Tag Archives: SMEs

Finance and Banking, News

Boost for UK SMEs as WeDo secures £50m in funding

WeDo Business Services has secured £50m in funding which will enable it to significantly expand its support of small and medium-sized companies across the UK.

The funding is provided by alternative investment manager Waterfall Asset Management and will be used to help WeDo bolster the growth of its SME customer base through a range of finance facilities.

The WeDo group has its headquarters in Greater Manchester and additional offices nationwide. It provides invoice and trade finance, asset finance, loans and start-up funding to a growing client base, as well as accountancy, HR, back-office and IT services.

WeDo was founded by Mark Lindsay and Chris Robinson in 2019 with just four staff and has grown rapidly through organic expansion and acquisition. It currently has over 70 staff across its Oldham headquarters and its network of offices.

Its overall lending now exceeds £50m, and chief executive Mark said Waterfall’s funding would enable it to achieve significant growth as it aims to reach £100m within the next three years.

WeDo’s nationwide client base spans a range of sectors, including recruitment, engineering, manufacturing, logistics and wholesale distribution.

Mark said: “This significant investment is a vote of confidence in our business and will help us to exponentially grow our ability to provide support to SMEs from across our finance divisions.

“We share a desire to establish a long-term relationship with the goal of helping more SMEs to succeed in building sustainable businesses for the future, by alleviating their cashflow constraints and enabling them to invest for future growth.

“WeDo has a strong track record of supporting the northern economy by offering finance to companies across the region and this will continue, as well as enabling us to significantly expand our geographical reach.

“There is increasing demand for the type of lending and support services we provide, reflected in a record month for new client wins in the first quarter of this year.

“We understand the challenges of growing a business from a new start, and we want to help others to do the same. It can be lonely as a business owner, and we provide a support network to ensure the wellbeing of themselves and their companies.”

James Cuby, managing director at Waterfall, said: “WeDo provides a comprehensive funding solution and support services to SMEs across the UK and has an experienced management team who are committed to supporting the growth of the businesses they fund.

“We are pleased to support WeDo’s expansion plans and look forward to a successful relationship.”

Business, FInance, Finance News, Wellbeing

Quantum launch SME tailored employee benefit solution

Quantum Advisory, the leading independent financial services consultancy, today announced the launch of a new solution designed with small to medium (SMEs) employers in mind.

The service, which has only been available to a handful of existing clients to now, will advise SMEs on group risk, healthcare and wellbeing solutions tailored to them, and to best meet the evolving needs of their employees.

Commenting, principal consultant Graham Yearsley, who leads the employee benefits team at the firm, said: “Although gradually improving, the experience of small to medium employers in the market is generally still poor – they are often overlooked, cannot access the same resources and opportunities as larger organisations, and the quality of advice and consultancy they receive can be lacking. With SMEs by far the majority of the market, the disparity in service levels is unacceptable.

“According to government statistics, in the private sector 5.51 million businesses in the UK have less than 49 employees – this accounts for 99.2% of the total business population. Around 37,000 are medium sized and have 50-249 employees and only around 8,000 are large at 250 employees or more. And it’s growing, in 2023 there was a 0.8% increase of SMEs from 2022.

“Employee benefits programmes are critical attraction and retention tools – meeting employee expectations, ensuring the wellbeing and ongoing loyalty of staff, as well as optimising engagement. Getting it right is important whatever your size, but for SMEs it’s crucial.

“Recruitment is extremely competitive at the best of times and offering ever increasing salaries simply isn’t an affordable option, and neither does it address the overall wellbeing of staff. Frequent staff turnover can also be a real issue for a small employer, and difficult to manage. An expertly executed benefits package can have a big impact on an employment decision and, by proxy, the quality and loyalty of a team.

“It has to include honest investments in employees’ financial security, total health and career growth. As well, of course, as being accessible and affordable for an employer.”

Yearsley continued: “Our independent status means we can act nimbly and innovatively, creating truly bespoke solutions that are fit for purpose. We are able to access new and interesting things and act upon them quickly without the shackles of external shareholders – resulting in direct benefits to our clients and to their employees.”

