Banking

The Ultimate Guide to British Taxes

Author ByCFI.co

The United Kingdom has a long list of tax codes, so it might seem confusing. However, British taxes are relatively simple for many people.

Unless you have a slew of properties and investments, you don’t have to know a lot to pay your taxes. All you need to know is how you earn money and how much, and you can determine what taxes you need to pay.

Basics of British Taxes

If you live in the United Kingdom, you should have a basic understanding of British taxes. Whether you grew up in the UK or an ex-pat living abroad, you need to know what taxes to pay and how to pay them.

In the UK, there is a long list of tax codes, so it can be complicated. However, you don’t need to understand everything, only what applies to you and your situation.

You don’t need to be a UK citizen to pay taxes, but you will need a national insurance number. You’ll typically get a number when you work in the UK, and this gives you access to certain benefits.

Residency and British Taxes

Whether you’re a citizen or not, you may still have to pay British taxes. If you live in the country during a tax year, you’ll have to pay taxes on the income you earn there.

Only UK citizens have to pay British taxes on income from other countries. Citizens of other countries may be eligible for a tax allowance, which prevents you from paying taxes on income to two different countries.

There are a few factors you can use to determine your residency status.

  • If you stay in the UK for 183 days out of the year, you will count as a UK resident.
  • You can also count as a resident if you buy a home and live in it for at least 91 days, as long as 30 of those days are within the tax year.
  • Another way to be considered a resident is to work in the UK for 356 days with no long breaks from work.

Determining your residency can help you figure out what taxes you need to pay and whether you qualify for certain allowances. However, you have to consider the UK tax year when calculating dates of work or residency.

The UK Tax Year

In the UK, the tax year starts on 6 April. The UK tax year ends on 5 April of the following year.

While it can be easy to consider the calendar year, it can be a problem. If you fit the qualifications for residency, you need to make sure you base that off the tax year.

The same is true if you don’t want to qualify as a UK resident. In that case, you would need to make sure you’re out of the country for the proper length of time.

What Taxes Do You Have to Pay?

When learning about British taxes, you should understand the basic types of taxes. Like other countries, you will probably have to pay income taxes.

However, depending on your situation, you may have a few other types of taxes to consider.

Income Taxes

Income taxes are the easiest type of tax to think about. The amount of income you earn determines how much you owe in taxes.

Your income taxes include money you make from a traditional job. However, it can also include income from other sources:

  • Self-employment income
  • Certain state benefits
  • Benefits from a job
  • Pensions
  • Interest on savings accounts
  • Rental income
  • Income from a trust

You will typically get some sort of tax allowance, which means you won’t have to pay taxes on some of your income. The Personal Allowance covers income you earn up to £12,500.

If you have freelance income or income from a rental property, you won’t have to pay taxes on the first £1,000 you earn. The tax rates for income tax vary from 0 to 45 percent.

Property Taxes

If you own any property in the UK, you will need to pay taxes on that property. When you buy a home worth more than £125,000, you’ll need to pay a Stamp Duty Land Tax (SDLT).

However, you won’t have to pay SDLT on your first home unless it’s worth more than £300,000.

SDLT has different tiers, and that can determine the amount you’ll pay in property taxes. If you have to pay taxes, you will need to figure out the value of your home.

  • For houses up to £125,000, you won’t ever pay any taxes.
  • Between £125,000 and £250,000, you’ll pay 2 percent.
  • The tax rate from £250,000 to £925,000 is 5 percent.
  • If your home is up to £1.5 million, you will pay 10 percent on the value over £925,000.
  • Finally, any value over £1.5 million will have a tax of 12 percent.

While you may not need to pay proper taxes at first, you may need to in the future.

Capital Gains Taxes

Another type of tax you should know about in the UK is the capital gains tax. You’ll only need to pay this type of tax when you dispose of an asset, especially when you make a profit.

You can expect to pay this tax if you sell property, give it as a gift, or exchange it. The tax applies to possessions worth more than £6,000, except for your car.

It also includes property that isn’t your main home, business assets, and some investment shares.

Inheritance Taxes

Inheritance taxes are not too common, but you should know about them if you have family in the UK. When you inherit an estate, you may need to pay a UK inheritance tax.

If the value of the estate is less than £325,000, you won’t have to pay anything. You can also avoid the tax if you leave the value over that threshold to your spouse, children, or a qualifying organization.

VAT

A more common type of tax to pay in the UK is VAT, or Value Added Tax. The tax rate varies based on the type of goods or services you purchase.

