02 Sep Exchequer returns for August show a significant fall in revenues collected during the month.
02 Sep US employment growth slowed more than expected in August after two straight months of robust gains and wage gains moderated.
02 Sep Tech giant Samsung has said it is suspending sales of its latest flagship smartphone Galaxy Note 7, as reports of exploding batteries threaten to damage the reputation of the South Korean electronics giant.
02 Sep Telecoms firm Eir has recorded its first year of annual revenue growth since 2008.
02 Sep Minister for Finance Michael Noonan has claimed that the EU Commission’s ruling over Apple’s tax operations in Ireland was an “attack on our corporate tax regime”.
02 Sep Heavy machinery maker Caterpillar has said it could lay off about 2,000 employees at a plant in Belgium, as it considers shifting production to other facilities as part of a restructuring programme announced last year.
02 Sep Irish Residential Properties REIT, or I-RES, is seeking planning permission for 492 apartments as well as retail space in Sandyford in Dublin.
02 Sep Peer-to-peer lending platform Linked Finance says 21 SMEs raised €600,000 in funding during the first two weeks of its new fixed rate loan offering.
02 Sep Activity in the services sector rose by 0.5% between June and July, with wholesale and retail trade seeing a 6.1% surge during the month.
02 Sep Currency movements have hit Fyffes’ banana business, according to the company’s first half results.
02 Sep Crude prices have risen today after losses of more than 3% yesterday, with investors treading cautiously ahead of key US employment data.
02 Sep RTÉ’s Europe Editor Tony Connelly looks at the Apple ruling and the possible impact of a similar case involving Spanish bank Santander.
02 Sep The Irish Times reports telecom firms have hit out at Eir for raising wholesale broadband prices for the second time in 14 months.
02 Sep Telecoms firm Eir has recorded its first year of annual revenue growth since 2008.
01 Sep Up to 250 jobs could go at US multinational Caterpillar’s plants in Northern Ireland, a spokesman has said.
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Grafton Chief Executive Gavin Slark discusses the builders’ merchant and DIY retailer’s double-digit growth in percentage terms in revenue and profit in H1
Bord Gáís Energy Managing Director Dave Kirwan said the firm is reducing its residential electricity prices by 5% and its residential gas prices by 2%
Just Eat Managing Director for Ireland Amanda Roche Kelly discusses the brand’s presence at the upcoming Electric Picnic festival
#stock market news today
The Railways need to evaluate whether it should continue to have 125 hospitals, 600 polyclinics and 100 schools directly under its wing, he said.
Outgoing RBI Governor Raghuram Rajan today rejected the idea of the government taking a special dividend from the central bank for recapitalisation of public sector lenders, saying there is no free lunch .
India and Vietnam today called for a reform of the UN and an expansion of the Security Council in both the permanent and non-permanent categories of membership, with enhanced representation from developing countries.
Country s largest two-wheeler maker Hero MotoCorp plans to launch 15 new products in domestic as well as international markets this fiscal, a top company official said today.
Find the Jeep pricing absurd? Here s the reason and why it isn t necessarily bad
New Jaguar sets record as fastest selling car for Tata Jaguar Land Rover
Stable regulatory framework important for investment in auto sector
The system, which would utilise the same machine learning technology used in Microsoft s artificial intelligence (AI) assistant Cortana, is designed to have a long lifecycle.
Samsung announces swap for Galaxy Note 7 with Galaxy S7 variants
Xiaomi Mi Max: Phablet with long-lasting battery for heavy users
From UrbanClap to OTJ247, take to tech to slay the chores and really enjoy the festive season
Odisha Chief Minister Naveen Patnaik today launched the Biju Kanya Ratna Yojana (BKRY) and inaugurated 1,000 anganwadi buildings here as part of the celebration marking birth centenary of legendary Biju Patnaik.
The extraordinary life of Mother Teresa, who worked relentlessly for the upliftment of the destitute and who will be declared a saint by the Roman Catholic Church, must be brought alive on the silver screen, says India s acclaimed veteran filmmaker Shyam Benegal.
Captive Finance Company
What is a ‘Captive Finance Company’
A captive finance company is a subsidiary whose purpose is to provide financing to customers buying the parent company’s product. Captive finance companies can range in size from mid-sized entities to giant firms, depending on the size of the parent company. Their range of services can also vary widely, from basic card services to full-scale banking. A captive finance company can be a source of significant profits for the parent organization.
