European Investment Bank Grants For Machinery
One of our underwriters is presently offering assistance on finance for machinery with grant assistance from the European Investment Bank. We can obtain a reduction in the interest rate of 0.25% per annum which is paid in advance as a cash rebate. The minimum balance to be financed in £75,000 with repayment periods of either 4 or 5 years. Whilst it is not a huge amount it is still worth having. We are just looking at a finance agreement for 2 x New Mazak Machines where the balance to be financed is £252,100 and the grant is £1,517.14.
Please contact us for further information.
Annual Service Fees – Check the small print.
In 2007 one of the asset finance lenders was thinking of ways to cover the costs of some their office support staff. These were the staff who provided things such as settlement quotations, copies of documents and general administration queries.
They came up with the idea of charging annual service fees. Since then many others have also decided to charge them. Often these are not fully disclosed at the quotation stage so whenever you are signing asset finance documents check them carefully.
At Premier Business Finance we have agreed with all our regular lenders that no customer will be paying such fees. In the unusual event of us having to use a non regular lender any such fee is fully disclosed and there are no disappointing surprises.
Please contact us for further information.
Director’s Personal Guarantees – Beware
In many cases when lenders make an offer of finance it will come with the underwriting condition that a Director’s Personal Guarantee is required. However some lenders use documents which are drafted on the basis of a “blanket” or “continuing” security basis which is not always fully explained to the customer.
We completed some finance for a customer recently who told me about his unfortunate experience. He had previously dealt with one of the major finance houses and that he had given them almost all of his business for many years. This was partly due to to the fact that they never asked him to sign any personal guarantees after the very first agreement they completed and that they were never requested again by the lender. The fact that no personal guarantees were involved was very important to him. He was then very disappointed to discover years later when has borrowings were up to over £300k that on the very first agreement he had signed a “blanket” guarantee.
A blanket guarantee contains an “all monies” clause and also a “continuing security” clause. These basically mean that the personal guarantee you are providing not only covers the present agreement but also all of those you may have completed in the past and also all of those you may complete in the future with that same lender and maybe even other parts of their group.
It is therefore very important when you sign a personal guarantee to check that it is specific to the agreement you are completing or alternatively be aware of the implications of “blanket” guarantees.
Keith Pallett, Managing Director.
Turning machines into cash.
After a slowdown in August maybe a boost to cash flow is needed. Machine Refinance could be the answer.
Annual Investment Allowance Change
I have been asked several times recently about the Annual Investment Allowance. It is presently £500,000 per annum for the purchase of plant and mschinery. It was due to change back to £25,000 on 1st January 2016. However George Osbourne announced in the recent budget that it will now be £200,000 with effect from 1st January 2016.
Keith Pallett
Phone Ringing Again
After a month of thinking our telephone had been disconnected it has started to ring again this week. Generally most people I talk to have had a quiet spell over the last month or so. Hopefully we will have a good run of business once the holiday period is over. The concerning news stories such as Greece, the depressed oil price and weakness of the Euro against the pound have certainly had an impact on the manufacturing sector.
Money Costs Increase
There has been an increase in the cost of funds from most of lenders of around 0.1% this month. It seems likely now that bank base rates will rise next year, probably between February and May. Longer term interest rates have therefore risen in anticipation of the increase. Indeed one member of the Monetary Policy Committee voted for an increase now but was out voted 8 to 1.
Dedication To Duty
On a short break in Cornwall this was one of the only places MD, Keith Pallett, could get a mobile phone signal. This was right on top of the sand dunes near Perranporth.
Post Election Enquiry Level Up
Following a disappointing April, May has been a much better month achieving 100% of target. The enquiry level has also increased significantly following the General Election and prospects for June & July also look good.
Corporation Tax Loans
We are now able to provide finance for your Corporation Tax bill over 12 months. This spreads the cost over the year rather than having to find the cash immediately.
Earned income is subject to additional taxes to pay for, among other things, Social Security and Medicare. Income is taxed at the federal, state, and local levels. Although avoiding taxes is difficult, there are numerous methods that can assist.
Investing can be a useful way to build wealth. The favorable tax treatment of long-term capital gains is an additional advantage of investing in stocks, mutual funds, bonds, real estate, and other investments.
A preferential tax rate of 0%, 15%, or 20% on the capital gain is available to investors who hold a capital asset for more than one year, depending on the investor’s income level. The capital gain is taxed at ordinary income rates if the asset is held for less than one year before being sold. It’s important to know the difference between short-term and long-term capital gains rates if you want to get rich. Here is a guide on how to reduce your taxes and help you get richer.
You can reduce the amount of income that is subject to taxation in a few different ways. These include making contributions to a health savings account (HSA), a flexible spending account (FSA), or a traditional IRA, as well as to an employee contribution plan like a 401(k). Numerous items are eligible for deduction by the IRS. Costs for a home office, a car, a cell phone, contributions to a self-employed retirement plan, and premiums for self-employed health insurance are just a few examples.
Please contact us for more information.