It can be as low as 0 percent or as high as 20 percent. Twenty percent is the standard rate, while food and children’s clothes can qualify for no VAT.

Other goods and services might have a reduced rate of five percent. Don’t forget to budget for VAT when making purchases.

Tax Facts

Whether you’ve lived in the UK your whole life or just moved there, you should understand how British taxes work. Not only should you consider the tax rates, but you should also consider the types of taxes.

If you know you have certain investments or properties, you’ll know you need to pay taxes on them. However, if you don’t have any of that, you will primarily have to worry about income taxes.

Do you want to learn more about finances in the UK, check out our recent blog posts!

Business

Business owners urged to take six steps to limit coronavirus risk to their operations

Author ByCFI.co Blogger

AMID all the uncertainty caused by the coronavirus outbreak business owners may feel their fate isn’t in their own hands – but in fact there’s lots that they can do to help them take control.

Business owners urged to take six steps to limit coronavirus
David Tew

“These are uncertain times. No-one knows exactly how this is going to play out. But there are certain things you can do to protect your business,” said David Tew, a dispute resolution specialist with Cartmell Shepherd Solicitors.

“A bit like the advice across society about taking sensible steps such as washing your hands, there are steps you can take as a business to protect yourself,” said David.

Here David shares half a dozen simple steps aimed at helping you and your business to be prepared and to focus on what you can control.

1. Check your ongoing contracts

“Check your contracts. What are your obligations and your rights? 

“Will coronavirus allow a contracting party to pull out of its obligations on an existing contract? It depends very much on what is the exact wording in the contract.

“In particular you should be checking is there a force majeure clause in your contracts which allows a party to suspend or terminate the performance of its obligations when certain circumstances beyond their control arise.

“If there is not a force majeure clause then it is possible to look at the legal doctrine of ‘frustration’ where it is impossible to complete a contract because of a change of circumstances outside your control. But this is open to different interpretations and may be difficult to rely on, highlighting the importance of ensuring that your contracts are fit for purpose.”

2. Check your insurance policies

“Have a close look at your business insurance policy to see if you have any business interruption coverage and check exactly what those terms are.”

3. Carry out a risk assessment

“Carry out a general risk assessment on all parts of your business to identify exactly what is at risk, and then focus on controlling those areas which are within your control.” 

4. Take practical steps

“So far much of the focus has been on the international aspect of coronavirus. But that is set to move to a more domestic level and it is important as a business owner that you do everything you can now to make sure you, your employees, your supply chain and your clients are as prepared as possible.

“If we are moving towards a situation where the advice will be for more people to self-isolate, or if there are restrictions of movement, then there are practical steps that you can take now to mitigate those risks.

“If you want to move to more remote working, then check the practical issues that will involve. Do the business processes and procedures work remotely? Check employee policies – do they cover working from home? Is it practical for all employees to work from home? Do they have a safe environment to work in?

“Review your supply chain. Have a discussion with those in your supply chain and discuss action plans with them.”

5. Keep communicating

“It is really important to keep communication channels open between you, your employees, your clients and your supply chain. Keep talking and discussing how you can support each other. Follow any guidance online https://www.gov.uk/guidance/coronavirus-covid-19-information-for-the-public

“Identify ways you can work together. There will be cases where because of the way a contract has been worded, it is within your legal right to ensure that those obligations are met. But that might not be the best approach when it comes to long-term business relationships.

“You are likely to want those relationships to be positive in the long term. And while the temptation might be to jump on the specific wording in a contract, remember that your clients and customers will still be here long after this situation has come and gone. How you act now, is likely to affect those business relationships in the future. 

“By showing flexibility and understanding and being willing to restructure that arrangement in the short term, is likely to be of benefit in the long term.”

6. Ensure you have good legal advice

“A good solicitor will help you with your concerns and give you the advice on how you can best protect your business. We have a six-strong team in dispute resolution at Cartmell Shepherd led by director Mark Aspin. If you are unsure about anything it is always best to ask.”

Business

Chancellor Must Use Budget to Give Family Businesses Confidence to Invest in the Future – Starting with Maintaining BPR

Author ByCFI.co Blogger

The Institute for Family Business (IFB) is calling on the Chancellor to use his Budget on Wednesday to create an environment that gives family businesses the confidence to invest in future growth.

Reports that the Chancellor intends to review the Business Property Relief (BPR) in the upcoming Budget, are deeply concerning to the UK’s family run businesses.  Family businesses employ over 13 million people and generate 28% of the UK’s GDP.  Family firms continue to exist for generation after generation by innovating, adapting and looking for new markets and opportunities. They make investment decisions for the long term.

