< Previous30 Business Link www.blmforum.net INVOICE AND FINANCE SOLUTIONS Invoice 30-33.qxp_Layout 1 30/11/2022 13:53 Page 1www.blmforum.net Business Link 31 INVOICE AND FINANCE SOLUTIONS © stock.adobe.com/Freedomz I nvoice financing is the simplest means of releasing cash tied up in a business’s 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, As the region (and the country) slides into a recession, banks are less likely to lend – but it’s up to business to drive the economy to stability, so many leaders are looking to alternate forms of finance, particularly those surrounding invoice financing. © stock.adobe.com/tashatuvango 32 Á 30-33.qxp_Layout 1 30/11/2022 13:53 Page 232 Business Link www.blmforum.net INVOICE AND FINANCE SOLUTIONS 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 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 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 30-33.qxp_Layout 1 30/11/2022 13:53 Page 3www.blmforum.net Business Link 33 INVOICE AND FINANCE SOLUTIONS 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, but an outside management team will need to become acquainted with a company’s operations, as well as build up relationships with clients and staff. Regions across the UK will also boast their own funding initiatives, designed to bolster the local economy and sure up businesses in the area. In our region, there’s the Northern Powerhouse Investment Fund (NPIF), facilitated by a collaboration between British Business Bank and ten Local Enterprise Partnerships in Yorkshire and the Humber, the North West and Tees Valley. © stock.adobe.com/vinnstock 30-33.qxp_Layout 1 30/11/2022 13:53 Page 434 Business Link www.blmforum.net CORPORATE HOSPITALITY Trouble at the party Trouble at the party 34-37.qxp_Layout 1 30/11/2022 13:55 Page 1www.blmforum.net Business Link 35 CORPORATE HOSPITALITY © stock.adobe.com/Ekaterina_Molchanova Christmas parties are designed to be fun and are important for maintaining staff, but there are a lot of things that can go wrong – it’s best to be aware of these in advance. O ver two-thirds of companies throw a ‘Christmas’ or year-end party in the UK and it’s important it goes well. Success mainly depends on how people are left feeling after the event, especially as the period over Christmas and New Year is a key time for staff to consider whether they want to apply for another job, often at another company – so the party shouldn’t leave anyone with a bad taste in their mouth. There is a lot of risk involved, however, and problems can occur when alcohol flows. Staff need be aware that the party, even though outside of office hours and often office workspace, is an extension of the working environment, both from a PR point of view and in legal terms and here lies an expectation for all to behave accordingly while having fun. Any staff members’ behaviour at an event can give 36 Á 34-37.qxp_Layout 1 30/11/2022 13:55 Page 236 Business Link www.blmforum.net CORPORATE HOSPITALITY rise to claims or disciplinary action so it’s essential to communicate expectations by circulating a considered email, a staff meeting and notices in staff rooms. The CIPD (Chartered Institute of Personnel Development) states, “make your expectations clear - remind people of the behaviour that’s expected of them beforehand, including communicating your policies on dignity and respect and on drugs and alcohol misuse.” When people know what parameters are in place they feel safe and can relax and enjoy the event. Many attendees may worry what to chat about at the office party. Politics should be avoided and although it’s tempting to vent about the state of the country there are many more pleasant topics to discuss such as next years’ vacation plans, favourite foods, bands or video games. Keeping topics light and general stops attendees feeling anxious or aggravated. Ensure official talk is kept in the office and employers remain aware of expressing opinions about employees too or making promises of promotion at a party that aren’t kept as if the promotion falls through, it can end up in an Employment Tribunal based on ‘breach of trust’. Other considerations are whether social media postings are permissible, staff need to be informed on this topic beforehand as selfies are here to stay! The obvious issue that can cause problems at a party and upset others is when people drink too much, whether it’s a free bar or not – avoiding hard spirits and limiting the number of drinks per person can help this as well as providing non-alcoholic drinks such as mocktails, juices, water and tea or coffee. Also, drinking on an empty stomach is not recommended so providing finger food, a buffet or sit down meal is ideal, depending on your