Following last week’s announcement of the Canadian Budget 2017, Trevor Parry, M.A., LL.B, LL.M (Tax), President of the TRP Strategy Group, provides Finance Monthly with specialist insight into the impact of the announcement and potential outlooks for the next budget.

Despite active rumours that dramatic changes were coming in the 2017 Canadian federal budget, the document as tabled in the House of Commons on March 22^nd contained virtually none of the controversial elements budget-watchers had feared—such as an increase to the capital gains inclusion rate or changes to the taxation of employee stock options.

Instead, Finance Minister Bill Morneau brought forward a status quo document that reads more like a budget update than a true or full budget; while nevertheless clearly and directly signaling the Trudeau government’s appetite to eat away at particular tax benefits “as soon as the time is right.” In the wake of the budget announcement, rumours are now circulating that like his (Conservative) predecessor Jim Flaherty in 2011—which saw federal budgets in March and then again in June, although separated by an election—a second federal budget may be tabled in a single calendar year, with pundits suggesting fall (October?) for a possible additional 2017 budget.

Status quo with adjustments at the margins

The 2017 budget tabled on March 22^nd and entitled “Building a Strong Middle Class” is organized around five main themes*:

1. Skills, Innovation and Middle Class Jobs

The Government is proposing to invest an additional $4 billion over the next five years in such areas as developing “superclusters” (dense areas of business activity) to spur innovation; the creation of a strategic innovation fund; funding and promotion of clean technologies; and growing Canada’s advantage in artificial intelligence.

2. Investing to Create Jobs and Strong Communities

The government has announced plans to accelerate implementation of the Canada Infrastructure Bank; modernize Canada’s transportation system; work with the Provinces and Territories to invest in green infrastructure; support families through early learning and child care; improve indigenous communities; and build a new National Housing Strategy. While these programs account for almost $21 billion in expenditures over five years, they will be funded by reallocating current budget dollars.

3. A Strong Canada at Home and in the World

Included under this “theme” is new investment in home care and mental health; creating healthier First Nations and Inuit communities; providing greater support for veterans and their families; and enhancing the security and safety of Canadians. It is of interest that some of the additional funding for these initiatives will come from the reallocation of almost $1 billion that had previously been set aside for defence funding of large scale capital projects.

4. Tax Fairness for the Middle Class

This theme focuses on ensuring that the tax system is fair in both design and implementation. This is to be accomplished by closing tax loopholes; cracking down on tax evasion and combatting tax avoidance with an additional investment of $500 million over the next 5 years; eliminating ineffective and inefficient tax measures; and providing greater consistency in the tax treatment of similar types of income. Specific initiatives are outlined in greater detail below, with the government estimating these programs will increase tax revenues by almost $5 billion over five years.

5. Equal Opportunity

In the 2016 Fall Economic Statement the Government committed to completing and publishing a gender-based analysis of budgetary measures starting with Budget 2017. Included in Budget 2017 is a discussion on how specific proposals will have a positive impact by addressing gender inequality.

“Tax fairness for the middle class” means coming tax punishment for high income-earners

So why such a milquetoast effort from Morneau’s sophomore effort? Speculators conclude that Trudeau et al. are waiting and watching on actions south of the border before making any bold strokes here at home. What this means for the Canadian high income-earner, business owner or entrepreneur is a continuing requirement to remain vigilant and engage in defensive tax planning for the upcoming months.

What could be on the chopping block for the next budget round (whenever it comes)? Everything from income sprinkling from a testamentary trust to holding passive investments within a corporation to tightening the rules that allow family members to share income (a common strategy used by family-owned businesses). Thus when the Liberals decide to move back above the treetops to mount their full assault as they have telegraphed in their actions to date—and as reinforced by the threats contained in the March 2017 budget announcing “further study” of various issues—Canadians would do well be prepared with effective countermeasures.

(*with files from “CALU”, the Conference for Advanced Life Underwriting.)