Every year 85,000 family SMEs are expected to transfer ownership of their businesses to the next generation. Removing BPR would force family run firms to pay a tax penalty on transfer, which others don’t have to. 

Fiona Graham from the Institute for Family Business said:

“Family firms are the driving force across all regions, communities and sectors of the UK. Well over 80% of businesses in Yorkshire, the North West and the East and West Midlands are family owned. In those four regions alone family firms employ nearly four and a half million people.

“Inheritance tax relief is essential to their future prosperity.  Scrapping it would have a catastrophic impact on family firms. It would lead to family run businesses being sold or broken up to pay an Inheritance Tax bill, with knock on effects on employment.  It will also damage confidence in the sector, where families would reduce investment and always plan for the worst.

“The introduction of BPR positively impacted the health of family businesses and the wider economy by giving business owners the confidence to invest and expand.

“The majority of British businesses are family businesses.  They are dependent upon BPR for their current and future prosperity. Any change to it would inevitably result in a decline in growth and investment coupled with stagnation in the number of new jobs being created.

“As the UK seeks to level up nationally in the coming years, the success of family businesses will be a crucial factor in doing so. In order to succeed and grow, they require a stable tax system and an economic environment.  The future of the family business sector – and ultimately the Government’s ambitions for regional growth and investment – rely on maintaining BPR.” 

The Institute for Family Business is the UK’s family business organisation, supporting and promoting the UK family-owned business sector through events, networking, representation, and thought leadership.

Two-thirds of British businesses are family businesses – ranging from multinational, multibillion-pound businesses to micro start-ups, the sector employs over 13 million people and contributes £182 billion in taxes. 

Finance

A Beginner’s Guide to Investing in Foreign Currency

Author ByCFI.co

More than $5 trillion is traded in foreign currency exchanges every day. Could you jump into investing in foreign currency and get a piece of that amount?

Absolutely! However, trading foreign currency is not as simple as it might sound. A beginner who tries to invest without some knowledge of what they’re doing will find success hard to come by.

There are many insider things to learn about this form of trading. If you’re considering getting into the game, we want to make sure you’re equipped to do so.

In this article, we’re laying out the basics of investing in foreign currency. We’re giving you the terms and the concepts so that you have what you need on hand before you pull the trigger on your first trade.

What is Forex?

Forex is the term used for trading in foreign currency. It is also the Foreign Exchange Market where currencies are traded. Forex is managed by banks and financial institutions rather than a centralized exchange like the Nasdaq.

Forex is, at its simplest, the buying and/or selling of two currencies. It uses the value of one currency against another to determine prices for buying and selling.

The exchange rate is the rate at which your trade will occur. The exchange rate is the value of one country’s currency against another. It is shown as a ratio, so, for example, 1 Euro might be worth 1.68 US Dollars.

Which Currencies Can You Trade?

Investing in foreign currency is always done in pairs. Pairs of currencies are represented by 2 three-letter codes put together. The codes are for each currency in the pair. 

For example, EURUSD is a pairing of Euros and US Dollars. The first currency is the base and the second is the quote. 

Pairings of currencies come in 3 categories. The categories are major, minor, and exotics.

Major Pairings

Major pairings are a combination of two of the major currencies of the world. The major currencies are:

  • US Dollars (USD)
  • Euro (EUR) 
  • Japanese Yen (JPY)
  • British Pound Sterling (GBP)
  • Swiss Franc (CHF)
  • Canadian Dollar (CAD)
  • Australian Dollar (AUD)
  • New Zealand Dollar (NZD)

When beginners start investing in foreign currency major pairings draw their attention because they fluctuate more and more often.

Minor Pairings

Minor pairings feature one or more of the major pairing currencies but never the US Dollar.

Exotics

Exotics combine a heavily traded (usually a major currency) with a lightly traded currency. For example, you might combine the US Dollar with the Brazilian Real for a minor pairing.

Keys to Investing in Foreign Currency

When you are starting your journey into investing in foreign currency you need to be aware of terms, how to buy and sell, and what you can expect from your trade.

Buying Foreign Currency

When you want to buy foreign currency you are buying the base currency and selling the quote currency in the pairing you have chosen. So, if you want to buy US Dollars and sell British pounds you will have a pairing of USDGBP.

If you are buying currency you want the value of your pairing to rise. You can then sell it later if it falls to make a profit.

Selling Foreign Currency

The opposite is true if you are selling currency. In that scenario, you will still have a pairing of USDGBP but you will be selling the base currency and buying the quote currency.

