Three types of sales and finance can be customized according to customer requirements

If there is a conflict between finance and sales, it has almost nothing to do with the people involved and almost everything to do with processes and systems. The reality is that sales and finance are on the same team and both are striving for the same goal: the ultimate success of the company.

Problems arise, however, when processes and systems between the two departments are not integrated. Then an error occurs and the response to the new threat or opportunity slows down. One of the biggest loopholes I see is that Finance and Sales have separate records that never seem to get along very well. In a perfect world, sales and finance would use CRM and network accounting systems that basically put everyone on the same page. In reality, however, the sales and finance teams still work separately and are often very distant when it comes to their data.

The results are not much. Instead of using one source of truth, the finance and sales teams had to advertise through a network of mismatched spreadsheets and confusing customer records. At a time when access to accurate information is critical, this team has questionable data that could end up putting business at risk. The two departments couldn’t get a clear picture of the sales, payments, and other critical data they so desperately needed.

Right now, however, the world is changing rapidly. Companies are gradually moving away from infrastructure where data is stored in silos and where everything revolves around the customer. To achieve this transition, companies first need coordinated reciprocal dialogue between front and back offices, which is embedded in increasing customer benefits and enabling data transparency and organizational flexibility.

Here are three ways companies can better sync their data to ensure sales and finances work together as a team and all work.

1: Match yourself to the customer

Every company must be a customer-oriented company. The current economic crisis caused by the COVID-19 pandemic makes this very clear. The company’s goal is to build strong and potentially lifelong relationships with customers.

However, when financial activities are separated from sales activities, the business can appear complicated and unprofessional to customers. For example, after agreeing a set of terms with the sales team, the customer might receive a completely different set of terms from the finance team. If financing and sales are not coordinated, there is often small income and losses after the transaction is completed which can lead to large sums. These are just a few of the many problems that can be resolved by better matching of sales and financing data to common platforms.

By consolidating around the customer, certain team members can also access the details and insights they need to perform most effectively. For example, accounts receivable for accounts receivable may decide not to pressure the customer for the next payment when they see a large sale ahead of the account and move costs onto the sale. Or the support team might discover an ongoing service issue that needs to be addressed before annoying a customer with an expiration notification. Sales, in turn, can be an extension of financing and collecting invoices during sales / service calls.

2: Think back to the back office

Sales and finance teams must come together as a whole with the same goal. The best way to do this is to stop thinking about the traditional “front office” and “back office.” Instead, think back to what a modern back office would be like when the finance team had the right information at the right time. This is important because in today’s service economy, the finance function needs to provide an overview of the business involved. How can your company maximize the value and contribution margin that customer relationships generally provide to the services and / or products you offer?

Modern back offices seamlessly integrate financial systems into Customer Relationship Management (CRM) and thus offer finance teams a clear and precise view of sales and revenue flows. This type of ranking also allows the finance team to make more accurate predictions based on company-wide data, which and what scenarios are better to model and the optimal pricing strategy.

Ultimately, a modern back office can help eliminate frustrating mistakes between finance and sales and reduce missing areas of revenue, such as: B. Billing errors, increase in pending sales days (DSO), exceed project costs, and wean customers off.

3: Centralize data used by finance and sales

Before a merchant knocks on a customer’s door and tries to sell them something new, it’s important to understand the customer’s usage and billing history. For example, is there a constant challenge to reunite with this customer? The finance team also needs information about this customer. Is it a customer who needs clear payment terms or has experience with late payments? What is the real price to serve this customer? How profitable is this customer in fact – and would it be better for the company’s real customer not to renew it?

The only way to answer this question is after you have sorted all your financial and sales data.

Here’s the good news: whether you’re a new company or a century-old company, it’s never too late to aggregate the data your sales and finance teams use. It is recommended that you centralize all your information on one cloud platform so that all data is easily accessible to all members of the finance and sales departments.

It’s important to note that cloud-based systems go beyond CRM and now cover all aspects of a business. This means that it is now possible to manage CRM and accounting in a cloud environment such as the Salesforce platform from anywhere on any device. With this integration and flexibility, sales and finance teams can easily share the same account records and delete most of the old, intermittent processes.