Startup Genome, in partnership with the Global Entrepreneurship Network, recently released The Global Startup Ecosystem Report 2017 (GSER), a comprehensive look at how regions foster and sustain vibrant startup ecosystems. It reveals how successful tech innovation is being led by young entrepreneurs all over the world. The top five regions in this year's ranking are Silicon Valley, New York City, London, Beijing and Boston. All 55 cities participating in this year's research were rigorously analyzed based on their performance and eight factors driving startup success: funding, market reach, global connectedness, technical talent, startup experience, resource attraction, corporate involvement, founder ambition and strategy.

The latest report, which is Startup Genome's third and most comprehensive effort to date, draws upon the voice of entrepreneurs -- with more than 10,000 startup leaders participating - gathered through the efforts of 300 partner organizations. At a time when many regions feel left behind by a startup and innovation economy that has concentrated in super-regions globally, GSER's data and analysis is intended as a guidepost for helping founders, employers, policymakers and regional leaders to accelerate the growth of their local startup ecosystems.

Major report findings include:

• London is now a top 3 startup ecosystem globally, moving from its prior ranking position of #6
• Assessed for the first time, Beijing and Shanghai came in at #4 and #8, respectively
• Of the top 20 cities, Los Angeles and Chicago saw the biggest drop in this year's rankings mainly due to their lower global connectedness
• Montreal, Moscow and Sao Paulo all departed the top 20
• Silicon Valley lost its first place in the 'Talent' category due to high salaries and challenges for early-stage startups to attract experienced talent
• Beijing was ranked 2 in the 'startup experience' category, beating out New York City, London and Boston
• Due to its impressive performance for its relatively small size, Stockholm ranked #14

Major insights revealed by this year's report include:

• Concentration remains a major concern: a handful of geographic markets today are capitalizing on the economic benefits of global startup innovation, with four clusters capturing most of the global activity. In 2015 and 2016, the top 10 ecosystems by sum of exit value (not the top 10 according to our multi-variable ranking) captured about 85 percent of the global exit value of tech startups. These 10 cities are all located in only four countries. It's important that the tech industry diversifies geographically in order for more cities to participate in the job creation and economic growth created by the tech sector and for it to become more evenly distributed.
• Global connectedness can be measured and is a predictor of success: it is now demonstrably possible to quantify the networks that are created by entrepreneurs and to prove that global connectedness leads to faster growth and greater odds of creating globally leading startups. The impact of global connectedness comes when a company can understand the global market need, sell to customers in other markets and "go global," all of which are critical for startups to grow beyond local ambitions toward high-value outcomes. Global connectedness is ultimately a key ingredient towards leveling the playing field and distributing startup ecosystems more evenly
• The time to invest is now, but the investment required is substantial: it's generally accepted that it requires at least 10 years if not 20 for a vibrant entrepreneurial ecosystem to develop in a city or region. In New York City, where a vibrant startup ecosystem has only coalesced in the last few years, the seeds were planted at least two decades ago. Building on prior efforts, Israel and Singapore implemented innovative and aggressive policies in the 1990s to spur the growth of their startup ecosystems. Singapore appeared in the top 10 ranking for the first time in 2015.

The importance of tech is increasing exponentially and cities and civic leaders must invest aggressively now in order to create a conducive environment for tech founders to build global companies from the ground up and to attract the most advanced thinking and intellectual input from potential partners, customers and investors.

"We're seeing a lot of demand for insight into what makes the world's most successful innovation ecosystems tick, and how this knowledge can be replicated and scaled in different regions around the world," said JF Gauthier, CEO, Startup Genome. "Civic leaders want to invest in innovation, entrepreneurship and job creation, but they often lack the know-how to quantify what development stage their local ecosystem is at and what tangible policies and activities to focus on in order to accelerate through the ecosystem lifecycle. This report offers a concrete starting point."

"Startup Genome has a track record of producing strong analysis of what drives innovation at the local and regional level. That's one of the reasons we partnered with them for this year's report," said Jonathan Ortmans, President, Global Entrepreneurship Network. "Our mission is to connect entrepreneurs, investors, researchers, policymakers and other startup champions around the world and to begin defining concrete metrics around what drives innovation. This year's report and data provide the perfect backdrop for discussions at the Global Entrepreneurship Congress and we are excited that it is being released here with thousands of delegates from 170 countries."