BREAKING DOWN ‘Captive Finance Company’
A captive finance company is usually wholly owned by the parent organization. The best-known examples of such companies are the giant subsidiaries of the “Big Three” automakers, and the store card operations of large retailers such as Wal-Mart, Target and Sears.
Due to the size and scale of their operations, the captive finance companies of the Big Three car manufacturers: General Motors Acceptance Corporation (GMAC), Chrysler Financial and Ford Motor Credit Company – are arguably almost as well-known as their parent companies. Note that subsequent to the bankruptcy of General Motors in 2009, GMAC underwent a name change to Ally Bank and rebranded as Ally Financial in 2010.
#guaranteed business loans
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The Enterprise Finance Guarantee Scheme
The eligibility criteria specified by the Department for Business, Innovation and Skills website states that EFG is open to businesses that:
- Operate in the UK
- Have a group turnover of no more than 41 million
- Are seeking finance of between 1,000 and 1.2 million
- Wish and can afford to repay over a period of between 3 months and 10 years for term lending and between 3 months and 3 years invoice finance
- Require the finance for an eligible purpose (most business purposes are eligible the most significant exclusion is the financing of specific export orders as alternative forms of assistance for that purpose are provided by UK Export Finance)
- Operate in a business sector that is eligible for EFG (almost all sectors are eligible where exclusions apply they arise from EU State Aid rules)
- The ability to request a Capital Repayment Holiday (subject to approval). Interest will be charged to the current account
- Loans are available from 3 months to 10 years for loans from 1,000 to 600,000, and 3 months to 5 years for loans of 601,000 to 1.2 million
- EFG loans require customers to pay a fee of 2% per year on the outstanding loan balance to the government
- All bank fees can be added to the loan to help with your cashflow
Please note, you ll be responsible for repayment of 100% of the EFG facility, not just the 25% outside the coverage of the government s guarantee. Where defaults occur, we follow our standard commercial recovery procedures, including the realisation of security, before we make a claim against the government s guarantee for any shortfall.
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Get the cashflow support your business needs, whether you re just starting out, growing or established.
If you need flexible short term borrowing, chat to us about an overdraft.
Release cash in your invoices within 24 hours and keep your business running smoothly.
- For fixed rate loans, if you decide to pay early or cancel the fixed interest rate, you may have to pay breakage cost in addition to other fees such as prepayment fees.
- You can choose your loan terms providing the loan term doesn t exceed the life of the asset.
- Capital repayment holiday available (during this time interest will be charged to your current account).
- Loans are available from 3 months to 10 years for loans 1,000- 600,000 and 3 months to 5 years for loans of 601,000 to 1.2million.
- Subject to status and application. We offer a fair appeal process should you feel we ve not taken all your circumstances into consideration. To find out more click here .
- Lines are open Monday to Friday, 8am to 7pm. To maintain a quality service, we may monitor and record phone calls. Call charges
Barclays Bank PLC. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 122702). Barclays Bank PLC subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. Further details can be found at www.lendingstandardsboard.org.uk. Barclays Insurance Services Company Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register number: 312078).
Barclays Bank PLC. Registered in England. Registered no. 1026167. Barclays Insurance Services Company Limited. Registered in England. Registered no. 973765. Registered office for both: 1 Churchill Place, London E14 5HP. ‘The Woolwich’ and ‘Woolwich’ are trademarks and trading names of Barclays Bank PLC. Barclays Business is a trading name of Barclays Bank PLC.
#business acquisition loan
How to Finance a Business Acquisition
Business experts often say that it costs less to buy an existing business than to build one from the ground up. If you are an entrepreneur looking into purchasing a business, there are a few items to consider when seeking financing for the acquisition that may strengthen your viability as a loan candidate and your ability to tap into a variety of potential financing sources.
Most lenders will want to review your business plan, and you should also determine the economic status and value of the business you re considering buying. Review the financials and consider having your banker and/or trusted financial advisor also review the numbers. Ascertain the value of the business, including any equipment, real estate, inventory and other assets.
To increase your viability as a loan candidate, convey your industry expertise and any management know-how to your potential lender. Lenders look for candidates who exhibit strong potential for success after acquiring the business. Show lenders that the transition period will run smoothly, and consider keeping existing managers on staff to help ensure an easy transition. Seasoned employees can also help you learn the inner workings of the business and help secure extended contracts with existing customers.
