Cautious Optimism - Leasing Life April 2010 Edition
April 15, 2010

Henry Howard Finance (HH) is a relative heavyweight in terms of volume, with around 25 staff, of which seven are dedicated salespeople. An introducer that has grown its own book over the last seven years, HH now has a growing appetite for larger deals.

Director David Cooper, who works alongside Mark Crook and Howard Ross says 2010 had an excellent start, with volumes dying off to some extent towards the end of the first quarter - a situation he feels will be remedied once the decisions of the UK's general election in May have been made.

London based HH sources the majority of its business via smaller ticket flow-rate deals, but is seeing increasing interest in more complex deals of more than £150,000 in value.

According to Cooper, as businesses become more aware of leasing as a means of investment, HH is being approached to fund a wider range of asset types not falling within the "traditional" remit of broker business.

For Cooper, one of the most important questions in mind when considering the growth of the firm is what business to pass on to funders, and what to put into the HH lease book.

While snapping up the best quality deals for in-house funding can grow an own-book introducer's balance sheet quickly and safely, it ties up funding lines with business that would happily be taken on by other lenders. "Our own book is never the first port of call," Cooper says. On the other hand, however, a lot of thought must go into any decision to underwrite business turned down by banks.

"Bank underwriters certainly know what they are doing," says Cooper. "Anything they are not willing to write, you need to think twice about before funding yourself."

One challenge, however, will be finding the right sales talent. Cooper is looking to take on new front end staff, but is finding that many well-known salespeople are either reticent to look for new opportunities while the spectre of the recession lingers, or have left the industry. "There needs to be more new blood," he reflects.

Leasing Life April 2010 Vol 17 No 199

Leasing will help to fix 'Rusting Britain'
April 9, 2010

The prospects for recovery and growth of many small firms are being put at risk because of problems in replacing equipment.
Research carried out for the Finance and Leasing Association shows that business investment fell by 27 percent between April 2008 and the end of last December as the recession took its toll.
Nearly a fifth of small business owners say they have not been able to replace operating equipment while six percent report that this is posing a risk to the success of their business.
Manufacturing has been hit hardest, with a quarter of all firms in the sector saying they have been unable to replace equipment.
The reasons for firms being unable or unwilling to invest range from poor cash flow or lack of internal reserves to uncertainty over growth and the increased cost of new equipment combined with the difficulty in accessing finance.
Julian Rose, the head of asset finance at the FLA, says there is a risk that firms will not have the right capital equipment in place to meet increased demand when the economy recovers. This in turn could leave Britain trailing other countries in competiveness.
'The fall in expenditure on business equipment is far worse than during both of the last recessions,' he says.
'This suggests that firms are taking longer to replace capital equipment at a time when the service life of many assets tends to be shorter than before, for example machinery becoming obsolete more quickly. With technology advancing so quickly, many firms may be left with outdated equipment that could badly affect their competiveness.'
Although Chancellor Alistair Darling warned last week that the Government would fine banks that failed to lend enough to viable businesses, the FLA believes that lease finance may be worth considering for firms struggling to access capital.
Asset finance, which includes leasing and hire purchase and is typically provided by leasing firms, manufacturers, brokers and banks, is used to fund nearly 30 percent of business capital investment. About 750,000 small and medium-sized businesses curently use leasing to hire equipment, typically for three to five years.
Rates vary from seven percent to nine percent on most leasing deals, though firms with a higher risk profile may have to pay ten percent or more.
A key benefit of leasing is that small business owners are not left with outdated equipment that they cannot afford to replace but is worth nothing at the end of the term.
Instead, they can access the latest technology by payingrent. There are many benefits for firms of having new equipment, which typically will be more efficient as well as more environmentally friendly.
As part of Rusting Britain and to help small businesses invest in new equipment, the FLA wants the Government to make all leased equipment eligible for tax-enhanced capital allowances. This, it claims, would cut the cost and increase the avalibility of lease finance.
At present, firms can claim capital allowances only on equipment they buy outright, or through a hire purchase agreement, or if the lease is seven years or longer.
Stephen Alambritis, the chief spokesman for the Federation of Small Businesses, believes leasing is an option worth concidering, though he adds that it is likely to be more suitable for 'slightly larger small businesses, than the really small ones. However, leasing as an option should definately come into its own in these difficult times, even if it is not a panacea.'

The Mail on Sunday 4th April 2010

Henry Howard in Wales Top 300
January 18, 2010

The top 300 businesses in Wales has been announced and published in the Western Mail supplement sponsored by Deloitte. Henry Howard are proud to announce our inclusion in the Wales top 300 businesses of 2009 during a difficult period with the economic downturn affecting so many businesses. This recognition is on the back of being included in the latest Sunday Times Virgin Fast Track 100 league table. With year end turnover of £28.3m and staff numbers ever increasing it is a “credit to the way our business has operated consistently in difficult times” said Mark Crook sales director. Henry Howard Finance are looking forward to a prosperous 2010 with a host of new opportunities in the pipe line.

Consecutive inclusion in "The Sunday Times Fast Track 100"
June 3, 2009

CONSECUTIVE INCLUSION IN 'THE SUNDAY TIMES FAST TRACK 100'

Henry Howard Finance Plc is delighted to announce that they have been included in "The Sunday Times Fast Track 100" for the second year running. The 12th annual Fast Track conference and awards dinner sponsored by the Virgin Group brought together the UK’s 100 fastest growing privately owned businesses. It brings together the founders and directors of the UK’s 100 privately-owned companies with the fastest-growing sales, as published in the latest Sunday Times Virgin Fast Track 100 league table.

On the back of an excellent performance in last year’s league table, Henry Howard Finance Plc have reported sales growth of 56.74% during the period (2004-2007). The sales within the business have grown from £7.7m in 2004 to an impressive £29.8m in 2007.

“The opportunity to celebrate recognition like this in the current climate is a credit to the way our business has operated consistently in difficult times. Our increasingly strong customer base and supporting network of suppliers are essential to the way we have grown over the past few years” said Jason Davies (General Manager, Henry Howard Finance Direct)

Whilst the current economic climate is providing businesses with more challenges than ever before, it is great to receive such recognition as we continue to strive to improve as a business whilst developing our product offering to our customers.

Great News For Suppliers and Customers !!!
1st March, 2009,

SME lessor Henry Howard Finance has become the first company to adopt Field Solutions’ newest point of sale (PoS) product.

The recently released solution, Field EPOS, will provide Henry Howard’s vendor partners with a web-based on-line proposal origination and tracking portal, using a secure encrypted transmission and reducing proposal response and turnaround times.

The software provider, which specialises in asset finance quotation and PoS solutions, said that the product can be configured and branded for individual vendors.

Field Solutions’ MD Alun Booth said that Field EPOS can provide “a fully distributed and automated proposal origination solution for introducers, brokers and vendors.”

Henry Howard’s MD Howard Ross added that the new product would allow the company to “monitor business volumes and performance" for its vendor partners, supporting its strategy of providing customers “with an efficient and personalised asset finance product service.”

Leasing Life Issue: 185 - February 09
Published for the web: February 11 09 11:0

Latest News

Cautious Optimism - Leasing Li...
Henry Howard Finance (HH) is a relative heavyweight in terms of volume, with around 25 staff, of which seven are dedicated salespeople. An introducer that has ...

Leasing will help to fix 'Rust...
The prospects for recovery and growth of many small firms are being put at risk because of problems in replacing equipment. Research carried out for the Financ...

Henry Howard in Wales Top 300
The top 300 businesses in Wales has been announced and published in the Western Mail supplement sponsored by Deloitte. Henry Howard are proud to announce our i...