More than half of UK entrepreneurs have revealed that their most likely source of funding for major business projects will have to come from their own money, according to a survey by business advisory firm Deloitte.
The survey highlights the tough lending conditions that small business owners are experiencing at the moment, although recent data has suggested that banks are slowly beginning to increase their lending.
Despite tougher lending conditions entrepreneurs continue to rely on banks as their primary source of funding, with 18% of small business owners listing banks as their main source of funding, followed by 10% that turn to existing shareholders.
Just 12% said external investment from private equity, venture capital and angel investors would be their most likely source of cash over the next year - down from 28% in 2008.
"The survey reveals that current business conditions have created an alarming reliance on working capital at a time when more than a quarter of respondents say they are having to monitor their cash position daily," said Simon Manning of Deloitte.
www.ukba.co.uk
Showing posts with label funding. Show all posts
Showing posts with label funding. Show all posts
Monday, 19 October 2009
Tuesday, 22 September 2009
Burt lined up for chairman's role as broker plans to create new bank
TOP City financial analyst is planning to set up his own bank, with former Bank of Scotland chief executive Sir Peter Burt as chairman.
Sandy Chen, of stockbroker Panmure Gordon, is also believed to have enlisted the help of other businessmen to try to raise money in the City to buy banking assets to form the nucleus of the new bank.
It is believed the broker is looking for about £100 million to get the bank off the ground and that this could lead to a flotation of the new company, with the timing dependent on the enthusiasm of the City to the idea.
Sources said the strategy of Chen and his associates was to try to attract affluent customers to place their deposits with the new bank, and then use that money to lend out to small and medium-sized businesses, a business area Chen sees as providing a good investment opportunity.
Read more: http://thescotsman.scotsman.com/business/Burt-lined-up-for-chairman39s.5622205.jp
www.ukba.co.uk
Sandy Chen, of stockbroker Panmure Gordon, is also believed to have enlisted the help of other businessmen to try to raise money in the City to buy banking assets to form the nucleus of the new bank.
It is believed the broker is looking for about £100 million to get the bank off the ground and that this could lead to a flotation of the new company, with the timing dependent on the enthusiasm of the City to the idea.
Sources said the strategy of Chen and his associates was to try to attract affluent customers to place their deposits with the new bank, and then use that money to lend out to small and medium-sized businesses, a business area Chen sees as providing a good investment opportunity.
Read more: http://thescotsman.scotsman.com/business/Burt-lined-up-for-chairman39s.5622205.jp
www.ukba.co.uk
Sunday, 13 September 2009
SMEs put themselves at risk
According to the new research by the Asset Based Finance Association (ABFA), 56 per cent of SMEs aren't aware of the amount of financial support available from the Government.
SMEs were asked if they were aware of the Enterprise Finance Guarantee Scheme, Working Capital Scheme or the Capital Enterprise Fund, which have all been developed by the Government to provide much needed financial support to the country's small businesses. A massive 56 per cent came back and said that they hadn't heard of any of the schemes.
Kate Sharp, chief executive officer from the ABFA, believes that SMEs are at risk due to a lack of understanding about the Government's financial offerings. She said: "Over the last few years, the Government has stepped up to support UK SME organisations through various schemes. Unfortunately, there is a severe lack of understanding among this group about what financial support is actually out there. If they don't know about the schemes, how can the Government help them?"
The research also highlighted that obtaining credit insurance is also an issue for SMEs. Credit insurance minimises the risk of customers defaulting on payments or them going into administration. Of those interviewed 78.8 per cent said that as much as 20 per cent of their client base had been refused credit insurance over the last six months. More worryingly, 2.6 per cent said that over 81 per cent of their clients had no credit insurance whatsoever.
This means that nearly 100,000 SMEs in Britain are putting their businesses at risk by not ensuring they are fully protected. These firms are denying themselves the opportunity to manage the risk of losing money and reducing their own credit ratings, which will impact on their ability to obtain credit from suppliers.
The time it takes for invoices to be paid is also extending, as average debtor days lengthen. Over 11 per cent of respondents report that it is taking over 70 days for them to get paid compared to just 6.6 per cent last year - that is more than double the normal trading terms.
Kate Sharp continued: "With the external pressures on SMEs growing daily, it is worrying to see the reduced availability of credit insurance putting extra pressure on these companies at a time when they are already facing many other pressures. Coupled with the fact that debtor days are extending, it is more important than ever that businesses try to protect themselves against unforeseen circumstances."
The research also suggests that unemployment may slide further with 81 per cent of SMEs questioned planning to make as much as 10 per cent of their workforce redundant over the next six months.
Over 2,000 SMEs were interviewed for the research, which was undertaken by Hilton Baird Financial Solutions, and were asked about the current state of their finances, the wider economic troubles and attitudes towards asset based finance.
