Richardsons on the news

[Guest]

i hate clive i think he could look ruff as door nails like me & he could still pull it off looking cool

http://www.edp24.co.uk/business/norfolk_firm_secures_1m_from_loan_scheme_1_1324974

little video just let the video advert at the top run

http://www.telegraph.co.uk/finance/financevideo/yourbusinessvideo/9155000/National-Loan-Guarantee-Scheme-comes-just-at-the-right-time-for-Norfolk-boat-builder.html

Jonny

[pks1702]

Well done on the investment Clive and interesting to hear that the NLGS is actually real and working.

We hear so many announcements by government (whichever persuasion) allegedly to assist businesses which we all seldom see trickle down, so good to see this one benefiting you.

[C.Ricko]

, its a major bonus, it was not that we needed the extra cash as if we needed it we would not have been safe enough to lend to! it does mean we can bring developments forward and get on with more development..

Greg was also on 5 Live yesterday...

from about 1hr 7mins to 1hr 11 mins but there is a small gap, there is a funny plug just before the end.

http://www.bbc.co.uk/iplayer/episode/b0 ... 0_03_2012/

also a bit in the FT so real good coverage for the Norfolk broads and boating

[MY littleboat]

I'm pleased that you have secured the extra funding Clive. But there is a fair comment on the press release. How exactly did you secure the funding on the same day that the scheme was announced? I can't imagine the plan was submitted overnight and decided upon before the start of business the following morning!

[MY littleboat]

Also sadly The business is much more a medium sized business and I doubt that a small company with less than 10 employees will see any funding

Knowing a business lending manager with a major bank very well I find it sad that predomantley the banks will lend to SMEs that are subsidiaries of much larger companies

Am pleased that you secured the funding Clive but as you said. You didn't need it and if you did you probably wouldn't have got it.! Interesting point!

[Dan]

Interesting news, and good to see lots of money going back, continually, into moving forward and looking to the future.

So many business and departments have been running the last few years on less people and those left therefore being expected to do more and businesses (perhaps unsuprisingly therefore) struggling to get to where they wanted, so it's good to see schemes helping growth, expansion and forward vision to not only help businesses and jobs stay strong now but also for the future.... something that has fast diminished in many places in recent years.

Also good to hear that not only will there be boats but also plans afoot for other areas too that should happen sooner as a result- again, so much better than just closing or scaling to a lower level of staff or service which is what a lot of places would be doing.... no good for anyone really in the long term.

I'm sure new and less stable businesses need schemes too, so this scheme alone would be no good at all and much else is needed to complement it.... but its a good example of how such a scheme can work and benefit companies and too of course their suppliers and associates and the locality.

Dan

[C.Ricko]

Barclays obviously knew about it well before us, we had already submitted a comprehensive, watertight (as can be) business plan

I think if we were relying on 1% of our loan to save our bacon then our plan would not be so watertight. it is a bonus for us that we will use towards research and development. the exposure that the Norfolk broads has gained through this PR is worth way more to the local businesses than we will receive so its good news all round.

I think that different banks will use the money in different ways perhaps by lowering the interest rate.

[donnygeoff]

Barclays obviously knew about it well before us

Yes they do,

We are moving to bigger premises, we went to the bank end of last month, with all we needed, when we contacted again, as requested 7 days later the barclays bloke said..... we have your plan, and amount to borrow, but wait till 21st (today) cos something is changing, and we can do more......

Well done clive, as you, we have the money to buy the premises, but as my old man always said..... WHY RISK YOUR OWN....

Hope to see you on the 7th April, god willing and all that...

[C.Ricko]

Nice one Geoff bet you are well chuffed with Barclays

[pks1702]

MY Littleboat Wrote

Knowing a business lending manager with a major bank very well I find it sad that predominantly the banks will lend to SMEs that are subsidiaries of much larger companies

Can't agree with you there Gav. I don't know which Bank your Lending Manager works for but maybe they are not proactive or indeed signed up to the scheme, HSBC as an example are not.

We too bank with Barclay's and they have been pretty pro active with us in keeping us informed of this initiative, we are not a PLC or subsidiary. We have not taken them up on this as our current plans have no requirement, it is good to see it working in practice though. It is important not to confuse investment and cash headroom (flow); banks will seldom advance further cash headroom without security even more so when in distress, and certainly the way this was put to us by Barclay's it is very much investment based.

The days of Banks taking a 'punt' on something are long gone but a properly costed, coherent business investment plan will be taken seriously. Banks are more than ever risk averse so as Clive points out if you are not in a good place a bank is unlikely to lend with or without this scheme.

[MY littleboat]

Maybe I should elaborate on that a little as it is a little vague. I have fairly regular contact with a 'corporate lending manager' - sorry I used the term 'business' by mistake and have been already wrapped across the knuckles for that. You are right in what you are saying and yes it is all about security. Because they have specific targets to meet regarding lending to business, the way it has been explained, is that many new businesses and expanding businesses that this bank lend to tend to be either a part of a much larger business or an established business group. In the persons words it is highly unlikely they will be lending to new or a 'stand alone' business.

Hope that clears it up, and no they are not in this current scheme.

And for the record, I am thrilled that Ricco's have secured this funding. I pass his yard almost daily these days and am always amazed at the number of boats jammed in there - I can't imagine what the first official hire day of the holiday season would be like - madness or mayhem - somehow I doubt it, but do smile at the thoughts of 'keystone cop' type antics as everyone attempts to leave at the same time!