When selling currency you want the pairing to fall in value. That way you can buy it back later if it rises in value.

Liquidity

Liquidity is the amount of demand for any given currency. Liquid currencies are bought and sold more frequently. The more liquid a pairing is the more likely you will be able to buy and sell at a profit. 

Major pairs are usually more liquid than minor or exotic pairs. This is because there is more international trading of major pairs and more demand for the base and quote currencies.

Liquidity is measured in pips. Pips represent 0.0001 of the quoted price for the pair. If a pair has a quoted price of 1.57789 and moves to 1.57790 that is a change of 1 pip. 

Pairings with more liquidity will typically have changes of around 100 pips a day. Pairings with less liquidity have changes of 50 pips or lower a day. 

Bid and Ask

The terms “bid” and “ask” are also important to understand when investing in foreign currency.

The bid is what a broker will pay you for a pairing. The ask is what the broker will want you to pay for a pair.

The difference between the two numbers is called the spread. So, if the bid is, say 1.5111 and the ask is 1.5115 the spread is 0.0004, or 4 pips. In order to make a profit from a buying trade, you’ll need the pair to cross the spread above 1.5115.  

Study So That You Know All About Investing in Foreign Currency

Forex trading is tricky. Spend time learning about the pairings. Investigate trends and spreads, and look at how liquid a pairing is before you jump in.

Because pairs of currencies don’t move a lot, up or down, investing in foreign currency does not result in huge gains or losses for beginners. 

The language and terms can be confusing. It’s an insider’s lingo. Make sure you know what all the things in this article refer to.

At the same time, Forex trading can be fun and rewarding. 

If you’d like advice on how to get started with your first Forex trades get in touch with us. We understand the foreign currency markets, and we have a wealth of knowledge to help you make the best choices on pairings and trades. We look forward to helping you. 

Lifestyle

Amos Rex in Helsinki awarded New Cultural Destination of the Year in Europe at LCD Berlin Awards

Author ByCFI.co Blogger

The Amos Rex Art Museum in Helsinki has won the prestigious LCD (Leading Culture Destination) Award for New Cultural Destination of the Year – Europe. The awards, coined “the Oscars for Museums” by the international press, were presented at the annual LCD awards ceremony in Berlin on 4 March 2020.

Amos Rex in Helsinki awarded New Cultural Destination of the Year in Europe at LCD Berlin Awards

Since opening in August 2018, the Amos Rex Art Museum has made a big impact on the cultural scene in Helsinki, attracting over half a million visitors during its first year. Amos Rex is an art museum where the past, present and future meet. The iconic functionalist Lasipalatsi building (i.e. Glass Palace) and the new gallery spaces under its undulating square, provide 10 000 m2 for unique experiences both below and above ground, as well as on the silver screen of Bio Rex. Amos Rex’s exhibition programme extends from the newest, often experimental, contemporary art to 20th-century modernism and ancient cultures. The new museum space was designed by Finnish architecture office JKMM. 

“We are extremely honoured at Amos Rex to receive the LCD Award for New Cultural Destination of the Year in Europe. It is a significant award for us, as we aim to serve the international public as an art museum, architectural attraction and urban meeting place. We are delighted to see how Amos Rex is contributing to Helsinki’s appeal as a cultural city in Europe”, says Kai Kartio, Museum Director of Amos Rex.

Helsinki – a thriving city of arts and culture

Feeding its lively cultural scene, Helsinki continues to position the culture amongst its core values, building on its reputation as an art, design and architecture capital. With residents visiting cultural institutions more than ever before, ambitious initiatives such as the 2018 Amos Rex Art Museum and Oodi Central Library openings demonstrate the city’s forward-looking commitment to creativity.

Championing local contemporary art and its relationship with the global community, the eagerly anticipated Helsinki Biennial 2020 draws on Helsinki’s distinct characteristics and the surrounding archipelago, offering a unique contribution to the international art scene.

“Helsinki believes in culture. The city is a diversified and internationally attractive city of arts and culture, with Amos Rex as one of the leading attractions. Working together with cultural institutions such as Amos Rex, the new central library Oodi and the upcoming international art event Helsinki Biennial, we are further strengthening Helsinki’s position as a must-visit city of culture”, continues Laura Aalto, CEO of Helsinki Marketing.

For more information, please contact:
 

Amos Rex
Iia Palovaara, Communications Officer
+358 50 544 3331
iia.palovaara@amosrex.fi

Helsinki Marketing
Laura Aalto, CEO
+358 40 507 9660
laura.aalto@hel.fi

Helsinki Marketing is a company owned by the City of Helsinki. It is responsible for operative city marketing and business partnerships for Helsinki. Helsinki Marketing interacts with local residents, visitors, decision-makers and experts. 