For example, the finance team no longer has to use a series of emails and voice messages to ensure expense reports are approved by marketing and sales managers. If the company has an efficient workflow that spans both departments, this type of permission can now be easily done online with a few taps of a mobile device from any remote environment.

Bridging the sales-finance gap can be immensely profitable for a business, resulting in significant efficiency, cost savings and opportunities for growth. Focusing on customers not only brings great benefits to the company, but also brings revenue and finance to the same team with shared tools and a common plan for success.

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10 mortgage lenders have developed the market as a whole

The top 10 mortgage lenders remained unchanged in 2018 both in terms of gross loans and outstanding mortgages. This is based on data from UK Finance’s largest mortgage lender.
Among these, these banks controlled 82.4% and 82.2% of the market share, respectively; This is an increase from 80.4% and 82.1% in 2018.
At the top of the list for 2019 and 2018 is Lloyds Banking Group with a mortgage loan balance of £ 286.4 billion and a gross loan value of £ 46 billion in 2019.

Lloyds Banking Group alone holds a 17.2% market share in gross lending and 19.7% in mortgage lending.
The rest of the top 10 on both lists include: Nationwide Building Society (£ 189.8 billion and £ 33.7 billion, respectively); Santander (£ 165 billion and £ 30.9 billion); NatWest Group (£ 147.5 billion and £ 33.5 billion); Barclays (£ 142.7 billion and £ 24.9 billion); HSBC Bank (£ 96.7 billion and £ 20.1 billion); Virgin Money (£ 59.5 billion and £ 9.3 billion); Coventry Building Society (£ 42.1 billion and £ 8.6 billion); The Yorkshire Building Society (£ 36.7 billion and £ 7.8 billion); and TSB Bank (£ 28.9 billion and £ 5.9 billion).
Outside the top 10, it is mostly occupied by big, established names, however, there have been some notable changes in the rankings.

Skipton Building Society increased gross lending from £ 4.1 billion to £ 4.6 billion, up from 13th to 11th on the list.
Meanwhile, Topaz Finance increased its mortgage value from £ 11.2 billion in 2018 to £ 18.3 billion in 2019.
Legal & General Home Finance also saw significant increases in mortgage value from £ 3.1 billion to £ 4.2 billion and over £ 2.2 billion to £ 3 billion.
Metro Bank fell from £ 4.2 billion to £ 2.3 billion a year, down from 12 to 16 on the list.
Lloyds Banking Group also topped the list for the value of mortgage loans to buy and sell (BTL) – at £ 48.6 billion, although that’s down from £ 50.57 billion in 2018.
However, in terms of BTL’s gross loan value, BTL is ranked second by the Nationwide Building Society. Here Nationwide is up from £ 4.48 billion in 2018 to £ 6.6 billion in 2019, compared to a drop from £ 5.53 billion to £ 5.02 billion for Lloyds.
Although the key players in the top 10 BTL mortgages remain pretty much the same, there have been significant moves across the rankings.
The top 10 lenders who increased their gross loan value at BTL in 2019 include Barclays (£ 3.89 billion to £ 4.13 billion), Santander (£ 2.33 billion to £ 2.47 billion) and the NatWest Group (£ 1.36 billion to £ 2.08 billion). ).
Lenders to this group who cut their gross value on BTL loans include the Coventry Building Society (£ 3.82-2.8 billion) and Virgin Money (£ 2.26-1.88 billion). , Paragon (£ 1.58 to 1.47 billion) and Leeds Building Society (£ 1.32 to 1.16 billion).
In terms of BTL market share in 2019, the top 10 lenders on the list held 74.6% by gross loan and 73.2% by mortgage; This compares to 75.2% and 72.4% in 2018.
In 2019, gross borrowing was £ 268 billion, 0.3% lower than 2018; Gross borrowing for loan purchases was £ 42.2 billion, up 4.2% for 2018.
Loans allocated on the BTL market increased by £ 1.1 billion and in the overall market by £ 0.4 billion. Bank lending increased by £ 2.7 billion and £ 7.5 billion, respectively.

