As we approach the second quarter of 2021, there’s time to reflect on just how disruptive the past 12 months have been to business. The way in which companies have had to operate has changed dramatically, adhering to not only new governance and regulations but also purchasing behaviour.
Many businesses have reported that after the initial upheaval and uncertainty, the change has largely been a positive one. Allowing many businesses to shine a light on how they operate, identifying efficiencies, and at the same time being more conscious from an environmental perspective. Ultimately planning and investing for the future in a very different way than before.
“2020 has provided a great insight into how businesses will operate in the future”
The logistics and warehousing sector has been a vertical that has seen a huge opportunity for growth in the last 12 months. When many businesses were having to close their doors – temporarily for some, permanently for others – many businesses have experienced huge growth by exploiting gaps in the marketplace and seizing opportunities.
Online grocery shopping is reported to have doubled over the last 12 months, with forecasters predicting this will remain the case for the foreseeable future.
With this new trend fast becoming the norm, warehouse and logistics companies are having to adapt at an alarming speed in order to cater for the new wave of consumer spending.
We’ve seen these trends reflected through our clients. Over the past 12 months, we’ve had numerous conversations about optimal financing solutions ensuring our clients are able to take full advantage of these opportunities. We’ve enabled them to gain access to funds quickly, so they have been able to respond to the increasing demand and forge their dominance in the sector.
The Government announcement in the March 2021 Budget enables companies investing in qualifying plant and machinery to claim a 130% Super Deduction Capital Allowance on investment in those assets (available from 1st April 2021 to 31st March 2023). Whilst corporation tax remains at 19%, companies can still reduce their tax bill by 24.7p for every £1 they spend. For example, Company A spends £1m on qualifying plant & machinery, computing to a deduction of £1.3m to its taxable profits. Capital investment, by way of Hire Purchase, also qualifies for this incentive.
With 2020 being such an unpredictable year post Brexit, coupled with the added impact of the global pandemic, 2021 has proven to be an extremely busy year already. We’ve been ensuring our existing clients are planning and securing their future. Whether looking for a single asset purchase or annual credit lines, Invoice or trade finance facilities, the team at CMF Capital are able to proactively review existing agreements and ensure that our clients are benefiting from solutions that are not only appropriate for today but, also for the coming years.
The important factor is securing the most competitive rates for our clients whilst freeing up and maximising working capital, allowing them to plan for the future.
Our asset finance products allow clients to invest in new machines or vehicles with minimal capital investment (Hire Purchase) or to release equity from existing equipment to boost cashflow (Sale & Leaseback).
We’ll support you in making the right financial decisions. Securing the best deals on the market and ensuring that you don’t miss out on any growth opportunities.