A year of fundraising for Dr Ted

August 2019 marks the first anniversary of J & J Commercial Finance and to celebrate I am delighted to announce my support for the company’s first-ever Charity of the Year.

J & J Commercial Finance has teamed up with the Rotherham Hospital and Community Charity’s Dr Ted children’s appeal for a year of fundraising.

I was inspired to support the charity’s children’s appeal after my son Jacob was cared for on the Special Care Baby Unit at Rotherham Hospital when he was born.

As any new business owner will know, the first year can be rewarding but tough. So to celebrate my business reaching that first important milestone I wanted to do something which celebrated a charity which is close to my family’s heart.

Jacob is now a healthy and happy two-and-a-half-year-old but he spent the first few weeks of his life on the Special Care Baby Unit after he suffered a chest infection and jaundice. It was a really worrying time for my wife Gemma and I but for two weeks we were able to stay in one of the family rooms on SCBU. It meant the world to us to be there together and helped us to bond as a family.

I couldn’t think of a better way of celebrating a year in business than fundraising for the charity’s Dr Ted children’s appeal. I’m sure it will be a fun way of uniting the clients and partners I work within Rotherham. A lot of great things go on in our town and I’d like to showcase that with our fundraising.

What is the Dr Ted children’s appeal?

The Dr Ted children’s appeal raises money to fund everything from toys to specialist medical equipment and resources to help ensure the youngest patients cared for by The Rotherham NHS Foundation Trust have the best experience of being in the hospital as possible.

Understanding the Finance Options Available for Construction and Building Companies

There are various options available for gaining finance to expand your business or provide a cash injection but understanding which is right for you requires some background research and full knowledge of your business. A financial broker like J & J Commercial Finance will spend time finding out about your business and presenting you with the options best suited to your needs.

J & J Commercial Finance will take many considerations into account such as how long are the funds needed for and when will the funds be paid back? Also, how much will it cost your business to get the finance and which is cheaper for your business?

Working capital business loan

If you have no assets, are a new company and have good relationships with creditors then invoice factoring and asset financing won’t be the right option for your business. Whereas a working capital business loan also known as a commercial loan can be either secured or unsecured and can have a personal guarantee attached onto it.

The benefit of a commercial loan is that it is structured, there will be monthly repayments which will suit some businesses more than the other options for finance. Recently, some finance companies have started to offer early repayment with no fees which gives that added flexibility for those businesses that want structure but also option to pay more sooner.

Asset financing

If you have assets in the finance such as equipment or tools that you own outright these can be used to release equity and secure finance. A finance company will buy these assets from you for a set amount and then lease them back to you. The benefit of this is that you will still have the assets but also a cash advance for your business going forward.

This can generally be a safer way of borrowing finance than a commercial loan but the amount you can secure is not as high.

Invoice factoring

If you have a 30-, 60- or 90- day debtor book this may be a suitable option for raising finance for your business. J & J Commercial Finance will work closely with your accountant to understand in full your debtor book. Using this knowledge and understanding we will be able to create a ‘profile’ of what your debtor book looks like. This can be used by us to approach our network of over 300 finance lenders to do a cash advance on invoices that are still to be paid. When the invoices are paid in full this money is then paid straight back to the finance company. The benefit of this option is that the loan is short-term and reduces the risk of debt building up.

Which is the right option for finance for my business?

Here at J & J Commercial Finance we will get to know your business inside out through meeting with you and doing extensive research including asking the right questions to understand what your business needs. We will then use our network of over 300 lenders to find options for you and present these in the form of a proposal.

If you want to put some money into your business then send J & J Commercial Finance a message or head over to our website. We offer you a free, impartial and totally confidential initial consultation and we will quickly assess the funding options available to you.

How to Overcome Financial Difficulties in Your Business

What are the options available for commercial finance?

For commercial finance there are three options available which fit into different categories and are suited better to different situations. It’s important to look at all three before choosing the right finance package for your business.

Working capital business loan

Known as a commercial loan it is very similar to a personal loan in that you can get finance for high amounts whether it is secured or unsecured, but the difference is that the loan is made in the business name.

Assets in business

Asset financing as it is known is using assets to secure finance. Assets with no security against them can be sold to a finance company and leased back by the business which will release equity within the business.

Invoice factoring

This option of raising finance is available to those with a debtor book. Using a 30-, 60- or 90-day debtor book a finance company can release some of that invoice early paying your business the amounts on the invoice. As soon as the invoices come in, they are paid to the finance company.

What documents are needed for commercial finance?

Here at J & J Commercial Finance we will do a ‘fact-finding’ session with you and your business. We will ask to see income and expenditure statements, business accounts (for the last 2 years), and assets and liabilities statements. (check with Jamie)

Using this information, we will do our own research and use our network of over 300 lenders to approach those that we think may be suitable and interested.

