Member Blog

Without a decent photograph or iconic piece of art hanging in our home, our walls run the risk of looking pretty boring. If you’re looking to hang your latest masterpiece but don’t have the skills to do so – fear not, your time is now:

1. Start by marking where you wish to hang your painting with a pencil. A really easy way of determining whether or not you’ve got the right spot is to hold the picture up while a friendly helper stands back and gives their perspective.

2. Pull your painting’s hanging wire to the top of the frame and measure the distance between the edge of the wire and the top of the frame.

3. Using the distance you’ve just measured, mark below the line you made on the wall (again, using a pencil).

4. Again, before you hammer anything you’re going to need to use your trusty detector to make sure there aren’t any wires or pipes in the wall that could potentially cause you grief.

5. Hammer your hook into this second mark on the wall using a small hammer and nail. Hang your picture and flick the kettle on – job done!

As we slowly head towards the summer we are all looking forward to spending more time outdoors. However, with this comes the realisation that our gardens are probably not quite the way we would like them to be. And many people are now opting to make their life easier and install an artificial grass lawn.

In this article we look at the key benefits of artificial grass and provide some guidance on how you can fit an artificial lawn.

The 5 Key Benefits of Artificial Grass

1. A great looking lawn all year round

We all want a great looking lawn. Yet the reality is that takes a lot of work. And even then is only possible for a smaller window of time. With the lengthy winter we have endured this year most lawns will need a lot of TLC to get them looking even half decent. If you throw kids and animals into the mix then natural turf can end up being more of a muddy puddle come spring. And in many cases, it simply is not possible to get your lawn looking the way you would like before the kids and pets start to churn it up again. Artificial grass has come a long way in recent years and a modern, artificial lawn looks and feels great all year round. Come rain. Come shine. Your lawn will look the part.

1. Low maintenance

A high quality artificial lawn needs hardly any maintenance to keep it in tip top shape. This is in direct contrast to a natural lawn that needs a good deal of work to get it looking the part for summer and then almost daily maintenance during the warmer months. Looking after an artificial lawn typically requires nothing more than blowing away the leaves and maybe a quick clean and some weed killer once or twice a year. This gives you more time to enjoy your garden than simply toiling away trying to reach a green nirvana!

1. Good for the environment

We all want a lush, green lawn, and having artificial grass guarantees that your lawn will look great. But artificial grass is also green from an environmental perspective. There is no need for repeated applications of harmful fungicides or herbicides. And let us not forget the frequent watering a lawn can need to look it’s best in the dry summer months. In 2016 and 2017 a drop in rainfall of over 50% meant that a hosepipe ban was almost inevitable which puts your lawn (and hard work) at risk. With an artificial lawn you have a perfect lawn all year round safe in the knowledge that you are not hurting the environment.

1. Family & Pet Friendly

Modern artificial grass is great for children and pets. It is easy to clean and won’t smell. And artificial grass can take everything your children and pets throw at it and still look the part. No more digging and no more muddy paths where your animal tears around the garden in the winter months. Artificial grass is non toxic and won’t hurt your children or animals. In fact a well maintained natural lawn will need a number of chemicals where an artificial lawn needs no such maintenance.

1. Keep the outside, outside

Muddy footprints on the carpet? Mud on the sofa? Muddy pawprints? With our long and often wet winters keeping mud and grime outside can be tough when you have children and animals using the garden come rain or shine. This is a problem that goes away with an artificial lawn. Better still your garden is usable year round with an artificial lawn so your pets and little ones can still play in the garden 12 months a year without bringing the garden back inside with them.

Artificial Grass – Fitting Guide

There are a number of trained installers that can lay your new, artificial lawn but should you want to tackle the project yourself we can provide guidance on how to ensure everything goes to plan.

The basic steps are as follows:

1. Plan your area

First job is to plan the area. You will want to remove the existing lawn and dig a depth of around 2″ and remove any large bricks or stones.

1. Create the edges

You need to create a well defined edge for your artificial lawn so ensure that there is a clear edge where the lawn will end. Typically this is where your patio or pathways will begin but should you require there is a steel edging product available from MKM.

1. Lay the base

You will then need to lay a base of crushed type 1 stone and fine granite stone to provide a smooth surface for your lawn to sit upon. This should be 20mm-40mm and compacted with a compacter plate.