When seeking financing, consider these lending sources:
- Family, friends or angel investors. Lenders will likely expect the buyer to provide between 20 percent and 50 percent of the capital upfront. If you do not have the initial capital to invest in the business, consider borrowing from family and/or friends. Another option may be angel investors–wealthy individuals who make equity investments in businesses at the early stages. They typically have expertise in the fields of businesses in which they invest and can also offer their resources and contacts.
- Seller financing. Consider asking the seller if he or she can provide financing for the sale of all or some of the business. In some cases, sellers may provide a very reasonable interest rate. Some seller financing can also prompt other lenders to invest in the venture.
- U. S. Small Business Administration. Many lenders across the country offer small-business loans guaranteed by the U.S. Small Business Administration (SBA). These loans may provide more lenient and flexible financing for qualifying borrowers.
- Financial institutions. While the industry is still in the midst of a tight credit market, the fundamentals for loan qualification remain important. They include demonstrating positive cash flow, solid management experience, industry expertise and a strong credit report. Banking relationships are also a significant part of the equation. It is important to cultivate and maintain a relationship with your banker, keeping him/her well-informed about your business experience within a particular industry. Many banks, also have special lending programs for women-, minority- and disabled-veteran-owned businesses.
Be prepared and stay informed when seeking financing for an acquisition. It is not unusual, especially in a tight credit market, for business owners to seek a variety of lending sources.
The foregoing article is intended to provide general information about financing an acquisition and is not considered financial advice from Union Bank. Please consult your financial advisor.
#how to finance a business
How to Finance Your Business Yourself
In their book Start Your Own Business , the staff of Entrepreneur Media Inc. guides you through the critical steps to starting your business, then supports you in surviving the first three years as a business owner. In this edited excerpt, the authors discuss the options you have if you want to fund your startup yourself.
If you re thinking about trying to finance your business yourself, begin by doing a thorough inventory of your assets you re likely to uncover resources you didn t know you had. Assets include savings accounts, equity in real estate, retirement accounts, vehicles, recreational equipment, and collections. You may decide to sell some assets for cash or use them as collateral for a loan.
If you have investments, you may be able to use them as a resource. Low-interest-margin loans against stocks and securities can be arranged through your brokerage accounts.
The downside here is that if the market should fall and your securities are your loan collateral, you ll get a margin call from your broker, requesting you to supply more collateral. If you can t do that within a certain time, you ll be asked to sell some of your securities to shore up the collateral. Also take a look at your personal line of credit. Some businesses have successfully been started on credit cards, although this is one of the most expensive ways to finance yourself.
If you own a home, consider getting a home equity loan on the part of the mortgage that you ve already paid off. The bank will either provide a lump-sum loan payment or extend a line of credit based on the equity in your home. Depending on the value of your home, a home-equity loan could become a substantial line of credit. If you have $50,000 in equity, you could possibly set up a line of credit of up to $40,000. Home-equity loans carry relatively low interest rates, and all interest paid on a loan of up to $100,000 is tax-deductible. But be sure you can repay the loan you can lose your home if you do not.
You could also consider borrowing against cash-value life insurance. You can use the value built up in a cash-value life insurance policy as a ready source of cash. The interest rates are reasonable because the insurance companies always get their money back. You don t even have to make payments if you don t want to. Neither the amount you borrow nor the interest that accrues has to be repaid. The only loss is that if you die and the debt hasn t been repaid, that money is deducted from the amount your beneficiary will receive.
If you have a 401(k) retirement plan through your employer and are starting a part-time business while you keep your full-time job, consider borrowing against the plan. It s very common for such plans to allow you to borrow up to 50 percent of your vested account balance up to a maximum of $50,000. The interest rate is usually 1 to 2 percent above the prime rate with a specified repayment schedule. The downside of borrowing from your 401(k) is that if you lose your job, the loan has to be repaid in a short period of time often 60 days (but occasionally as long as six months) or it s taxed heavily, as if you ve taken an early withdrawal from the plan. Consult the plan s documentation to see if this is an option for you.