 

Accountancy & Accounts, Accounts and Accountancy, Business, Business Advice

ACCA calls on chancellor to deal with double whammy of frozen thresholds and weak growth

  • Additional people and businesses are being pulled into higher tax bands, adding to an already overburdened HMRC service
  • Frozen thresholds can result in companies not being as productive and instead capping their profit under thresholds to avoid taxation
  • UK economy remains weak, and small businesses are concerned about continuing inflation hitting their bottom line

 

In an open letter to the chancellor, leading global accountancy body ACCA highlights key concerns flagged by their 98,000 UK members, and what they want to see addressed in the Spring Budget on the 6th March 2024.

 

This includes concerns over the UK’s economic strength and attractiveness for investment, the impact of inflation on small businesses, and the continued freezing or reduction of allowances and thresholds, including personal allowances, PAYE and VAT thresholds, savings allowance and the dividend allowance.

 

Frozen allowances and thresholds are likely to add to an already stretched HMRC service by bringing more people into the tax net and increasing the workload of HMRC. As previously reported in 2023 by ACCA, 93% of financial professionals demanded drastic change from HMRC services, with more than half reporting that poor service from HMRC was affecting their clients and businesses as a result.

 

Combining an overwhelmed HMRC service with the impact it has on small businesses, agents and taxpayers and the weak UK economic positioning on the global stage, ACCA’s letter to the chancellor focuses on a call for practical action that promotes sustainable, long-term growth for businesses and individuals.

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, said: “The government should be as concerned as we are about the unintended consequences of frozen thresholds and additional complexity – allowance freezes can catch out many taxpayers. Many taxpayers end up overpaying or underpaying tax.

 

“Increasingly, the impact of the freezing of allowances look like an artificial barrier to growth as well as harming the UK’s position as a competitive place to do business on the global stage.”

 

ACCA points out that the VAT threshold is a particular area of concern for small and medium-sized enterprises (SMEs), especially in already troubled sectors. With inflation running so high over the last couple of years, any frozen threshold will bring more individuals and business into higher tax brackets – often for the first time – meaning they will have to register and file tax returns, creating more work for HMRC at a time when its service levels are buckling.

 

The ‘artificial barrier’ is created as companies can avoid going up a tax threshold by capping their profit and productivity just under that – ultimately slowing UK economic growth as a result. Without proper government incentivisation to grow and prosper, businesses will continue to stagnate – something reflected in the recent recession figures that were released.

 

Collins added: “The government should review the impact of tax thresholds and complexity on business growth with a particular focus on key sectors. Raising thresholds to be in line with inflation would allow people to be taxed more fairly, rather than having to introduce broad-brush tax cuts which when you look at the bigger picture, are cancelled out by the frozen thresholds.”

 

Visit ACCA’s website for more information.

 

Finance and Banking, News

WeDo Business Services launches new finance division to help fuel growth for SMEs

WeDo Business Services group has unveiled the latest stage of its expansion strategy with a new venture providing established SMEs and start-ups with asset-based finance to fuel their growth plans.

The new division, WeDo Asset Finance, is based out of the group’s headquarters in Oldham and is operating nationwide, with a goal of lending to more than 200 clients over the next 12 months.

WeDo Asset Finance is led by a trio with more than 85 years’ sector experience between them.

Rebekah Middleton has joined as managing director. She was previously head of corporate at Bibby Leasing, where she focused on structured lending and larger asset refinance facilities.

She has worked in finance for nearly 30 years, including roles at Davenham Asset Finance, Time Finance, Close Brothers and GE Capital.

Stuart Berry, who worked in the asset finance industry for more than 25 years, has joined as operations director. Emma Smith, who has 30 years’ experience in asset and trade finance, has joined as head of sales support.

WeDo Asset Finance is specialising in hire purchase funding and finance leasing for companies looking to buy assets such as vehicles, machinery and other equipment.

Among the sectors in which it is operating are manufacturing, food processing, engineering, forestry and agriculture, transport, haulage and construction.

Rebekah said many small businesses and start-ups have been struggling to obtain asset finance amid market uncertainty and global economic challenges.

She added: “We have identified a gap in the market for creative funding solutions provided by a knowledgeable, approachable and accessible team.

“We have the flexibility to provide tailored packages to suit the peaks and troughs of the business cycle, for example with higher repayments during peak sales periods and lower ones when things are predictably quieter.