1. Apply the membrane

Next step is to apply a weed membrane. This will ensure that weeds cannot grow up from under your lawn whilst allowing water to drain away.

1. Fit the artificial grass

Finally you can lay your lawn, secure at perimeters and apply the sand infill giving you the perfect, year round, low maintenance lawn.

Fitting video

In this video we show how the professionals from ArtificialGrass.com will specify and fit a new garden lawn:

To help you out in this task we have a fitting guide and calculator over on ArtificialGrass.com that details exactly how much artificial grass, sand, stone, membrane, tape and glue you need to make your project a success.

MKM offer a number of types and styles of grass to suit your project, available in branch or to order direct to site.

All the materials to complete your install are also conveniently available from your local MKM merchant.

Good luck with your garden makeover!

https://www.artificialgrass.com

Has this hot weather left your allotment looking a bit tiresome? Worry no more, as we’ve compiled some of our top tips to maintain a healthy and beautiful allotment plot this summer.

Regular watering is a must.

Watering your allotment at the right time – and the right amount – can be a tricky balance to strike. The best time of day is usually in the morning or evening, generally when it is cooler.

We recommend that you water lightly and consistently – something that’s particularly easily achieved if you install, for instance, a drip irrigation system, or use a soaker hose.

Make sure you’re responsive to your plants’ needs.

Take care to adapt the way you water your plants dependent on how they’re growing.

You’re watering them too much if:

• Their stems are soaked
• There’s mould or moss growing on top of the soil
• Their leaves are yellowing

You’re watering them too little if:

• They’re wilting
• They have brown or dead leaves
• Their growth is stunted

Additionally, if you’ve contributed new seeds to your allotment, be careful not to drown them when you water them: if you do that, they may clump together and not grow properly, or get washed away and not grow at all!

Keep one eye on the soil.

Healthy soil is paramount to healthy plants, which in turn resist insects and disease. Without well-maintained soil, then, your whole allotment will suffer – eek!

Feed for it, care for it and sustain it with close regard – predominantly, we advise covering it with mulch, like topsoil or bark, as doing so has a medley of great benefits, including:

• Reducing evaporation from the soil’s surface
• Cutting water usage by 25 – 50%
• Promoting microorganism activity
• Stabilising soil moisture.

Give it a try – you won’t believe how mulch it’ll improve your plant life.

Weeds hurt seeds! Weeds are harbourers of insects and disease, and sap from your vegetation by taking its water and nutrients.

Make sure you weed regularly – and have a particular go of it at the beginning of the growing season with a proper shovel and a rake (to destroy and unearth hidden ones) – keeping those crop bed baddies at bay.

Dead and diseased vegetation and plants, count as weeds, too – make sure you remove them from your plot, and wash your tools after doing so to avoid infecting the healthy.

Sometimes a diseased plant can be salvaged if you destroy the infected parts of it, but depending on the extent of the infection it might be best to get rid of the entire thing. Dead or wholly vulnerable plant life is a magnet for pests!

Protect your plot from the elements.

Your plants will need guarding against extreme cold and heat, so make sure you have the means to do so.

Cover them with cloth for shade cover when it’s very hot, and provide heat lanterns (if needed – you never know with British weather!) during icier intervals.

Got any allotment-keeping tips of your own? We’d love to hear them. Pop us a message over at our Facebook or Twitter page.

The announcement of the roadmap to take us out of restrictions will inevitably bring opportunities for all the business owners that now have a date to reopen, and those wanting to start a new venture.

We may have all been waiting for this day to happen and been glued to the screen while the PM made his announcement, but is your business properly prepared to take advantage of the pent-up demand experts expect to see? After a difficult year, have you got the cashflow for the stock you need, the equipment and the transport, or do you have the funds at your disposal for new office furniture, IT equipment or enough money for a fantastic marketing campaign?

We may have a few weeks yet before most sectors can open, but that time will go quickly, and it will be those who plan early and act who will be in the best position to bounce-back quickly.

This is where a finance broker can help…

There was a time when everyone knew their local bank manager and many small business owners could simply schedule an appointment to discuss the finance options available to them. Things today however are very different. 

You are the expert in your business and sector, but obtaining finance can be a complicated matter and you may not find the solution that’s right for you without investing significant time – time right now that’s better spent rebuilding your business. An independent broker specialises in sourcing the right finance that a business needs to flourish.  There are many options open to you which can help in these current times.