Source: Asset Based Finance Association
www.ukba.co.uk
SMEs were asked if they were aware of the Enterprise Finance Guarantee Scheme, Working Capital Scheme or the Capital Enterprise Fund, which have all been developed by the Government to provide much needed financial support to the country's small businesses. A massive 56 per cent came back and said that they hadn't heard of any of the schemes.
Kate Sharp, chief executive officer from the ABFA, believes that SMEs are at risk due to a lack of understanding about the Government's financial offerings. She said: "Over the last few years, the Government has stepped up to support UK SME organisations through various schemes. Unfortunately, there is a severe lack of understanding among this group about what financial support is actually out there. If they don't know about the schemes, how can the Government help them?"
The research also highlighted that obtaining credit insurance is also an issue for SMEs. Credit insurance minimises the risk of customers defaulting on payments or them going into administration. Of those interviewed 78.8 per cent said that as much as 20 per cent of their client base had been refused credit insurance over the last six months. More worryingly, 2.6 per cent said that over 81 per cent of their clients had no credit insurance whatsoever.
This means that nearly 100,000 SMEs in Britain are putting their businesses at risk by not ensuring they are fully protected. These firms are denying themselves the opportunity to manage the risk of losing money and reducing their own credit ratings, which will impact on their ability to obtain credit from suppliers.
The time it takes for invoices to be paid is also extending, as average debtor days lengthen. Over 11 per cent of respondents report that it is taking over 70 days for them to get paid compared to just 6.6 per cent last year - that is more than double the normal trading terms.
Kate Sharp continued: "With the external pressures on SMEs growing daily, it is worrying to see the reduced availability of credit insurance putting extra pressure on these companies at a time when they are already facing many other pressures. Coupled with the fact that debtor days are extending, it is more important than ever that businesses try to protect themselves against unforeseen circumstances."
The research also suggests that unemployment may slide further with 81 per cent of SMEs questioned planning to make as much as 10 per cent of their workforce redundant over the next six months.
Over 2,000 SMEs were interviewed for the research, which was undertaken by Hilton Baird Financial Solutions, and were asked about the current state of their finances, the wider economic troubles and attitudes towards asset based finance.
Source: Asset Based Finance Association
www.ukba.co.uk
Saturday, 12 September 2009
Small businesses flick the switch on £6m of wasted energy
Carbon Trust announces Big Business Refit to help SMEs slash energy bills by £40m
The Carbon Trust is to help thousands of small and medium sized businesses drive down their costs by as much as £40m through a new programme - The Big Business Refit.
The Big Business Refit will offer SMEs expert advice and financial support to slash their energy costs by scrapping old inefficient equipment and replacing it with new energy efficient models.
It follows a recession-driven surge in demand for the Carbon Trust’s interest-free business loans. In the first six months of 2009, hundreds of SMEs from bakeries to plastics factories have been given loans at zero-interest to equip their businesses with the latest energy-saving technology. As a result, they are saving an average of £14,000 each on their annual energy bills – a collective total of almost £6m a year.
Tom Delay, chief executive, the Carbon Trust, said: “Business owners are realising that for every month they ‘make do and mend’ with old inefficient equipment, they are wasting more cash on unnecessarily high energy bills.”
“With credit all but dried up elsewhere, the Big Business Refit breaks the deadlock by helping SMEs to buy the equipment that will both slash their costs and often transform their businesses.”
SMEs that want to take part in the Big Business Refit can get expert advice from the Carbon Trust by calling 01865 885879.
Read more: http://www.carbontrust.co.uk/News/presscentre/big-business-refit.htm
www.ukba.co.uk
The Carbon Trust is to help thousands of small and medium sized businesses drive down their costs by as much as £40m through a new programme - The Big Business Refit.
The Big Business Refit will offer SMEs expert advice and financial support to slash their energy costs by scrapping old inefficient equipment and replacing it with new energy efficient models.
It follows a recession-driven surge in demand for the Carbon Trust’s interest-free business loans. In the first six months of 2009, hundreds of SMEs from bakeries to plastics factories have been given loans at zero-interest to equip their businesses with the latest energy-saving technology. As a result, they are saving an average of £14,000 each on their annual energy bills – a collective total of almost £6m a year.
Tom Delay, chief executive, the Carbon Trust, said: “Business owners are realising that for every month they ‘make do and mend’ with old inefficient equipment, they are wasting more cash on unnecessarily high energy bills.”
“With credit all but dried up elsewhere, the Big Business Refit breaks the deadlock by helping SMEs to buy the equipment that will both slash their costs and often transform their businesses.”
SMEs that want to take part in the Big Business Refit can get expert advice from the Carbon Trust by calling 01865 885879.