What are the pitfalls to securing your own commercial finance?

Whilst, it may seem straight forward to try to secure your own finance package there are a few things to be aware of and pitfalls to avoid. Firstly, don’t just contact one company as there are hundreds of companies out there and you need to secure the best finance package for your business. Secondly, it is important to make sure that you are placed with the right finance option for your business needs. Lastly, you should always use a trusted lender as recommended by others or licensed by the Financial Conduct Authority. (Check with Jamie)

If you do need to release some finance to help your business grow send J & J Commercial Finance a message or give them call on 07399 660 002. Here at J & J Commercial Finance we are committed to providing no-obligation, impartial and confidential initial consultation. To find out more head to our website where you can see who we have worked with and a list of our FAQs.

Commercial Property Finance for Large Multi-Build Projects

What are the types of property development?

There are generally three types of projects for property development and investment. They each differ in the amount of work, time and staff that will go into the project. However, what is considered light by some people might be considered heavy by others. The three types fit into three broad categories.

Light refurbishment is the simplest of the three, and it involves some improvements to the property but not structural changes to the layout or design of the property.

Heavy refurbishment involves more than just aesthetic changes; it includes structural changes to the external walls such as demolition or rebuild to change the layout.

Ground up development is the most intensive of the three types, and most often starts with just a plot of land. Sometimes it is a building with just the walls remaining.

What type of experience is needed for large multi build projects?

Let’s take a look more closely at ground up development, what is generally considered large multi-build projects. These types of projects are usually carried out by experienced builders or building company who already have a property portfolio. They buy the plot of land to build 5 or more houses. Experience gained in the past, even on a smaller scale will be considered by lenders.

What is the process for getting finance for large multi build projects?

The finance process for large multi build projects is very similar to smaller projects. Here at J & J Commercial Finance we will do a fact-finding meeting with you, so we will ask for:

– statements of assets and liabilities;

– statements of income and expenditure;

– three months of bank statements;

– your company accounts;

– your property portfolio;

– where you are in the planning process (full or outline planning permission) and;

– the resale value (checked with an estate agent).

Some lenders don’t want to lend to large multi build projects but with all of the above information J & J Commercial Finance can place you with the correct lender for your needs.

What are the pitfalls of securing your own finance for large multi build projects?

Whilst it is tempting to go solo and secure finance by yourself for your project it is important to be aware that there can be problems. For example, the lender may pull the plug on finance at the 11th hour due to not fully understanding the needs of your project.

Here at J & J Commercial Finance we gather all the information in a fact-finding meeting with property developers, we then work with lenders to make sure that any deal offered is structured in the correct way so that finance can go ahead.

Here at J & J Commercial Finance we are committed to providing free, no-obligation independent specialist advice. So, whether you are looking for a buy-to-let mortgage or a mortgage for a bigger project get in touch with us on 07399 660 002 or send us a message. We will get back to you straight away to see how we can help put you in touch with a lender using our network of over 300 lenders.

What Pre-Planning Is Needed for Small Property Development Finance?

Small property development finance is available for experienced and new property developers. Lenders are even giving finance to first-time property developers so there is no need to worry. A financial broker can help you find the right finance options for your project.

What pre-planning information is useful?

Your financial broker will want to meet with you in person to look at lots of different criteria known as a ‘fact finding’ session. It is important for you to feel ready for this meeting to help it go smoothly and for your financial broker to put you in touch with the best lenders for your circumstances. You can prepare for this meeting by gathering together lots of information and data.

Your financial broker will want to see:

– your assets and liabilities;

– your income and expenditure;

– three months of bank statements;

– your company accounts;

– your property portfolio;

– where you are in the planning process (full or outline planning permission) and;

– the resale value (checked with an estate agent).

How will a financial broker support you during the project?

It is useful to have a clear exit strategy at the beginning of your project, so whether you will resell the properties or keep them to rent out. However, a project can take anywhere from 3 months to 12 months or even longer to complete and this will naturally mean there are changes required as time passes during the project.

At different stages in the project your financial broker will reassess your financial needs, assess whether any changes are needed to your finance lending, and re-finance with different option as needed.

What will happen if there are problems with your project?

A good financial broker will stay in touch with you throughout the project and work with you to look at re-finance options, for example, the build costs may increase more than you expected due to unforeseen problems and your financial broker will support you to access further lending options.

Here at J & J Commercial Finance we are committed to finding you the right finance package for your needs through our network of over 300 lenders and private banks so if you are looking to talk to us about your small property development finance give us a call today on 07399 660 002 or send us a message. For any FAQs you may have or to see previous clients we have worked with head to our website.