(Source: Startup Genome)

Small businesses are facing the most uncertain economic time in recent history, yet the Make or Break Report 2017 from Xero examining the opinions and character traits of successful small business owners going into 2017 has revealed irrepressible optimism as a common trait.

Small business confidence was still found to be high, particularly with very young businesses, despite economic uncertainty being the most pressing concern for UK and US business owners. The vast majority of 1 year old (94%) and 2 year-old businesses (84%) said they felt more confident going into 2017 than the previous year, and over three quarters (79%) of small businesses said they felt confident about their business’ survival in 2017. For those going through a tougher time, nearly a fifth said they expected 2017 to be a turnaround year for their business. So why is it that small businesses are feeling so confident?

They want to cut themselves free of the red tape

• A huge 74% of UK small businesses said they remain confident about the future despite Brexit and the resulting economic instability being the number one concern for small businesses going into 2017.
• Nearly a fifth (18%) said that Brexit would reduce some of the restricting red tape and legislation surrounding the EU, increasing trading and local buyers as a result. This view was shared by US small businesses who were asked the same question in relation to Trump’s presidency, highlighting fewer regulations as the most positive impact.

They are shunning traditional office structures to increase productivity

• Successful SMBs are exchanging traditional office structures for remote working and flexible working hours (42%), hailing this as the biggest driver of productivity for themselves and their staff in 2016.
• 94% of small business owners using cloud software report benefits, citing paperless systems, remote working and simplified software management.

They are prioritising the health and happiness of themselves and their employees

• Over three quarters of small business owners (78%) across the UK and US believe the personal health of them and their staff directly impacts on the success of their business going into 2017.
• Getting enough sleep was revealed to be the most important factor for nearly two thirds (63%) of small business owners to stay healthy in body and mind.
• Exercising regularly, getting support from friends and family and giving themselves adequate time off was also highlighted by small business owners – in the last year 84% found ways to take a break with holidays and avoiding the commuting rush by working from home occasionally.
• In fact, over half of small business owners (52%) said they wanted to give themselves more of a work-life balance in 2017 than they did the previous year.

They see themselves as in control of their own destiny

• For successful business owners, the report revealed that risks are seen as part of the job, as over half (54%) said they have taken financial risks with their business.
• When these risks did not result as expected however, over three quarters (77%) of small business owners said they had no regrets – they see these mistakes as a fundamental learning experience.
• Business owners were again found to be optimistic when forecasting despite the economic outlook - over two thirds (69%) said they are optimistic and aggressive about their achievable targets.
• For 52% of those surveyed, they did not think Brexit would have an impact at all, and for nearly three quarters (74%) they were confident in their business’ success, regardless of instability.

Keeping grounded

While confidence and optimism from small businesses was found to be the underlying trait of small business owners, the report revealed areas for improvement and viewpoints to consider.

• Over a third (42%) of small business owners considered their accountant to be a trusted business advisor or mentor, but over half do not necessarily always follow their advice.
• Fewer than one fifth of small business owners (16%) said they were worried about automatic pension enrolment, but behind Brexit and changes to the national living wage, auto enrolment was the third policy accountants were most concerned would impact their clients in 2017.
• Chasing payments for overdue invoices still plagues as the biggest time waster for a fifth of small business owners across the UK and US. The threat is compounded by the importance small businesses put on cash flow in 2017 – for over a third (34%), cash flow was said to be more important than ever given the instability of the economy.
• With small businesses’ biggest worry for Brexit being reduced consumer spending, small businesses admitted to forecasting far more aggressively than accountants would like their clients to.

Gary Turner, UK co-founder and managing director at Xero, said: “Our report has revealed a remarkable trait among small businesses to look on the bright side, particularly in the current climate when faced with so much uncertainty. Given the importance of small business health on our economy here in the UK, it is fantastic to see that small business owners are feeling so confident about the future. But, as cash flow and healthy finances have never been so vital, owners must keep a sense of realism and listen to external advice and support to ensure that business continues to grow and prosper through the next few years.”