Read more: http://www.carbontrust.co.uk/News/presscentre/big-business-refit.htm
www.ukba.co.uk
Monday, 7 September 2009
UK recovery threatened by lack of credit, says EEF
Britain's economic recovery is still being threatened by the lack of credit on offer from banks, a leading manufacturers' organisation reports today, warning that many businesses are actually finding it harder to secure affordable finance than a few months ago.
A survey conducted by the EEF said 47 per cent of firms had seen the cost of finance increase over the past two months, from 44 per cent in the second quarter and 37 per cent in the first. Only 7 per cent of manufacturers said the cost of finance was now falling.
Manufacturers also found the cost of new borrowing was still rising, with banks charging both higher fees and more expensive interest rates.
A third of companies added that the supply of credit had shrunk in recent weeks, though this was an improvement from the second quarter when 42 per cent of businesses warned lines of credit were dwindling. However, small firms, in particular, are being hit by the credit shortage, the EEF said.
Steve Radley, the EEF's director of policy, said that despite action from policymakers, the manufacturing sector's hopes of recovery were being hampered by their credit difficulties. "Despite historically low levels of interest rates and significant intervention by the Government and the Bank of England, credit conditions remain very tight for most manufacturers," he said.
"Given the severe damage done to banks' balance sheets by the recession, this is likely to remain the case for some time and will dampen the recovery as meeting new orders puts increasing pressure on manufacturers' cashflow."
The EEF's warning reflects increasing concern that the inability of banks to lend more to business might prevent the UK from exiting recession or, at the very least, act as a cap on the strength of the recovery.
Source: David Prosser, Business Editor, The Independent
www.ukba.co.uk
A survey conducted by the EEF said 47 per cent of firms had seen the cost of finance increase over the past two months, from 44 per cent in the second quarter and 37 per cent in the first. Only 7 per cent of manufacturers said the cost of finance was now falling.
Manufacturers also found the cost of new borrowing was still rising, with banks charging both higher fees and more expensive interest rates.
A third of companies added that the supply of credit had shrunk in recent weeks, though this was an improvement from the second quarter when 42 per cent of businesses warned lines of credit were dwindling. However, small firms, in particular, are being hit by the credit shortage, the EEF said.
Steve Radley, the EEF's director of policy, said that despite action from policymakers, the manufacturing sector's hopes of recovery were being hampered by their credit difficulties. "Despite historically low levels of interest rates and significant intervention by the Government and the Bank of England, credit conditions remain very tight for most manufacturers," he said.
"Given the severe damage done to banks' balance sheets by the recession, this is likely to remain the case for some time and will dampen the recovery as meeting new orders puts increasing pressure on manufacturers' cashflow."
The EEF's warning reflects increasing concern that the inability of banks to lend more to business might prevent the UK from exiting recession or, at the very least, act as a cap on the strength of the recovery.
Source: David Prosser, Business Editor, The Independent
www.ukba.co.uk
Saturday, 29 August 2009
FSB warns against high street banks holding small business monopoly
The Federation of Small Businesses (FSB) is challenging a potential monopoly of power being built up by high street banks over small firms seeking finance, two years after the credit crunch started.
The FSB is warning that bank mergers, recapitalisation and schemes targeted at the big banks to stimulate lending as a result of the banking crisis risk stifling choices of finance for small firms - leaving business owners with nowhere to turn if they are refused credit by the major high street lenders.
With a quarter of small firms still struggling to access affordable finance, the FSB believes the power of the financial sector should be challenged to guarantee a fair service for small firms. The FSB proposes:
- Struggling banks should not be sold off to other high street lenders as this would create massive institutions which could stifle competition in the financial sector;
- Alternative sources of finance should be provided locally. Regional Development Agencies should be restructured to offer loans and Essex County Council's Bank of Essex model should be replicated around the UK. The Enterprise Finance Guarantee and funds already allocated from the European Investment Bank could also be offered via these routes.
- The Post Office should be turned into Post Bank offering support for small firms by utilising the Post Office Network and operating either as a solely state owned bank or as mutual or trustee bank.
- Financial Intermediaries, recently created by the Government, should be actively promoted to viable small businesses unable to access finance.
Read more: http://www.fsb.org.uk/News.aspx?loc=general&rec=5496
Source: Federation of Small Businesses
www.ukba.co.uk
The FSB is warning that bank mergers, recapitalisation and schemes targeted at the big banks to stimulate lending as a result of the banking crisis risk stifling choices of finance for small firms - leaving business owners with nowhere to turn if they are refused credit by the major high street lenders.
With a quarter of small firms still struggling to access affordable finance, the FSB believes the power of the financial sector should be challenged to guarantee a fair service for small firms. The FSB proposes:
- Struggling banks should not be sold off to other high street lenders as this would create massive institutions which could stifle competition in the financial sector;
- Alternative sources of finance should be provided locally. Regional Development Agencies should be restructured to offer loans and Essex County Council's Bank of Essex model should be replicated around the UK. The Enterprise Finance Guarantee and funds already allocated from the European Investment Bank could also be offered via these routes.