For instance…

Did you know that the CBILs (Coronavirus Business Interruption Loan scheme) are still available until the end of March, and there are many different versions? These could be ideal to help you prepare to expand again, with the Government paying the first 12 months of interest and upfront fee on your behalf, as well as no personal guarantees on loans up to £250,000, with other lenders offering 12 months deferred repayment terms and have no early settlement fees.  You don’t even need to draw the loan down straight away – you just need to have your application submitted before the deadline to ensure you receive the funds when you most need them. 

Did you know that you can raise cash against assets you already own, and still get to keep? This is called asset refinance where manageable monthly payments are agreed over a fixed term and is available against all wheeled and tracked assets.

Did you know that you could apply for a 3 month VAT deferral on a new van or equipment which could be a huge boost to a business’s cashflow over the next few months?

These are just a few of the options that can help your business now to let you build back stronger.

For more information please call us on 01603 381955 or e-mail sales@credoassetfinance.com

Introducing TONIC!  

FurtherMore Marketing have a new guide to call things marketing – TONIC. With our passion for doing more to help and elevate everyone around us, TONIC helps to do just that. TONIC is there for you, and is your chance to get involved with what we do and make the most of what we have to offer.  

So… what is TONIC?  

We’re glad you asked! TONIC brings together everything marketing, with the goal to be easily accessible and filled with lots of valuable insights into the world of marketing. TONIC can be found across all of FurtherMore Marketing’s social media channels, including LinkedIn, Instagram, Facebook and Twitter. 

Well, what does it involve exactly? 

Each month, through TONIC, FurtherMore Marketing will bring you an exciting selection of content, from podcasts and blogs to social media posts and stories on a range of topics – all designed to give you an exclusive insight into the world of marketing – and importantly, how to make it work for you. Whether that’s a business owner, a student looking for tips on how to get into the industry, or even a marketer yourself, TONIC is the answer!  

We need YOU 

We’ve got the recipe; we just need one more essential ingredient – YOU!  

You might be asking yourself, “But how do I get involved?” – and the answer is simple: Interact!  

TONIC is for everyone, and everyone can get involved! We’re here to help in any way we can, whether that’s reviewing your portfolio or a burning marketing question you’ve always wanted to know to the answer to, we are here to help. Scratching your head on how to boost business, or perhaps you’re wondering what on Earth a “Tick Tock” is and why everyone keeps talking about it (tip: it’s TikTok!)? Just pop us an e-mail to asktonic@furthermoremarketing.co.uk (why not add us to your contacts for when that next burning marketing question hits!) and we’ll share our responses on socials. 

Want to hear the best part? 

Every few months, we’ll round up all of our tips, advice, podcasts and more alongside combining it with what we’ve been getting up to at FurtherMore plus any extras and squeeze it all into one handy online guide! You can sign up to be the first to hear about it on our website.

Oh, and don’t forget to be part of the action by following us on all of our socials: 

Instagram: @furthermoremarketing 

Twitter: @FurtherMore_UK 

Facebook: @FurtherMore Marketing 

LinkedIn: @FurtherMore Marketing

Tudor Lodge is delighted to be working with patent attorneys, Kilburn and Strode, based in London, the UK and Europe. With over 100 years of history, Kilburn and Strode have been helping individuals, entrepreneurs and businesses to get their patents licensed and bring their ideas to life – whilst helping to grow and scale some of the most well-known brands today.

We were approached by Kilburn and Strode to help give them a boost in SEO (search engine optimisation) and rank better in Google’s organic search terms, specifically for terms such as patent attorneys and patent attorneys in London, UK and Europe. 

We a large and professional site already live, we carried out the following tasks to maximise their search results.

Keyword Research

We always start every campaign by asking the client to confirm a list of around 20-30 keywords relevant to their proposition. Of course, there might be thousands of keywords that they could rank for, but honing in on around 20 to 30 is a nice way to target the best keywords and also monitor their SEO progress and results. We are looking for the larger keywords like ‘patent attorneys’ but also the more specific and longer tail ones such as ‘engineering patent attorneys’ and ‘patent attorneys for life sciences’ – since these could be more targeted and arguably convert a lot better, despite having less search volumes.

