British Business Bank boost business loans by 21% over 2020

At the end of March 2020, the British Business Bank (BBB) revealed that it had provided £8 billion of financial support through its various programmes, an increase of 21% from £6.6 billion in March 2019. The UK’s national economic development bank has published its 2020 Annual Report and Accounts, revealing that it has strived to create a more diverse finance market for smaller businesses. According to the Bank, 93% of the finance supported in the last financial year was delivered through smaller, newer or alternative finance providers. The BBB also announced that at the end of March this year, it was working with more than 140 finance providers in total.

British Business Bank boost business loans by 21% over 2020

Sep 16, 2020

At the end of March 2020, the British Business Bank (BBB) revealed that it had provided £8 billion of financial support through its various programmes, an increase of 21% from £6.6 billion in March 2019. The UK’s national economic development bank has published its 2020 Annual Report and Accounts, revealing that it has strived to create a more diverse finance market for smaller businesses. According to the Bank, 93% of the finance supported in the last financial year was delivered through smaller, newer or alternative finance providers. The BBB also announced that at the end of March this year, it was working with more than 140 finance providers in total.

Asset finance impairments balances were already increasing pre-Covid

As many leasing businesses start to approach their September or December year-ends, finance directors, boards and external auditors will be having to make difficult judgements about accounting impairments. Although this year will bring unique challenges, it may still be useful to consider where companies sit historically in relation to their peers. Within the UK Asset Finance 50, the industry ranking survey published jointly by Asset Finance International and Asset Finance Policy and sponsored by Alfa, we reported on the average accounting impairments balance as a percentage of total book.  As shown in the chart (below), the weighted-average level of impairments increased from 0.82% in the 2019 edition of the Asset Finance 50 to 0.98% in the 2020 edition. Since then, the average increased to 1.06% using data available until June 2020, and further to 1.11% for data available until the start of September.

Asset finance impairments balances were already increasing pre-Covid

Sep 09, 2020

As many leasing businesses start to approach their September or December year-ends, finance directors, boards and external auditors will be having to make difficult judgements about accounting impairments. Although this year will bring unique challenges, it may still be useful to consider where companies sit historically in relation to their peers. Within the UK Asset Finance 50, the industry ranking survey published jointly by Asset Finance International and Asset Finance Policy and sponsored by Alfa, we reported on the average accounting impairments balance as a percentage of total book.  As shown in the chart (below), the weighted-average level of impairments increased from 0.82% in the 2019 edition of the Asset Finance 50 to 0.98% in the 2020 edition. Since then, the average increased to 1.06% using data available until June 2020, and further to 1.11% for data available until the start of September.

UK asset finance falls but early signs of recovery appear

New asset finance business in the UK fell by 22% in July according to the Finance and Leasing Association (FLA). Though it remained down year-on-year, July represented an improvement compared to the preceding seven months, during which new business collectively fell by 31%. Business new car and commercial vehicle finance saw the biggest falls by sector, down 36% and 18% respectively. Plant and machinery finance dropped by 11%, while IT equipment finance was comparatively steady, falling by 4%. Over the past 12 months, IT is the only sector still showing growth compared to previous period, rising 3%.

UK asset finance falls but early signs of recovery appear

Sep 09, 2020

New asset finance business in the UK fell by 22% in July according to the Finance and Leasing Association (FLA). Though it remained down year-on-year, July represented an improvement compared to the preceding seven months, during which new business collectively fell by 31%. Business new car and commercial vehicle finance saw the biggest falls by sector, down 36% and 18% respectively. Plant and machinery finance dropped by 11%, while IT equipment finance was comparatively steady, falling by 4%. Over the past 12 months, IT is the only sector still showing growth compared to previous period, rising 3%.

EMEA

CBILS applications set to end in one month, leaving behind supply chain upgrades and business model changes

Aug 27, 2020

The UKs British Business Bank has confirmed that applications for the Coronavirus Business Interruption Loan Scheme (CBILS) will close on 30 September 2020, with a cut off completion date of 20 October. Furthermore, the Government is set to make an announcement on the future of the loan schemes it is currently backing in the coming weeks. According to financial services company MotoNovo Finance, the CBILS asset finance facility has been used for a variety of investments by automotive dealers including IT, office equipment, HGV’s for vehicle home-delivery to customers. The company stated that now is the time to review how a CBILS asset finance facility could help to accelerate positive change in the car retailing environment.

Americas

CIT upgrades B2B point-of-sale lending platform

Feb 20, 2020

The small business solutions arm of CIT Group has launched a new version of its point-of-sale lending platform. The platform is available online and on mobile devices to simplify financing for small business purchases of $2,500 or more. Business customers can shop for products, be approved for credit, select terms and receive electronic documents to secure their purchase electronically. The platform also provides real-time monthly payment quotes and automatically sends electronic documents to customers for review and e-signature.

Asia Pacific

Brand value of world’s largest banks contracts for first time since financial crisis

Feb 19, 2020

The total brand value of the world’s 500 largest banks has declined for the first time since 2009. Research by independent brand valuation consultancy Brand Finance found the global brand value of the top banks fell from $1.36 trillion at the start of 2019 to $1.33 trillion for 2020. Chinese banks occupy the top four places in the Brand Finance Banking 500, with ICBC retaining first place overall. It is the country’s biggest lender with 600 million customers.