- The Post Office should be turned into Post Bank offering support for small firms by utilising the Post Office Network and operating either as a solely state owned bank or as mutual or trustee bank.
- Financial Intermediaries, recently created by the Government, should be actively promoted to viable small businesses unable to access finance.
Read more: http://www.fsb.org.uk/News.aspx?loc=general&rec=5496
Source: Federation of Small Businesses
www.ukba.co.uk
Sunday, 16 August 2009
Treasury wants banks to increase loans to small businesses
In an attempt to persuade UK banks to lend more money to small businesses, the CEOs of major UK banks were summoned to a meeting with Alistair Darling and Treasury officials.
It's clear the Government is distinctly unhappy with the way banks are acting at present. It feels the banks have reneged on an agreement, reached as part of their rescue deal, that they would continue to lend to small businesses at a certain level.
"Money and insurance provided by the Government should ensure banks lend at the level they agreed to", said a Government spokesperson.
But when the Government agreed to save RBS and Lloyds Banking Group with an injection of £37 billion of taxpayers' money and insurance guarantees of some £600 billion, it seems they failed to stipulate the level of interest the banks charge for loans to small businesses.
So despite the Bank of England base rate being at a record low of just 0.5%, and LIBOR under 1.0%, when banks do agree to lend to small businesses they are typically charging interest rates of between 6% and 8%.
Some banks are also accused of turning small businesses away from loans under the Enterprise Finance Guarantee scheme, forcing them into other, more expensive loans that are more profitable for the banks.
After meeting the bank bosses Alistair Darling told reporters, "While in some areas there have been improvements, in others there is an awful lot more to do. I think in relation to small and medium-sized enterprises, we need to be satisfied that the lending agreements entered into are honoured and that every single business gets a fair deal,"
In response to the meeting, Shadow Chief Secretary to the Treasury, Philip Hammond has called on the Government to “stop talking and start acting” in order to get banks lending to businesses again.
“After all the fuss and fanfare around today’s meeting, the outcome will not make one jot of difference to struggling businesses up and down the country”, he added.
www.ukba.co.uk
It's clear the Government is distinctly unhappy with the way banks are acting at present. It feels the banks have reneged on an agreement, reached as part of their rescue deal, that they would continue to lend to small businesses at a certain level.
"Money and insurance provided by the Government should ensure banks lend at the level they agreed to", said a Government spokesperson.
But when the Government agreed to save RBS and Lloyds Banking Group with an injection of £37 billion of taxpayers' money and insurance guarantees of some £600 billion, it seems they failed to stipulate the level of interest the banks charge for loans to small businesses.
So despite the Bank of England base rate being at a record low of just 0.5%, and LIBOR under 1.0%, when banks do agree to lend to small businesses they are typically charging interest rates of between 6% and 8%.
Some banks are also accused of turning small businesses away from loans under the Enterprise Finance Guarantee scheme, forcing them into other, more expensive loans that are more profitable for the banks.
After meeting the bank bosses Alistair Darling told reporters, "While in some areas there have been improvements, in others there is an awful lot more to do. I think in relation to small and medium-sized enterprises, we need to be satisfied that the lending agreements entered into are honoured and that every single business gets a fair deal,"
In response to the meeting, Shadow Chief Secretary to the Treasury, Philip Hammond has called on the Government to “stop talking and start acting” in order to get banks lending to businesses again.
“After all the fuss and fanfare around today’s meeting, the outcome will not make one jot of difference to struggling businesses up and down the country”, he added.
www.ukba.co.uk
Wednesday, 12 August 2009
Green Grants Machine
Designed to help small business owners like you find funding to make the small changes that can make a big difference where the environment is concerned.
Green Grants Machine is the UK’s most comprehensive source of information on grants, loans and awards available to help your business go green and save on energy bills.
Their completely free directory contains information on over £1.2 billion of funds available to help you... purchase hybrid fleet vehicles, install solar panels, introduce a recycling scheme in the workplace or to invest in green packaging to name just a few.
So why not run a search now and find out what money you could be eligible for?
Find funding now!
www.ukba.co.uk
Green Grants Machine is the UK’s most comprehensive source of information on grants, loans and awards available to help your business go green and save on energy bills.
Their completely free directory contains information on over £1.2 billion of funds available to help you... purchase hybrid fleet vehicles, install solar panels, introduce a recycling scheme in the workplace or to invest in green packaging to name just a few.
So why not run a search now and find out what money you could be eligible for?
Find funding now!
www.ukba.co.uk
Saturday, 1 August 2009
Darling to press banks over lending
Chancellor Alistair Darling will meet the chairmen and chief executives of Britain's largest banks over concerns that lenders are still failing to provide adequate capital to businesses.