Josephine Fairley, Green & Black’s co-founder and serial entrepreneur said: “Owning a business is invariably a rollercoaster full of ups and downs and you must learn ways of thinking your way out of difficult situations, so it’s brilliant to see such optimism coming through as a defining quality in an entrepreneur from Xero’s report. Having a concrete plan for your business combined with a can-do attitude can help you to win regardless of what you are faced with.

“While optimism is important, consulting with experts and keeping on top of your data can enable you to make the right decisions for your business that will help you not only survive, but thrive.”

(Source: Xero)

One in six small businesses (17%) is planning to employ new staff by the end of April 2017 – with the IT & Telecoms sector leading the employment charge (27%) -– according to the new research from Hitachi Capital’s quarterly British Business Barometer.

The new Hitachi Capital Business Finance data comes as the Federation of Small Businesses has urged The Chancellor of the Exchequer Philip Hammond to boost jobs and long-term growth in the forthcoming Spring Budget. The new Hitachi Capital data suggests many SMEs already plan to hire new staff before April: the areas where they could do with Government support relate to keeping fixed running costs and business rates down.

Beyond being financial growth drivers for the economy at large - and an ongoing source of ideas and innovation - the UK’s small businesses are vital drivers for employment and training to the British economy. The new research by Hitachi Capital Business Finance revealed the younger the small business the more likely it was to be hiring. One in five SME decision makers (20%) from enterprises less than five years old plan to hire new people by April. In contrast, businesses over 35 years are the least likely to be hiring (13%).

For eight of eleven regions polled, typically around one in six small ventures were planning to expand their headcount in the next three months – with London, the South East, North West and Scotland driving activity.

Regional employment over the next three months

By sector, the divergence between regions most and least likely to employ new staff were more pronounced – the biggest opportunity sectors being IT & Telecoms, Financial Services, Manufacturing and Medical.

Employment over the next three months by sector

Gavin Wraith-Carter, Managing Director at Hitachi Capital Business Finance comments: “The Spring Budget is an opportunity for the Chancellor to openly support the growth ambitions of SMEs and the positive contribution they make to the UK economy at large. Many small business owners are concerned about the impact of a steep rise in business rates and have placed importance on cutting fixed costs and better managing cashflow and invoicing to keep their business plans on track.

 “On a positive note, our Spring research suggests that many SMEs are adjusting quickly to Brexit, looking for new markets to expand into and fresh methods to drive growth – and many intend to increase headcount to support these plans. This week’s Budget is a great opportunity for the Government to reaffirm its support for the sector at a critical time.”

(Source: Hitachi Capital Business Finance)

The European Investment Fund (EIF) and the British Business Bank (BBB) have signed an agreement under the European Commission's InnovFin initiative to help small and medium-sized enterprises (SMEs) in the UK access an estimated £30 million (ca. EUR 35 million) in additional financing. This transaction benefits from the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe. So far, the UK has been the second largest country of operation for EFSI backed financing with support going to renewable energy, a new hospital in Birmingham, smart meters and SME lending.

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “Today’s agreement is excellent news for those innovative SMEs who would not otherwise have had the opportunity to obtain the finance they need to grow and create jobs. I am delighted that the Investment Plan is there to support them as they take their next steps.”

The Investment Plan focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment projects.

The InnovFin SME Guarantee Facility is established under Horizon 2020, the EU's programme for research and innovation. It provides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5 million in order to improve access to loan finance for innovative small and medium-sized enterprises and small mid-caps (up to 499 employees). The facility is managed by EIF, and is rolled out through financial intermediaries – banks and other financial institutions – in EU member states and associated countries. Under this facility, financial intermediaries are guaranteed by the EU and EIF against a proportion of their losses incurred on the debt financing covered under the facility.

The UK is regularly among the top beneficiaries of EU innovation grant funding, including in the latest rounds of the European Research Council's (ERC) proof of concept grants which support researchers in bringing their ideas to market and Horizon 2020's Fast Track to Innovation (FTI) scheme which does the same for SMEs. Historically, it has been the biggest recipient by far of the FTI scheme since it was launched in January 2015.