“With an industry-recognised software platform and an experienced team, we are delivering from the get-go, with our first deals completed and a number of others in the pipeline.

“We are implementing a carefully-managed growth strategy to be achieved by accessing increased funding, maintaining a good quality book and developing strong and meaningful introducer partner relationships, while at the same time being able to offer access to the wider WeDo group’s services.”

The WeDo business was founded by Mark Lindsay and Chris Robinson in 2019 with just four staff and has grown rapidly through organic expansion and acquisition.

It has over 75 staff across offices in Oldham, MediaCityUK in Salford, Sheffield, Bromsgrove, Swindon and Feering in Essex.

Last year, the group launched WeDo Accountancy Services offering a range of services to SMEs and their directors, including annual and management accounts, bookkeeping, VAT and payroll services, self-assessment tax returns and advisory services.

The group also provides invoice and trade finance, start-up funding, HR, back-office and IT services to its client base.

Mark, the group’s chief executive, said: “The launch of WeDo Asset Finance is a further demonstration of our commitment to service all of our clients’ business needs to help them grow and thrive.

“Rebekah and the team have decades of experience, and they are dedicated to helping established companies, as well as new ventures, acquire essential pieces of kit or take advantage of new opportunities while freeing up their cashflow by spreading lending across regular affordable repayments at fixed rates and fixed terms.

“It’s an exciting addition to our portfolio and we are confident that the team will enjoy great success at a time when other funding routes are proving difficult for SMEs and start-ups to access.”

News

Prova doubles down on Composite Braiding investment

Prova has announced a follow-on investment in European composite materials manufacturer Composite Braiding, having initially taken an equity stake in the business back in 2022. Coming as part of a seven-figure funding round, the capital injection will be used to strengthen manufacturing, bolster the workforce and purchase equipment as the company continues to experience rapid growth.

Composite Braiding uses an award-winning automated manufacturing process to combine thermoplastics with materials like carbon, glass and basalt fibres, to create a much lower embedded carbon solution for end products spanning the automotive, rail, sports equipment, maritime, and civil engineering sectors.

The unique process reduces labour costs by up to 90%, waste by 97% and uses 95% less energy, offering significantly cheaper and more sustainable materials, at scale, and at a faster rate.

Richard Postins, founder of Prova Investments, commented: “At Prova Investments, we’re excited to continue our journey with Composite Braiding in its mission to decarbonise the composite materials industry. With its novel processes to automate the manufacture of advanced composites using sustainable materials, Composite Braiding is a great fit for our cleantech and circular economy portfolio, and we’re looking forward to offering ongoing growth and support as it continues to pioneer composite manufacturing.”

Steve Barbour, founder at Composite Braiding, added: “Last year was focused on building up foundations, while 2024 will be pivotal for kick-starting production and delivering sustainable products across a variety of sectors. The close of our latest funding round marks a new milestone the Composite Braiding business. We are grateful for Prova Investments’ backing since its initial investment last year, and we’re looking forward to the continued support they can bring to our business moving forward.”

To find out more about Prova Investments, visit www.provapr.co.uk/investments, or visit https://compositebraiding.com/ to learn more about Composite Braiding.

News

Chargebee recognised as a Leader in the IDC MarketScape: Worldwide SME-focused Subscription and Usage Management Applications 2022

Chargebee, a leading subscription and recurring revenue management platform, has announced it has been recognised as a Leader in the IDC MarketScape: Worldwide SME-focused Subscription and Usage Management Applications 2022 Vendor Assessment (doc # US48786122, October 2022).

The IDC MarketScape report called out several strengths of Chargebee’s offerings, including innovation, value and integrations. Amid global market uncertainty, Chargebee expanded its product offerings over the last year to help businesses land, expand and maintain revenue. Leveraging the end-to-end platform, Chargebee’s customers gain visibility into customer insights and behaviours to maximise monetisation, a critical factor in today’s climate.

The recent acquisitions of Chargebee Receivables (previously Numberz) and Chargebee Retention (previously Brightback) enhanced the platform’s customer retention and payment failure prevention capabilities. Chargebee’s products enable intelligent and automated quote-to-cash processes with near-real-time financial data to inform critical business decisions. The IDC MarketScape notes, “these products help a Chargebee customer to manage both involuntary and voluntary churn with high automation.”