Content Changes

Importantly, one must take these keywords and try integrate them into the website. Thus, we have suggested the creation of new landing pages, including a nice long 1,000 word page on ‘patent attorneys’ to really grab all the necessary keywords and give ourselves the chance of ranking top for as much as possible. We are looking to add around 5-10 new pages of content, including adding to additional pages and creating more user intent, such as adding phone numbers, email addresses and forms so that visitors can see the product offering and get in touch – something that Google calls ‘user intent.’

Technical Fix-Ups

We are carrying out a thorough audit of the website from a technical standpoint, using tools like Screaming Frog and making sure that all elements are optimised including meta-titles, descriptions, headings, images, broken links, internal links, sitemaps and more.

Link-Building Boost

To give the Kilburn and Strode site an additional boost, we are adding around 8-10 links per month, in areas that are relevant to their proposition including links from news, tech, medical and legal websites, creating relevancy whilst strengthening their domain and making them rank better for all SEO related keywords.

It is with great pleasure that we are working with Beasts of Poker (https://beastsofpoker.com/) one of the leading sites in the world for Poker reviews. Tudor Lodge has already worked with other operators in this space and is excited to be leveraging their knowledge to help better for a range of organic keywords relating to poker and poker reviews.

SEO refers to ‘search engine optimisation’ and the techniques used to rank better for non-paid search results on Google and other engines such as Bing, Yahoo and Yandex.

We were approached by Beast of Poker to assist with off-site SEO or link-building which helps to generate relevancy and boost the strength of your domain for SEO purposes.

How We Have Approached it for Beasts of Poker

Google algorithms are volatile at the best of times and regular algorithm updates every couple of months mean that if you fall on the wrong side of Google’s recommendations, you can be penalised and fall several positions, pages or off the face of Google completely.

Subsequently you are walking a thin line when optimising with Google, especially in the high stakes industry of casinos or gaming where competition is huge. If you can secure top 5 positions on Google, the volumes and quality of traffic is superior to any other form out there, making SEO so important for any business. In fact, more so in the casino industry, you have competitors who try to rank well just for a few months, knowing that they can capitalise on good traffic and then get penalised and removed altogether – but that hit of instant traffic makes it commercially viable, especially with technology changing the betting lanscape.

With link-building, our approach at Tudor Lodge is always cleaner than clean. So rather than random blogs and directories, we are adding links for Beast of Poker on legitimate news and startup websites and typically linking back to their guides, blog posts and homepage to make it look natural. There is always the temptation to use exact match anchor text to their money pages, but this comes with risks and we prefer to take the long and sustainable approach – since this will not make them volatile to algorithm updates and keep them strong for the long term.

Additionally we recommend removing any low or poor quality links already pointing to their Beasts of Poker website. Using the likes of SEMrush, Majestic or Google Search Console, you can see where you have received links back to your site and we simply recommend manually asking for removals from any low quality blogs or easy-to-add directories. A disavow file to remove any poor links is recommended at least every 2 months (or every month) in this competitive niche – just to make sure your backlink profile is as clean as possible!

Howes Percival is urging companies to consider the risks of adopting a blanket ‘no jab, no job’ employment policy.

Currently, vaccination against COVID-19 is not compulsory, with the Government leaving it up to businesses to decide the ethics and feasibility of mandatory vaccination policies in their workplace. After months of lockdown restrictions, companies will be eager to reassure customers and clients that they operate a ‘COVID-19 safe’ environment. However, Howes Percival is warning employers to tread carefully and obtain specific legal advice regarding the implementation of any workplace vaccine policies.

Issues regarding vaccination will be specific to each employers’ circumstances, their business sector, and the individual circumstances of their employees. While employers are entitled to suggest that staff get vaccinated, if an employee refuses, great care needs to be taken to avoid potential discrimination claims.

Simon deMaid, Partner and employment law expert at Howes Percival commented, 

“While the need for vaccination policies in the workplace may seem premature, the expected trajectory of the vaccination rollout will lead to more instances of employers asking for or even requiring employees to receive the vaccine.”

“There are still many unknowns about COVID-19 and the vaccinations. Depending on the science, wide-scale vaccination may not be an all-encompassing solution for a return to “normality” or a pre COVID-19 workplace environment. The vaccines have been shown to be effective at reducing or eliminating symptoms and effects of COVID-19, what is less known is the extent to which they prevent transmission (although the early data is encouraging) or the period of immunity. This raises concerns about the feasibility of employers requiring vaccination, and highlights questions about the effectiveness of these polices in reducing risk to employers, employees, and customers.”

