EVER heard the story of a successful business outgrowing the people who set it up?
Stewarton-based asset finance brokers First Independent Finance Ltd had been doing well for six years when one day managing director Allan Ross decided to interview himself for his own job.
Guess what - he got the thumbs-down! But he couldn’t sack himself, could he?
Now being asked to apply for your own job then getting a "don’t call us, we’ll call you" response from oneself can be a bit of an alarm signal.
The truth is that Allan was quite capable of dealing with his business in its current form. He had the entrepreneurial skills to get it established, and he knew enough about people, finance, even the market he operated in.
He was also a competent director, but if First Independent Finance were to achieve their ambitions, if the business was to continue to grow, Allan knew he needed to learn more about finance, marketing, strategy, managing people, information technology, operations management, data management, managing change, and the myriad other problems a modern business faces.
So it was back to school for Allan - but a rather special school: Strathclyde University Business school, where over a 3-year period a busy manager can learn or refine business skills on a part-time basis and graduate with a Master of Business Administration ( MBA ) degree.
With the first two terms under his belt, how has it been for Allan?
Allan Ross
“It was rather daunting going into a first year university class - the same university where my son is studying in his third year! - but as most of the students in the MBA are “mature”, it was a welcoming environment where everyone was in the same boat and keen to help each other get through the course.
“Strathclyde focus on a high degree of the work being completed in groups and whilst on the one hand working in small teams over short periods of time can be difficult as everyone needs to get to know one another quickly and get a quality piece of work done in a short time frame, the discipline that working in groups brings helps one get through the course.
“First Independent Finance has already started to benefit from my doing the MBA. We are redefining our processes, looking at our competitive edge, using our data more effectively, and we have begun work on our strategy for the next five years. And I’ve only been on the course for six months,“ says Allan.
“It’s been challenging. But then if it was easy, everyone would do it and that would make it much more difficult to have a competitive edge.”
And will he get that job the next time he interviews himself?
Time, and how he puts into practice what he learns on the MBA course will be two of the factors that decide that.
But in this month’s edition of the Business Insider magazine, who do we find on their annual list of Rising Stars 2006?
None other than First Independent Finance managing director Allan Ross. So he must be doing something right.
Allan Ross set up First Independent Finance in Stewarton in 1999.
Today his company employs 32 people from office premises in the town’s Dunlop Street, boasts an annual turnover of £60 million, and has become the largest general asset finance broker in the whole of the UK, with a team of 25 sales people from Inverness in the north to Kent in the south.
18 months ago they announced they had broken through the £100 million barrier, by advancing £100 million to their clients since they started the business in 1999.
Now they have hit the £200 million mark, customers numbers continue to grow, and this comes on the back of winning Scottish Enterprise Ayrshire's’s Best performing business employing 25-250 staff last year, and Best performing business under 25 staff the previous year.
It’s mainly down to the ongoing commitment and skill of the company’s staff, says managing director Allan Ross. “And that’s why Investors in People awarded us our 3-year renewal, proving that we have continued to value our commitment to the people who do the job of keeping our customers happy.
“Meeting our customers and getting to know them personally is key to building trust and genuinely helping them achieve their business ambitions. Attention to detail and high-speed modern communications mean that we can offer a personal service and stay ahead of the competition. Customers are treated like family, that’s why they come back time after time,” says Allan.
He concludes: “We help businesses to find the best source of finance for large items of capital expenditure, whether it be a commercial vehicle, a computer system, printing equipment or a combine harvester.”
* * *
Driving a great bargain -
dispelling the mysteries of car finance
by Allan Ross
AS a car enthusiast I know buying a car can be great fun . . . days spent in showrooms, looking at the small ads, comparing new models, negotiating the deal and the joy of delivery.
There’s nothing like it – except that is – the first drive in the new car.
My first car was a Hillman Avenger and I can even remember its registration number. In the heady days of the 1980’s young farmers drove RS2000s, Ford Capri GTs and even Audi Quattro’s!
I wish I had known more about car finance then, for then I might have been able to afford to drive my dream, as opposed to the car with the “It’s a Secret Disco” tax disc, no heater and complimentary blankets. Happy days!
The Avenger was followed by the green mini that could be jammed into awkward places by my boy racer farming friends just to wind me up. Next came a 1300 Fiat Mirafiori, which disintegrated into rust.
Then a milestone in the form of company cars. Strangely, although those were much better cars: RS2000s, Cavalier SRIs, even a Rover Sterling and they didn’t cost me anything, they never had quite the same appeal as owning my own car. They were my office. I didn’t choose them and I remember someone once saying “Something you get for nothing has little value.”
Now though, I’m back to choosing my own cars and paying for them out of my own pocket.
So what’s this have to do with car finance? Well, whilst cars are fun and exciting purchases, finance is dull and boring. Hardly surprising then that the finance option is often chosen in a hurry or done in the same way as its always been, usually through the dealer.