Corporate Finance

European FinTech Lending Industry to Hit $9.6bn Value This Year

Author ByCFI.co Blogger

Innovative lending services, such as crowd and P2P marketplace loans, are becoming increasingly popular in many European countries. With the development of financial technology, recent years have witnessed a growing number of business customers and private borrowers using these digital financial services.

According to data gathered by Finanso.se, the European fintech, or the alternative loans industry, is expected to hit a $9.6bn transaction value this year, growing by 10% year-on-year.

Crowdlending Generates Nearly 70% of Total Market Transaction Value

After the financial crisis, many traditional banks became very restrictive in approving loans, especially in some European countries, leaving businesses and individual consumers with no access to much-needed cash. This created space for lending platforms, which connected borrowers directly to lenders, and removed the banks from the equation.

Lending platforms use sophisticated computer algorithms to make lending decisions, provide fast loans, and lower rates to borrowers. Investors, on the other hand, are given the ability to easily invest in loans outside of their countries at attractive returns.

In 2017, the European fintech lending market hit $6.3bn value, revealed the Statista Alternative Lending Market Outlook. By the end of 2018, the market value increased by 20% and reached $7.5bn worth. The rising trend continued in the next twelve months with the entire market reaching $8.7bn value. The statistics indicate European fintech lending industry is expected to show an annual growth rate of 3.0% between 2020 and 2023, resulting in $10.5bn transaction value in the next three years.

The market’s largest segment is crowdlending or peer-to-peer business lending. In 2017, European peer-to-peer loans in the business sector reached $3.6bn worth. Over the last three years, the market value of the crowdlending loans increased by more than 75% and hit $6.5bn transaction value in 2020. Statistics show this amount will grow to nearly $7.2bn in the next three years.

Consumer peer-to-peer loans are forecast to edge up to $3.1bn value in 2020, twice less than business lending.

Number of European Fintech Loans to Reach 1.3 Million by 2023

Although peer-to-peer business loans represent the leading market segment, the statistics indicate a much higher number of consumer peer-to-peer loans in Europe. In 2017, there were more than 911,000 successfully funded alternative loans in the consumer segment.

Business peer-to-peer loans reached over 63,000, or 14 times less compared to consumer loans. In the last three years, consumer and business alternative loans rose to 1 million and 75,900, respectively. The average funding per loan in the crowdlending segment is expected to reach $86,185 this year. Statista survey indicates the total number of European fintech loans will amount to over 1.3 million by 2023.

Compared by geography, the United Kingdom represents the leading European fintech lending market, and the third-largest fintech lending market globally. According to statistics, the total value of UK fintech loans is expected to peak at a value of $4.8bn this year.

Switzerland ranked as the second-largest market in Europe with $1.4bn worth transactions in 2020, growing by remarkable 27.4% year-on-year. With a $796 million transaction value in 2020, Italy ranked as the third-largest fintech lending market in Europe.

However, besides Switzerland, Denmark and Spain are expected to see the highest growth rates in the following years, rising by 23.7% and 22.9% respectively year-on-year.

Read the full story here: https://finanso.se/european-fintech-lending-industry-to-hit-9-6bn-value-this-year/

Finance

What’s the secret to trading on the financial markets?

Author ByCFI.co Blogger

Giles Coghlan, chief currency analyst at HYCM

Giles Coghlan of HYCM
Giles Coghlan of HYCM

There are countless books claiming to elucidate exactingly how to invest over the long-term. However, ask any seasoned trader what the secret is to an effective investment strategy and you’ll quickly find there is no one tactic or panacea for consistent growth.

Instead, what most traders rely on is an informed and reactive understanding of both current affairs and unfolding market trends to help inform their investment decisions. By letting this understanding dynamically inform one’s portfolio, they are able to confidently react to sudden market shocks.

Investors must therefore have one eye on the present and one eye on the future, and understand how different social, political, geographical and economic events could impact their portfolio. This understanding must be informed by an awareness of how past events have affected the prices of different assets. Thankfully, there are plenty of useful ways that investors can prep for the future.  

Markets are all about cause and effect

The fundamental operation of the financial market is one of cause and effect; one event or price movement will inevitably affect the prices of other assets. Whilst this is a simple enough concept, big political and social events often trigger a multiplicity of effects, which can in turn impact on one another.