Chargebee also offers a robust real-time revenue recognition product with Chargebee RevRec, which helps companies automate ASC606/IFRS15 compliance workflows. Each Chargebee product provides flexible options for businesses launching new or expanded subscription offerings and critical business and customer data for companies of all sizes and stages employing the subscription model.

“As a customer-first business, our goal is to continuously innovate on behalf of the user. We know that small and medium-sized enterprises are in a particularly precarious situation amid global economic uncertainty, making healthy revenue recovery and customer churn management vital to their survival,” said Sanjay Manchanda, Chief Marketing Officer at Chargebee. “We are extremely pleased to be recognised as a leader in this space, a testament to our unwavering commitment to helping subscription-based businesses grow and succeed.”

While this report focuses on small and medium-sized enterprises, Chargebee serves customers of all sizes, including companies in the media and entertainment, automotive, food and beverage and D2C industries offering subscription services.

Finance and Banking, Finance News, International News, News, North of England

WeDo Business Services makes acquires significant stake in Australian finance firm

A north west business services group has gained a foothold in the Australian market by making a strategic seven-figure investment in a Brisbane-based invoice and trade finance company.

WeDo Business Services, which is headquartered in Oldham, has taken a significant stake in Invoice Finance Group (IFG).

IFG had been seeking an investment partner to help take it to the next level by adding funding capability and new business finance products. At the same time, WeDo was looking to establish itself Down Under.

WeDo directors Mark Lindsay and Chris Robinson engaged Wayne Smith, a former senior executive at Sydney-based business finance company ScotPac, to help with this phase of their growth plan.

Wayne was able to bring both parties together and helped to structure the deal. He has become chairman of IFG following the investment, and will work with its founders and directors Paul and Angela Tonges on its expansion strategy.

Mark, group chief executive of WeDo, said: “Our invoice finance business has been built on a simple model of delivering solutions in a transparent and value-added way, working with clients to ensure they get more than they expect.

“It was refreshing to see that IFG shares a similar approach which is very client-centric.

“The independent finance market in Australia is not as competitive as it is in the UK, and therefore we feel there is scope for IFG to expand significantly and develop additional service lines, much like our UK business has done in recent years. We are extremely excited by the opportunities and growth potential for IFG.”

WeDo provides a range of services to small and medium-sized companies. In addition to invoice and trade finance and start-up funding, it provides HR, back office, IT, digital and payroll support, with a focus on the recruitment sector.

Mark and Chris founded the business in 2019 with just four staff and the company has grown rapidly through organic expansion and acquisitions. The group now employs almost 100 people across its network of offices, including sites in Colchester, Swindon, Sheffield and MediaCityUK in Salford.

IFG is a boutique business which husband and wife team Paul and Angela set up in 2011. It specialises in providing invoice finance to businesses across Australia.

Paul said: “As the founders, we are very excited about the next chapter of IFG’s growth strategy. We’re delighted to share a common alignment in our vision and values with our new investors, by continuing to exceed our customers’ expectations.

“This strategic investment will allow IFG to better service our existing clients and attract new customers by enabling us to offer a broader range of finance products and a larger deal size. With so many Australian small businesses desperate to fund growth, IFG will be able to assist many more SMEs.”

Marketing, PR and SEO, News

EveryFriday appointed by Ashman, a new kind of bank for property SMEs

Creative agency EveryFriday has been appointed by Ashman, an exciting new banking proposition, to evolve its strategic brand positioning, expression and go-to-market launch.

Ashman, which was founded by real-estate entrepreneurs Ashkin Mittal and Manhad Narula, plans to transform the banking experience for property SMEs (small and medium sized enterprises), a £90bn market opportunity.

Digital by design, Ashman plans to deliver speed and a personalised service to clients and brokers. It will initially focus on lending to SMEs in the commercial real estate sector, lending on deals from £100k to £5 million, while providing personal savers with competitive rates.

Earlier this month, Ashman received its UK banking licence, becoming the first new entrant to be licensed this year.