Overall, construction and intermediate lending declined in both markets – construction companies by £ 1.1 billion in BTL and £ 1.8 billion in the full market and intermediate lenders by £ 0.8 billion and British Pound 3.5 billion, respectively. .
Calum Bilbe, data and research analyst at UK Finance, said: “One possible explanation for this growth in the big banks is the decline in lending from direct competitors that coincides with the introduction of ring fencing in early 2019.”
He added: “In short, fencing means that by early 2019, the UK’s biggest banks will have to separate their main UK banking business from other banking activities (eg investing).
“With retail banking in the UK limited, there are a number of things banks can do with money from borrowers’ deposits.
“Because average savings are higher than loans, these large lenders have used excess retail savings in ring organizations to increase mortgage lending.
“This surge in mortgage supply has helped significantly lower the average cost of new mortgages as larger construction companies and mid-sized lenders compete with the largest banks to attract borrowers for their products.
“In addition, larger lenders can use the Internal Rating Based Rating (IRB) to weigh capital (as opposed to the standard small firm approach).
“This further lowers the costs for larger creditors by helping lower prices.
As a result, under the Standard Approach, smaller lenders make it more difficult to compete in mainstream markets where restrictions and IRBs allow the largest firms to dominate market share.
“This does not reduce the diversity of the mortgage market as specialist lenders continue to expand in market segments that require manual credit, such as self-employed customers or customers with more complex incomes.
“Large and sometimes medium-sized companies are less competitive in this segment because their largely automated systems cannot find the right approach to these loans.
“Overall, despite the largest bank market share with many different types of lenders, the mortgage market remains competitive and meets all borrowers’ needs.”

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Student Loans

Student funding is the official government fund for tuition fees and living expenses.

Student loans cover course fees and are paid directly to your university or college.

Maintenance loans are designed to help with living expenses such as room and board. The amount you earn depends on your household income, where you live and where you will study. Usually it is deposited directly into your bank account at the start of each period.

Both must be returned upon graduation and earn above the minimum wage.

You will need to apply to the student finance authority in your country. You can do this online at, depending on whether you live in England, Wales, Scotland or Northern Ireland.

Now I go to another university

How many maintenance credits you get depends on where you live. If you’ve signed up for funding but now need to update your details – for example, changing your university – the easiest way to do this is by logging into your student finance account.

How many maintenance loans do I get?

According to currency tip site Save the Student, the average is £ 6,480 per year. Every country in the UK has its own set of rules so it depends on where you live. Complicated and very dependent on household income. For example, in the UK, the maximum loanable for live-at-home students for 2020-2021 is £ 7,747 and the minimum is £ 34, £ 10. If you don’t live outside of London the maximum and minimum amounts are £ 9,203 and £ 4,289 . If you don’t live at home in London that’s £ 12,010 / £ 5,981. In general, you will get the most if your annual household income is below £ 25,000 while the minimum is above the threshold between £ 58,000 and £ 69,000.

My family has experienced a sharp decline in income due to the coronavirus

You may qualify for a higher level of funding. Again the rules of how they differ. In the UK, you can file an “Income Statement for the Current Year” if you believe your household income for the tax year (2020-21) is at least 15% less than the tax year you are inquiring about. to provide details (for those departing in the coming weeks this is 2018-19). This is a similar system in Wales. In Scotland, the Scottish Student Awards Board may reconsider funding for students based on current income projections if income figures fall to a lower grade. Northern Ireland’s income must have decreased by 5% or more to be revalued.

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Half of UK finance workers want to change careers because of the pandemic

The coronavirus pandemic has seen workers in the UK financial industry consider career options. According to the new report, 44 percent are considering moving.

Of urban workers seeking change, 13% said they would like to leave the sector as a whole. According to a KPMG study and the Financial Services Skills Commission (FSSC), that figure increases to 16 percent for ages 18 to 30.

The coronavirus pandemic has rattled the UK job market. Data earlier this month showed the country had lost nearly 750,000 jobs since the blockade began in March.

Britain is also facing constant changes in the way people work. A BBC survey of 50 major companies yesterday found that none of them plan to bring all employees back to the office full-time anytime soon.

KPMG and FSSC asked more than 600 tax officials in July whether the coronavirus pandemic has caused them to change careers and 44% said yes.

The weather outside the office is changing

Karim Hadji, Head of Financial Services at KPMG, said, “Since we spend more time at home away from our colleagues and offices, it makes sense that many people question their current roles and decisions.”