Here’s my tips to drive the car you want, not the one you think you can afford.
• HIRE PURCHASE – Most popular method, pay deposit and fund the balance over a fixed period. Usually the rate is fixed but variable rates are available. At the end of the agreement you pay a small fee along with your final payment and you own it. Pros – This method of funding is simple, early settlement figures are reasonable and its an industry standard with APRs making it easy to compare costs. Cons – You don’t have title until the final payment.
• LEASING – Becoming more popular for VAT registered businesses and some can reclaim half the VAT. Pros – It’s flexible. You may get a VAT benefit and deposits are usually small. Cons – Settlement figures can be high: you never actually own the car.
• CONTRACT HIRE – This is for you if you are looking for a car to be supplied and you want to pay a rental which takes into account maintenance and service costs, you want the rental to reflect the fact that the car goes back to the supplier at the end of the agreement with him benefiting from its value at this point. The rentals are usually lower than other options, as are the deposits and you have the comfort of knowing that your car is being maintained to the manufacturers specification. Pros – no hassle and supplier takes a view of what it will be worth at some point in the future, maintains it and if you are VAT registered you may be able to claim back some VAT. Cons – If you go over the agreed mileage on the vehicle – it can be expensive.
• CAR LOANS – You borrow a sum of money that is not secured on the car. Again, a very simple method. Pros – The car is not secured against the loan and therefore not registered on HPI. Cons – Sometimes the APR can be a little higher.
• OVERDRAFT – Write a cheque and it’s yours. Pros – Dead easy. Cons – It’s difficult to say what it ends up costing, as you never really know how long it is on your overdraft for. Don’t forget those annual renewal fees and bank charges, which are often charged on the debit balances of your overdraft.
• BALLOON HP – This is how I finance my car . . . but don’t tell anyone – it’s a secret! This allows me to drive top of the range at a low monthly payment I negotiate the best price I can at the dealers then I put a deposit down. I then pay 36 equal monthly payments, followed by a final payment roughly equal to the anticipated trade value. Pros – Great car. Cheap repayment and, at the end of the agreement, I can take ownership. Cons – Settlement figures are often higher than standard HP. And make sure you set the value of the balloon payment at the end realistically.
There’s a variety of places to get your deal done such as A BROKER – I’d like to say my company but I’m not allowed to. So lets say someone knows what they are doing, a reputable broker who can be trusted, who wants your business and most importantly who wants you to go back to them. Someone who has a range of products and is independent of promoting any single finance. A reputable broker can offer a genuine choice. YOUR BANK – Often an easy quick route and deals are usually reasonable but not always as good as one expects. THE INTERNET – Sometimes great deal but solving problems can be difficult. THE MOTOR DEALER – Some great deals but watch out . . . sometimes if you negotiate a deal without finance you might get a better discount and then get your finance elsewhere.
Whatever deal you end up selecting, go with one your comfortable with. Now where’s that balloon with my Bentley keys. I wish.
* Allan Ross is managing director of First Independent Finance www.f-i-f.co.uk
Web links:
First Independent Finance Ltd news page CLICK HERE
A company based in Stewarton, Ayrshire is showing that in a modern age of technology, you don’t have to be based in a big city or rely solely on the Internet to be a success.
First Independent Finance Ltd, an asset finance broker, has been able to blend the services offered by modern communications, and still offer personal face-to-face assistance for businesses throughout the UK when they need help in financing the assets their companies require to be successful.
And they are doing it from a head office based in the small Ayrshire town of Stewarton, supported by a team of 25 sales people from Inverness in the north to Kent in the south.
18 months ago they announced they had broken through the £100 million barrier, by advancing £100 million to their clients since they started the business in 1999.
Now they have hit the £200 million mark, customers numbers continue to grow, and this comes on the back of winning Ayrshire Enterprise’s Best performing business employing 25-250 staff this year, and Best performing business under 25 staff last year.
It’s mainly down to the ongoing commitment and skill of the company’s staff, says managing director Allan Ross. “And that’s why last month, Investors in People awarded us our 3-year renewal, proving that we have continued to value our commitment to the people who do the job of keeping our customers happy.
“Meeting our customers and getting to know them personally is key to building trust and genuinely helping them achieve their business ambitions. Attention to detail and high-speed modern communications mean that we can offer a personal service and stay ahead of the competition. Customers are treated like family, that’s why they come back time after time,” says Allan.
The future is looking bright for First Independent Finance as this ambitious local company look for continued growth throughout the UK, as well as launching a new personal car loan scheme at very attractive rates.
More of First Independent Finance can be seen on their updated web site www.f-i-f.co.uk
First Independent Finance Ltd
Allan Ross set up First Independent Finance in 1999 with capital of just £10,000 in a spare bedroom of his house in Stewarton, Ayrshire.
