US small business financier Business Financial Services has launched its UK arm, Boost Capital, and a £50 million fund that will help businesses to bolster their cash flow and invest in expansion.

Boost Capital enables businesses to use their future credit sales to access the unsecured funding that they need to invest in new equipment, stock, marketing, remodelling, expansion and other business demands. Business owners who accept credit and debit cards as a form of payment can qualify for £5,000 to £500,000 in 24 hours and receive funds in as little as five days.

Through a secure Escrow service, supported by national accountancy firm, Baker Tilly, Boost Capital receives a fixed percentage of future card transactions, ensuring that payments are made in line with sales performance. Based in Chelmsford, Essex, Boost Capital is the UK arm of Business Financial Services, one of the leading providers of business cash advance in the USA.

David Abbott, UK managing director of Boost Capital, said: “Business cash advance is a relatively new concept in the UK and one that has the potential to become a vital part of the SME funding mix. Its arrival on our shores is in response to the growing demand from businesses, many of which are struggling to access bank funding, for more flexible alternative sources of capital.

“By the end of 2012 we expect to have extended over £10 million in funding and be renewing cash advances to merchants who have seen the benefits to their business of using a Business cash advance to grow their market share.”

Boost Capital is the UK’s first universal business cash advance provider, which means that businesses with any card processor can access their products without having the hassle of changing their existing relationship. Businesses that take a high volume of card sales are best suited for this service, including the restaurant, retail, beauty, and hotel sectors.

Marc Glazer, CEO and president of Business Financial Services, said: “While business cash advance is a £1 billion a year industry in the USA, the funding source is relatively unknown in the UK with only a handful of providers that are tied to certain banks. Being the first universal provider in the UK is a real landmark for the business, but also a great opportunity to become a key part of the nation’s financial landscape.”

 

It’s time to start planning your trip to the Business Show, which takes place in just two weeks.

The Business Show takes place in May at ExCel London, and has been developed to cater for SMEs looking to grow their business. The show will run over two days in ExCel London, on the 17/18 May and harbour hundreds of exhibitors and seminars, live events and interactive workshops.

Whether you are looking to grow your business through franchising or preparing to grow your business overseas, The Business Show will arm you with all the information you need to succeed – whatever your sector, whatever your stage of growth. You’ll leave the show feeling reenergised about growing your business, and armed with the essential information and contacts to help move your business forward.

There’s a reason the show runs over two days – the sheer number of exhibitors, speakers and features is huge. The show will comprise of over 250 seminars, delivered by some of the country’s leading entrepreneurs and businesspeople, while running alongside all those distinguished speakers, there will be over 350 exhibitors with products, services, support, know-how and advice you can rely on.

Learn about everything from the benefits of Cloud Computing to the newest business technologies you should be embracing. To add to that, there are networking opportunities, workshops from industry leaders and live interactive features designed to cover everything you need to know for progressing your business.

The Business Show is here to help take your business to the next level, and as a free resource, it is quite simply unmissable. This free event for professionals will bring together invaluable services, advice and support to propel your business forward. Order your free ticket here.

British SME is a media partner to The Business Show

The latest rise in corporate insolvency as reported by the Insolvency Service has reaffirmed that it is vital for businesses to be cautious when offering credit to firms.

Hilton-Baird Collection Services’ most recent Late Payment Survey, which questioned almost 250 business owners and finance directors in the UK during January 2012, highlighted that late payment remains an issue for small businesses. However, despite the rising insolvency rate, fewer than half our respondents actively credit checked new customers (47 per cent) in the second half of 2011, with fewer than one in three credit checking existing customers (30 per cent). This does not indicate the necessary caution.

The consequences of late payment are well documented, with the annual survey additionally finding that businesses had to wait an average of 17 days beyond their agreed credit terms to be paid in that period. A result of this is that 32 per cent of businesses now classify more than 10 per cent of their debtor book as bad debt.

