Welcome to my November Rob Report, and what a diverse and interesting year it has been. I am pleased to be back and involved with my team, however, following 27 years in this company and over 43 years in the industry, I am witnessing the UK business environment change beyond reality and recognition. Those of you that have supported us over the years will recognise my continued focus on value and good service as the key elements of our company. Honesty and good old fashioned fair play have always been the cornerstones of what I consider to be a  progressive and agile enterprise. But, as suggested above, things in the industry are changing.

The uncertainty around the UK’s commercial stability is having a negative impact on the whole automotive industry, from new and used car sales to the specialist sectors and associated supply chains that underpin the whole movement. My own feeling is that this is unlike any previous recession and more like real long term damaging change. And the rules are becoming very different!

In the finance sector alone, the increasing layers of regulation and compliance designed to protect us as consumers are in fact choking the sector with the potential result of creating an adverse effect for all of us that use finance to purchase goods. In the specialist motor sector we are witnessing the decline in the amount of Consumer lenders with finance houses opting to offer only commercial and un regulated products. With limited providers, the system can be slow and frustrating.

We are a well established business and I regard each of my loyal colleagues as a crucial part of the operation. Collectively, we work hard to provide each other with the support needed to develop our talent and expand the experience where needed with constant and ongoing training and mentoring. I am constantly impressed by the extra mile my team goes to, in the attempt to deliver the best in the industry. We belong to a team and work as a team for the benefit of you, our loyal and valued customers.

It has been a challenging but also rewarding year and I thank you for your continued support. Below I have highlighted some commercial points. I consider you as partner to our business and welcome any feedback on how we can continue to work together.

Need to raise capital?

A key element of our finance activity this year has been the raising of capital against, what we call, hard assets such as cars, machinery, business equipment, commercial vehicles and basically anything that has value. A typical scenario is where there is an urgency and fast turn around required.

Levering on a standard Hire Purchase agreement is a competitive, fast and flexible way of turning assets into working capital. Often with property transactions for example, there could be a shortfall in the loan to value and levering short or long term can be very effective and an easy way to unlock a negative situation. Sale and Hire Purchase back is a simple, competitive quick and effective. If you have a collection of cars for example, consolidating the agreements for a more efficient monthly payment is a simple process.

Business asset finance

A warm welcome to Ali Matthews, our new Commercial Director. Ali’s experience spans a period of over 15 years in the asset finance industry and brings a wealth of knowledge to expand on and develop our commercial and business asset offering. Our experience in the specialist car sector is undoubted and we are now looking to extend our asset funding solutions even further to a total financial client solution. Balancing a young family with her dedication to work, she has an infectious smile, bubbly personality and quickly earned the respect of her team!

alison@classicandsportsfinance.com

Mind your balloon!

If you currently hold a finance agreement with a final balloon payment due at the end of the term, we should discuss the options that are available to you well before the end of the maturity date. Typically, the lender will write to you with prior warning, however, at times, we have seen the balloon payment being called for as the final payment on the direct debit which may catch you out. Check your agreement and discuss with us, as we may be able to refinance or restructure the loan in full if required.

Do you have multiple finance agreements?

Since the recent softening of the Bank of England interest base rate, we are beginning to see a reduction in interest rates amongst the lenders on our diverse panel.

Although there has yet to be a significant shift, for agreements written in the past two years on higher value loans, there could be worthwhile savings. If you have any agreements with us or other providers, it would be worth a review to see if there are any benefits in consolidating the loans. If your agreement is mid-term and you wish to continue your ownership, then please contact us to identify if it is viable.

It is not always the case that restructuring a mid term loan is financially beneficial, even though the interest rate market may appear more attractive. Factoring in the settlement charges and new document fees may outweigh the appearance of the benefit. Speak to us so that we can establish the facts.

Thank you for your continued support.

My best wishes,