Issue 1. October 2019

Hilton Smythe Finance Newsletter
Development Finance

NEWS HIGHLIGHTS

Housing and residential developments are on the rise in the finance sector.


Hilton Smythe Finance have secured a start-up Business Loan for a former accountant, Emily Coy.


Warnings over SMEs not ready for no-deal Brexit.


Another very happy client completing on their dream purchase.


Thousands of UK companies plan to use finance to improve their cash flow in the future, according to new research.


Things are developing with Hilton Smythe Finance

Housing and residential developments are on the rise in the finance sector as Hilton Smythe finances more development loans from apartments, barn conversions to housing. One of the deals we have secured recently has been a development loan for an experienced property developer to build two semi-detached houses in Manchester. Having previously sourced funding themselves at rates around 1% per month, he was introduced to us by a friend of his, who we have assisted previously. We managed to place this with a high street lender and obtained a loan of 60% loan to cost at a rate of 4.75% per annum which the client is delighted with. 


Experienced property developer to build new homes

A £1.6m development loan has been fully credit approved just four working days after a joint meeting with the client and lender. This is for a ground up development scheme for 10 x 4 bed detached houses for a business dealing with construction of domestic buildings. At 73% loan to cost and 60% GDV, the client is delighted with the outcome and the 7% rate achieved.


Do you have a Grand Design?


With the famous housing renovation and development programme back on screens for its 20th anniversary, inspiration for residential planning and funding is underway.

With so many exciting projects and visions, people are taking the leap in development with more and more turning to finance brokers to aid in the funding. 

Development Finance

Property Development Finance

Looking to build, refurbish or develop a property? Then get in touch and see how we can help you realise your dreams!’


BUSINESS FOCUS

Figures add up for former accountant Emily

Hilton Smythe Finance have secured a start-up Business Loan for a former accountant, Emily Coy, who has taken the big step forward to help other business owners with the nationally recognised franchise ‘Business Doctors’.

emily coy business doctor

Hilton Smythe prescribes another Business Doctor

As a company, our whole ethos is to help sustain UK business and help businesses grow, so it’s no surprise that we are delighted to help the Business Doctors franchise develop. We have secured a start-up Business Loan for a former accountant, Emily Coy, who has taken the big step forward to help other business owners with this nationally recognised franchise.

Our client, Emily Coy, is opening the Business Doctors franchise in the Chesterfield area to help coach other businesses with strategies on finance, marketing and business support.


This is a massive, life changing move for me, as I will be swapping accountancy for working from home and reaching out to local business owners.”


With 15 years of skills and knowledge as an accountant, working most recently at Mitchells Chartered Accountants in Chesterfield, with her own portfolio of SME clients, Emily will be applying this experience to the franchise and the Chesterfield Business Doctors territory but also having access to the nationwide Business Doctors’ network.

She said: “The loan, arranged by Alex Heylings, commercial finance broker at Hilton Smythe Finance, was an absolute necessity to help me establish my franchise.

“This is a massive, life changing move for me, as I will be swapping accountancy for working from home and reaching out to local business owners.“In the early days I will have to work hard to attract clients, but I expect to be very busy, very quickly, providing support and advice on sales, marketing, staffing and financial strategies.”

Alex Heylings, said: “It’s fantastic to see Emily begin her journey to support others in their business ventures and I’m sure her diverse offer will deliver a high-quality service for the people of Chesterfield.” 

Emily said: “I can’t praise Alex enough for his support through my change of career. He has been really valuable in developing my strategy, guiding me and supporting my business during this crucial start-up phase.”

“Without Alex and the team at Hilton Smythe Finance, I wouldn’t have had the finance to create my business and I would recommend any entrepreneur to contact Hilton Smythe Finance when they are starting out on their business ventures.

“It has been very re-assuring to have somebody so professional and knowledgeable to be at my side through this life changing process.” 

We’re looking forward to seeing the success stories Emily creates with her business coaching and wish her all the best with such an established brand that she is going to add a lot of value to.

