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Businesses are frequently bought and sold. Entrepreneurs and business owners often weigh up the cost benefits of acquiring an existing business against building one from the ground up. Business acquisitions usually take place when someone wants to enter a new industry or when an existing business owner spots an opportunity to expand their existing business by offering new products or services.

In order to facilitate any business acquisition, the acquiring party will need either to source the capital with which to purchase the business or come to another arrangement, such as an earn-in. Obtaining finance for an acquisition can often be a difficult process depending on the circumstances.

Here at rebuildingsociety.com, we’ve tried to make the process of raising acquisition finance efficient and cost-effective. We have also worked hard to try and ensure that the finance will set the business up for the best possible start to their new chapter.

We’ve funded a variety of business acquisitions all over the UK, across many sectors, all with different reasons for selling and buying. Here we look at some of the successful acquisitions our lenders have supported over the years.

Dorset-Based Pet Store 

Reason for Sale/Purchase:
The existing owner wished to retire. The purchaser, who was a regular patron of the store, was seeking a new business opportunity following previous business management and retail experience.

Finance Amount: Circa £134,000 over 5 years

Finance Structure: Secured term loan at 17.75% supported by £25,000 contribution from the purchaser.

Success Factor: The purchaser’s personal financial contribution to facilitate the acquisition combined with the tangible security offered and the experience of the incoming directors made this a successful fundraise.

The seller agreed to stay on in the business part-time to ensure a smooth and successful transition.

Birmingham Nursery School

Reason for Sale/Purchase: Experienced health care and nursery school teachers were seeking new business and employment opportunity.  

Finance Amount: £120,000 over 5 years

Finance Structure: Secured term loan supported by personal contribution of £50,000 by purchasers. £150K payable at the point of acquisition with a deferred consideration of a further £35K payable two years after acquisition. Acquisition acquired the goodwill and lease of the current trading business, with a new lease of 20 years.

Success Factor: The directors financial contribution to support the sale and their previous experience and qualifications along with the security on offer, helped this loan reach its fundraising target and allowed for a successful acquisition.

Accountancy Practice in Kent

Reason for Sale/Purchase: The purchaser wished to expand an existing successful accountancy practice through the acquisition of a competing accountancy firm.

Finance Amount: £110,000 over 5 years

Finance Structure: Unsecured term loan at 11.79% to purchase trade and assets of the existing local accountancy firm.

Success Factor: The director’s track record of running an already successful accountancy firm. 

Making SME Acquisitions Easier

The above are just three examples of the acquisitions that have been facilitated through finance raised on our platform. Common to all three was the experience of each of the directors behind the acquisition. This is crucial when it comes to lenders considering whether to support a loan. In addition, lenders are also more supportive of loans where the directors acquiring a business also support the purchase with personal funds. This gives lenders the confidence in the incoming directors and assurance about their commitment to the success of the acquisition.

Our ability as a platform to carefully consider each loan application that comes our way and to review the merits of each business has made us a go-to platform for many commercial finance brokers looking for lenders to assist their clients. Geoff Cooney, of Genie Lending has frequently used rebuildingsociety.com for business acquisitions.

To further facilitate business acquisitions, we have also developed a method through which to more efficiently complete an acquisition. Purchasers can carry out a successful acquisition whilst also ensuring that they take advantage of their ISA tax allowances when contributing towards the purchase price. Furthermore, sellers who do not need or necessarily want the full asking price for the business can also choose to defer receipt of the income and receive this as monthly repayments from the business, once again allowing them to structure their finances in a tax efficient manner.

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We’re proud to announce that Sourced* have recently been approved as our newest appointed representative launching their property-focused peer-to-peer lending platform exclusively for High Net Worth and Sophisticated Investors.

Sourced are managed by a team of highly experienced property investors and developers with extensive experience in finance and in P2P lending. Having previously operated as one of the largest property sourcing networks in the UK, as a registered member of the Property Redress Scheme, the team at Sourced are now broadening their business offerings by allowing HNW and Sophisticated investors to fund property development projects through their network of franchisees. Sourced have a strong focus on educating lenders on investing in property generally as well as lending and investing in property via their P2P platform.

Sourced Directors from the front: Stephen Moss, Paul Rose, Chris Kirkwood, Ryan Brown

Sourced will offer bridge-lending opportunities, secured on property and will typically offer loan terms of between 12 and 24 months.

