4Syte - Business Money December/January 2023

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The 4Syte NewsSpecial EditionA Rapid Response, with a Human Touchwww.4syte.co.uk2022 - A Year To Be Proud Of...4Syte Group named...‘SME Financing Company of the Year 2022’We are excited to announce that 4Syte Group has been named‘SME Financing Company of the Year 2022’ in the Greater LondonEnterprise Awards!4Syte secures back-to-backABL facility with NatWest tosupport its continued growthThe new facility will fund 4Syte’s invoice finance arm byrefinancing the existing facility and providing additionalheadroom. It will also support the expansion of ourproduct offering with the launch of 4Syte ABL Ltd.4Syte Group has joined the NACFBas a Patron LenderWe are delighted to have joined the National Association ofCommercial Finance Brokers (NACFB) as a Patron Lender. As4Syte continues to grow and further establish itself in the marketplace,we found 2022 to be the right time to join the associationand expand our multiple offerings to the wider broker network.Legends ofIndustryAwards 20224Syte was a proud sponsor as Variety hosted their annual Legends ofIndustry Awards, celebrating those who have achieved outstanding successin their chosen fields of business and industry whilst raising crucial fundsfor the charity in the North West.4Syte Group named...‘Most Client-Focused SMEFinance Provider 2022’We are thrilled to have been named ‘Most Client-Focused SME Finance Provider 2022’ in the UKEnterprise Awards!The HumanTouchWe had a fantastic first time exhibitingat the Commercial Finance Expo at theNEC. It was a great opportunity to catchup with both existing and new brokers.01245 377 032 | info@4syte.co.uk | www.4syte.co.uk | 4Syte Ltd
Effects of the Economy on SMEsby Nick Sellars, Group Managing DirectorIt’s not easy to write sense when discussing the prospects of SMEs in this market. Thereason being the rapidly moving economic and political changes both domestically andinternationally. The old Chinese curse ‘May you live in interesting times’ certainlyseems to be mocking the world in what are dangerous and uncertain times.Well, I don’t mean to be overtly political (I have tried to ask questions rather than spout my opinions) but private enterprise is one of the few areas thatgenerates growth for this country and makes a huge contribution to the exchequer by employing people and paying PAYE, National Insurance contributions,VAT and Corporation Tax. A small company like ours which employs around 50 people is generating something like £2 million per annum in tax. So is itgood practice to create conditions so that business thrives, so that more people are employed, so that more goods are purchased and sold, and this wealthfilters down to everyone in society? It’s not so-called ‘trickle down’ economics, it’s a river that feeds the whole population.Given recent shenanigans locally and internationally, there is a certain yearning for stability and the arrival of Rishi Sunak at No 10 has certainly calmedthe markets, for now. But where’s the vision and where does business stand in all of this? Many businesses benefited during lockdown through thefurlough scheme and CBILS loans and inevitably the population was warned that there would be pay back at some stage. Nonetheless, it could be arguedthat these schemes were too generous and too long (at the taxpayers’ cost), and as a consequence served to create a society reluctant to return to work, orsimply retire.I have been extremely impressed, however, with the desire of entrepreneurs and businesses to recover from lockdown and, dispute the doom mongers,create jobs and generate wealth. That is what private enterprise does. What business also needs is an environment in which it can carry out businesswithout hindrance and red tape. The vision put forward by Liz Truss was therefore refreshing for business in at least there was some recognition that theshackles of business were going to be taken off and an environment of growth put forward with bureaucracy cut. The reversal of NI and Corporation Taxwas therefore a boon for business and a promise that the UK would be a competitive place to attract investment and do business.Alas, the huge commitment to subsidise the energy cap alongside perceived additional and aggressive tax cutting measures, without any explanation asto how this was to be funded, spooked the money markets, and sent long term interest rates rocketing. So good vision, shockingly executed and toomuch too quickly.To counteract the market turmoil, we now have tax increases to business that make the eyes water and talks of more to come. Businesses have alreadyhad to put up with increasing interest rates, increased energy costs, increased costs of raw materials and transportation, and demands for higher wages.Is the increase of Corporation Tax by 30% good for business competitiveness and future investment? Will the consequences of increased costs leadto business failure, lack of investment, loss of jobs and increased prices? And will the forecast extra income from Corporation Tax in the Treasury’scoffers ever occur, if the profits of business are insufficient to generate that income? And finally, will overseas companies be attracted to the UK ifwe are uncompetitive as a nation, or does the low value of the pound counteract that and make UK target for foreign investment?So where do we go from here, and what does business need to see? Should inflation fall on the back of now falling energy costs and raw material prices?Will we successfully cut red tape and take away some of the hurdles for doing business? And do we have a properly costed commitment to reducetaxation over time with a longer-term agenda to make us competitive internationally and make the UK a target for investment?In this rapidly changing political environment, I’m sure the coming few months will determine our destiny. If we have a plan and a vision, I have everyconfidence in UK business that our natural enterprise will find a way to drive success.What Our Clients Say“Now the dust has settled on last week’s settling of the remaining debt from the “hole”, I thought a brief note to show my gratitude is inorder! In my initial dealings 2 years ago with Paul I said, and was confident when I said it, that I could settle that £600k hole in a few monthsby simply re-mortgaging a few properties. With the combination of Covid, valuations coming in well under market values, the law thatprevented tenant evictions even if in arrears, numerous other factors working against me - that proved much more difficult than I had everimagined. Combined with the collapse of one of my companies and its subsidiaries, the sale of [another one of] my entities, etc., it has, quitefrankly, been a really rough ride for me. The worst two years of my life by far. So a note of thank you is in order – without your support andpatience, when you could so easily have foreclosed to get your money back, I would not be in the position I am now. I’d probably besleeping under some railway bridge somewhere. So, a big thank you is needed: THANK YOU”
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4Syte - Business Money December/January 2023

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