SHOULD EMPLOYERS INTRODUCE A “NO JAB, NO JOB” VACCINATION POLICY?

Ultimately, it is a commercial decision for each employer to take based on the level of risk they are prepared to take. However, employers should bear in mind that, a “no jab, no job” policy is too simplistic an approach for most companies because it does not take into account many of the current vaccine ‘unknowns’. Existing employees may have medical clauses in their contracts, which could include a requirement to have a vaccination. If not, employers may take steps to implement a vaccination policy or contractual clause. It may also be possible to have a ‘no jab, no job’ policy for job applicants to any new role. Although, this does not come without employment law risks, specifically discrimination.

CAN AN EMPLOYER COMPEL AN EMPLOYEE TO TAKE THE VACCINE?

In short, no. Employers cannot physically force or compel employees to take a COVID-19 vaccine. At this stage, rather than relying on compulsory vaccination, employers may wish to focus on how best to educate employees and publicise the benefits of taking the vaccination.

CAN EMPLOYERS REQUIRE EMPLOYEES TO HAVE A VACCINE ON HEALTH AND SAFETY GROUNDS?

Employers are required to reduce workplace risks under the Health and Safety at Work Act 1974 and should continue to follow COVID-secure guidance regardless of vaccination status. Requiring employees to take the vaccine on grounds of health and safety law would require employers to prove that vaccination protects other employees, and the third parties they encounter. Although early data is showing a reduction in transmission this issue is yet to be resolved. At this stage, relying on health and safety law is likely to be risky.

CAN AN EMPLOYER DISMISS AN EMPLOYEE FOR REFUSING A VACCINE?

In theory, yes, however, whether the dismissal is fair or not will depend on the individual circumstances. If the request to be vaccinated is reasonable, an employee’s unreasonable refusal to comply could result in disciplinary action. Whether a request is reasonable will depend on the circumstances of the individual employee; the employer’s business and the sector they operate in. For example, it will be more reasonable to require frontline health care workers to have the vaccine, compared to fully remote office workers.

HOW CAN EMPLOYERS AVOID UNFAIR DISMISSAL CLAIMS?

For a dismissal to be “fair”, it must fall under one of the five potentially fair reasons for dismissal. The most likely justification for dismissing an employee will be “conduct” for failure to comply with a reasonable request. Alternatively, dismissal might be for “some other substantial reason”. Due to the complex issues involved, employers should take specific legal advice on any disciplinary or dismissal relating to employees who refuse the vaccine.

WHAT IS THE RISK OF DISCRIMINATING AGAINST EMPLOYEES WHO REFUSE THE VACCINE?

There is a risk that employers could be accused of discrimination if they insist on employees, or job applicants, being vaccinated. There are several potential ‘protected characteristics’ that an employee may seek to rely on to justify a refusal to take the vaccination and consideration will need to be given to the rights of individual employees and whether there are health reasons, religious or philosophical beliefs that mean vaccination is not appropriate.

CAN EMPLOYERS ASK AN EMPLOYEE IF THEY HAVE HAD THE VACCINE?

Yes, however, the vaccination status of an employee is private health information, which is a ‘special category of data’ (that requires extra protection under GDPR). Use of this data must also be fair, necessary, and relevant for a specific purpose. Any reason for recording employees’ vaccination status must be clear and compelling. To process the data fairly and lawfully, employers will need to rely on one of the permitted grounds for doing so. The sector, type of work and specific workplace health and safety risks will help employers decide if they have compelling reasons to collect employees COVID-19 vaccine records.

For more information on COVID-19 and employment law, please do not hesitate to contact a member of the employment team.

The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.

It is hard not to notice how radically changed our world has become since the digital revolution in the late 90’s. It seems as if every aspect of our everyday and work lives has been affected in one way or the other. Communication is largely done using phones or digital chatting applications.

Writing, like this article, is done through a computer and published on the internet and not on paper with a pen or typewriter. Remember when oil was the most valuable resource on Earth? Now it is code and data. The world has become digital and this article aims at explaining to you as a business owner or employee why this can be beneficial to your company.

It is very well documented that customers are more likely to invest in a product or service if the process of locating said product and buying it is simple. Nobody wants to go through a hassle when spending money, it is really that simple.