For example, the recent outbreak of coronavirus is having a major impact on global supply chains; China’s productivity has been negatively affected, which has had a flow-on effect on major businesses that rely on China as part of its supply chain.

In terms of market volatility, there is a huge amount of historical evidence which shows how the coronavirus could impact asset prices. One central theme is likely to be the increase of value in ‘hard commodities’ — physical investments like gold, steel and oil. That is because these so-called safe haven assets are perceived as having global appeal and consistent demand, and therefore offer greater resilience in times of volatile trading conditions.

Never overlook the advantages of an informed strategy

I doubt you could find many long-term traders who have not woken up one morning to see that there has been a dip in the value of their investments as a result of an unforeseen geopolitical event. For those who find themselves in this situation, it can be easy to panic and make uninformed decisions. This is the entirely wrong approach to take.

By its very nature, finance is an unpredictable sphere of work, and unexpected shocks are par for the course. That’s why the strongest financial plans tend to include or account for the unforeseen. When prices dip or there is a sudden market shock, it has been for the most past accounted for and leaves little room for sudden trades that are informed by the heart, not the mind.

Remember to diversify (within limit)

Another way of managing market volatility is ensuring your portfolio is diverse, with investments spread across multiple markets. Doing so reduces your portfolio’s risk of suffering significant loses should one particular market or sector be adversely affected by an unexpected event. However, the key to diversification is not to cast your net too wide.

The broad points that need internalising here can be surmised very briefly: knowledge is power.

Mastering the complex nature of different financial markets is not simply about watching the fluctuating prices of assets. It’s also about understanding the historical performance of different markets, analysing previous trends and using all this as a guide to manage your investments during sudden political and economic shocks.

What’s more, any investment decision or trade needs to be part of a bigger strategy with goals, returns and risk exposure all clearly defined. Doing this ensures that investors and traders are in the position to stay on top of their financial portfolio.

High Risk Investment Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information please refer to HYCM’s Risk Disclosure.

Giles Coghlan is Chief Currency Analyst at HYCM – an online provider of forex and Contracts for Difference (CFDs) trading services for both retail and institutional traders. HYCM is regulated by the internationally recognized financial regulator FCA. HYCM is backed by the Henyep Capital Markets Group established in 1977 with investments in property, financial services, charity, and education. The Group via its relevant subsidiaries have representations in Hong Kong, United Kingdom, Dubai, and Cyprus.

Economics

Global sell-off could be seen by investors as best buying opportunity in a decade

Author ByCFI.co Blogger

The worst global market sell-off since the 2008 crash will become an important buying-opportunity for investors, affirms the chief executive of one of the world’s largest independent financial advisory and services organisations.

The prediction by Nigel Green, CEO and founder of deVere Group, comes after equities lost a tenth of their value this week as investors piled into havens on growing concerns the coronavirus outbreak will hit the world economy and impact corporate profits.

Mr Green notes: “Until this week, the markets had largely shrugged off the impact of the outbreak of coronavirus.  We warned about complacency leaving many wide-open to nasty surprises.

“This has now changed. Investors have done a ‘one eighty’ – from a muted overly confident reaction to the serious and far-reaching global issue of coronavirus to running like headless chickens. 

“Both extremes are worrying and could potentially wreak havoc on investors’ returns.”

He continues: “However, the worst global market sell-off since the 2008 crash will almost certainly become an important buying-opportunity for many investors. 

“With markets on the brink of correction territory, panic-selling, mis-pricing of high quality equities, and lower entry points, this could turn out to be one of the key buying opportunities in the last 10 years.

“Some of the most successful investors will embrace volatility to create, maximise and protect their wealth.

“As ever in times of increased turbulence, there will be winners and losers. A professional fund manager will help investors take advantage of the opportunities that volatility presents and mitigate potential risks.

Earlier this week, Mr Green noted: “In the current volatile environment, investors – including myself – will be revising their portfolios and drip-feeding new money into the market to take advantage of the opportunities whilst reducing risk at the same time.”

The deVere CEO concludes: “Global investors should not be spooked by the return of volatility on stock markets but, where possible use it to their financial advantage.  

“Of course, no–one knows for sure what will happen in the immediate future but, as stock markets typically rise over a longer-term period, now is the time to capitalise on the more favourable prices of decent stocks.

“It can be expected that in coming days, serious investors will be bargain-hunting.”

