Businesses are being warned to plan in advance to avoid missing vital payment dates due to the raft of spring bank holidays this year – with a series of long weekends in the offing, Bacs Payment Schemes Ltd (Bacs) is urging finance teams to check processing dates well before the holidays begin.

The Easter weekend, followed five weeks later by the early spring holiday, and then the double bank holiday over the Jubilee weekend means that there is a smaller window than normal for payments to hit accounts during this period.

Finance teams should be aware that the last possible submission date for Bacs Direct Credit payments to reach suppliers before the Easter break is Tuesday, 3rd April. Over the Queen’s Jubilee weekend, payments due on 6th June must be submitted by Thursday, 31st May if they’re to hit accounts on time.

Mike Hutchinson, head of marketing at Bacs, said: “The postman doesn’t work over bank holidays so businesses can’t rely on posting cheques to hit payment deadlines, making automated payments even more important than ever.

“A few minutes spent checking payments schedules in advance would mean managers can relax and enjoy the break, safe in the knowledge that they won’t come back to work to face outstanding debts.”

Research from Bacs last year concluded that small and medium-sized businesses in the UK are owed £33.6 billion in overdue payments – and one of the most common excuses for paying late, given by 37 per cent of companies, was that ‘the cheque’s in the post’, a problem that will be exacerbated over the next three months.

 

 

Barclaycard Global Commercial Payments has launched a new cashback corporate card to help small business customers make the most of their business spending.

When using the card for business spend, such as purchasing office stationery and supplies, computer equipment or professional services, small business cardholders will earn three per cent cashback.  In addition, cardholders will earn one per cent cashback on fuel purchases and 0.5 per cent cashback on all other purchases.

Dennis Bauer, managing director of global commercial payments, said, “We’re giving small business customers a more rewarding way to carry out their normal business spending with this card, plus it is a great way to manage purchasing decisions.  Barclaycard’s corporate card can also help smooth out short-term fluctuations in business cash-flow and give small businesses the option to pay over a longer term if required.”

He continued, “This launch shows Barclaycard as a market leading commercial payments company. I’m very proud of the way we develop products that help our small business customers achieve their business goals.”

UK businesses will see international trade growth accelerate from 2014 as the global economy ends a period of growth contraction, according to new research from HSBC.

HSBC’s ‘Global Connections’ trade forecast predicts that international businesses will recover more rapidly and earlier than previously expected and estimates that over the next 15 years, the UK is set to increase its international business activity by around 60 per cent. Despite the current economic climate the overall trend for international trade is positive, with growth acceleration coming sooner (in 2014) than previously forecast.

HSBC says it is playing its part in growing the UK economy, in 2011 UK exports rose 13 per cent and over the same period the bank’s export related business grew 33 per cent, within which trade finance lending underpinning exports grew 91 per cent.

There are fundamental changes taking place in world trade, UK exports to China and to India grew by 21 per cent and 37 per cent respectively in 2011 and HSBC estimates that it processed around one third of these by value.

HSBC is launching a new multi-billion fund specifically for SMEs that trade with other businesses across the globe. The ‘HSBC International SME Fund’ will provide at least £4billion of lending to SMEs with a turnover of up to £25million and will be available in the coming weeks. The launch of the fund follows a year when HSBC provided lending of over £49billion to UK businesses, whilst at the same time increasing lending to SMEs by 15 per cent year on year.

The Global Connections forecast identifies new “Corridor Creators” who are businesses searching out the best trade partners to drive competitive advantage, regardless of location, defining their own trade routes and corridors. New emerging growth export partners for the UK include Vietnam and Brazil, whilst forecasts predict more imports from countries such as Qatar.

Alan Keir, HSBC group managing director, global head of commercial banking, said:

“The latest HSBC forecast shows a positive long term outlook for UK businesses. Trading internationally will be critical for not only the British companies who want to remain competitive in the future, but it is also critical to the UK economy. HSBC is committed to increasing lending to UK SMEs in 2012 and the launch of the new £4billion ‘HSBC International SME Fund’ highlights specific support to help SMEs to grow through global trade activity and support for the wider UK economy. The fund also fits perfectly with the bank’s strategy to be the leading international trade and business bank.

