeing the need for improvement, and concerns about cost. The survey also revealed that small firms and manufacturing companies had poorer management practices. The ONS highlighted the importance of continuous improvement and performance measurement.

iBOSS Comment:

Based on our experience this conclusion by the ONS is a rather harsh assessment. There are undoubtedly many SMEs with highly competent management as can be seen by improved performance over the first quarter of 2024. (One has to wonder in fact whether they have included Government performance in their survey! ). Having said this, the ONS comments about cost and lack of time are regular factors we recognise. It’s all too easy for hard working mangers to miss the obvious inefficiencies. This is where we at iBOSS can help with our long experience of business management.

If you feel that your business is not achieving its full potential but can’t put your finger on the reason(s) then give us a call at iBOSS. For a free consultation and to learn how we can help simply call Phil Jones on 07876 503830 or e-mail him on phil@theiboss.co.uk.

The FSB reports that confidence among small businesses has climbed in the first three months of 2024. Their index returned to positive territory for the first time in two years as business confidence increased by 20 points between January and March. The increase took the balance of firms feeling confident to 5.5 points. The most confident sector was manufacturing, which rated 19.1 points. Having said this, when questioned about challenges, 83.7% said that increases in operating costs were their main concern. This particularly related to rising utility and labour costs. The Policy Chair at the FSB, said that “The rebound in confidence levels in most sectors is a good indicator that the shallow recession recorded at the end of 2023 is firmly in the past. Many SMEs are now keen to look ahead to expansion and better trading conditions.”

iBOSS Comment:

Generally encouraging news, particularly as manufacturing is leading the way. If you need some help, guidance or finance in growing your business then call us at iBOSS for a free consultation. Simply call 07876 503830 or e-mail info@theiboss.co.uk

#growingyourbusiness #businessgrowth #businessadvice

The Telegraph has reported that apprentices are a better option for learning. The claim is that they can out-earn university graduates. This applies to the first 5 years of their working life. Furthermore they avoid the £45,000 of student debt that graduates can incur. Engineering apprentices in the electricity generation, water provision and manufacturing earn an average of £39,200 after five years. This surpasses the estimated £36,500 earned by engineering degree graduates. Apprentices in building and construction also tend to out-earn their university counterparts. Another advantage of many apprenticeships is that they offer more immediate job opportunities. Figures show that 77% of apprentices are in sustained employment one year after completion. This compares with 62.5% of graduates. 

BFS Comment:

Some strong arguments for young people to consider taking an apprenticeship rather than going down the pure academic route. The only thing they miss out on is the ‘Students Union.’ That can be compensated for by local Pubs & Clubs. One advantage of a proper apprenticeship is that it gives experience of work/business at a much earlier stage. Having said this, the perfect solution is what used to be called a ‘Sandwich Course’. This involves part time with an employer and part time at college.

Action Fraud replacement

James Thomson, chair of the City of London Police Authority Board, has announced a new £152m anti-fraud web site. This service will replace Action Fraud. The objective is to tackle fraud and cybercrime more effectively. This is in response to MPs on the Public Accounts Committee having described the current reporting system as “unfit for purpose.” Mr Thomson insists that the new service will speed up the time it takes to report offences, keep victims informed of progress and quickly close fraudulent websites and bank accounts.

iBOSS Comment:

Our Associate company, Business Finance Services, suffered a Cyber attack back in 2022. On that occasion, Action Fraud acted swiftly and prevented any serious damage. Anything that can be done, however, to further improve the protection available to SMEs is to be encouraged. This particularly applies when the perpetrators are based overseas!