Finance

AlRaedah Finance and Sure Global Tech seal agreement providing POS Financing Across the Kingdom

Author ByCFI.co Blogger

26th February 2020  – Riyadh –   AlRaedah Finance and Sure Global Tech today signed an agreement for providing Point of Sale (POS) financing to SME’s across the Kingdom. Representing AlRaedah Finance, Paul Melotto, AlRaedah CEO, signed the agreement alongside Sure Global Tech  CEO, Basem Bn Abdullah Alsallom.  The Agreement brings together two industry leaders in providing a unique first of a kind financing solution to SME’s. The signing ceremony took place on the 26th of February 2020, at the MEFTECH conference hosted at the Riyadh Ritz Carlton Hotel.

POS Financing is one of the most innovative products in alternative business finance.  Put simply, it uses the business’s POS terminal to ‘secure’ short term lending — perfect for businesses without many assets, but who have a good volume of credit/debit card transactions every month. SME business owners taking advantage of POS Financing won’t have monthly payments. Instead, repayment is automatic and taken from their daily credit/debit card processing settlements. It’s simple, easy and affordable because repayment is a fixed percentage of POS transactions, and not a fixed Riyal amount. Hence, when POS sales are high, the merchant repays more; when they’re lower, they repay less.

“We have seen other POS financing-related products in the market and they were clearly often one-sided in favor of the Banks so we have tried leveling the playing field to make this product a win-win for both the SME and Financial Institution.”, said Paul Melotto, AlRaedah CEO.

The amount a business can apply for is determined by their average credit/debit card sales. AlRaedah Finance, by way of its advanced Artificial Intelligence models along with AlRaedah’s Financing platform allows it to quickly analyze data and avail funds ranging from SR50,000 to SR500,000 to approved SMEs.

Basem bin Abdullah Alsallom, Sure CEO, said that Sure Global Tech is excited to team up with AlRaedah in leading the digital transformation through effective business and digital solutions. Since the establishment of the company in 2004, Sure Global Tech has been keen on providing different governmental and private bodies with the best digital solutions as a part of its contribution in the Kingdom’s digital transformation journey.

“We are excited that Sure Global Tech has decided to use AlRaedah finance platform to provide financing to their clients” said Abdulaziz Aldawood, AlRaedah Chief Commercial Officer.

Paul added, “We are already working on enhancement to the product based on the feedback of our initial pilot group of SMEs and will continue to provide the Saudi market with new and innovative financing solutions”.

At times, it might be tough for small businesses to get funding through traditional financing. AlRaedah Point of Sale POS Finance Program, in collaboration with SURE Global Tech is the solution. With approval rates of 85%, a simple application, minimal documentation and no guarantors, SME’s can get their financing in a matter of days to grow their business.

About AlRaedah Finance

AlRaedah Finance is the pioneer of bespoke solutions for small and medium sized enterprises, (“SMEs”) seeking to achieve long-term, sustainable growth. Since its establishment in 2014, AlRaedah has become the principal financing institution for SMEs in the Kingdom of Saudi Arabia. Our success is built on our simple, transparent process, our in-depth understanding of the local market, and our flexible financing programs.

AlRaedah Finance offers the most extensive coverage for Sharia’h compliant financing solutions within the Kingdom, with its headquarters located in Riyadh, a branch office in Burayda, and aggressive expansion plans. Our ease of accessibility ensures that we maintain our position within the financial services sector.

About Sure Global Tech  

Since its 2004 inception, Sure Global Tech has developed Saudi expertise with international standards to provide technological and consultative solutions for a considerable number of public and private organizations in the country. By national talents, Sure provides services of software development, infrastructure, support and operation along with the digital transformation consultations and other SME-oriented products. Recently, Sure advanced two new fields i.e. FinTech which is embodied by its new company “SurePay”; and investing in promising startups.

Business

Brexit Opportunities: How Small Businesses are Impacted by Brexit (Plus Ways to Pivot)

Author ByCFI.co

Brexit is nothing short of a political tsunami, unlike anything we’ve seen in recent UK history.

It sent powerful shockwaves across the economic landscape. Small business owners are scrambling to grasp the magnitude and nature of this disruption. They have to deal with looming uncertainty and revamp their strategies, which doesn’t come easy.

But, to be fair, it’s not all doom and gloom out there.

There’s no shortage of emerging Brexit opportunities to expand, pivot, and grow your small business. They are concealed both in unexpected places and in plain sight. Leveraging them is a matter of survival in the harsh business environment.

Here is how to navigate the treacherous waters are emerge stronger than ever before.

A Deafening Wake-Up Call

We probably don’ have to repeat all the ways in which Brexit has disaster written over it.

There is a slew of notions floating around in public, which those sentiments. Instead, we want to offer something that comes in short supply– the good news.  