We have worked closely with the team at Sourced over the last few months to ensure that they meet the regulatory standards required by the FCA to operate a P2P platform. We’re excited to be working with them and helping them along the way.

Daniel Rajkumar says “

“Our Appointed Representative solution gives platforms the opportunity to operate as authorised platforms, by working in collaboration with rebuildingsociety.com, an FCA-authorised company and Network Principal who takes responsibility for overseeing and monitoring compliance activity.”

Meet the Directors

Stephen is the founder of Sourced and its Managing Director. He is a serial entrepreneur having founded and successfully exited a number of other businesses, including the franchise business Legal for Landlords. He is a vastly experienced property investor, sourcer and developer having worked in the property industry for over 15 years.

Ryan is a co-founder of Sourced and its Finance Director. He is a member of the Institute of Chartered Accountants in England and Wales and an Approved Person with the FCA. He has worked for international businesses, including within the SAAS, FinTech and Property industries.

Paul is a co-founder of Sourced and its Property Director. He is a greatly experienced property professional having been an owner/manager of a sales and lettings business. He has operated in the property sector for over 10 years, building and managing a successful property portfolio.

Chris is the Training and Development Director at Sourced. He is a fully certified NLP trainer and has a wealth of property experience. He successfully founded, grew and exited a service business for 10 years and is a property mentor to a network of property professionals.

Only Sourced’s P2P Lending activity will be overseen by rebuildingsociety.com as their network principal.

Appointed Representative Offering

The full authorisation journey can take months or even years, the AR process is a shorter procedure which can be completed in under eight weeks.

We are taking this opportunity to establish ourselves as a reliable, experienced Network Principal and assist other platforms in getting to market, whilst maintaining our position as a P2B platform in our own right. Read more about the Appointed Representatives service we offer here.  

Find out more about Sourced by clicking on the logo below. 

* Sourced is a trading name of Jark-1 Limited.

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We’re making changes to the look and feel of the website. One of the areas that you’ve told us you want to see change, is the lender dashboard. You’ve told us that you would like a more visual representation of your investments and use of the platform. We’ve been listening and have started implementing some changes.

You may have noticed the recent addition of the ‘Net Worth’ Chart on your lender dashboard. This helps you quickly interpret your performance throughout your time on rebuildingsociety.com. Let’s review the new chart and see what it shows us…

To help you understand the charts we’ve taken a few example charts of lenders at various stages of their lending journey and with varying loan book performances.

Understanding the Chart

The yellow line on the chart represents, deposits and withdrawals. On the above chart, you can see the yellow line gradually increasing between August an October 2019, before there is a dip, this dip represents a withdrawal of funds from the platform, before another significant deposit.

The green line indicates ‘Gains’, gains are increases to your net worth from interest, promotional credits or capital gains from secondary marketplace trading. Notice here that the gains are £490 at January 2019.

Here we see the same lender’s costs line, represented in orange. Costs are incurred through fees, capital loss from secondary market trading, capital loss from defult adjustments and bad debt.

Notice that the y-axis (£ amount) will auto-adjust to fit the data on the chart, as you click on each element.

Above you can see the purple ‘Net Gains’ line, this is the net of the green and orange lines. If the orange ‘costs’ line is fairly flat, the purple line may hide the green line.

The blue line shows the Net Worth, this is assets (principal remaining on outstanding loans) plus Gains.

If we put all of these lines together this is what the lender’s Net Worth Chart looks like.

Interpreting Performance

Now you understand what each of the lines in the chart represents, let’s have a look at a few other lenders’ charts and see what information we can interpret from them.

Story 1 – Yellow Submarine

What can you tell from this chart?

The submarine lender has been lending for three years and has now fully divested after needing their funds to pay for a deposit on buying their first property.

Between Q3 and Q4 of 2016, the lender makes their first deposit of approximately £2,500, and then seemingly don’t make any loans for a period of time, as the purple line does not move until Q1 2017 when they start to receive their 1st repayments of interest and capital.

Following their deposit, the lender decides to substantially increase their capital and makes a further deposit of approximately £10k in Q1 and maintains this level of capital whilst continuing to invest in loans, and continues to receive interest on this capital invested, indicated by the purple line. The blue line indicates the total value / Net worth of their account, this can be seen by Capital deposited (yellow line) + the net gains (purple line).