Today his company employs 32 people from office premises in the town’s Dunlop Street, boasts an annual turnover of £60 million, and has become the largest general asset finance broker in the whole of the UK.
Allan explains: “We help businesses to find the best source of finance for large items of capital expenditure, whether it be a commercial vehicle, a computer system, printing equipment or a combine harvester.”
When First Independent Finance was set up, it concentrated on providing finance for farmers, as Allan and his co-director Robin Duncan had previously worked as regional managers in the agricultural finance divisions of major banks.
Since then, the company has diversified. Now it no longer offers finance just to farmers, but also to any type of business needing help with capital expenditure. Allan and his team can also organise personal car finance.
Allan says that First Independent Finance offers a one-stop approach to finance dealing by working with more than 20 leading finance houses, and because of the company’s increasing size, it can often come up with some of the best deals available.
It is this one-stop approach, combined with speed of response, quality local service, customer focus and attractive pricing that has led to First Independent Finance’s geographical coverage spreading from Inverness in the north down to Wales and Kent in the south.
Allan was brought up in Stewarton, and has been involved with many local organisations, including the Bonnet Guild and the Young Farmers.
He believes that Stewarton has great potential, and chose to establish his company in the town in order to back up that belief, saying: “It’s a great feeling to be able to bring jobs to my home town.” * Issued on behalf of First Independent Finance Ltd by Fame Publicity Services.
Contacts:
Allan W Ross Managing Director First Independent Finance Ltd 22 Dunlop Street Stewarton, Ayrshire KA3 5AT
The following is an article printed in the "Ayrshire Post", "Irvine Herald" and "Kilmarnock Standard" by business editor Murdoch MacDonald.
Stewarton company helps
to make the earth move!
Driving along the A77 recently, you probably weren’t aware that some of those excavators working on the new M77 extension were not financed by the major banks, but through a local firm.
Allan Ross set up First Independent Finance in 1999 with capital of just £10,000 in a bedroom of his house in Stewarton.
Today his company employs 30 people at office premises in the town’s Dunlop Street, boasts an annual turnover of £50 million, and has become one of the largest general asset finance brokers in the whole of the UK.
But that begs the question: what is an asset finance broker?
Allan explains: “We help businesses to find the best source of finance for large items of capital expenditure, whether it be a commercial vehicle, a computer system, printing equipment or a combine harvester.”
When First Independent Finance was set up, it concentrated on providing finance for farmers, as Allan and his co-director Robin Duncan had previously worked as regional managers in the agricultural finance divisions of major banks.
“People thought we were mad setting up an agricultural finance company at one of the worst times ever for the farming industry. But we had faith in agriculture, and now that faith is paying off.”
Allan points out that many farmers are understandably traditional in their outlook and when it comes to finance, habit usually takes over.
“The most popular form of finance is overdraft, and that’s not always the best way forward for all farmers. There are alternatives, and often farmers don’t actually know what sort of deal they are receiving. They may think that they are paying 1% or 2% above the base rate of interest, but when you add on other service charges, they could actually be paying a lot more.”
Instead, Allan advises farmers to look to other areas for finance.
“Often people end up with the wrong deal because they don’t understand how a package works. But, because they have worked with the same company for so long, they trust that they have the best deal available – whereas that may not necessarily be the case.
“Farmers have a tremendous talent for the job they are actually doing, and have an enviable passion for their industry. But when it comes to finance, some of them need some good old-fashioned personal service and help.”
He says that First Independent Finance offers a one-stop approach to finance dealing by working with more than 20 leading finance houses, and because of the company’s increasing size, it can often come up with some of the best deals available.
It is this one-stop approach, combined with speed of response, quality local service, customer focus and attractive pricing that has led to First Independent Finance’s geographical coverage spreading from Inverness in the north down to Wales and Kent in the south.
And the company has diversified. Now it no longer offers finance just to farmers, but also to any type of business needing help with capital expenditure – hence the earth-moving equipment on the M77 extension.
Allan and his team can also organise personal car finance and personal contract hire – a realistic alternative to the traditional company car.
Last year First Independent Finance won the Scottish Enterprise Ayrshire Business Award in the category of Best Performing Business up to 25 staff. This year, because of their growing workforce, they had to move up a division, and duly won the same award again in the 25-250 class, in addition to being finalists in the Excellence in Skills & Learning and the Innovation & Creativity categories.
Allan was brought up in Stewarton, and has been involved with many local organisations, including the Bonnet Guild and the Young Farmers.
He believes that Stewarton has great potential, and chose to establish his company in the town in order to back up that belief, saying: “It’s a great feeling to be able to bring jobs to my home town.”
And Allan’s message of encouragement is that whatever First Independent Finance Ltd has achieved and will go on to achieve in the future, other entrepreneurs and other small start-up businesses throughout Ayrshire can go on to do exactly the same.
