We would like to thank all our loyal clients, introducers and partners for working with us in 2018.
Christmas Opening Hours:
Friday 21st 9am to 1pm
Christmas Eve 9am to 1pm
Christmas Day Closed
Boxing Day Closed
Thursday 27th 10am to 3.30pm
Friday 28th 10am to 3.30pm
New Years Eve 10am to 3.30pm
New Years Day Closed
Wednesday 2nd 9am to 6pm
“Helping you and your business make the right funding decisions”
ECS Group continue to work with a wide range of innovative lenders enabling us to offer our advisors and clients an unparalleled range of funding facilities. Enabling us to meet all our existing and new clients current and future cashflow, capital and investment needs.
If you would need to speak to a member of the team over the Christmas period please call us on
01482 635400 or to request a call back please click this link to take you to our contact form.
(Calls may be diverted to voicemail over the Christmas period but all calls will be picked up within a maximum of five working hours)
“P2P Business Lending is becoming an increasingly important contributor to overall SME financing in the UK,” a report by the CCAF says.
The total UK online alternative finance market grew to £6.19bn in 2017, up 35% on 2016 (£4.6bn), according to research conducted by the Cambridge Centre for Alternative Finance (CCAF) who recently released “The fifth UK Alternative Finance Industry Report.”
The report confirms that P2P business lending had become an increasingly important part of financing for smaller businesses and was conducted with support from the Peer-to-Peer Finance Association and the UK Crowdfunding Association, which included responses from 75 platforms.
The report found that Peer-to-peer business lending accounts for the largest proportion of the total market, with SMEs borrowing £2bn through these platforms last year, a 65% increase on 2016.
Sector by sector:
Business Lending to SMEs £2bn
Consumer Lending £1.4bn
P2P Property lending £1.2bn
Invoice Discounting £0.79bn
The value of equity-based crowdfunding transactions rose 22 per cent last year to £333m, the Cambridge Centre for Alternative Finance said, with 49% of equity-based crowdfunding coming from venture capital funds and professional investors co-investing with retail investors.
Peer-to-Peer is also proving attractive to large institutions, with 40% of the funding of Peer-to-Peer business lending coming from mutual funds, pension funds, asset managers, banks, family offices and other financial institutions.
Bryan Zhang, executive director at CCAF, said: “This report reflects an industry that is playing an increasingly important role in helping consumers and businesses access finance, while growing to become more diversified, sophisticated and institutionalised.”
The team at Elite Corporate Solutions can help identify the most suitable form of finance. Where Peer-to-Peer is the most suitable option we can work with you and the lender to produce a professional pitch to investors.
If you would like to find out more about Peer-to-Peer or Crowdfunding please contact the team on 01482 635400 or to request a call back please click this link to take you to our contact form.
Mandatory HMO Licensing scheme is changing from Monday 1st October.
If you are a landlord with shared properties, the new changes may affect you.
1. Extension of Mandatory Licensing
2. Introduction of minimum room sizes
3. New rules for rubbish
Extension of Mandatory Licencing
What Properties are affected?
– Any property rented to FIVE or more people
– From two or more separate households
– Sharing basic amenities such as shared kitchen, bathroom lounge etc.
– Number of storeys are irrelevant (previously three or more storeys)
Are there any exclusions?
Yes. Even if the HMO meets the above criteria they may be excluded from mandatory licencing. E.G.
– Purpose-built, multi-occupancy flats in a block of 3 or more self-contained flats
– Converted blocks of flats classified as Section 257 HMOs.
(check with local authority for local rules re HMO licencing)
What Type of Licence is Required?
Most qualifying properties will require a Mandatory HMO licence, however local rules vary so check with the local authority to see if an Additional Licence or Selective Licence is required. If you already have an additional or selective licence, you do not need to reapply until the existing licence expires.
What do I need to do and when?
If your HMO requires a new Mandatory Licence under the new criteria you must:
– Apply to the local authority for a licence for each HMO BEFORE 1 OCTOBER 2018
– Failure to apply for a licence is a criminal offence, which may lead to criminal prosecution or a Local Authority fine of up to £30,000.
What else is changing from 1st October?
Introduction of minimum bedroom size
Why is a minimum bedroom size being introduced?
– To tackle over-crowding in HMOs,
– Under a new mandatory HMO licence from 1 October landlords cannot let a bedroom if it doesn’t meet the minimum requirement.
– Cannot use communal space within the HMO to make up for a bedroom that is deemed too small.
(If you have a current licence, you do not need to comply with this rule until the licence expires. The local authority can extend this period up to 18 months).
What is the minimum Bedroom size?
The new rules set three statutory minimum sizes, but your local authority has the discretion to increase these. Check with the local authority for clear guidance.
Firstly, any part of a bedroom with a ceiling height of less than 1.5m is discounted when measuring.
The following table shows the minimum sizes.
No of people Sleeping Age Minimum Bedroom Size
1 Over 10 years 6.51m2
2 Over 10 years 10.22m2
1 Under 10 years 4.64m2
It is the Landlords responsibility to tell the local authority about any room in the HMO with a floor area less than this minimum.
