Many felt a slump in the wake of June 23rd 2016 but after that initial slow down, the industry had been steadily growing again, right up until the election last month. Unfortunately, the hung parliament has already triggered uncertainty from parts of the private sector and now the industry is waiting to find out whether major projects will face political delays or worse.
The last hung parliament came at the same time as the economic downturn in 2010. Back then recovery was slow and many small businesses suffered when the banks withdrew finance.
Paul Jennings, Managing Director of JCB Finance, explains: “Back in 2010, the big banks were under pressure and in some cases withdrew funding from small businesses when they needed it most. In fact, that year there were reports that the number of complaints to the financial ombudsman service by small business owners making complaints about loans and overdrafts on the previous year had risen by 119%.”
“Our policy was very different. JCB Finance went out of its way to reassure and support customers with asset finance, using hire purchase and leasing to help small businesses to secure the resources they needed while protecting their working capital.”
Steve Norman, Director of Stenor Environmental Services Ltd, said: “We’ve been working with JCB Finance for over 30 years. We wouldn’t have been able to afford our machines if it hadn’t been for the flexible approach they offered as the funding for the deposits would have been too much. JCB Finance enabled us to make the purchases to develop the business, without affecting cash flow too much.”
JCB Finance offers a range of options designed to help spread costs and, depending on your circumstances, can also provide the flexibility to cope with unpredictable events such as bad weather and payment delays for jobs done.
Paul Jennings continued: “As we enter another period of uncertainty for the industry, we will remain as committed to our customers, new and old, as ever.”
“We’ve been providing asset finance and supporting business growth in the construction, agriculture and industrial sectors since 1970 so we understand the kind of challenges our customers may face. We know that investment in plant, machinery or commercial vehicles is key to maintaining and developing successful businesses.
“At times of uncertainty it’s particularly important for any business to hold any cash reserves against potential dips in activity or income but that doesn’t have to delay or prevent investment in vital assets. Asset finance can also spread the cost of investment, perhaps help reduce your tax bill and enable you to retain your cash for wages, tax and day to day needs.”
“I think our customers also like to know that they haven’t got all their eggs in one basket. Many choose JCB Finance so they can open up additional credit lines that are independent from their bank. The protection offered by a fixed term contract is particularly appealing compared to a bank overdraft which as was seen, during the recession, could be withdrawn at any time. We are a people’s business and always aim to treat our customers fairly.”