Representatives from Lloyds, Royal Bank of Scotland, HSBC and Barclays will be present at a meeting with the Chancellor today.
Following the government's £37bn bank bailout and interest rates being held at a historic low of 0.5% for several months, there are concerns in the government that banks are not doing enough to help provide finance to individuals and companies.
"We [the government] are playing our part, the banks have got to understand that the public will not understand it if they do not play their part to the full," said Mr Darling.
www.ukba.co.uk
Representatives from Lloyds, Royal Bank of Scotland, HSBC and Barclays will be present at a meeting with the Chancellor today.
Following the government's £37bn bank bailout and interest rates being held at a historic low of 0.5% for several months, there are concerns in the government that banks are not doing enough to help provide finance to individuals and companies.
"We [the government] are playing our part, the banks have got to understand that the public will not understand it if they do not play their part to the full," said Mr Darling.
www.ukba.co.uk
Thursday, 23 July 2009
Small business lending increases in May
The latest figures from the British Bankers' Association (BBA) show that lending to small businesses rose in May. According to the BBA's statistics, lending to small firms increased by £153 million in May, compared to April, while over 45,000 new small business banking relationships were established.
For more on this story go to:
http://www.bba.org.uk/content/1/c6/01/62/98/Small_Business_Monthly_Press_Release%20May%2009.pdf
www.ukba.co.uk
For more on this story go to:
http://www.bba.org.uk/content/1/c6/01/62/98/Small_Business_Monthly_Press_Release%20May%2009.pdf
www.ukba.co.uk
Sunday, 19 July 2009
Media moguls set up venture capital fund for digital start ups
A group of media entrepreneurs have teamed up to form an investment fund for European digital start ups. The co-founders of Bebo and lastminute.com, along with the founders of Freedom4Group and LongAcre Partners, have set up venture capital firm PROfounders Capital. Michael Birch, founder of social network Bebo, said that the fund is "an opportunity to help nurture new initiatives when digital is becoming part of the fabric of our daily lives".
To read more on this go to:
http://www.profounderscapital.com
www.ukba.co.uk
To read more on this go to:
http://www.profounderscapital.com
www.ukba.co.uk
Saturday, 11 July 2009
Government aims for £1 billion venture capital fund to the businesses of the future
The Prime Minister has announced the creation of the UK Innovation Investment Fund to invest in technology-based businesses with high growth potential. The new fund will focus on investing in growing small businesses, start-ups and spin-outs, in digital and life sciences, clean technology and advanced manufacturing.
The Department for Business, Innovation and Skills, with the Department of Energy and Climate Change and the Department of Health, will invest £150 million alongside private sector investment on an equal basis known as pari-passu.
It is the Government's belief that this could leverage enough private investment to build a fund of up to £1 billion over the next 10 years. The UK Innovation Investment Fund forms part of the Government’s strategy for Building Britain’s Future.
Gordon Brown said:
“This fund will help build Britain’s future by investing in key sectors. It will provide crucial support for our most promising start-ups and existing small companies just when they need it most. Venture capital finance is the lifeblood of innovation and crucial to ensuring the commercialisation of the discoveries coming out of our research base. The fund will boost future UK competitiveness.”
Lord Mandelson, Secretary of State for Business, added:
“In our New Industry New Jobs strategy we identified access to venture capital as one of the critical factors in developing innovative new companies in Britain. The UK Innovation Investment Fund will be a shot in the arm for the British venture capital industry. It is also a challenge to UK venture capitalists to follow the Government’s lead in backing British entrepreneurs in building exciting new companies, investing in new technologies and creating jobs.”
Science and Innovation Minister Lord Drayson, who has been a champion for the fund, added:
“We must safeguard the Government’s record investment in the science and research base over the past decade. We cannot afford to lose out on the wealth this investment can yield and we will need this wealth to continue our sustained investment in research.”
Simon Walker, CEO of the British Venture Capital Association (BVCA), said:
“The BVCA is immensely encouraged by this venture capital initiative. The model that has been adopted is one which we have championed in our work with the Government leading up to this announcement. The UK Innovation Investment Fund offers an exciting economic incentive for more than a thousand young venture-backed companies and the ideas and jobs which they represent.”
Richard Pelly, Chief Executive of the European Investment Fund (EIF), said:
"EIF has been working together with the UK Government, the BVCA and other significant players in the Venture Capital sector in the preparation of this welcome new initiative, and is delighted to support its launch today.
“At a difficult time for the VC industry the UK Innovation Investment Fund will underpin a next round of critically important fundraising for Fund Managers, and EIF looks forward to continuing to contribute its extensive experience to the development of this process."
The UK Innovation Investment Fund will operate on a Fund of Funds structure which means it will not invest directly in companies, but rather invest in a small number of specialist technology funds that have the expertise and track record to invest directly in companies. The fund will provide a cost effective solution that provides a market return to both private sector investors and HM Government.
