It feels like only yesterday we were writing last year’s communication, yet another year has flown by. Whilst we can reflect on this year’s business levels as considerably more positive than in 2020, we recognise more than ever how tough it has been for our customers. However, we’ve witnessed admirable resilience shown by client’s across all sectors, of which some have been able to flourish during these uncertain times.
Some notable differences across several industries than in previous year’s is stock levels and prolonged timescales involved when placing orders. In addition; the cost of both new and used assets has in some cases risen by over 30% due to the significant demand. Lead times remain an issue and the idea of waiting between 6-9 months for a critical business acquisition seems a world away from two years ago. Nonetheless; this doesn’t affect our ability to lend as our funders recognise the shift in values and remain positive about our marketplace, as lending volumes continue to drastically increase. Rest assured Affinity remain focussed on delivering the most competitive and tailored facilities whilst maintaining our high level of service.
The Recovery Loan Scheme (RLS)
The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic. We have access to the Recovery Loan Scheme (RLS) via numerous funders so please do not hesitate to contact us if you wish to discuss this further.
Super Tax Deduction
Please find attached our Super Deduction Overview which provides you with a simple summary of the benefits of this incentive.
We’re always keen to share ‘good new’ stories with you; please find some examples below which provide a snapshot of some recent deals;
£109,000 Recovery Loan Scheme Secured…
We recently secured a £109k facility for a granite and stone manufacturing business based in Yorkshire. The CNC processing machine was approved on a 66 month term with a minimal deposit. The business was clearly impacted by the pandemic and needed assistance in order to ‘bounce back’ and get trading back to pre-Covid levels. The machine enabled the business to become more efficient and increase the flow of processing which in turn secured further orders and the positive uplift in trading they needed.
Business Acquisition needs investment…
Our client, a successful disabled transport business based in the Greater Manchester area, recently acquired another business with many synergies. Although the acquired business had many contracts in place they had not invested in their vehicle fleet for a number of years. With efficiencies in mind our client looked to immediately update the fleet with newer transport vehicles as well as look to move to electric and hybrid vehicles. In just two weeks we secured and delivered just over £300k of funding across five of our panel of lenders at competitive rates. We rose to an urgent challenge and delivered in line with our normal ‘can do’ attitude at Affinity.
Yorkshire based manufacturer takes advantage of the Super Tax Deduction…
Our client is an established provider of Punches, Dies, Blades and other steelwork tooling across a nationwide customer base. We were approached by a trusted introducer to provide a bespoke finance package in support of a critical purchase. The business was in two minds whether to make a large acquisition during this time, however demand from their clients and the increased tax benefits through the super deduction made it a ‘no brainer.’ The machine cost £135K and we acted swiftly to provide a credit backed offer within 24 hours, securing a low 5% deposit coupled with a 3 month VAT deferral to help support cashflow. The client was delighted with a tailored finance package to match their needs and can now service the increased orders.
If you would like to discuss any of the above or attached communication, please do not hesitate to get in touch. Thank you to all our introducers and customers for your continued support, it doesn’t go unnoticed and is always very much appreciated.
We wish both you and your families a fantastic Christmas and New Year break, we all deserve it!