(Source: European Commission)

With an in-depth analysis into the overall effect of the pound’s fluctuation on small businesses, here Saskia Johnston, Foreign Exchange Expert at Sable International provides exclusive insight for Finance Monthly’s economy savvy on several ways SMEs can protect themselves for the coming years.

As we wait to see what kind of effect the UK’s looming exit from the European Union will have on the national economy, there is very little in the way of absolute certainties. The weakening pound is one of the only tangible consequences of the vote so far (political unrest notwithstanding), to the point that HSBC’s chief currencies analyst described it as the ‘official Opposition’ to the Brexit-enabling UK government.

But beyond the politics and macroeconomics of it, a weak pound has an immediate effect on the bottom line of many UK-based SMEs. Any company importing products from Europe has seen costs rise by at least 22% - enough to deliver a serious blow to margins, and for businesses with sensitive enough cashflows, enough to be outright lethal.

If you’re running one of these SMEs, it’s vital to protect your organisation against exposure to the weakening pound. Here’s how.

Forward contracts

As the UK and the EU continue to circle around each other, each peering suspiciously at the other, currency markets will continue to be volatile. Uncertainty is the new norm, so make use of whatever certainty is available.

Forward contracts represent a kind of security, if not certainty, for any company with a foreign currency amount due at an agreed date. They involve you agreeing a fixed exchange rate at a certain point in the future, and can cover an individual payment or multiple payments across different periods of time.

By setting these dates in advance, you effectively agree to buy or sell the pound at the predetermined price point for up to a year in advance of the sale or purchase. This removes currency risk for you and your supplier or customer – after all, for all that the pound has weakened in recent months, it also tends to shoot back up at times that might be inconvenient for the other party. It may limit your upside gain, but it takes the element of chance and the risk inherent in a changing political context out of the equation – allowing you to lock in your profit and continue working on your projects without losing money.

Limit orders and stop-loss orders.

If your currency exposure is shorter, it may be worth setting up limit orders on certain transactions.  This has one chief benefit: it allows you to set a price target above where the market is currently trading, ensuring that your orders are automatically filled when this price is hit. This offers a clear upside and allows you to cover your bases in the event that the pound outperforms expectations.

Stop-loss orders offer the opposite, doing exactly what the name implies: preventing unnecessary loss. They insure you against the possibility of currency underperformance, allowing you to set a “worst case” price against the current market level.

Your order will be filled if the market drops to (or past) your protective price.

One Cancels the Other (OCO)

Of course, limit and stop orders are naturally complementary, and it’s possible to use both as part of a combined One Cancels the Other (OCO). This kind of arrangement allows you to run a limit and stop-loss order together, ensuring that the second your upper or lower price limits are hit, your orders will be filled – with the unfulfilled price target being immediately cancelled. You can also split your gross amount up into a number of smaller transfers if your currency need isn’t especially pressing.

This goes some way towards mitigating your risk and improving your trading position. When you know what your upper and lower rate limits are, much of the uncertainty of currency fluctuation is entirely removed – allowing you to ring-fence your revenues and focus on the things that matter most to your company, rather than the economic and political factors you can’t directly affect.

Of course, every business has different requirements, and the solution that’s most appropriate for yours won’t always be immediately clear. To truly hedge against the uncertain, it’s important to seek the right foreign exchange advice. Currencies may be unpredictable, but you can set your business up to make the most of them.

Almost three in every five (57%) SME business owners say that they do not feel confident about the UK’s economic outlook for 2017, according to the Close Brothers Business Barometer. The quarterly survey questions over 900 UK SME owners and senior management across a range of sectors and regions.

Firms at the smaller end of the scale – under £500k annual turnover – were the least confident, with 64% answering ‘no’ to the question ‘are you confident about the UK’s economic outlook for 2017?’.

“Businesses owners are not taking a negative view, but they are being pragmatic about the UK’s economic prospects over the next 12 months,” said Neil Davies, CEO, Close Brothers Asset Finance. “There are still many unknowns and this uncertainty is reflected in what small business owners are telling us.