The Prime Minister is today publishing a plan for Building Britain’s Future. It is a radical vision for a fairer, stronger and more prosperous society. Public service entitlements will for the first time be guaranteed to parents, patients and communities. New measures, such as the UK Innovation Fund, will also drive economic growth and create jobs.
URL: http://www.hmg.gov.uk/buildingbritainsfuture
Source: Department for Business, Innovation and Skills
www.ukba.co.uk
The Department for Business, Innovation and Skills, with the Department of Energy and Climate Change and the Department of Health, will invest £150 million alongside private sector investment on an equal basis known as pari-passu.
It is the Government's belief that this could leverage enough private investment to build a fund of up to £1 billion over the next 10 years. The UK Innovation Investment Fund forms part of the Government’s strategy for Building Britain’s Future.
Gordon Brown said:
“This fund will help build Britain’s future by investing in key sectors. It will provide crucial support for our most promising start-ups and existing small companies just when they need it most. Venture capital finance is the lifeblood of innovation and crucial to ensuring the commercialisation of the discoveries coming out of our research base. The fund will boost future UK competitiveness.”
Lord Mandelson, Secretary of State for Business, added:
“In our New Industry New Jobs strategy we identified access to venture capital as one of the critical factors in developing innovative new companies in Britain. The UK Innovation Investment Fund will be a shot in the arm for the British venture capital industry. It is also a challenge to UK venture capitalists to follow the Government’s lead in backing British entrepreneurs in building exciting new companies, investing in new technologies and creating jobs.”
Science and Innovation Minister Lord Drayson, who has been a champion for the fund, added:
“We must safeguard the Government’s record investment in the science and research base over the past decade. We cannot afford to lose out on the wealth this investment can yield and we will need this wealth to continue our sustained investment in research.”
Simon Walker, CEO of the British Venture Capital Association (BVCA), said:
“The BVCA is immensely encouraged by this venture capital initiative. The model that has been adopted is one which we have championed in our work with the Government leading up to this announcement. The UK Innovation Investment Fund offers an exciting economic incentive for more than a thousand young venture-backed companies and the ideas and jobs which they represent.”
Richard Pelly, Chief Executive of the European Investment Fund (EIF), said:
"EIF has been working together with the UK Government, the BVCA and other significant players in the Venture Capital sector in the preparation of this welcome new initiative, and is delighted to support its launch today.
“At a difficult time for the VC industry the UK Innovation Investment Fund will underpin a next round of critically important fundraising for Fund Managers, and EIF looks forward to continuing to contribute its extensive experience to the development of this process."
The UK Innovation Investment Fund will operate on a Fund of Funds structure which means it will not invest directly in companies, but rather invest in a small number of specialist technology funds that have the expertise and track record to invest directly in companies. The fund will provide a cost effective solution that provides a market return to both private sector investors and HM Government.
The Prime Minister is today publishing a plan for Building Britain’s Future. It is a radical vision for a fairer, stronger and more prosperous society. Public service entitlements will for the first time be guaranteed to parents, patients and communities. New measures, such as the UK Innovation Fund, will also drive economic growth and create jobs.
URL: http://www.hmg.gov.uk/buildingbritainsfuture
Source: Department for Business, Innovation and Skills
www.ukba.co.uk
Friday, 3 July 2009
Carbon Trust expands interest-free loans to help more SMEs survive the recession and cut carbon
The Carbon Trust is to improve access for small and medium businesses to over £100m in interest-free and unsecured loans, it was announced today. The move is intended to help more businesses survive the recession by cutting both their energy costs and their carbon footprints.
Thousands of small businesses have already slashed their annual energy bills, some by as much as 75%, by installing new energy-saving equipment paid for by Government-funded Carbon Trust loans.
Now the Carbon Trust has extended eligibility for the recently-expanded loan fund. The minimum loan amount has been lowered to just £3,000, putting the loans within reach of micro-businesses; the upper limit has been doubled from £200,000 to £400,000 to meet the needs of small and medium businesses with high energy spends, such as manufacturing companies.
The Carbon Trust expects to deliver over £100m in loan funding to UK SMEs over the next two years, including almost £84m in England allocated by the Government as part of Budget 2009.
In most cases, businesses taking a Carbon Trust loan to update their equipment find the savings they make on energy bills exceed the cost of the loan repayments. This means they benefit from brand new equipment, increased efficiency and reduced running costs, all at no expense to themselves. They also help to drive the UK’s move to a low carbon economy.
Read more: http://www.carbontrust.co.uk/News/presscentre/loans-expansion.htm
www.ukba.co.uk
Thousands of small businesses have already slashed their annual energy bills, some by as much as 75%, by installing new energy-saving equipment paid for by Government-funded Carbon Trust loans.
