Presentation on theme: "WE’RE COMMITTED TO SUPPORTING YOUR BUSINESS OBJECTIVES At Lloyds TSB Commercial Finance we provide a range of ways in which businesses can secure the."— Presentation transcript:
WE’RE COMMITTED TO SUPPORTING YOUR BUSINESS OBJECTIVES At Lloyds TSB Commercial Finance we provide a range of ways in which businesses can secure the funding they need to realise their plans and meet their objectives. For over 40 years we’ve offered our expertise in the field of business finance, supporting businesses from start-up right through to global multi-nationals. As part of the Lloyds Banking Group we are in the perfect position to provide access the full range of funding and banking services you need to help make your business thrive.
FUNDING FOR RECRUITERS Stuart Talbot Head of Recruitment Finance LloydsTSB Commercial Finance
FUNDING FOR RECRUITERS 1.Funding for Lending 2.LBG and the Recruitment Sector 3.What would you funder be looking at? 4.Growth – thoughts and experiences 5.Funding Growth – UK and Overseas
FUNDING FOR LENDING INITIATIVE? 1.What is it? 2.Is this relevant for me? 3.What to do
FUNDING FOR LENDING INITIATIVE? 1.What is it? Reduced interest rate for Business Loans, Commercial Mortgages, and Hire Purchase Lloyds Commercial increased SME lending by 4% year on year £1.4m lent under the National loan guarantee scheme (NLGS)
FUNDING FOR LENDING INITIATIVE? 1.What is it – the technical stuff? –available to all customers who meet existing Commercial credit policy and criteria – no separate eligibility checks –an ongoing 1% reduction in the interest rate over the full life of the loan –available for new loans to both new and existing customers –includes both variable and fixed rate lending –loan terms from 1 year –minimum loan size of £1k (£25k for Commercial Mortgages), compared to £25k for NLGS –the discount under the scheme is available until further notice –standard arrangement fees apply
FUNDING FOR LENDING INITIATIVE? 2.Is it relevant for me? –Lending criteria to apply –Recruitment businesses often “asset light” –Hire purchase might well be relevant –Property purchase within criteria –Applies to “Term lending”, ie unsecured “cashflow” lending and Invoice finance outside scope
FUNDING FOR LENDING INITIATIVE? 3.What to do? –Speak to your advisors –Develop robust business plan if seeking Term loan –Discuss with your funder/Relationship manager –Don’t hang about as the scheme will have a limited life based on funds approved.
LBG and the Recruitment Sector in 2012 Fully supportive of the sector Commercial Finance £5bn turnover, 1300 clients Policy Presence Cash Friday/Factoring/Invoice Discounting Commercial Banking c3000 customers Key market focus International support for candidates Revised Credit policy
Considerations as a Funder –Financial Performance Retained value of business Track record Financial strategy –Income (Turnover) –Profitability preserved for the longer term Ability to forecast Internal controls –Cash –Credit risk
Considerations as a Funder –Security Invoice/Payroll Finance –How good are internal processes –What is the track record –Concentrated sales ledger –Quality of client base –Contractual terms
Considerations as a Funder –Security Bank Loan/Overdraft –How good are internal processes –What is the track record –What corporate security is on offer –What personal security is on offer
GROWING THE BUSINESS STRATEGICALLY Does top line growth equate to profit growth? Try to avoid reactionary growth Organic? New UK sub sector? –New team/new offer to existing customers/why is the business available? New markets abroad? Squeeze the lemon Discuss with your Funding partner
How fundable are your growth plans? Invoice Finance (UK) –What are the implications of the growth –Capital requirement –Working capital need Changes to your mix of sales ledger Risk of individual clients Terms Contracts
Invoice Finance (Overseas) –How well do you know the market? Existing customers? –Do you have to set up a local company to operate? –Can you maintain controls from UK? –Legal requirements –Tax implications –Cultural/Language implications –Is the growth fundable? –Is the debtor(s) insurable? –Can you move money in and out of that country –Immigration rules
GROWING THE BUSINESS BY ACQUISITION Understand exactly what are you buying? Why is it for sale? Invoice Finance debt will reduce the price Structure of the deal – low cash outlay/earnout linked to performance Can your existing funder extend sufficient facilities to meet requirements? Strength of remaining key people Employment contracts?
Summary Funding for Lending will have limited Recruiter focus Plan, forecast and communicate Engage with advisors as appropriate Speak to funders
Questions?? Stuart Talbot Direct:+44(0) Mobile:+44(0)