“Tapping into the new opportunities and considering partners outside of British borders is just one tactic for businesses competing on a global stage. The HSBC forecast highlights some growing UK sectors that are set to thrive with increased demand particularly from a skills and specialism perspective from emerging markets and existing trade partners and we want to help businesses make the most of this opportunity.”

Sectors with exceptional predicted growth created through demand from emerging exports included:

• Oil and Gas – including platform technology and shipping
• Automotive – exports to China set to grow by 15.10 per cent and to Russia by 6.62 per cent over the next five years.
• Medicine – the biotechnology sector in the UK is world class and global in reach. Demand from Europe, the USA and Northern America is set to grow in particular.

Four new lenders have been accredited to offer loans to small businesses under the Enterprise Finance Guarantee (EFG) scheme.

The EFG gives vital funding to small and medium-sized enterprises (SMEs) that lack the collateral or credit history to secure a normal bank loan.

The four new accredited lenders are:

• Metro Bank
• Hull Business Development Fund
• Black Country Reinvestment Society
• MSIF (providing finance to SMEs in Merseyside)

The Government has also announced a new accreditation round which will open on 1 March 2012, and is inviting lenders to apply for accreditation to offer EFG loans.

Business and Enterprise Minister Mark Prisk said: “If businesses are to start, thrive and grow they must have access to the finance they need, and the Enterprise Finance Guarantee gives more firms the chance to get vital funding. These four new lenders will help widen access to this successful scheme even further.

“The Government has committed to guaranteeing £2 billion of loans over the four years to April 2015, and we are now opening another accreditation round to encourage even more lenders to offer these loans. The scheme has already supported more than 16,000 businesses and we can support many more.”

EFG is now available to businesses with up to £41m annual turnover and seeking up to £1m worth of loans, subject to eligibility.

Improved access to more varied sources of finance would help small and medium-sized enterprises (SMEs) and the wider economy, but barriers to increasing non-bank lending also need to be tackled, says the CBI.

In its submission to the review led by Tim Breedon into alternative sources of debt, the UK’s leading business group suggests ways to boost the supply of non-bank finance, as well as solutions to the current lack of demand.

Although businesses are understandably more risk-averse because of the fragile state of the economy, making sure firms have greater access to alternative sources of finance will be vital when it comes to securing growth and supporting the recovery.

John Cridland, CBI director-general, said: “For too long, the UK’s small and medium-sized companies have relied heavily on banks for most of their credit. If we do not act quickly to increase the range of available finance, other countries will steal a march on the UK.

“While banks will remain an important part of the funding landscape, growing firms also need ‘patient’ capital, with a longer investment return horizon. To deliver this, we need to give our firms access to new sources of funding, such as by opening UK bond markets to medium-sized businesses. The Government’s £1 billion of Business Finance Partnerships will also help stimulate investment in these companies.

“This is as much a problem of demand as supply. Firms need independent help and support to locate the finance that’s right for them. So we must cut through the red tape and complexity surrounding non-bank finance to make it more easily understood by small and mid-sized businesses, which often lack the resources of a larger company. We also need to make it simpler for alternative lenders to judge the credit worthiness of SMEs.”

To increase the amount of funding available for medium-sized businesses, the CBI recommends that the Government establishes a mid-sized bond market in the UK, using a mix of new infrastructure and tax incentives. Retail interest can then be stimulated in mid-sized businesses’ bonds through new tax-free savings in an ISA.

Short-term tax incentives, similar to Venture Capital Trusts, could be used to encourage investment in the new bonds, as well as exempting certain investments from tax.

Combatting a lack of awareness among SMEs about sources of non-bank finance will be vital to help stimulate demand, according to the CBI.

It proposes the existing programme of Independent Financial Advisers (IFAs), which serves consumers, is expanded to meet the needs of SMEs. It also calls on the Government to work with the financial services sector to help make non-bank finance, such as bonds and private placements, much less complex and bureaucratic.