Their net worth continues to appreciate until Q4 2017 where the lender makes a withdrawal, reducing his available capital to just under £10k but continues to earn interest on this capital (as shown by the purple line), until beginning to divest midway through Q3 2018. The lender’s orange line remains fairly flat throughout their activity, which indicates that the lender incurred minimal costs, i.e. did trade extensively on the secondary market, and instead likely chose to take part in loans in the primary market and hold these loans, only incurring small costs during their divestment phase.

Overall this lender at the point of exit had a total gain of £3164.41, primarily through compounding their returns over the 3-year term, earning them an impressive average Net Return of 21.7% pa.  The same lender also opens an IF ISA account.

Story 2 – A Long Walk For Financial Freedom

Above we saw how the submarine lender after making two relatively significant deposits for his account became active quite quickly, other lenders are a bit more tentative, choosing to first try out the platform for over 2 years (Q3 2013 to Q1 2015) before investing more significantly, eventually building their account up to approximately £300k.

During the early phase, this lender has a difficult start, their first few loans under perform, and they sustain a net loss early on, this can more clearly be seen by looking at the purple net gains line on its own below. Every dip in the purple and blue lines indicates a likely default on a loan held by this investor, but by continuing to compound their returns and gradually increase their total investment, the gains start to steadily increase.

Below you can see how the costs (orange), net gains (purple) and gains (green) varied over the initial investment period.

Undeterred by their initial losses, the lender takes a long-term view and now, after four years of active lending, they have been able to build their Net Worth to over £380k.  This lender has earned an average Compounded Net Return of 10.57%pa* and has invested in over 225 loans across their history.

Not every lender has the nerve to take a long-term view, it can be quite scary to try something new and be disappointed early on.  Whilst we take measures to mitigate defaults and losses to lenders, it is normal to expect that from a large portfolio there will be a natural level of defaults.

As with this lender below, who had a similar experience, but chose to divest.

Story 3 – Little Table Mountain

Here we see a lender that similar to the above lender in story 2, sustained early losses shortly after making their 1st deposit, indicated by the purple net gains line dropping below £0. This dip is fairly significant, indicating that this is likely due to a substantial investment in a single loan that went into default shortly after committing to it, i.e. the lender’s portfolio was not diversified at this point.

Notice that the despite the early dip, the ongoing performance does compensate, within another six months this lender would return to break even.

Story 3 – Big Table Mountain

Different lenders approach lending in different ways, some lenders start off small and then significantly increase their capital on the platform, other lenders may have less capital available to invest and will instead slowly grow their investment capital until they reach their investment limits.

Some lenders will invest, build a portfolio, then withdraw their investment capital and reinvest their profits. This is a perfectly health strategy too. Below we’ve looked at a lender that has allowed auto bid to grow their portfolio, periodically dipping in to take out cash when needed. This lender’s account in comparison to the other’s we’ve reviewed is relatively smaller in terms of capital invested. Reaching a high of £1,100 through regular deposits.

Once reaching their maximum capital deposited, they appear to have continued to compound their returns over a significant period of time (over 3 years). During that time we can see where they incurred some defaults (See the blue and purple line dips), but overall their investment continued to gradually appreciate (see green and blue lines) until they chose to gradually divest between Q4 2016 and Q3 2018.

Story 4 – The Full Circle

This lender has built a portfolio that generates average Net Returns of 14.26%* and enjoys taking out the profits. They have been able to supplement their disposable income, with profits from their investing. We have many semi-retired people looking to manage their investments to generate a passive income, where they have access to profits each month.

Remember, a yellow line that becomes negative is an investor who has withdrawn more than they deposited, i.e. they have taken their profits out. We would love for them to come back and reinvest with us, but we understand how people’s financial needs vary over time. 

Growing Net Worth Performance

Whilst many lenders make healthy returns, lenders don’t always get it right, of 1445 active lenders, 160 (11%) have a net return less than 0, i.e. they have taken a loss, whereas 1285 (89%) have net return of 0 or above. Of the 1285 positive lenders, 973 (67%) have received 5%* or above, and 546 (38%) have 10%* or above, with a lucky 254 (18%) who have earned over 15% pa*. See more on the Net Returns Histogram on our stats page.

