Business Partner Update October 2011
This issue is kindly sponsored by RHA Financial Services which is managed by Begbies Traynor Group (BTG) - a leading specialist professional services consultancy and a specialist in the haulage sector. Within this newsletter BTG Corporate Finance highlight that funding solutions are still available, why not contact Angela O’Brien at BTG Corporate Finance to discuss your funding requirements.
In addition, RHA UK & European Fuel Services managed by The Fuelcard Company have provided an article on how a fixed price fuel card can help with the current climate.
If you are looking for a reputable industry supplier in your area then why not visit our business partners services at www.rha.uk.net for more information or contact the provider directly from the list below to see if they can be of assistance, remember to quote your RHA membership number.
RHA Financial Services - A Lending Hand
Are institutions still lending? The answer is a qualified yes, but long gone are the days when this was an easy process. Companies need to undertake far more preparation before they ask for finance and they shouldn't only rely on the traditional lenders. And of course that's where the Corporate Finance experts at RHA Financial Services can help, both with preparation and with sources of funding.
There are a series of simple questions that our Corporate Finance specialists ask companies, to ascertain whether we can assist:
1. Does the company believe that they currently have the same relationship with their bank that they had in the past?
2. Are the funding packages currently available to the business sufficient to meet all their management’s plans?
3. Does the business have a defined 3 year corporate strategy/business plan?
4. Are they confident that if more money was needed in the business, this could be found from current providers or through existing relationships?
5. If an injection of funding was potentially available to the business, would this change the current thinking on how the business was run?
6. Has growth through acquisitions even been considered?
7. Are they aware of EFG Loans?
Lending is still available and if your business answers ‘No’ to any of the questions above, then we can assist. Our Corporate Finance team is accessible to all RHA members via RHA Financial Services.
If you would like to discuss the above in further detail, please contact Angela O’Brien on 0161 837 1800 or angela.obrien@btg-corporatefinance.com
Businesses forced to turn down work, says the fuelcard company
Businesses Counting the Cost of High Fuel Prices
Over 35 percent of transport businesses have been forced to turn down work due to escalating fuel costs, advises leading fuel card reseller The Fuelcard Company.
In a poll of 1,480 of the company’s fleet customers, over a third (528) admitted high fuel costs were leaving some jobs unprofitable with several admitting work is turned down on a daily basis. All questioned agreed that the price of fuel is crippling the industry with some quoting 15 percent losses of income due to fuel price increases in the last three years.
“Businesses across the UK are feeling the squeeze as fuel prices continue to soar,” warns The Fuelcard Company’s Sales and Marketing Director, Jakes de Kock. “The UK’s haulage companies are the backbone of the UK economy providing an essential service as road transport is usually the only way goods can get to their final destination.”
The survey also highlighted the measures taken by transport companies in reducing fuel spend over the last 12 months with a worrying 17 percent reducing the number of vehicles in their fleets, which in turn reduces the number of drivers required.
“The continued fuel price increase has hit small and medium sized businesses particularly hard with many forced out of business”, continues de Kock. “Support is needed to keep these businesses afloat and we urge Government to review levels of tax applied to fuel. The rise in fuel cost will see the price of everyday goods rise steeply, fresh food becomes more difficult to find and many jobs could be lost.
It’s clear haulage companies are already doing as much as they can themselves to reduce the cost of driving where possible with 13 percent introducing fuel efficiency driving training and over half (56 percent) sourcing cheaper fuel. A fixed price fuel card can on average, save between 3p and 5p per litre on the UK pump price. Fuel card resellers, such as The Fuelcard Company, are able to offer such discounts through the sale of ‘Bunker’ fuel, similar to wholesale.
De Kock continues: “Exclusive discounts apart, considerable time and cost savings can be made via more streamlined administration that offers greater efficiencies into the bargain. Electronic data reports delivered weekly to clients become a key management tool, as the exact fuel usage per vehicle is shown. A HMRC approved consolidated VAT invoice of all business fuel spent is also provided to fuel card users, ensuring businesses claim back 100 percent of VAT on business fuel expenditure.”