You can work your way around new obstacles and business risks on the road to business success. Indeed, Brexit gives us plenty of reasons to rethink our approach.

So, the first thing to do is educate yourself on all the practical consequences. The main goals are to identify opportunities amidst the chaos. They are your chance to position your business better and elevate its profile.

Some opportunities exist in the long-term horizon, while others involve a limited window of opportunity. They are also more applicable to some companies than others. There simply aren’t easy solutions and clear-cut answers.

On Top of the Game

To get on top of decision-making, factor in the particularities of your business case.

The following elements should be a part of the equation:

  • Size of the company
  • Growth/lifecycle stage
  • Industry sector
  • Type of products/services
  • Geographical presence

It’s safe to say these aspects don’t carry the same weight. Nevertheless, none of them are to be ignored.

First off, Brexit opens doors to various opportunities beyond the EU. In case you already export or serve customers overseas, that’s great news for you. If anything, it could significantly boost your sales and reinforce the market foothold.

This is also possible thanks to a weaker pound, which is conducive to export-oriented businesses. In other words, a lower exchange rate makes UK goods cheaper. It also acts as a magnet for foreign investment.

Two Sides of the Coin

The flip side is that imports are going to be more expensive.

Hence, businesses that rely on them will struggle to maintain operational profitability. One way to overcome this obstacle is to seek more UK-based partners.

Yes, such a transition requires time, resources, and thoughtful planning. But, it can pay dividends down the road.

Rest assured domestic demand is poised to surge in the wake of Brexit. In many cases, customers will be tempted to forgo foreign brands because they’ve become pricier. This is to say many UK businesses will be more competitive than their counterparts from abroad.

Of course, these are all general predictions that may not always hold to the scrutiny of reality.  

A lot will depend on the ability of the government to negotiate favourable bilateral deals. Therefore, keep up with the changes in trade tariffs, as well as currency fluctuations.

Thriving in an Unforgiving Climate

Another major influence of Brexit is regulation getting less stringent.

Yes, in general, the UK is likely to stay aligned with the EU legal framework. At the same time, however, it might diverge from it in some important ways.

This development will give more wiggle room to UK businesses. It will facilitate certain key business processes, making them quicker and possibly cheaper.  

Furthermore, bear in mind there’s one great way to capitalize on Brexit.

Namely, you could try to address newly-arising customers’ concerns and dilemmas.  The idea is to discover pain points in relation to leaving the EU and attempt to mitigate them.

A consultancy service is an obvious choice, especially for those who possess the necessary skills and expertise. But, this kind of small business is far from the only option. In fact, it’s more of a short-term, situational opportunity.

A Breath of Fresh Air

A more approachable alternative would be to refine your products and services according to the wants and needs of post-Brexit customers.

Some of the focal points to guide the process are:

These opportunities aren’t one-size-fits-all solutions. For example, legal firms are inclined to gravitate toward employment law. What is more, they could prosper by aiding UK firms in hiring employees aboard.

On the other hand, accountants may want to jump on VAT changes. A lot of businesses need assistance in comprehending them, as well as in refining related processes.

The bottom line is: conduct extensive market research and see what makes sense in your context.

Making a Strong Account of Yourself

To go the extra mile, establish yourself as a reputable expert.

Share your insights and experience with how your small business is coping with change. Turn your networking, publishing, and personal brand-building efforts a notch. Take part in discussions on how the industries ought to respond to disruption.  

Consider joining Brexit committees sprouting up recently. Get in touch with trade associations and other relevant organisations to figure out where these opportunities lie. Government consultations could also deliver a nice boost and put you close to the source of information.

Beyond that, you should feel free to explore other avenues. Trends such as automation aren’t exclusively tied to Brexit, but they certainly enable small businesses to move ahead.

Make sure you don’t miss out on those.

Brexit Opportunities: You Can Either Shape Up or Ship Out

Brexit implications come in all shapes and forms, ranging from good to bad and ugly.

This is a less-than-ideal turn of events, but it shouldn’t give rise to panic. You’re much better off embracing a proactive, paced, and strategic approach.

Do your homework to properly assess the reconfigured ecosystem. Recalibrate your business strategies and processes in the light of Brexit.

For instance, you may need to start looking either closer to home or further away from the EU neighbourhood. Make do with new tools to cover vital business functions and pave the way for expansion.

These are the stepping stones to gaining a powerful edge in the brave new market. It’s time to seize lucrative Brexit opportunities before the competition beats you to it.

Check out the entries in our economics and business section to stay in the know and future-proof your business.