The Data

*This analysis is correct as of 23rd January 2019. Please remember that historic performance is no guarantee of future performance and that the Net Returns quoted refer to individual lender accounts with varying investment styles and strategies over extended periods of time, and may not be indicative of what you can expect to receive through your own lending experience.

To learn more about the risks of lending, please visit our risks page. Or to learn more about lending on the rebuildingsociety.com platform, visit our lender library.

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We caught up with Samir from Kadco Fashion & Textiles to find out more about his business and why he chose to return to the rebuildingsociety.com crowd to raise further finance to grow his Yorkshire based business.

A short introduction to the company.

Samir, please tell us how the business started…and when.

The business itself has been going since 1967, but in it’s current ltd company form 6 years, 2012.

What are the biggest changes you’ve seen in that time?

Previously, the business was great as competition was low and barriers to entry were much higher. Over the years, we have seen that the business has become tougher. We have combatted this, and are coming out stronger by diversifying into various new ranges such as loose textiles, craft fabrics, wedding dresses etc, and we now find ourselves with an offering over these areas second to none.

What’s the retail scene like in Bradford now?

Competitive but thriving, and as long as you have a different offering to others as we do, then business is good.

How do you see it changing in the future?

The future looks good for us, we still haven’t delved into the realms of online properly, which leaves us with huge potential for growth to service a new market of customers, we are also growing and increasing our product ranges monthly to offer our customers more under one roof.

Thanks Samir, hope you’re enjoying the Christmas season,

Here’s the link to the loan.

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Why Invest in Peer to Peer Lending?

Brian has chosen peer to peer lending as part of his investment portfolio as he enjoys the fact that crowdfunding and P2P lending directly connects lenders with the funders, cutting out the middleman.

Brian enjoys engaging with the business owners and seeing how he can have a direct impact on the success and growth of many small businesses.

Why rebuildingsociety.com?

Brian says that he enjoys lending via rebuildingsociety because of the platform’s ethos and dedication to supporting local businesses and developing local economies particularly outside of London, an ethos which he shares and which he has followed in his own business ventures.

Rebuildingsociety.com was founded with the intention of opening finance to businesses that had been excluded from traditional means of finance and to offer more than just a financial transaction, by ensuring that through the finance the business was also able to gain access to a wide range of lenders who are able to advise and support the business in the long term.

The ability for lenders to pick and choose their investments and continue to engage with the borrowers is a key reason Brian has continued to lend via rebuildingsociety.com, as opposed to other platforms that have become more ‘opaque’ in the way lenders invest.

As well as his rate of return, Brian also cites the openness and accessibility of the rebuildingsociety.com team as a factor for his continued investment via rebuildingsociety.com.

How does it compare to other platforms?

Investing across a number of crowdfunding and Peer-to-peer lending platforms, Brian, says as a ‘non-techie’ he has found the platform easy to use and understand.

He has found the blogs and information available to lenders on rebuildingsociety.com ‘excellent’ and very useful in helping him to understand how to use the platform, learn more about the businesses and get tips on lending in general.

Much of the information Brian refers to is available in our Lender Library.

Advice to new lenders?

Having been an active lender for over 4 years on rebuildingsociety.com. Brian says lenders should:

Read and Review

Brian says lenders should always make sure that they read up and carefully look into the platform that they are lending through.

Look at the trading history of the platform, how long have they been around, what is their net return, what is the ethos of the platform and what is the investment structure or the deals on the platform.

Knowing more about the platform and ensuring that you understand how it works is fundamental to ensuring the long-term success of your investments via P2P.

Do Your research

When investing manually, Brian says it’s crucial that lenders do the research on the businesses they are thinking of investing in. Reviewing the information provided by the platform as well as publicly available information is important to make good lending decisions.

Start small – Diversify

Brian says that lenders that are new to any platform should ‘start small’ and look to build a well-diversified portfolio, by lending across a range of sectors, regions and business types. As a lender gets more comfortable with the lending process and the platform then they can consider lending larger amounts according to the experience they have gained.
If in doubt ask

This applies to both asking questions of the borrowers as well as the platform’s team. On rebuildingsociety.com lenders are given the opportunity to directly ask questions of the borrower through the Discussion forums of each loan. This allows lenders to ensure they understand who and what they are lending for and allows them also to build a rapport with the borrower.

