The UK government has moved to soften the effects of rising inflation and energy costs for manufacturing and engineering firms. With the Super-Deduction and Annual Investment Allowance both running until the end of March 2023, they have prepared the ground for business owners to make solid – and necessary – investments towards a more productive future. James Selka, CEO of the Manufacturing Technologies Association (MTA) said recently: “In order to make step change improvements in productivity and therefore competitiveness, manufacturers need only three things: technologies, the skills to acquire and deploy those technologies, and the finance to make it happen.”
Don’t just ride out the storm, invest for what follows
While the sector has been hit by numerous external forces, the Manufacturing Technologies Association (MTA) is confident in an economic recovery long-term. Investment in new software, automation, machine tools, metrology and other transformative manufacturing technologies will return widespread benefits to productivity, efficiency and competitiveness. That said, it’s difficult to invest for rosier times in the future while you’re restrained by the financial challenges of today. Manufacturing Finance from Portman can help you start preparing for the future right now. Equipment leasing and hire purchase deals are effective ways to acquire new plant, equipment and machinery with a choice of ownership options and payment structures.
Invest in your staff and supply chain
The pressure on productivity is acute, as businesses try to avoid having margins squeezed to unsustainable levels with rising energy and materials prices hitting both manufacturing and distribution. Short or medium term cashflow loans will allow you to ride out a difficult period, but business loans can also be used to develop the right skills in your business. Your team is key to driving improvements in efficiency, business continuity and new ideas. Term loans from Portman can also be used to support skills development in your existing workforce, or compete for the attention of industry talent.
Make sure you’re part of the 4th Industrial Revolution
If you’re still using paper-based systems, or multiple standalone systems, you’re already lagging behind. You’re also holding yourself back from achieving your full potential. For SME manufacturers, the ‘4th Industrial Revolution’ means creating their own ‘smart factory’ by integrating back office and shop floor systems with their business’s data. Integrated systems can improve and automate scheduling and key processes. Live data between the factory floor and central productivity systems keep track of progress. The good news is that such systems can be surprisingly affordable, particularly with the right engineering finance from Portman.
Hire purchase usually involves paying the VAT and a deposit up-front. Fixed monthly repayments are then made, affected by whether you pay off the entire loan over the term or chose a final balloon payment. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.
Hire purchase is well-suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded.Explore Hire Purchase
Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.
Typically, asset finance is provided for high value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.Explore Lease Finance
Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.
Business loans can be secured or unsecured. Portman typically provides unsecured loans which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made, these may be used in equipment refinance deals.Explore Business Loans
New businesses often need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.
Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.Explore Start Up Loans
If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments including interest, whilst your asset earns you money.
If your business owns high value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.Explore Refinance
With no personal guarantee up to £250k, Recovery Loans offer an excellent way of making sure your business gets back on its feet after the effects of the pandemic. Many businesses affected by the Covid-19 pandemic and its restrictions can access the UK government’s Recovery Loan Scheme (RLS), providing UK SMEs with better access to finance.
Recovery Loans can be used for any legitimate business or simply provide cashflow. Up to £350k can be borrowed on terms from 2 to 6 years and with no personal guarantee up to £250k, your personal wealth is not at risk.Explore Recovery Loans
Having the opportunity to offer a lease option on a commercial fit out which covers the partitioning, carpets, and furniture – all of the items you would think you couldn’t lease- is fantastic. It means that our clients can keep the same specification, rather than having to cut down and restrict elements of the project. As a contractor, it also means we can get a deposit up front, which secures our labour and materials.
I gave George at Portman a ring, he was really helpful and laid out all the options. We ended up spreading the payments over three years- it is a very simple, straightforward agreement and the decision was back in 24 hours. The whole Portman experience has been fantastic.
From the first call, they were very friendly and very helpful – our Account Manager guided us along the way for our first finance agreement and we’ve never had a problem since. We used them again for the new press six years down the line.
Portman enabled us to spread the cost of purchasing the equipment for our trampoline park, which meant we could use extra marketing channels and launch the business the way we wanted to. If we hadn’t been able to spread the cost of our initial fit out, we probably wouldn’t be in the position we are today.
My Account Manager, Jordan has helped me out from the top to the bottom and I really appreciate what he has done for me. He’s made it a smooth journey for me and was great at keeping me up to date over the phone and would even respond to emails out of hours which I really appreciated.
With the support from Portman, Georgia opened her stunning restaurant in Chelsea, London and has since received a considerable amount of success, receiving glowing reviews about the food, beautiful location and her hard working team.
Lamen needed the finance to secure his dreams. Lamen was assigned one of our dedicated Account Managers, making his process as simple and easy as possible. Portman were able to provide the finance to lease all his Kitchen Equipment so he could stay ahead in the competitive market.