< Previous30 Business Link www.blmforum.net HEALTH & SAFETY witnesses if they are injured when working at home, the checklist of what they should do remains the same, as the Citizens Advice Bureau explains: “Having records of your accident will be useful if you make a claim for compensation or you need to claim benefits, including Statutory Sick Pay (SSP).” Recording your accident can be as simple as reporting it at work and seeing a doctor, however it’s also advised to take photos of your injury and whatever caused your accident, as well as getting contact details if anyone did happen to witness the accident. Moreover, make notes about your accident as soon as possible. Memory is at its best when its freshest. Home workers may not believe they are entitled to compensation if their accident happened in the home rather than the office, but employers have a duty to take reasonable care for worker safety (regardless of where they’re placed). As the Workplace (Health, Safety & Welfare) Regulations 1992 don’t apply to domestic premises, employers are still expected to take reasonable care for the safety of homeworkers. However, it’s worth noting that the extent of this duty would be limited due to the lack of control your employer has over your home. As homeworkers have control over their home environment, rather than their employer, the onus of looking after their safety lies with themselves, but, as we’ve already explored, their employer is expected to provide tools and skills to do so and to maintain the appropriate equipment for workers to carry out the work. Therefore, if a worker was to suffer an accident whilst working at home, the 26-31.qxp_Layout 1 01/12/2021 16:42 Page 5www.blmforum.net Business Link 31 HEALTH & SAFETY Make the best use of your time by gaining a new health and safety qualification with our NEBOSH and IOSH accredited online training courses or CPD accredited short courses. Corporate discounts available! 01482 211989 wiseglobaltraining.com & Online Health and Safety Training Courses Approved training provider 1570 employer would generally only be responsible if it was due to their negligence, meaning that they had failed to take reasonable care for your safety and the accident was due to that negligence. Whether or not an accident occurred at the home or office during work hours, employees shouldn’t feel powerless and unable to do anything about it. Among many other things, the pandemic has heightened the importance of health and the responsibilities of employers to safeguard their staff. As we continue to transition back towards normalcy, the increased focus of health, safety and hygiene are lessons we need to carry into the future. © stock.adobe.com/vichie81 26-31.qxp_Layout 1 01/12/2021 16:43 Page 632 Business Link www.blmforum.net PORTS AND LOGISTICS Levelling up Solving the skills crisis in the logistics industry, as well as utilising our region’s ports, will prove critical for the government’s levelling up project. 32-35.qxp_Layout 1 01/12/2021 16:47 Page 1www.blmforum.net Business Link 33 PORTS AND LOGISTICS I n order to try and solve regional disparities, the government has launched its ‘levelling up’ project, which, it hopes, will level the playing field when it comes to housing, infrastructure, and investment whilst making the nation a better, safer, and farer place to live and work for all. Without meaningful action and investment, however, it’s nothing more than an intangible idea. But by identifying key industrial areas that can have the biggest socio-economic impacts, the UK will truly be able to enter a new era. According to Simon Bird, Director of Associated British Ports (ABP), the largest port operator in the UK, ports and shipping are central to levelling up. As some ninety-five per cent of the nation’s trade enters or leaves the UK via the sea, with almost a quarter of that moving through the four ports on the Humber – Immingham, Grimsby, Goole, and Hull – our region is critical to the future health and prosperity of the nation. “Increasingly, though, the [Humber] ports are being seen not just as part of trade routes, but as enablers of growth,” said Mr Bird. “Port operators are some of the biggest investors in UK infrastructure […] Added to that, many ports, especially on the Humber, have available land space to accommodate new manufacturers, distributors and R&D centres which all could benefit from the close access to international supplies and markets that ports can provide. For this reason, the Freeport policy has become enormously important to the government. Creating tax incentives for would- be investors in future industries to locate on vacant land inside a Freeport area could create exactly the business-friendly environment that will make the UK competitive on the world stage. It is also no coincidence that most of the Freeport areas that have been allocated are in places the government is keen to see at the heart of their levelling up project.” © stock.adobe.com/ torsakarin 34 Á 32-35.qxp_Layout 1 01/12/2021 16:48 Page 234 Business Link www.blmforum.net PORTS AND LOGISTICS Back in March, the Humber’s ports, which are all owned and operated by ABP, were granted Freeport status. This followed a successful bid from a consortium comprising the two Local Enterprise Partnerships of Greater Lincolnshire and the Humber along with the four local authorities of Hull, East Riding, North Lincolnshire and North East Lincolnshire (the latter of which is the accountable body for the Humber Freeports projects). The Freeport will contain customs zone sites across the Humber, including the four main ports, as well as three new tax sites on both banks on the Humber which, as Mr Bird pointed out, will incentivise growth in new manufacturing, R&D and green energy jobs. These three sites are located in the east of the Port of Hull, on development land in Goole, and on the Able Marine Development Energy Park development in Killingholme, North Lincolnshire. Freeport status will also help to secure significant inward investment from blue chip multinationals with the potential to attract and drive both supply chain and innovation ecostructures. For the Humber, the