Oct 5

Autumn Newsletter 2021

Posted: 5 October 2021 by admin

We hope you enjoyed your summer breaks and managed to return to something like normality in recent months. We’ve certainly felt the positivity amongst our clients and introducers having spent time with some of you. It’s been a pleasure to be ‘back out there’ seeing friendly faces and hearing of the different challenges faced by each individual or business. A welcome return to networking and socialising has lifted spirits with many events in the calendar ahead; which we are thoroughly looking forward to.

In terms of business levels and activity, we are witnessing record numbers. Each sector has been affected in different ways, therefore it has been an interesting process to assess how we can help each business with a different approach.

The enquiries are always varied and each deal is never the same. We pride ourselves on adapting our skills to every case, providing the best possible guidance on how to finance your next purchase. Whether that be; IT equipment, new trucks/trailers, cars and commercials or other assets integral to your business, such as rental equipment we can provide totally bespoke solutions through our varied panel of trusted lenders. 

As reminder of the significant incentives currently available, please find the salient points below;

Super Deduction Impact

The super-deduction – which offers 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023 for companies.

An example of a recent deal we completed with a client purchasing new machinery;

  • Purchase price: £592K + VAT
  • Prior to Apr 21 – £592K x 100% x 19% (CT Rate) = £112,480
  • Super Deduction from Apr 21 @ 130%; £592K x 130% x 19% = £146,224
  • Uplift in Corporation Tax Relief of £33,744 in Year 1; equates to £2,812 per month uplift in Corporation Tax.

If you are considering a new purchase this represents a considerable saving and should be incorporated into any plans you are making. We also encourage you to speak with your Accountant on how this will impact, especially with potential upcoming year end’s in mind.

Recovery Loan Scheme – Assistance to buy business Assets – ends 31st December 2021

Launched on 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.

A business can apply to the scheme through us if Covid-19 has affected their business and the funds can be used for any legitimate business purpose including investment and growth. 

If your business has already borrowed from any of the other coronavirus loan schemes – namely:

  • the Bounce Back Loan Scheme (BBLS)
  • the Coronavirus Business Interruption Loan Scheme (CBILS)
  • the Coronavirus Large Business Interruption Loan Scheme (CLBILS)

RLS is still open to you, although the amount you have borrowed under an existing scheme may in certain circumstances limit the amount you may borrow under RLS.

RLS – Recent facility secured through Affinity Asset Finance;

We secured a RLS this week for a granite and stone manufacturing business in Yorkshire, £109k of CNC machine approved on a 66 month term. The business was clearly impacted by the pandemic and needed urgent assistance in order to ‘bounce back’ and get trading back to pre COVID levels. This machine enabled the business to become more efficient and increase the through flow of processing, which in turn secured further orders and the positive uplift in trading the business needed.

As always, thank you to all our customers and introducers for your continued support, it is greatly appreciated. We look forward to catching up in the coming months and hopefully for some celebrations as we near the festive period.