Another option is to use the funds in your individual retirement account (IRA). Within the laws governing IRAs, you can actually withdraw money from an IRA as long as you replace it within 60 days. This isn t a loan, so you don t pay interest. This is a withdrawal that you re allowed to keep for 60 days. It s possible for a highly organized entrepreneur to juggle funds among several IRAs. But if you re one day late for any reason you ll be hit with a 10 percent premature-withdrawal fee, and the money you haven t returned becomes taxable.
If you have a Roth IRA, you re entitled to withdrawals tax and penalty free, as long as the funds were in the account for at least five years. That s because a Roth is taxed at the time you put funds into the IRA account not when you retire and withdraw it. Consider switching your regular IRA to a Roth over a couple of years if you know you plan to finance a business this way. You ll have to pay the taxes in the year you make the conversion, but the money will then be free to withdraw when you need it, without the big penalties. Make the conversions well before you need the cash.
If you re employed, another way to finance your business is by squirreling away money from your current salary until you have enough to launch the business. If you don t want to wait, consider moonlighting or cutting your full-time job back to part time. This ensures you ll have some steady funds rolling in until your business starts to soar.
People generally have more assets than they realize. Use as much of your own money as possible to get started; remember, the larger your own investment, the easier it will be for you to acquire capital from other sources.
#how to finance a business
How to Finance a Franchise Purchase
- Be prepared to put down about 20% of the cash you will need from personal funds.
- If conventional lenders turn you down, look into an SBA-backed loan.
- Consider tax implications if you’re considering tapping a retirement plan.
Commercial banks fund many franchises, so look to these lenders first. The single most important issue in landing bank financing is your credit rating. You will need to present a complete loan package including a personal financial statement, copies of personal tax returns for three years, and verification of the source of your down payment.
Bankers favor businesses with brand names and long track records of consistent cash flow, so your choice of a franchise system can help or hurt you. Ventures with few locations are less attractive, in part because they lack proof that they can do well in all types of areas or economic climates.
Bank loans unsecured by collateral are relatively rare, even for those with good credit. In addition to securing a loan with a mortgage on your home or other asset, be ready to be asked to put your own money into the deal, typically about 20% of the amount needed. Even with healthy businesses and solid collateral, most bank loans to new franchisees occur when a borrower has established relationships with a banker, or has previous experience, or is a figure in the community. If that’s not you, consider a loan backed by the U.S. Small Business Administration (SBA).
SBA loans are partially guaranteed by the government, making them less risky. The standard SBA loan for franchisees is known as the 7(a), which is issued by a bank or other qualified lender, and partly guaranteed against default by the government. Because of that backing, such loans are seen as relatively low-risk.
SBA loans of five- to six-year maturities can provide short-term working capital and equipment. Real-estate loans can run for 20 years or more. About 10% of all SBA loans go to franchisees, with the size running between $250,000 and $500,000, and maximum of $2 million. Most of that money is for franchise entry fees, improvements or working capital. Borrowers must be creditworthy, typically must contribute some equity, and are expected to repay the SBA loan out of the franchise s cash flow.
Many SBA loans carry fluctuating interest rates. While the actual rate is negotiated between the bank and the borrower, it s subject to SBA maximums, which are tied to the prime rate. While a low rate may be attractive initially, make sure you can generate enough business to cover the payments if the rate rises.
Another government lending program involves the Department of Veterans Affairs. The program, called Patriot Express because of its relatively fast approval time, makes loans up to $500,000 to active-duty military preparing to transition to civilian life, as well as to spouses and survivors of veterans. The loans come with the SBA s lowest rates.
A few franchisers offer internal financing. For example, a company may defer a portion of the initial franchisee fee, essentially financing the deal. Interest rates are likely to seem high compared to other options. However, you may not have to put up collateral.
Sometimes it makes sense to tap 401(k), Individual Retirement Account or other retirement funds rather than seek a loan. But rather than just taking an early withdrawal, which may be subject to taxation, you may want to consider setting up a C corporation that will own and operate the business. Then roll over money from your self-directed retirement account into that corporation s profit-sharing plan and direct that those funds be invested into the franchised business. But this is a risky option: If the franchise fails, your retirement fund can be wiped out. Check with a professional on possible tax implications, and consider the tradeoffs carefully.
Related WSJ Articles and Blog Posts:
- Franchise Opportunities Directory — A database of more than 1,200 franchise systems, searchable by industry, keyword, start-up cash, investment and other criteria, from the International Franchise Association.