About a third – 31 percent – of workers said they were looking for new roles that would dry up or come out of finances by the end of the year.

15% of those who wish to leave funding cite long working hours as the reason. About 13% of people are now blamed for the long commute.

Hadji said finance must dispel certain beliefs about the sector, including that it has “a conservative employee policy”. However, he said “some work is being done” sparked by the pandemic.

Claire Tunley, CEO of the Financial Services Skills Commission, said, “This sector has a real opportunity to learn from the pandemic’s experience to create a better workforce built on an existing reputation for good pay and promotion.”

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Changes in flows in project financing

Project finance and cash flow remain major challenges in this crisis as construction companies not only in the UAE but around the world question their viability in the coming months.

Lack of financial and accounting discipline from associates generally exacerbates their struggles to go bankrupt in times of economic downturn. The well-known “need for credit,” which is generally structureless, has plunged many contractors into such a difficult cycle.

Due to the Covid-19 pandemic, ongoing projects were put on hold due to disruptions in the supply chain. Productivity is affected because contractors on site follow social distancing guidelines. Operating costs have increased as money has been diverted to reduce the risk of the new coronavirus.

Meanwhile, developments at an early stage have struggled to increase debt as originally envisioned by the project sponsor. As a result, several projects were postponed or canceled entirely.

Effective communication

The communication channels between construction companies and their creditors are becoming more important than ever. This communication needs to be open and focused on the desired end result that will protect the interests of both parties and allow the project to be completed by hand with the best possible outcome.

Restructuring of existing credit lines to accommodate the tidal changes is necessary so that contractors and their projects can survive. Today’s banks are very pragmatic about getting this desired result.

Fence with rings

One of the observations that lenders made during the 2008 financial crisis and the current pandemic crisis is that contractors who limit cash flow from their projects tend to perform better and increase funding for the project more quickly.

This is where the contract finance model appears, the term used by creditor banks. The model depends on the “what”:

The project’s first cash flow
Project implementation plan
A legal contract that describes scope, time, costs and responsibilities
After analyzing the above, the necessary financial instruments or “how” are structured:

Guarantees will be provided by contractors (bank guarantees for performance, prepayments and retention)
Procurement requirements, whether material or equipment (credit note)
Temporary cash flow deficits due to lengthy costs and receipt of payments by the project owner in accordance with the terms of the contract (short-term loan or overdraft)
For ring fencing to work, all payments made or received must be in a specific bank account which will only be used to complete this project. After completing the project, the account will stop functioning.

The communication channels between construction companies and their creditors are becoming more important than ever
Such an agreement requires the contractor to distribute proceeds to the accounts of the lender and the project owner for confirmation and acceptance to ensure that payments are only made to project-specific accounts. However, the refusal of some project owners to assign project assignments made it difficult for contractors to ensure proper cash flow funding from their banks.

Based on the above model, the bank will endeavor to support the completion of the project as much as possible, which will result in a guarantee return and termination of the engagement. The bank offers assistance if the source of payment is clear and unambiguous. They provide more assistance when payments are made and credited to project accounts.

This agreement also helps the contractor and their finance team maintain fencing project discipline and avoid the inconvenience associated with having funds on a specific project to attract other tough projects, ultimately leading to failure of the first project.

When the music stopped, the projects suffered greatly from a lack of new flows to cover previous withdrawals outside the project cash flow.

Hence, it is an ecosystem that must be in place if we are to protect and enhance the performance of this very important industry. All parties need to be aware that nothing can work in isolation and that the failure of either party is the failure of the project.

time for a change

Now is the time to build on this practice and work with regulators to facilitate a mandate to allocate project funds to guarantee banks. It is time for us bankers to rethink the burdens we have placed on contractors: canceled contracts, overdue certificates, and the amount, text and duration of bank guarantees under the project.

These are the real decisions we have to make to solve the real problems that hinder the development of this industry: writing fairer contracts; Promote the use of technology; and build sustainably. Now is always the best time to change.

In the future, any planning after the project should lead to a possible second wave of the Covid-19 pandemic. We all hope we don’t face such calamities again, but when they do we need to be prepared for them. Learning from the current crisis is the most important outcome of our current situation.

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