Having your products available online gives customers a comprehensive overview of what you offer, what the prices are and a simple way to order the product with a simple click and have it delivered to their doorstep. Leaving the house is not necessary. Online shopping has been on the rise in recent years. Testament to this is Amazon that offers almost any product available on Earth and it is all done online. The Corona pandemic has also done its fair share of encouraging people to look online for products when most retail stores have been closed. A digital business makes shopping more comfortable and is likely to increase your sales.

When a business operates digitally it will do so in tandem with a host of algorithms and analytical tools. Whenever someone visits your site or makes a purchase you will obtain that information as well as changes over time.

Like it is beneficial to monitor football dropping odds when betting it is handy to be able to see which products fall in popularity on your site. This will let you know where to invest extra focus and development to keep them competitive or remove them altogether. In cooperation with this you can acquire software that scans the internet for mentions of said product. That way you will be able to pinpoint exactly how consumers feel about it.

The digital way of monitoring market trends allows you to immediately tackle changes in the market. Having flexibility and mobility in an economy that is more competitive than ever is a huge boon for any business. Just make sure that you keep updated on regulations on the use and acquisition of international services are in this sense very important and, if utilised correctly, is bound to expand your target audience and turn a larger profit.

The digital world is not just sunshine and rainbows. People feel more alone than ever. Many jobs are lost due to mechanisation. Perfectionism is on the rise. All of these are core human issues that society in one way will have to deal with. And in time solutions will present themselves as they always do.

But let these bleak aspects not overshadow the grand contributions digitalisation has provided the world. Communication is easy and has brought people from all the world together. Productivity has increased without tearing on the physical capacities of people. Life has become so much easier. Bringing this to your business is a great step in the development of, not just your company, but the economy as well.

As a rise in the Corporation Tax rate (currently 19%) remains a possibility for this year’s Budget (3 March), Richard Proctor, Tax Partner at MHA Larking Gowen, believes the Government needs to stimulate enterprise and investment and, like it or not, the Corporation Tax rate is seen as an indicator for the attractiveness of the UK economy. 

Richard said: “Small changes in tax rates are often more about influencing behaviour and sending a message than raising revenue. For foreign investors, already nervous about the post-Brexit environment, a rise in the headline rate of Corporation Tax could be a further disincentive for any potential overseas investment. It sends out a message about the UK’s willingness to preserve the current fiscal regime, which foreign investors find attractive and is one of the key drivers in the UK, as a preferred location when businesses are expanding internationally.

“The UK needs a fiscal regime centred around international competitiveness now more than ever. The Chancellor should concentrate on growth and the way to do that is to create a vibrant economy. He needs to use his fiscal tools, like varying tax rates, in a positive rather than a negative way. We have good foundations in place already, with our foreign dividend and participation exemptions, R&D tax relief, Patent Box relief and the Capital Allowance regime. It’s vital not to devalue these incentives as, post-Brexit, the UK is debatably now less attractive to overseas investors. With borrowing also currently very cheap, there’s arguably no need to pay for the pandemic in the short term.

“Corporation tax revenues are a relatively small part of the UK’s total tax revenue (around 6% in 2019/20) and total receipts have increased in recent years, despite the main rate being lowered in 2017 (from 20% to 19%).* A rise in the tax rate, even if it raised more revenue, couldn’t raise enough to compensate for the damage to the UK’s reputation for competitiveness.”

If you’d like to find out more, MHA Larking Gowen is holding a Budget webinar at 1pm on Thursday 4 March. Their tax specialists will analyse the key Budget changes and share how this could impact on you and your business. You can sign up here

*GOV.UK, Rates and allowance for Corporation Tax and HMRC Corporation Tax Statistics commentary and House of Commons Library Briefing Paper (Number CBP – 8513)

In this blog, Carl Mifflin, Head of Restructuring and Insolvency at Howes Percival, examines how investment fraud has thrived in recent years, highlights how economic uncertainty provides a breeding ground for fraudsters and identifies some of the key ways to avoid falling victim to investment fraud.

The last thirteen years have seen an unprecedented level of financial turmoil, starting with the global banking crisis in the autumn of 2008 and culminating in the economic devastation caused by the COVID pandemic in 2020. The FSB predicted last month that 250,000 small businesses in the UK would fail in 2021, and the damage is not limited to small businesses as the collapse of many high street retailers has demonstrated. A particularly troubling consequence of the economic downturn, however, has been the substantial increase in investment fraud.