Sally Mackerell, co-founder of EveryFriday, comments: 

“We are delighted to be partnering with Ashman, an exciting new banking proposition for property entrepreneurs, to evolve the strategic brand positioning, expression and go-to-market launch. A passionate team of super smart and experienced individuals, they are motivated by a strong desire to build something that genuinely makes a difference in the world, which aligns perfectly with EveryFriday’s mission to create ‘Ideas that Move People’.” 

Simon Healy, Chief Operating Officer at Ashman, comments:

“Our proposition is simple: digital by design, Ashman plans to offer financial products and services that enrich the customer and the planet. We are excited to partner with EveryFriday to bring this proposition to life.”

Climate, News

NatWest launches digital Carbon Planner to help UK businesses manage future fuel and operational costs

NatWest has announced the launch of its Carbon Planner, a free to use digital platform designed to help UK businesses manage their future fuel and operational costs, and reduce their carbon footprint to help them go and grow greener.

The launch follows the bank’s broader commitment to lend £100bn to businesses in Climate and Sustainable Funding and Financing by 2025.

NatWest research revealed that more than 72% of businesses expect their business will face increased difficulty in light of inflationary challenges citing increased costs of energy (56%), increased costs of materials (56%), and increased interest rates (37%) as the most challenging effects of inflation.

Alison Rose, Chief Executive of NatWest Group, said:

“Climate change is one of the biggest global challenges we face today, and small businesses have a critical role to play in helping the UK realise its green ambition.

“NatWest Group is committed to supporting its customers to understand and reduce their emissions. The launch of Carbon Planner is an important example of how we are putting tools in the hands of our customers to use their own data to cut costs and carbon emissions.”

The NatWest Carbon Planner is a tailored solution that provides personalised actions based on customer- data, enabling customers to make decisions as part of their plan when looking to reduce their carbon emissions, while outlining the financial impact of adopting such actions. NatWest’s A Springboard to Sustainability report estimated that 55-70% of business cases to reduce emissions will make financial sense for SMEs by 2030.

The platform also provides content, resources and solutions to help businesses make informed decisions so they can put actions into practice.

NatWest suggests that by businesses better understanding the commercial and carbon impact of their business operations, they will be in a stronger position to navigate the current inflationary challenges and make decisions about reducing their carbon emissions. With an ever-increasing focus on climate, the Carbon Planner can also help businesses with the ongoing management of their carbon reduction strategies.

Solange Chamberlain, Chief Operating Officer, Commercial & Institutional, NatWest Group said:
“Businesses are coming under increasing pressure due to rising costs. Many are fundamentally strong businesses which are experiencing a massive shock to input prices.

“As a bank, we can help businesses invest to save by switching from volatile commodities to renewable sources with predictable prices, and support businesses in taking actions to measure, evaluate and act to reduce their climate impact.

“Every business should consider if cutting carbon could cut costs and it’s important that we support the business community explore their options through access to finance to invest in cost reducing measures like energy efficiency.”

How does it help businesses on their journey to net zero?

The Carbon Planner takes a business through four practical steps to help them take action:

  • Inform – lets businesses know their current emission hotspots and suggests alternatives
  • Diagnose – helps businesses understand what is best for their business
  • Plan – supports businesses in developing a plan of actions
  • Deliver – signposting potential options available to help them to take actions that can help their business and have the potential to reduce impact on the environment

The platform was customer-led in design and developed with the support of more than 1,000 businesses.

Feedback from testing among both NatWest and non-NatWest business customers revealed that more than 72% of businesses expect their business will face increased difficulty in light of inflationary challenges citing increased costs of energy (56%), increased costs of materials (56%), and increased interest rates (37%) as the most challenging effects of inflation.

More than half (58%) of businesses surveyed think they will need financial help in order to reduce their carbon footprint. 77% believed the Carbon Planner will be ‘extremely’ or ‘very’ valuable to their organisation.

The bank’s research also revealed that 87% of UK SMEs are unaware of their business’s total carbon emissions, despite good intentions – with almost half (45%) of UK SMEs recognising it is important to lower their emissions in the next five years.

NatWest engaged with environmental management consultancy, Green Element to develop the questions, actions and model. The bank also worked with other 3rd parties to develop the tool, including consultancies and academic experts.