Commercial business loans

Looking for a commercial business loan? Then get in touch and see how we can help you and your business grow!


ECONOMY

Inflation slows to lowest in three years

UK inflation fell to its lowest point in three years in August, the Office for National Statistics has said, after prices rose by an annualised rate of 1.7% – well below the Bank of England’s 2% target. Computer games accounted for 0.15 percentage points of the fall with cheaper clothes, toys and petrol helping to pull inflation down to its weakest annual pace since December 2016. Ian Stewart, chief economist at Deloitte, said: “Sharply lower inflation is great news for the UK economy. Along with soaring earnings, low inflation boosts consumer spending power just when the economy needs it.” Yael Selfin, chief economist at KPMG, commented: “The falling inflation rate could be an early signal of a cooling economy, in line with what we have seen in the US and the euro area.”

Source: NACFB. The Times, The Daily Telegraph, Financial Times, The Guardian & BBC News.

Inflation finance

Warnings over SMEs not ready for no-deal Brexit

Sky News reports that senior bankers have warned Chancellor Sajid Javid that the majority of UK SMEs remain largely unprepared for a no-deal Brexit. Bosses of major UK lenders including HSBC and Lloyds Banking Group were reportedly among those highlighting concerns. Among those present at the meeting were Jes Staley, Barclays chief executive, Goldman Sachs International chief executive officer Richard Gnodde, and David Schwimmer, CEO of the London Stock Exchange Group. Bruce Carnegie-Brown, chairman of Lloyd’s of London, John Kingman, chairman of Legal & General, and Howard Davies, chairman of RBS, also attended.

Source: NACFB & Sky News.


COMPLETED DEAL

We can make dreams come true

Another very happy client completing on their dream purchase of a long established, large cattery. We obtained a great deal for them, securing a £1m loan (80% loan to value) on a 20 year commitment and repayment term, on a rate of sub 4%.

The Cattery was established in the early 1990s and has been owned by the existing owners since 2004. It has 84 houses and is licensed to take 100 cats plus 7 for cats protection and is situated in a very peaceful rural environment, set in over 5 acres of land. It is an International Cat Care listed cattery (formerly known as Feline Advisory Bureau) and is also used by the Cats Protection League to home cats prior to re-homing. It has an excellent reputation among customers and there is a high level of customer loyalty, due to the quality of care provided.


FINANCIAL NEWS

Thousands of UK SMEs seeking finance to improve cash flow

Thousands of UK companies plan to use finance to improve their cash flow in the future, according to new research.

Analysis by Purbeck Insurance Services found that 28% of SME executives interviewed said they were turning to external funders, including to cope with late payments.


Todd Davison, director at Purbeck Insurance Services, explained: “Cash flow is the life blood of any small business. But for a whole variety of reasons, not least the current economic uncertainty, an SME business owner may find themselves looking at unpaid customer invoices, bills from suppliers and wage rolls, and wonder where the money is going to come from.


“Small businesses are owed billions in late payments; whole supply chains are affected and end up borrowing to fill the gap while they wait to get paid.”


However, he warned that using finance to resolve cash flow problems is a “double-edged sword” and business owners should first consider operational changes that might deal with short-term problems.


Davison added: “It would be prudent for the business to take the time to review its financial situation as a whole. In doing so, the owner may find some changes can reduce the need for, or at least the amount of, additional finance.”

Strategies could include restructuring current finance arrangements, reviewing credit terms to suppliers, outsourcing the late payment debt, improvement stock control or looking at alternative sources of income such as renting office or warehouse space.


Other reasons for sourcing finance included acquiring equipment (27% of respondents), supporting a business acquisition (10%), R&D (9%) or recruitment (7%).


Davison recommended that if business owners are providing personal guarantees to secure loans, it is important to consider insurance to protect their personal assets should they encounter repayment problems.


Source: NACFB. Asset Finance International. Written by Miles Rogerson.

Invoice factoring finance

Invoice Financing & Factoring

Want to find out more about additional types of funding and finance available to help your cash flow? Then get in touch below.


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