Now the Carbon Trust has extended eligibility for the recently-expanded loan fund. The minimum loan amount has been lowered to just £3,000, putting the loans within reach of micro-businesses; the upper limit has been doubled from £200,000 to £400,000 to meet the needs of small and medium businesses with high energy spends, such as manufacturing companies.
The Carbon Trust expects to deliver over £100m in loan funding to UK SMEs over the next two years, including almost £84m in England allocated by the Government as part of Budget 2009.
In most cases, businesses taking a Carbon Trust loan to update their equipment find the savings they make on energy bills exceed the cost of the loan repayments. This means they benefit from brand new equipment, increased efficiency and reduced running costs, all at no expense to themselves. They also help to drive the UK’s move to a low carbon economy.
Read more: http://www.carbontrust.co.uk/News/presscentre/loans-expansion.htm
www.ukba.co.uk
Monday, 15 June 2009
EU unveils micro-credit plan for small businesses
The European Commission unveiled plans to free up 100 million euros (142 million dollars) from the EU budget to provide credit to people wanting to set up small businesses.
When supplemented by funds from international financial institutions like the European Investment Bank group, the Commission said, around 500 million euros would be available for micro-credits.
The plan could help people struggling to find money because they are too young, have been unemployed or due to the credit crunch sparked by the global financial and economic crisis.
"This new facility will extend the range of targeted financial support to new entrepreneurs and help them to overcome the squeeze on credit," Commission President Jose Manuel Barroso told reporters.
Read more: http://www.eubusiness.com/news-eu/1244044932.35
www.ukba.co.uk
When supplemented by funds from international financial institutions like the European Investment Bank group, the Commission said, around 500 million euros would be available for micro-credits.
The plan could help people struggling to find money because they are too young, have been unemployed or due to the credit crunch sparked by the global financial and economic crisis.
"This new facility will extend the range of targeted financial support to new entrepreneurs and help them to overcome the squeeze on credit," Commission President Jose Manuel Barroso told reporters.
Read more: http://www.eubusiness.com/news-eu/1244044932.35
www.ukba.co.uk
Tuesday, 9 June 2009
Improvements and Changes to Major Grant Programmes
Proof of Market funding is now available.
Small scale projects lasting between 3 and 9 months
To carry out desk based research into the commercial potential of an idea, funding between £5,000 and £20,000 available
Provide support at 60% of eligible costs (maximum project cost £33,000)
For companies with less than 250 employees, a turnover of less than £34M or annual balance sheet total (total assets net of depreciation) of no more than £29M.
Development project grants:
Grants up to 35% of the R&D costs maximum grant £250,000, for companies with up to 250 employees and a turnover of less than £34M or an annual balance sheet total of £29M.
NEW ELEMENT - Grant up to 40% (maximum grant £250,000) for companies with less than 50 employee's and a turnover of less than £7.5M or an annual balance sheet total of £7.5M.
Exceptional project grants
Couple of changes here:
NEW ELEMENT - Exceptional Research Projects lasting between 6 and 36 months
For the development of a new technology that is strategically important to an industrial or technology sector, between £100,000 and £250,000
Provide support at 60% of eligible costs
For companies with less than 250 employees, a turnover of less than £34M or annual balance sheet total (total assets net of depreciation) of no more than £29M.
Capital Investment and Staff Cost Support.
Remember that there are significant Grant Support Programmes for SME companies that want or need support for capital investment (land, buildings, infrastructure and capital equipment) and also to increase and grow the number of staff employed.
www.ukba.co.uk
Small scale projects lasting between 3 and 9 months
To carry out desk based research into the commercial potential of an idea, funding between £5,000 and £20,000 available
Provide support at 60% of eligible costs (maximum project cost £33,000)
For companies with less than 250 employees, a turnover of less than £34M or annual balance sheet total (total assets net of depreciation) of no more than £29M.
Development project grants:
Grants up to 35% of the R&D costs maximum grant £250,000, for companies with up to 250 employees and a turnover of less than £34M or an annual balance sheet total of £29M.
NEW ELEMENT - Grant up to 40% (maximum grant £250,000) for companies with less than 50 employee's and a turnover of less than £7.5M or an annual balance sheet total of £7.5M.
Exceptional project grants
Couple of changes here:
NEW ELEMENT - Exceptional Research Projects lasting between 6 and 36 months
For the development of a new technology that is strategically important to an industrial or technology sector, between £100,000 and £250,000
Provide support at 60% of eligible costs
For companies with less than 250 employees, a turnover of less than £34M or annual balance sheet total (total assets net of depreciation) of no more than £29M.
Capital Investment and Staff Cost Support.