budget. A DJ or band can help as well as getting people moving further averts extreme drunkenness and allows people to enjoy themselves dancing, and others enjoy listening to some good tunes and watching others dance. As well as drunkenness other problems could be if an argument or fight breaks out. If this happens staff members, two or more preferably senior staff or HR personnel, should intervene adjourning to a quiet corner and offering a listening ear and non-alcoholic drink to calm a situation down, reassuring an upset attendee they are being heard. As always, if necessary, issues can be discussed in the clear light of day especially as an employee can be fired for aggressive behaviour or complain about unfair dismissal, so if in doubt about matters HR or management should offer a clear course of action. Unwanted contact, offensive or lewd remarks can also cause consternation at a party. Sneaking a consensual kiss under the mistletoe might be OK but groping and inappropriate touching can be classed as sexual harassment which could not only lead to criminal charges and could result in dismissal. In this ‘Me Too’ era, employers need to remain vigilant at all times during the festivities as the company can also be held liable. Many employees argue ‘it’s not fair being fired for actions at a company party’, so all 34-37.qxp_Layout 1 30/11/2022 13:55 Page 3www.blmforum.net Business Link 37 staff should be treated equally and it’s important for a company to acknowledge when HR or an employer is to be involved in a situation as well as keeping an open dialogue for any employee wishing to discuss things they felt uncomfortable with. Luckily, many complaints are easily dealt with but for ones that aren’t, again, proper protocols must be followed and all concerned be made aware of them. Employers should ensure they distance themselves from any unofficial ‘after- party’ and highlight to staff when the company event starts and ends. No employer wants to be seen as curtailing on-going enjoyment but staff should be reminded of their expected ‘after-party’ behaviour, for example, not drink driving. This can be actively discouraged by offering secure overnight parking, taxi company and public transport information or the company providing transport. Finally, a consistent policy regarding post-party absenteeism and behaviour, if it’s a workday following the party, should be decided on beforehand to avoid arguments - how lenient or not a company is going to be regarding lateness or absenteeism needs to be communicated to staff so they are aware of the consequences and can make suitable arrangements beforehand so they can then relax and enjoy the whole night. Coming into work drunk from the night before can lead to dismissal, especially if in your work role you drive or operate machinery and nobody wants that to happen. © stock.adobe.com/Watercolor_Concept 34-37.qxp_Layout 1 30/11/2022 13:55 Page 438 Business Link www.blmforum.net Different Cars for a Different Year Hyundai Ioniq 5 Volvo XC40Land Rover DiscoveryVolvo XC60 There are many different cars around these days, so we figured it was worth looking at a few vehicles to tickle your fancy for the new year. Different Cars for a Different Year 38-41.qxp_Layout 1 30/11/2022 13:59 Page 1www.blmforum.net Business Link 39 AUTOLINK SUVs Now, nearly every single manufacturer has an SUV on offer these days. The Volvo XC40, is one of the safest examples of this type of car on the market today, while the brand’s XC60 is equally brilliant if you want something a little bigger. Then there’s the Volvo XC90 if you need something even larger. If you’re looking to head into the world of all-electric SUVs, then the keen- handling Skoda Enyaq iV might be a good fit. The larger-than-it-looks Hyundai Ioniq 5 is excellent in every area, too - including comfort and safety. If you’re at the higher end of the market, then the luxurious BMW X5 or the air-suspension of the Land Rover Discovery are both very comfortable. The Audi Q7 is great for luxury but is set up more for driveability, although that’s not to say it’s uncomfortable by any means. Saloons Saloon cars generally don’t have the same level of practicality as SUVs. But for those who need to drive something bigger, they can be a perfect choice. On that note, we shouldn’t forget to mention the Mercedes-Benz E-Class. Admittedly, the E-Class has often been seen by some as a car for your retirement (unlike its more personality-driven rival BMW 5 Series), and you may not feel that you want to drive around in something that effectively tells the world your age. Nevertheless, the reality is that the E- 40 Á BMW X5 Skoda Enyaq iVAudi Q7Volvo XC90 38-41.qxp_Layout 1 30/11/2022 13:59 Page 2Next >