“For example, the value of Sterling is seen as a short-term issue and doesn’t create conditions for long-term investment. While activity in a number of sectors is stronger due to the weaker pound, helping to boost orders from overseas, cost pressures remain high with price increases being passed onto consumers, which may contribute to an increase in inflation down the road.”

Regional analysis

Business owners in the North East and Northwest of England were the most positive, with 56% and 54%, respectively, feeling positive about the year ahead, contrasting with the 36% of Scottish respondents.

Full list of regional responses to ‘are you confident about the UK’s economic outlook for 2017?’:

Sector results

The most enthusiastic sector was Manufacturing, which returned a positive response of 61%, followed by Engineering with 52%; Construction 49%; Transport 47%, and Print 37%.

“UK manufacturing in on a high at the moment, with recent rates of growth for production and new orders among the best seen over the past two-and-a-half years, according to the Markit/CIPS purchasing managers' index,” continued Neil.

“And this uplift in the manufacturing sector is reflected in what the survey respondents are telling us, which is that they see 2017 as a time of significant potential opportunity.”

(Source: Close Brothers Asset Finance)

Germany’s small businesses are the most optimistic about their own economy according to the inaugural Global Business Monitor report from international business funder, Bibby Financial Services (BFS).

Nearly three-quarters (73%) of German SMEs say their national economy is performing well in the global study that surveyed business owners in the US, Germany, UK, Poland, Hong Kong and Ireland.

More than two thirds (67%) of Irish SMEs are confident about the local economy. German and Irish SMEs are also most confident about the future with 57% of SMEs in both markets expecting sales to grow in the year ahead.

Conversely, less than one in five businesses in Hong Kong (15%) say they are confident about their local economy, with less than a quarter (24%) expecting sales to increase in the next 12 months.

Steve Box, International CEO of Bibby Financial Services said: “Germany is often seen as the industrial beating heart of Europe. Our research underlines the confidence of the small businesses in Europe’s largest economy as the EU looks to agree its shape post-Brexit.

“It is a different picture for the economy in Hong Kong where the majority of business owners are pessimistic about future sales and the local and global economies.”

The study reveals the sentiment of global SMEs in areas such as investment, confidence, challenges and opportunities, overseas trade and payment terms. In relation to international trade, findings show that small businesses in Hong Kong are three times as likely (69%) to export as those in the UK (22%) and seven times as likely as in the US (10%).

Steve added: “Due to its geographical location, Hong Kong is an important gateway to trading activities between China, the US and Europe. Its economy is highly export driven and this may explain why confidence is subdued during a time of economic change and significant currency fluctuation.”

Across the study, almost a quarter of businesses (24%) said that foreign exchange fluctuations are the biggest challenges they face in relation to international trade. For SMEs in Poland and Hong Kong, figures rose to 46% and 37% respectively.

Despite pockets of confidence in their local economies, the research reveals that nearly three-quarters (73%) of all SMEs have concerns about the global economy, with those in the US (83%) and Ireland (82%) the most concerned.

Steve concluded: “It’s clear that confidence in the global economy has suffered due to macro-economic and geo-political events in the last six months. The real question is for how long will confidence be affected?

“It is likely that the UK’s formal exit from the EU – commencing with the triggering of Article 50 by the end of March next year – will have further economic consequences that will be felt around the world.

“As the world shapes itself with a new US president and an EU without the UK, it is those small businesses that can adapt to changing domestic and international trading conditions that will be best placed to profit and grow in 2017.”

Other key findings of the Global Business Monitor report include:

Challenges

• Rising costs are a challenge for half of all SMEs surveyed (50%) – the most frequently cited.
• One in five businesses describe the availability of finance as poor.

Investment

• Despite concerns over the global economy, 95% of SMEs plan to invest in their business in the next 12 months, with staff training, promotional activity and technology the most popular areas.
• SMEs in Germany and the US are most likely to invest (98%).

Payment terms

• Irish SMEs wait longest for payment from customers (38 days) followed by those in Hong Kong (37 days).
• In contrast, US SMEs are paid two weeks quicker (24 days).
• Manufacturing (39 days) and construction (40 days) businesses typically wait longest for payment when compared to other industry sectors.