Will Richardson, CEO, Green Element said: “Working with NatWest on this project has been a phenomenal experience. Being a part of the solution and solving problems is at the core of what Green Element do. Having worked in this space for 20+ years, seeing a large banking group push boundaries and help with the 1.5 degree goal we are all trying to reach is just brilliant to be a part of.”

John Bamford, Head of Advisory, Northern Europe, EcoAct, an Atos company comments:

“Achieving a company-wide transformation plan to reach net-zero requires clear direction from leadership. We are therefore excited to see how NatWest brings customers along in their net-zero journey by facilitating a tailored data-driven tool to support their transition to a low carbon economy.

“From identifying priority areas and actions for reducing emissions and tracking progress, to connecting businesses to the funding needed to deliver their net-zero transition plans, NatWest’s Carbon Planner will help unlock some of the barriers businesses face when determining which low-carbon choices are worth making while building up collective climate action.”

News

Manufacturers looking for long-term measures from the government (Authored by Kunal Sawhney, CEO, Kalkine)

The United Kingdom has a vast and vivid manufacturing sector, including various industries like electricity, water, mining, oil & gas, and many more. As per industry body Make UK, the current annual output of the UK’s manufacturing sector is about £183 billion, and it continues to maintain its position as the ninth-largest manufacturing country globally.

However, the industry has been going through a crisis due to rising inflation, and the businesses within it are facing growing pressures due to the rise of input costs and supply chain disruptions. Manufacturing is severely impacted by high energy and commodity costs. At the same time, finding talent has become a major challenge, with vacancies at record levels, at 4.1 vacancies per 100 jobs. According to ONS data, as on 10 June 2022 number of online job adverts was the weakest in the manufacturing sector when compared with three weeks ago, among all the major industries.

Pandemic and its impact on manufacturing

The COVID-19 pandemic had impacted almost all the sectors and manufacturing was among the severest hit with a significant reduction in the output in 2020. As per ONS data (Office for National Statistics), the total value of the UK’s manufacturing product sales declined by 10.8% to £358.7 billion in 2020 compared to £402.2 billion in the previous year.

While almost all the manufacturing divisions witnessed a decline in sales, the manufacturing of pharmaceuticals and paper and paper products witnessed modest improvement during the period. However, once the restrictions started easing, the output value of the sector began returning to normal despite high prices and supply chain bottlenecks, and it was being expected that things would be back on track by the end of 2022.

All the high hopes to see a turnaround by the year-end were dashed amid a worsening cost-of-living crisis. Producers of consumer goods struggled to raise the demand as households face surging energy bills and there is a continuous decline in consumer confidence.

The latest data revealed that British manufacturing activity expansion was weakest in May 2022 since January 2021 at 54.6. It clearly shows the squeeze on household finances and the risk of recession weighing on the minds of consumers. For yet another month, costs paid by manufacturers and selling prices witnessed a rise in May.

What is the sector asking for?

The Q2 survey report of Make UK/ BDO has revealed that investment has taken a big hit, and companies have been deferring or shelving their plans to maintain their cash flow, amid weakening consumer confidence with growth and orders showing a sharp decline. Exports are still not showing any signs of sustainable recovery.

Rapidly rising input costs may not leave the manufacturers to continue till Autumn, when Chancellor Rishi Sunak had promised help during the Spring Statement. The prevailing situation calls for an immediate and urgent need for help for the manufacturers, keeping in view the grim outlook for the next six months.

As per Make UK, manufacturers are now not looking at any short-term measures and would rather expect the government to focus more on business and foreign investors, which could portray the country in a more serious manner with a long-term vision.

  • Manufacturers have been asking the government to either remove or reduce the business rates for the coming one year.
  • SMEs should be provided with a waiver of VAT, while large businesses can be given some deferrals.
  • There has been a demand for the extension of the super-deduction investment policy, a means that allowed the businesses to claim a much higher tax deduction in the tax year of purchase for qualifying equipment compared to what it could have been normally.
  • The climate change levy should be stopped for the time being, and if the energy cost continues its rising spree, it should be completely abolished.
  • There is also demand from the manufacturers to make the increase in AIA (Annual Investment Allowance) permanent. Late last year, the government had temporarily increased the AIA from £200,000 to £1,000,000 for a qualifying outlay on plant and machinery.