- The Franchise Registry — A searchable database of franchises whose Small Business Administration (SBA) loan applications receive a streamlined review, from franchise information and analysis provider FRANData and the SBA.
- VetFran Directory, from the International Franchising Association — A list of more than 250 franchise companies offering financial incentives to veterans who have been honorably discharged.
- Finance Start-Up Guide — A list of links to information about small-business funding, from the Small Business Administration (SBA).
- SBA’s 7(a) Loan Program Overview — An introduction to the most-used type of loan of the SBA’s business-loan programs.
THE MATERIALS YOU ARE SEEKING TO ACCESS ARE BEING MADE AVAILABLE BY THE COMPANY RAISING FINANCE AS IDENTIFIED ABOVE (THE COMPANY ) IN GOOD FAITH AND FOR INFORMATION PURPOSES ONLY AND SUBJECT TO THESE TERMS AND CONDITIONS. CROWDCUBE CAPITAL LTD IS AUTHORISED BY THE FCA AND CARRIES OUT DUE DILIGENCE ON EACH COMPANY THAT LISTS ON CROWDCUBE AS SET OUT HERE .
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#getting a small business loan
Financing a growing business
Learn about financing options for small businesses.
Supporting both the operation and expansion of a growing small business often requires some additional financial support. Getting a small business loan or grant can help you bridge the gap when you need to make capital investments, increase your workforce, or move to a larger space. To help you decide which type of funding might be right for you, here are a few great small business-financing options:
Line of credit. Using a line of credit as working capital can make it easier for you to manage your cash flow as your income or expenses fluctuate. It allows you to borrow only the funds that you need giving you more control over the amount of interest you will accrue.
Business loans. For larger investments, it may be time for a term loan. Like a mortgage or personal loan, term loans come with fixed interest rates and monthly payments over a period of years. Unlike a line of credit, a business loan will provide you with a large sum of cash upfront. These loans can be ideal for expanding your space or funding other large investments.
Commercial loans. For established businesses that own commercial real estate, a commercial loan is another option. Like a home equity loan, a commercial loan allows you to borrow against the equity you’ve built in your business property. Depending on the value of the property and the equity you hold, this could mean more borrowing power.
Equipment loans. If you’re specifically looking for cash to fund the purchase of new equipment – including vehicles, manufacturing or production machinery, farming equipment, or other necessary equipment – then an equipment loan or leasing program may be what you need. Like business loans, equipment loans offer fixed interest rates and payment plans over a period of time.
SBA loans. Wells Fargo is the nation’s #1 provider (by dollar volume) of loans guaranteed by the US Small Business Administration – or SBA 7(a) loans. SBA 7(a) loans have longer repayment terms and lower down-payments than most conventional bank loans, and can be used for the purchase of owner-occupied real estate, business acquisition, equipment, or working capital. Wells Fargo also offers the SBA 504 program for larger, fixed asset purchases or construction.
Federal or state grants. Small business grants – money that does not need to be repaid – are limited and harder to secure than loans. State and federal business grants are funded by taxpayer dollars, and the money is awarded through a complicated legislative process. For more information on how to get a small business grant, visit www.grants.gov.
By knowing which small business financing options are available, you’ll have a better idea of where to turn when you’re ready to take your business to the next level.
Business insights from experts
Discover our comprehensive resource library, offering guidance and information to help you start, run and grow your business.
Wells Fargo Works for Small Business ®
- Apply for a minimum of 25,001 and choose a loan term from three to 25 years.
- Borrow up to 70% of the property value. In some cases we can lend more.
- Choose between a bank rate linked or fixed interest rate.
- Capital repayment holidays of up to two years may be available on bank rate linked mortgages.
- If you wish to borrow on other terms we may still be able to help you.
Residential Buy-to-let Mortgage
- Mortgages start from 25,001.
- Choose a mortgage term from three to 25 years.
- Borrow up to 70% of the property value and in some cases we can lend more.
- Bank rate linked and fixed rates available.
- A capital repayment holiday may be available for up to 12 months (to be taken at the start of the loan).
1 8 out of 10 relates to loans and overdrafts in the period November 2013 to March 2016 .
2 There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same level.
3 Capital repayment holidays available in certain circumstances only.
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Lloyds Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Telephone: 020 7626 1500.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk .
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.