Source: Bibby Financial Services

Ultimate Finance Group, a leading independent provider of finance to UK business, announced that its total loan book to the UK’s SME sector has exceeded £100 million, with significant further funds available to businesses looking for support during this time of post-Brexit economic uncertainty.

Ultimate Finance’s loan book has increased by a third in the last 12 months, a period of record growth for the business. At a time when the vote for Britain to leave the EU is causing unease across the business community, Ultimate Finance’s commitment to support UK SMEs is stronger than ever as it begins ambitious expansion plans.

“The vote to leave the EU has caused concern for a number of our clients and for the wider business community,” explained Ron Robson, chief executive officer of Ultimate Finance. “We remain fully committed to supporting UK SMEs, and with the strong financial backing of our parent organisation, Tavistock Group, we have significant resources available to us, a strong appetite to lend and a tremendous team of people to provide the outstanding service our clients deserve.”

“In uncertain times it is vital that businesses have stable and reliable funding partners that they can rely on and who will not, as the cliché has it, “remove the umbrella when it starts to rain”.  In Ultimate Finance, our clients have that strong, reliable and knowledgeable business partner who will support them through whatever challenges lie ahead.”

“As part of Tavistock Group we have access to significant financial resources and are not dependant on financial markets or banks for our funding.  As a privately owned business ourselves, we understand the realities and pressures facing our clients and stand alongside them.”

According to Robson, the £100 million landmark is just the beginning for Ultimate Finance:

“We have ambitious growth plans that will see us strengthen our position across the traditional areas of Asset, Invoice and Trade Finance whilst also bringing an exciting and innovative pipeline of new products to market to address the changing needs of UK businesses.  We will continue to extend our geographical reach, providing a locally based service, backed up by the strength and commitment of a national business.”

Ultimate Finance already offers a wide range of lending-based products that allows it to offer a tailored solution for virtually any business.

“At heart and in action, we are very like the clients we serve,” concluded Robson. “We are a lean, flexible and helpful team that specialises in giving small and medium sized businesses the support they need to respond swiftly to changing situations. With ample funds to lend, a passion to see our clients succeed and experienced staff that have the freedom to use their own initiative, we are in a great position to ease post-Brexit business woes and surpass our own ambitious expansion plans.”

For further information please visit: www.ultimatefinance.co.uk 

David Postings, CEO of Bibby Financial Services, considers the risk of forgetting SMEs in this year’s UK Budget and looks at how the Small Business Bill’s accession into law later this year could affect funding for SMEs and their general operating environment

At the start of last year, 99% of all private sector businesses in the UK were SMEs, accounting for 47% of private sector employment and 33% of private sector turnover.

You may also interested in this: https://www.kitensurf.ae

For many SMEs, business rates are a significant proportion of their monthly expenditure, while suppliers delaying their deliveries or customers paying later than agreed can tip the financial scales into the red. Against this finely balanced operating environment, political manoeuvrings are often watched closely by many SMEs and on the run up to the general election in May many will pay close attention to see how the winning party’s manifesto will affect them.

During an election year, however, it is easy to forget about the Budget and before this year’s electioneering fully takes hold, it is important that our gaze remains firmly on the Chancellor of the Exchequer’s announcement later this month.

The Budget

From the Autumn Statement in December, we know there will be some key changes for business. Measures proposed to make it cheaper to hire apprentices, and doubling small business rate relief for another year, will surely see operating costs reduce for many businesses.

A £45 million (€61 million) boost to help SMEs to export goods and services beyond the crisis-ridden Eurozone was announced, encouraging businesses to target fast-growing economies in Asia, Africa and South America. Though a welcome move, whether this will be enough for the Government to stay on track to meet its export target of £1 trillion by 2020, remains to be seen.

An extension to the Funding for Lending scheme – which will see the scheme continue until January 2016 – and additional support for the British Business Bank have both been proposed and these measures aim to provide greater access to funding for many SMEs.

But is this a case of too little too late for the current government?...

Read the full feature in the March 2015 edition of Finance Monthly Magazine