Freeport status will serve as a catalyst to accelerate growth in its flourishing decarbonation efforts and build on the renewable energy cluster in the region – for example the offshore wind catapult in the Port of Grimsby and the offshore turbine blade manufacturing plan in Green Port Hull to name just two. Not only is our region indispensable when it comes to its ports, but also where road and rail logistics are concerned. Greater Lincolnshire’s central location means it can serve over seventy- five per cent of the UK population within a four-hour drive time, while South Yorkshire – and Doncaster in particular – has rapidly become a prized logistics heartland. Major names including Asda, IKEA, B&Q and more have distribution bases in and around Doncaster, while Amazon has become a significant employer in the region with a major fulfilment centre and plans in place to open a new parcel centre that will create 1,300 jobs. As well as its ample road connections with the M1, M62 and A1, Doncaster boasts air and rail freight terminals, while its proximity to the Port of Hull means that international shipping © stock.adobe.com/am 32-35.qxp_Layout 1 01/12/2021 16:48 Page 3www.blmforum.net Business Link 35 PORTS AND LOGISTICS is simple. Despite this, operators are still struggling with the ongoing heavy goods vehicle (HGV) driver shortage (more of which can be read about in the Materials Handling feature in our November issue). Ninety-six per cent of UK logistics businesses have reported problems recruiting HGV drivers, according to stark results from the latest Performance Tracker from Logistics UK (formerly the Freight Transport Association). Despite the headline- grabbing driver shortage, the tracker also highlighted that skills shortages are growing across the entire logistics industry. Indeed, more than thirteen per cent of businesses are reporting severe to very severe problems recruiting warehouse staff – compared to the same period last year when zero respondents reported facing recruitment challenges of that scale. Moreover, 24.5 per cent reported severe or very severe problems recruiting van drivers, compared to zero facing such severe difficulties at the same time last year. In the wake of shortages, the number of transport/logistics/warehouse online job adverts has doubled from last year, according to ONS vacancies data provided by Adzuna. It should come as no surprise that this shortage has become so severely pronounced over the last twelve to eighteen months. Over the pandemic and its successive lockdowns, there was a spike in ecommerce activity alongside a marked increased activity in bricks and mortar shops combining to place an incredible strain on logistics operators. Many increased capacities and drafted in workers either on a fulltime or temporary basis to keep up with demand, yet this served to highlight the dearth of people skilled in these jobs. Solving this issue is by no means simple, but there are clear actionable steps that can be taken by government and the industry. As we’ve seen with the engineering sector over the last ten to fifteen years, logistics needs to be shown to be a rewarding career path for young people. Accomplishing this will mean engaging the education sector and, crucially, making it a more financially rewarding career path – not only for new starters but for existing workers. Removing barriers will also be a key issue, especially to open the industry up to workers from all walks of life. With these efforts combined with the myriad benefits Freeport status will bring our region, Yorkshire and Lincolnshire will show just what it means to level up. © stock.adobe.com/ake1 150 32-35.qxp_Layout 1 01/12/2021 16:48 Page 436 Business Link www.blmforum.net INVOICE AND FINANCE SOLUTIONS © stock.adobe.com/BillionPhotos.com Financial lifelines Financial lifelines 36-40.qxp_Layout 1 01/12/2021 16:52 Page 1www.blmforum.net Business Link 37 INVOICE AND FINANCE SOLUTIONS It’s a simple process – a seller provides an invoice to the buyer of goods or services and that buyer then pays within the specified time. Yet for thousands of businesses, this seemingly simple transaction is scuppered by late payments. According to research undertaken by Xero, the cloud-based accounting software platform for SMEs, nearly fifty-two per cent of all invoices issued by small businesses are paid late. Perhaps unsurprisingly given the economic uncertainty of late, fifty-one per cent of small business owners said the problem of overdue payments has gotten worse over the past three years. Figures from the Federation of Small Businesses, meanwhile, found that late payments cost the economy £2.5 billion every year. Late payments have a cumulative effect and not only impact the company that needs to be paid, but its suppliers. If a company is unable to bring in enough capital, it can’t pay its own invoices, creating a ripple effect right along the supply chain. With the furlough scheme now firmly behind us, and companies looking to reduce overheads amid a worsening energy crisis, late invoices can spell the end for many an SME, not to mention the mental health toll it can wreak on company bosses. As with almost every pitfall a business can find themselves in, there is help available. Invoice financing is the simplest means of releasing cash tied up in a businesses’ outstanding invoice. In short, it sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses rely on this kind of financing to maintain a healthy cash position, whilst others use it to take back control of cashflow issues stemming from late and unpaid invoices. Perhaps the biggest draw is that businesses can be paid most of an invoice within forty-eight hours instead of the typical thirty-to- ninety-day period. As with all forms of financing, however, there are things to consider – namely the kind of invoice finance a company requires. From invoice discounting to spot factor, there’s different options, so finding the right one is key. It’s also important to look at individual providers themselves, as some will insist on managing credit control themselves which could, understandably, alienate some customers. Combined with small business loans, invoice financing can have a powerful effect and literally keep businesses trading. Invoice financing is far from the only solution businesses can utilise to maintain cashflow. Asset- based finance, for example, is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one or more of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cashflow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buy-outs and management but-ins (more on those later). Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their credit limits with vendors and reached lending capacity at the bank. Private equity, on the other hand, is where investors provide long-term equity capital investment in a company in return for either shares, a percentage stake in the business and, in some cases, a seat on the board. The draw for businesses is that private equity can be used to finance MBOs, or to provide equity capital to Invoice and other finance solutions can provide a literal lifeline for businesses at a time when overheads are rising and economic uncertainty is rife. 38 Á 36-40.qxp_Layout 1 01/12/2021 16:52 Page 238 Business Link www.blmforum.net INVOICE AND FINANCE SOLUTIONS Unlock cash from unpaid invoices in 24 hours Apply online and get a decision in record time “Excellent!” support growth plans. Although many businesses might be loath to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t ready to list on the stock exchange. For those looking for capital quickly, it’s important to bear in mind that securing private equity is often a time-consuming process and securing funds isn’t always guaranteed. Another form of private finance is an angel investor – a high net worth individual who makes use of their own personal disposable finance and defers to their own judgement about making an investment. Angels would normally take an equity stake in a business in return for providing equity funds. As well as capital, angels can also provide valuable experience, knowledge and contracts, making them especially attractive to early stage businesses or smaller businesses looking to scaleup. Every investor is different and will therefore provide differing amounts, but typical investments range from between £10,000 and £500,000, though deals of up to £2 million have been known when angels group together in syndicates. Although angels are one of 36-40.qxp_Layout 1 01/12/2021 16:52 Page 3www.blmforum.net Business Link 39 INVOICE AND FINANCE SOLUTIONS the most significant investors in start-ups, that shouldn’t deter more established firms from making enquiries. It’s important to keep in mind that securing an angel can be a difficult and protracted process, as well as being harder to research and contact compared with a private equity firm. As we have already explored, capital is often sought to help fund management buy-outs (MBOs) where a company’s management team purchases the assets and operations from the current business owners. From a manager’s perspective, an MBO is an attractive option as it allows them to take the reins and enjoy greater control and freedom owning the business rather than serving as an employee. It’s equally advantageous from a seller’s point of view as it allows corporations to shed non-core divisions or for company owners to retire. A typical MBO will see a management team pooling resources to acquire all or part of the business they manage, and this financing is often comprised of personal sources, private equity and seller financing. Regular visitors to our website (www.blmforum.net/mag) will know how commonplace MBOs are by the number we’ve covered. Scarcely a month goes buy without another company becoming employee-owned. A management buy-in (MBI), on the other hand, is where an external management team acquires a company and replaces the existing management team. In an MBO, the management team is a known quantity and therefore has a greater understanding of their business and its employees, 40 Á © stock.adobe.com/Olivier Le Moal Recovery Loan Scheme extended The Recovery Loan Scheme was launched back in April. Since that time, it has helped businesses across the UK to access over £820 million. As an accredited lender under the Recovery Loan Scheme, Finance For Enterprise can help your business access between £25,001 and £250,000 to invest in its future. Following the autumn budget statement, Chancellor Rishi Sunak confirmed the Recovery Loan Scheme will be extended until 30 June 2022, giving businesses extra time to apply for the funds needed to overcome the challenges posed by Covid-19. If your business is based in Yorkshire and the Humber, Lincolnshire or the East Midlands, then Finance For Enterprise may be able to offer support. A key aim of the Recovery Loan Scheme is to help businesses access the financial support needed at the times when it is needed the most. However, as an alternative lending provider, which is committed towards driving positive social change, Finance For Enterprise can often help businesses when other lending providers cannot. Recovery loans work like any other form of lending agreement, with interest paid upon the debt. Loans available through Finance For Enterprise are repaid over a period of up to five years. If your business has previously benefitted from the CBILS or BBILS loan schemes, your business can access additional funding under the Recovery Loan Scheme. If you are a business owner thinking about applying for lending under the Recovery Loan Scheme, you should consider approaching the process like any other prospective loan agreement. Spend time thinking about the help and support your company needs and also consider how the lockdown has affected your ability to repay any future lending commitments. Even if your application with another provider has been unsuccessful, Finance For Enterprise may be able to assist your business. To find out more about how Finance For Enterprise can support your business, visit www.finance-for-enterprise.co.uk/rls or call 0333 014 3455. Dave Topliss is one of Finance For Enterprise's Investment Managers responsible for helping businesses to access the Recovery Loan Scheme 36-40.qxp_Layout 1 01/12/2021 16:53 Page 4Next >