Brian also says that lenders should ask not to be shy to engage with the rebuildingsociety.com team, who he has found ‘very helpful and accessible’ and ‘has found the guidance that they give very easy to understand’.

rebuildingsociety.com is authorised and regulated by the Financial Conduct Authority and has been operating as a peer-to-peer lending platform for over six years, making it one of the longest standing P2P platforms in the UK. rebuildingsociety.com prides itself on the level of transparency offered to lenders and the wealth of information and educational material available to assist lenders and borrowers throughout their engagement with the platform. 

Transparency helps lenders assess the risk and make better-informed decisions if you would like to find out more about the risks involved in lending on our platform, visit our risks page.

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If you didn’t get the chance to make the most of the Black Friday and Cyber Monday sales, don’t worry there’s still 21 days to Christmas, plenty of time to get those gifts ticked off the list. If you don’t have a list and are still looking around for ideas, maybe we can help!

Here are a few of the business our lenders have supported recently, who might be able to help you finish off your Christmas shopping and you can do it all from the comfort of your couch whilst sipping your festive tipple of choice!

OPWG – Board and Card Games and Collectibles

OPWG’s online store, The Outpost, stocks a huge variety of board games, miniature figurines, card games and more. These include popular brands and franchises such as Warhammer, Star Wars, Dungeons and Dragons, Dr Who and Superman and Batman collectibles!

If you know someone that would love something from this store, but you’re not sure about what to buy them, you can also purchase gift vouchers so that they can choose for themselves!

For those super fans that you know, we’re sure that they’d love to get their hands on some collectibles and games as soon as they’re released, you can make their Christmas by ordering through the Outposts pre-orders section!

The Outpost are offering FREE delivery on all orders over £75! With such a great range of products and services, you’re bound to find something here for someone on your list, even if it’s just a stocking filler!

Candy Hero – Sweets and Confectionery

Leave the diet until January, December is for eating enjoying and over indulging on all those things you love best. If sweets are your thing or you know someone that has a insatiable sweet tooth (we all know someone), then get your order in now on Candy Hero.

Candy hero stock a huge range of sweets form around the world, especially from places where e-numbers are not a worry! Aside form their huge range of ‘all year round sweets’, they also sell a variety of special Christmas Candy and gift packs!

Candy Hero offer free delivery on all orders over £35.00 and promise that if ordered by 2pm they’ll ship it that day and to anywhere in the world! – Perfect for those relatives abroad!

Go on and treat yourself or someone you know, or at the very least add some candy canes to your tree this year!

Invasion – City Getaways and Flights

Some people just love the cold and frosty days of December, apparently in December the cold weather is ‘Christmassy’! Cold ‘Christmassy’ December days are one thing, though we’re not sure we often hear people saying they love the long, cold and dark January and February days that stand between us and Spring!

If you’re someone who loves to travel, could do with some sun, or just know someone that would love an adventure, why not browse the range of trips offered by Invasion?

Advertising getaways to Bali, The Philippines, the Maldives, South Africa and Thailand just to name a few (warm places), it’s hard not to be tempted!

SLK Retail (UK Gardens) – Garden and Outdoor Accessories and Decorations  

We all know those people that come the 6th November are far too eager to get their Christmas decorations and trees out. If you, like many of us in the office haven’t yet got around to getting your Christmas decorations sorted, then have a look at the great range of Christmas indoor and outdoor decorations from SLK Retail!

If you’re one of those that does love to go all out and have been decorating since November, why stop now? Have you got an 8FT Inflatable Santa with LED lights in your garden? – No?  Well then, don’t be out done! – Get yours now!!

If you really don’t need any more decorations, then maybe start making some purchases for BBQ season, such as new outdoor furniture or just browse the ‘Gifts for him and Her’ section for some great ideas!

rebuildingsociety.com are proud to have a community of lenders that genuinely care about supporting the businesses that they lend to. Being part of the rebuildingsociety.com community is about more than just finance, it’s about supporting British businesses, developing local economies and generally making a difference!

Merry Christmas! 