[Guest DAYTONA-BILL]

This is all very well and good for buisnesses etc etc, but i can`t help thinking that the public are yet again subsidising big buisness through the banks.

If i wanted to borrow say £5,000 from any one of the banks to go towards a new motorcycle or car, so i can commute to work and earn a living, i`d be getting interrest apr quotes in double figures, but if i ran a buisness and wanted to borrow several hundred thousands, the interrest rates would plummit. On top of that, these loans are garunteed by the government, so if the buisness folds, the tax payer (me again) yet again foots the bill, or is that something different altogether?.

I`m all for industry being given every opportunity to survive and prosper, and it`s good that Clives buisness is going to grow from strength to strength, possibly even bringing further employment etc, but when you peel everything back, it`s really the everyday man/woman in the street who is going to pay for it in the long run.

[pks1702]

Bill please let me know how your scenario with a business is any different to the same bank lending in the form of a mortgage to an individual for a domestic property - In today's banking world.

If the individual defaults the bank will repossess and sell the property for whatever they can get. If a business fails the assets are sold for what they can get with Banks and HMRCE first in the queue. Banks won't lend to business without some form of security e.g. assets and for some small businesses this can even be a charge over their domestic property.

If you borrow £5,000 the bank will do a credit search on your credit worthiness in effect looking at how good a bet you are to lend to. If you have a poor record(and not for one minute am I suggesting you have) they won't loan on an unsecured basis, potentially only secured or not at all, this is exactly the same with a business.

A business not doing well will struggle to get tangible cash from a bank, they may get some advice but based on risk the bank will seldom lend to a business in significant distress for the reason you outline i.e. protect their shareholders of which with a number of banks currently is UK PLC.

Don't believe the rhetoric just the facts.

[C.Ricko]

Our first turn rounds are fairly calm as the boats are all serviced and cleaned the day(s) before, it is when we turn round over 100 in a day that things get exciting but normally nearly all gone by 5.

We bank on about a third of the boats to be down river during the season so the yard is not packed in the summer.

We find that the banks are not interested too much on what you own as collateral but they are interested in how you plan on

paying the money back. banks are not interested in turfing you out and running your business then selling it as this is not good PR.

they would rather keep you in business so they can lend you money.

it is good that the banks have this stance and have made lending harder as it concentrates the businesses into making the money to pay back the loans not just building a balance sheet or thinking you are doing well,

[donnygeoff]

Neil,

You can not look at the APR on different amounts over different lengths of loan.

If you go to a bank (other loan places are available) ask the flat rate.

500 quid over a short term or 500,000 over a long term, even if the flat rate was the same the APR on the lower amount will look way more than the higher one, but the interest charged at the flat rate will equate to the same.

when I was selling cars, people always asked what the APR was, I just told them it meant they start repaying the finance in APRil.

[Broads01]

Whahey! More new boats! This is a really good news story for hireboat nuts like me. I really like the Broadsman and I'm sure the other new boats that are coming will be just as fabulous. Far Horizon is a bit hopeless from a Broads bridges point of view but never mind.

Clive - will all the new boats be luxury specs like Broadsman or will there be a broader range to suit hirers with a lower budget? (Accepting I ain't going to get a brand new boat for the price of hiring a Bounty 37)

[C.Ricko]

Hi Simon,

the problem with new boats is that they need to be a high price to get an acceptable pay back, and the cost of what goes is needed to build a boat is fairly well set so to add a few nice touches is not big money in the grand scale of things.

when the boats are a few years old they will have to come down in price as new boats are constantly being built and the supply/demand factor will kick in, but this is good news as the new boats are getting better every time one is built.

the older ones are also getting better as we refit them and put new engines in.

[Guest DAYTONA-BILL]

I can remember back in the 70s when the Bucaneer 37s were the latest most modern and comfortable design aflooat. If you built one to the same spec now, people would think it`s nowhere near finished. The standard of boat fit-out is so far beyond what it used to be, so the older designs now, represent better value by far than they did when they first came out, and with more up to date furnishings and accessories etc. It`s one of the reasons why i`m more than happy to hire the more traditional designs. The other is that i`ve got a big mortgage with 9 years still to run .

[w44nty]

I can remember back in the 70s when the Bucaneer 37s were the latest most modern and comfortable design aflooat. If you built one to the same spec now, people would think it`s nowhere near finished. The standard of boat fit-out is so far beyond what it used to be, so the older designs now, represent better value by far than they did when they first came out, and with more up to date furnishings and accessories etc. It`s one of the reasons why i`m more than happy to hire the more traditional designs. The other is that i`ve got a big mortgage with 9 years still to run .

Whats is a mortage Neil ?

[Guest DAYTONA-BILL]

Whats is a mortage Neil ?

You used to be a nice bloke

[Broads01]

More luxury boats to look forward to then Clive. Hopefully all this doesn't mean an end to the 'gut out and start again' refits a la Capri, Viscount and Calypso. Boats like that are fantastic value I think so I hope you'll have the space and resource to keep doing them.

[Guest]

ive always wondered

Clive as you go down the dyke to the hire basins on the right in the future are you going to be laying any quay & cutting the ruff back to creating more mooring for the fleet?

Jonny