Local Authorities have the righto to inspect the property if they are not happy with the information provided on the Mandatory Licence Application.
I already have a Licence
– If you already have a mandatory, selective or additional HMO licence, you won’t need to comply until it expires.
– If in doubt about anything talk to your local housing authority, especially if you think your property might not be compliant with the new rules.
Do you need finance to pay for alterations to your property to comply with the new rules?
If you need to undertake work to your HMO to comply with the new minimum bedroom sizes, it is likely the local authority will give you some additional time to comply.
There are a number of options to consider when raising finance. If the property is in your own name this may include a Personal Unsecured Loan, or a loan secured on your home (1st or 2nd charge).
Alternatively, you may wish to raise funds against the investment property whether this is in your own name or in the name of a limited company. Again, this may be an unsecured loan or a secured loan against the property (1st or 2nd charge). The sooner you talk to your lender or a specialist in raising commercial finance, the better.
Please call me on 01482 635400 or click the link to and a member of the team will be in touch if you have any questions around HMO, student lets or standard Buy-to-Let property finance.
The other major change from Monday 1st October 2018 is around Waste Disposal
From 1 October 2018, a mandatory HMO licence will include the requirement for landlords to comply with the council’s storage and waste disposal scheme.
– HMOs typically produce more rubbish than single family homes
– government wants to ensure all waste is disposed of properly.
It is the Landlords responsibility to ensure:
– The HMO has sufficient waste disposal facilities inside and out
– The occupiers know what waste goes in which bin
– Which day to put out the rubbish
– Ensure the bins are not obstructing the pavement.
Check with your local council for details of their specific scheme.
If you would like to find out more about HMO or other Investment Property Finance please contact the team on 01482 635400 or to request a call back please click this link to take you to our contact form.
Cashflow Finance is wrongly seen as a lending facility favoured by businesses in trouble, however the majority of businesses seeing the most benefit of opting for to use invoice discounting or factoring instead of a traditional overdraft facility is the ability to take on new or larger contracts to enable the business to grow.
North East companies have billions of pounds tied up in excess working capital which could be used to fund growth, according to new research by Lloyds Bank Commercial Banking.
The report warns that businesses could be left ill-prepared to deal with unforeseen opportunities and challenges as a result.
Lloyds analysed 5,000 UK businesses and found those in the North East have about £116.4bn tied up in working capital, the equivalent of 8.9 per cent of their total revenue.
Simon Quin, area director for global transaction banking in the North East of England, said: “Revenue growth is good news for any business, but to improve efficiency is going to take investment and that requires cash flow. “Small firms in particular are taking even longer to free up cash from things like inventory and unpaid invoices. The longer that money remains unavailable, the less firms can invest in growth, new machinery or pay down debts.”
Nationally, the amount of money tied up in working capital jumped by 37 per cent in the past 12 months to £680bn.
A business owed £100,000 by its clients could raise £80,000 to facilitate growth and take on additional staff or source stock at more preferential rates by buying in bulk or paying their suppliers quicker.
We have access to most cashflow finance providers, many of who only deal with intermediaries and specialise in sectors that traditional lenders tend to avoid. If you would like to find out more about cashflow finance please contact the team on 01482 635400 or click this link to take you to our contact form.
Source of information for this article was first published on 21st May 2018 by Insider Media.
Please contact a member of the team on 01482 635400 or click here to leave your details and a member of the team will contact you to review your Working Capital requirements with you at any time.
Many buy-to-let landlords with two and three year fixed deals that are coming to an end at the moment and early 2019 are facing difficulties in their quest to remortgage their property.
A number of landlords obtained two or three year fixed rate mortgages in March 2016, looking to avoid the 3% surcharge being introduced for new buy-to-let and second home acquisitions a month later.
As the end of these existing deals is rapidly approaching, it is evident that many landlords will struggle to refinance. Many will therefore automatically be transferred on to the standard variable rate set by their lenders, which tends to be significantly more expensive.
Why, I only want to Re-mortgage at the same level?
Compared to two years ago when the attractive mortgage deals were agreed, there are now much tighter lender criteria that may prevent landlords from securing new deals.
With a significant lack of refinancing options and the difficulty in finding the finances that they need, Greg May, director of financial services at Romans, is among those that believes many landlords will now exit the private rented sector.
May said: “Landlords who bought before the stamp duty increase in 2016, are not only at risk of overpaying by being automatically transferred to the lender’s standard variable rate product, but may also find securing a new deal increasingly difficult due to the changes in mortgage lending criteria.”
May added: “Landlords who borrowed at the higher end of the loan to value threshold are likely to feel the changes to lending criteria the most. “Those who are unable to remortgage may be able to transfer onto a different product with their current lender but this does mean that their options are extremely limited.
“Ideally, landlords want to be able to pick between a number of different products from a variety of lenders in order to find the right deal for their circumstance.”
The team at Elite Corporate Solutions have access to a broad range of lenders who offer flexibility for landlords who are looking to re-mortgage at the end of a fixed term loan and can help save you thousands of pounds.
Please contact a member of the team on 01482 635400 or click here to leave your details and a member of the team will contact you to review your Buy-to-Let mortgage.