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Rebuildingsociety.com is proud to have been selected to be part of the 2019 Barclays Scale Up programme, run by Barclays in collaboration with Cambridge Judge Business School. The innovative programme aims to enhance the performance and competitiveness of high-potential businesses with growth appetite as well as growth potential that are deemed to be engines of growth in the UK.

The Cambridge Business School has been an active ambassador for peer-to-peer finance and alternative finance as a whole, being home to the Cambridge Centre for Alternative Finance (CCFA), an international interdisciplinary academic research institute dedicated to the study of alternative finance. The CCFA are recognised as a thought leader in alternative finance and have and continue to play, an integral part in the shaping of both domestic and global policy and regulation for crowdfunding and P2P lending.

The significant growth potential for FinTechs in the North of England in highlighted in the Leeds City Region FinTech Ecosystem Report 2018, produced by Whitecap Consultancy and supported by a number of key players such as Leeds Beckett University, Leeds City Council and FinTech North. Based on research conducted over a period of several months, the report finds the Leeds City Region FinTech ecosystem to be in a strong position in terms of its Financial Services, data and technology sectors, with a clear demand for FinTech innovation and partnerships from established Financial Services and technology organisations with a presence in the region. Following on from the report, rebuildingsociety.com is pleased that Barclays, along with Cambridge Business School have chosen to deliver this prestigious programme in a region outside of London.

rebuildingsociety.com has been operating as a peer to business lending platform since 2012, and was one of the first platforms to receive Full Authorisation from the FCA. rebuildingsociety.com is also a network principal aiding the development and operation of other lending platforms in the UK.

The rebuildingsociety.com team is excited to be part of the programme and looks forward to using the programme as a platform for the firms next stage of growth and to further develop and invest in the skills of its team.

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Tips for Raising P2P Finance

Brian Johnson has been a regular lender on rebuildingsociety.com since 2014, supporting many UK SMEs in their growth aspirations along the way. Brian also has many years’ experience of managing and running his own businesses, so understands the difficulties businesses encounter in raising finance and has seen how businesses can use P2P finance to their advantage and how rebuildingsociety.com facilitates more than just a business loan.

We met up with Brian to find out what tips he would give businesses who are looking to get a business loan through rebuildingsociety.com.

1. Present Information Accurately

Brian believes that the accurate and concise presentation of the business loan profile is a key part to a successful loan.

Presenting your business in an engaging way that is easy to understand will significantly help lenders get behind your business. Brian says that whilst the rebuildingsociety.com site has a specific framework in which information is presented to lenders, he encourages businesses to also include additional supplementary information if possible, to support the loan process. Including a business plan and video of the business or about the directors is a great way to engage more quickly with lenders.

2. Engage Openly and Honestly

Engaging openly, honestly and with genuine goodwill is a crucial factor to ensure that the crowd gets behind the business and offers the finance required. Brian stresses that it’s not only important for the business to engage openly at the outset but also to maintain engagement throughout the loan term.

By engaging in this way, Brian says that the lending community will not only support the business in raising the finance but will also support the business through ‘the good times and the bad’. Businesses raising finance through rebuildingsociety.com are raising finance form individuals not an institution, which allows a certain amount of flexibility and understanding that would not be afforded to the borrower when borrowing from a bank.

3. Make Use of the Support Offered

Borrowing from individuals such as Brian, opens up a whole community of experienced individuals that will not only support your business financially, but will also, in many cases, be able to provide you with business advice and consultancy.

Furthermore, the rebuildingsociety.com team provide a ‘huge amount of support and guidance’ to the borrowing business, therefore, you’re getting more than finance through rebuildingsociety.com, and as such , Brian says businesses should not ‘be put off by what appears to be a slightly higher interest rate.. as its more than repaid through the support from the rebuildingsociety team’ and it’s lenders.

Brian is just one of thousands of active and engaged lenders in our lending community, that are ready and eager to support British SME’s.

As a lending platform, we will not only help you raise finance, but we will also provide you with tools and the means to promote your business in local, national and trade press, thereby giving your business great exposure to a wide range of investors as well as potential future clients. In the past we’ve helped our borrowers get featured in BBC Look North, The Yorkshire Post, The Financial Times and many other local papers and trade press.

If you’re looking for a business loan and want access to our community of experienced and supportive lenders, take 5 minutes to apply now!