Unfortunately, late payment has also had a knock on effect down the supply chain which only exacerbates this problem further. Well over half of businesses admitted to paying their suppliers later (59 per cent) as a result of their customer paying an invoice late. Meanwhile 34 per cent said that the single most common reason for late payment was that they are waiting to be paid by their own customers. However, for 13 per cent of respondents the most comment reason for late payment was that their customer simply couldn’t afford to pay. This provides the biggest cause for concern as the financial health of SMEs continues to be under increasing pressure.

Alex Hilton-Baird, managing director of Hilton-Baird Collection Services, commented: “The findings of our Late Payment Survey serve to highlight just why it is so important for businesses to do all they can to ensure that they have run the necessary checks on their customers before agreeing to supply goods or services on credit. Our experience has found that corporate insolvency is a persistent problem which historically escalates until long after a recession. Worryingly we’re seeing that it’s a trend which is likely to continue for the foreseeable future.

“It is our hope that businesses really look to safeguard their cash flows against the trend of late payment in the coming months by taking all the vital precautions. Then, in the eventuality that late payment does occur, businesses have all the resources at their disposal to ease the knock on effect businesses so commonly experience.”

The majority of Britons do not consider how technology could shape a work/life balance when considering whether or not to launch their own business, according to research by web hosting provider Fasthosts Internet.

The survey of 1500 UK adults found that only 14 per cent would consider the impact of technology such as smartphones, notepads and Internet applications, before concluding whether or not to launch a business. Poor economic factors and fear of losing money remain the primary reasons for reluctance to start a new project. Fasthosts advises budding entrepreneurs to speak to technology providers from the very outset, as web-based tools and eCommerce can often enable far more flexible working than many realise, giving more opportunity to get a new business off the ground and growing.

When asked about the main factors for consideration in whether or not to launch a business project, only 14 per cent would look into what impact technology could make on their work patterns.  This is despite one in four people having doubts about their ability to cope with running a business effectively. In scoping a business idea, the most popular groups to consult for strategic advice are banks (35 per cent), potential clients (31 per cent), stock suppliers (27 per cent) and then friends and family (25 per cent).

Stephen Holford, marketing director, Fasthosts Internet, commented, “It is vital for anybody thinking of starting their own business to know what is technologically possible from the very start. Selling goods and even services online is often incorrectly regarded as beyond the reach of non-technical people. Family responsibilities and financial aspects are always pressures that need to be considered. However, the huge range of Internet-based tools available for mobile working means that work patterns can be far more flexible and mobile than ever before. It is vital that before deciding if a start-up project is achievable, one looks carefully at what technology is available to help”.

Hilton-Baird Financial Solutions has announced a new strategic partnership with The FD Centre.

This collaboration will see both businesses working closely together in order to assist the nation’s SMEs. The FD Centre provides access to the highest calibre of finance directors, making them well placed to support the SME community. The idea is to collaborate in order to provide owner managers with direct and expert access to the necessary cash flow solutions. This will be delivered alongside support to underpin the future growth and aspirations of clients, all the while assisting with their current requirements.

It comes at a time when businesses of all sizes – and SMEs in particular – have struggled to access the funding needed to achieve their full potential in the UK’s unpredictable economic climate from their bank. This partnership will aim to offer help and support where it is most required.

Evette Orams, managing director of Hilton-Baird Financial Solutions, commented: “The FD Centre is extremely well regarded with a proven track record at helping its clients to reach their potential. I am therefore thrilled to be able to announce this promising partnership. The key here is that both of us are passionate about providing invaluable services to UK businesses and making the difference to the lifeblood of our economy.

Sara Daw, CEO of The FD Centre, added: “Access to the right type of funding for our clients to help them grow has never been more important than it is right now. This is the driving force behind this partnership and by working closely with Hilton-Baird Financial Solutions, who specialise in providing cash flow solutions to SMEs, we are able to source and manage the very best funding opportunities we can for our clients.”