It is easy to understand how financial conditions have created the ideal breeding ground for fraudsters to thrive. In August 2007, the Bank of England base interest rate stood at 5.5%. Mainstream investments, such as ISAs, offered investment returns of 10% p.a. and property prices were increasing at a steady rate. In summary, people with cash to invest could generate substantial returns with minimal risk. Fast forward to 2021 and the Bank of England base interest rate stands at 0.1%, property prices have declined substantially across most of the country, and high-interest savings accounts seem like a distant memory, now offering less than 2% p.a.

Faced with an inability to generate comparable returns on investment from 2007, investors have been drawn to riskier investments, promising returns of 10% or more, despite the age-old adage that “if something looks too good to be true, it probably is”. In most cases, the investments are packaged to look like legitimate investment opportunities, sold by independent financial advisors who are paid exorbitant commissions (25-30%) for inducing inexperienced investors to transfer funds from traditionally safe investments such as pensions, and often containing promises of “guaranteed” returns on investment. In many cases, investors are provided with an “asset”, such as a 999-year lease of an individual room in a hotel or student accommodation block, which is intended to (a) retain the value of the capital investment; and (b) generate an income equivalent to a high percentage return on investment.

The investment opportunity is given an appearance of legitimacy by demonstrating how existing investors are already achieving the promised returns on their investment. In many cases, however, this is a smokescreen achieved by using new investor money to pay early investors (commonly known as a ‘Ponzi’ fraud). Inevitably, however, as the number of investors grows, and new investor money dries up, the interest payments to investors cease and the investor is left with an “asset” which generates negligible income, has little or no re-sale value and a “guarantee” as worthless as the paper it is written on.

It is important to note that not every investment scheme that fails is fraudulent. The current financial crisis has caused many legitimate investment schemes to fail simply due to the sector in which the investment operates. It is a fact, however, that investments of this nature are inherently risky and chasing high interest rates can result in you losing your hard-earned capital.

SO WHAT STEPS CAN YOU TAKE, WHEN CONSIDERING AN INVESTMENT OPPORTUNITY, TO MINIMISE YOUR RISK?

 The most critical advice is to carry out proper due diligence. Do not simply rely on the information you are given by a promotor or sales agent but seek your own independent advice to scrutinise the investment fully. Consider your exit route from the investment. Is there a legitimate secondary resale market for the “asset” you are acquiring? For example, who is going to buy a lease of a hotel room or student apartment from you if it only generates a return of 2% instead of the promised 10%? Research the company thoroughly. For example, do the directors have a history of insolvent companies or failed investment schemes?

WHAT CAN YOU DO IF YOU HAVE CONCERNS OVER AN INVESTMENT YOU HAVE ALREADY MADE? 

I cannot emphasise enough the importance of seeking legal advice as soon as your investment falls into default. Do not rely on excuses or repeated promises of payment which fail to materialise. Those investors who take action quickly to demand repayment of their investment following default have the greatest prospect of getting repaid. The harsh reality is that many of these investments resemble a game of Jenga … the structure can probably withstand the removal of a small number of blocks but, at some point, the entire structure will inevitably come crashing down leaving a debris of disgruntled investors wishing they had acted sooner to remove their “block”.

If you would like any further information or to discuss any issues relating to restructuring and insolvency, please contact Carl Mifflin at carl.mifflin@howespercival.com or on 0116 247 3500.

The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.

Invest from £5,000 on the CBILS scheme

Has your business been affected by Covid-19? Have you been considering funding to finance new business equipment, consolidate debts accrued during the pandemic, or freeing up some cashflow?  If yes, then you need to act now!

Many of our customers are benefiting from the government’s Coronavirus Business Interruption Loan Scheme (CBILS), with 12 months interest free! The CBILS commercial loans and some asset finance packages also allow a full 12 month payment holiday – helping to ease businesses cash-flow.

The Government have extended the deadline – you can now apply up to 31st March 2021

Are you planning on a new purchase this year? Then ACT NOW! If you don’t need finance immediately, but have plans for new equipment in the next six months, you can apply now to secure the 12 months interest free feature and defer drawing-down the funding for up to 6 months. 

Don’t miss this opportunity for Government backed support.

Please call today on 01603 381955 to talk through your options or alternatively e-mail us sales@credoassetfinance.com