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This blog has been written by rebuildingsociety.com’s Non-Executive Risk Director, Steve Wallis. Steve brings a wealth of Financial Services experience, having previously worked as Head of Portfolio Management at Ferratum Group and Chief Risk Officer at Ferratum Bank as well as having also worked at payment processing company Elavon. Steve, is also a passionate advocate of P2P lending having been an early adopter and investor across a number of different platforms. Here Steve briefly explains compunding and the rule of 72.

Who’s Hungry for Some Buffett?

Now, the magic of compounding, or so Warren Buffett calls it – the eighth wonder of the world.

I would be very surprised if you haven’t heard of this man, the most famous investor on the planet.

There’s a fantastic documentary on Netflix called Being Warren Buffett which I would highly recommend you watch.

But back to compounding.

The rule of 72 states that if you invest an amount at 7.2% per annum interest, reinvest the interest instead of taking it out and spending it, after exactly 10 years you will have doubled the initial amount you started with.

Pretty impressive huh?

What I think is even more impressive is if you can double that 7.2% annual return and make it 14.4%, you will have doubled that starting pot in just over 5 years.

I wish I knew this when I was younger.

My parents’ investments have been limited to classic cars and their main residence, meaning I couldn’t find out about return on investment or interest rates and the ability to compound unless I was taught it in school or by a relative.

None of these things happened, maybe Rich Dad Poor Dad by Robert Kiyosake should be part of the curriculum…

This theme plus the others that really matter can be found in a Personal Finance 101 guide which is one of the three guides you’ll immediately receive upon becoming a Guerrilla Investors subscriber.

Details can be found here

www.guerrillainvestors.com/

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With the Bonfire smoke clearing and the sound of fireworks still ringing, in our ears many people now turn to Christmas preparation and celebrations. Whilst the upcoming festive season brings with it plenty of fun and reasons for celebrations, it is often a challenging time for business owners, particularly if planning hasn’t been done to ensure business continues as normal through this disruptive period.

We’ve put together a list of tips to help you ensure that you make the necessary arrangements to avoid disruption to service or unexpected issues during the festive period and to ensure that you set your business up for the best possible start to 2019!

1.      Carefully Plan Cashflow

With the bank holidays and all the leave that staff, customers and suppliers tend to take over the period, business cashflow can be adversely affected. Sales might be lower and customers (making adjustments for their own cashflow) might be slower to pay.

It’s important that you carefully plan how your business might manage these issues.

Think about whether you can improve cashflow by reducing stock levels in anticipation of lower sales, start chasing up overdue / past term payments due to your business. Essentially get the money due to you, in now and investigate areas of potential cost savings!

2.      Prepare Staff

Depending on your business sector, you’ll either be heading into a significantly busy or significantly slower period, either way you need to ensure your staff are prepared.

Ensure that all requests for leave over the holiday period are made in good time and that there is adequate cover for all key roles within the firm.

Makes sure that staff have received training on dealing with the increase in work or that they have training on how to provide cover for other colleagues.

3.      Develop a Marketing Plan

Whether you’re expecting an increase in sales or a decline, it’s important that you ensure that your marketing plan is correctly structured and delivered at an appropriate time to have the biggest impact on your sales.

Make sure that you communicate any promotional offers over the festive season or prep clients for New Year specials. It’s also a good time to improve your communication with customers by updating them about the progress of your business over the last year and what your goals as a business are for 2019, honest direct communication about your business is an excellent customer engagement tool.

4.      Maintain Momentum

Ensuring that you follow the first three tips should hopefully ensure that your business maintains momentum through the holiday season and sets it up for a great start to the new year.

November is a crucial month for many businesses, it’s where all the work is done to ensure the business sails through a disruptive December.

Communicate this idea to staff, get them geared up and prepared to work hard for your business. Think about offering some incentives or friendly competition within the business to keep staff motivated.

5.      Raise Finance Early

If in preparing your cashflows you have realised that you might face a cash shortfall in December or early January, raising finance now should be your priority.

Starting this process now will save you time and money, by ensuring that you are able to get finance that is right for your business now and to ensure that you receive the funds in good time.

If you need to raise finance for your business take a minute to fill out our business loan application. If you’d like to speak to a member of our business development team, call 0113 8150 244 to discuss your options and eligibility for a business loan. 

Find out more about our business loans here.

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