Remember that there are significant Grant Support Programmes for SME companies that want or need support for capital investment (land, buildings, infrastructure and capital equipment) and also to increase and grow the number of staff employed.
www.ukba.co.uk
Friday, 29 May 2009
Business lending remains weak
Lending to businesses remained weak in April, according to the Bank of England's Trends in Lending report. In particular, lending to firms in the wholesale and retail trades and the manufacturing sector fell sharply over the past year. The report also highlighted that approval rates for lending to small and medium-sized businesses are falling but added that some lenders are expecting availability of credit to improve over the next three months.
For more on this story go to:
http://www.bankofengland.co.uk/publications/other/monetary/TrendsApril09.pdf
www.ukba.co.uk
For more on this story go to:
http://www.bankofengland.co.uk/publications/other/monetary/TrendsApril09.pdf
www.ukba.co.uk
Tuesday, 19 May 2009
How to attract investors to your business
As access to 'traditional' sources of credit continues to be a problem for many small companies, 'alternative' sources of finance are becoming more attractive for many small business owners.
Before the banking crisis, most small companies could reply on their banks to provide borrowing facilities. These days, not only are borrowing terms less favourable than they were, but some banks have been arbitrarily slashing overdraft limits for businesses which are deemed to be 'risky bets'.
Alternative forms of finance include factoring (to free up the value of your invoices for a fee), and public sector initiatives such as the Enterprise Finance Guarantee Scheme (which has had mixed reviews to say the least).
As savings rates and stock market yields have tumbled in recent months, many investors may also consider investing in small businesses.
This form of investment presents an opportunity for small businesses seeking working capital or replacement to bank debt. It is more stable as capital cannot be withdrawn - whilst bank debt may be pulled at short notice.
At the same time, many small companies will benefit from the valuable advice and support that experienced investors can provide.
Here are some of our most popular guides to attracting investors:
Essential facts about business angels
http://www.bytestart.co.uk/content/finance/funding/business-angels-finance.shtml
Business plans for business angels
http://www.bytestart.co.uk/content/businessplans/30_2/business-angels-plan-1.shtml
How to secure business funding for start-ups http://www.bytestart.co.uk/content/finance/funding/business-funding.shtml
Source: Bytestart
www.ukba.co.uk
Before the banking crisis, most small companies could reply on their banks to provide borrowing facilities. These days, not only are borrowing terms less favourable than they were, but some banks have been arbitrarily slashing overdraft limits for businesses which are deemed to be 'risky bets'.
Alternative forms of finance include factoring (to free up the value of your invoices for a fee), and public sector initiatives such as the Enterprise Finance Guarantee Scheme (which has had mixed reviews to say the least).
As savings rates and stock market yields have tumbled in recent months, many investors may also consider investing in small businesses.
This form of investment presents an opportunity for small businesses seeking working capital or replacement to bank debt. It is more stable as capital cannot be withdrawn - whilst bank debt may be pulled at short notice.
At the same time, many small companies will benefit from the valuable advice and support that experienced investors can provide.
Here are some of our most popular guides to attracting investors:
Essential facts about business angels
http://www.bytestart.co.uk/content/finance/funding/business-angels-finance.shtml
Business plans for business angels
http://www.bytestart.co.uk/content/businessplans/30_2/business-angels-plan-1.shtml
How to secure business funding for start-ups http://www.bytestart.co.uk/content/finance/funding/business-funding.shtml
Source: Bytestart
www.ukba.co.uk
Thursday, 23 April 2009
£50m European Investment Fund available for technology companies
Michael Birch has joined forces with Lastminute.com co-founder Brent Hoberman to launch an investment fund aimed at putting European tech start-ups on an equal footing with their US counterparts.
European Founders Capital (EFC) will provide an initial £20m of funding to early-stage tech companies, rising quickly to £50m.
Birch, who sold social network Bebo to AOL last year for £418m, intends EFC to bridge a funding gap that’s previously limited the development of European tech businesses, and catalyse a US-style eco-system where tech entrepreneurs actively look to reinvest in emerging companies.
“We aren’t taking institutional money. All the money comes from founders; people who have done it before,” Birch told today’s Sunday Times.
Birch and Hoberman say EFC will fill the funding gap between business angels who typically invest between £50,000 and £250,000 and VCs, which tend to invest £1m-plus into ideas beyond initial concept stage.
They’re joined by Peter Dubens, who built up the Pipex broadband business sold to Tiscali for £210m in 2007 and Hoberman’s old friend Rogan Angelini-Hurll, the former city analyst who an turned down the chance to co-found Lastminute.
According to Hoberman, who more recently co-launched interiors site MyDeco.com, there couldn’t be a better time for EFC to launch: “We are going to see some great, disruptive companies coming out of this downturn,” he said.
www.ukba.co.uk
European Founders Capital (EFC) will provide an initial £20m of funding to early-stage tech companies, rising quickly to £50m.
Birch, who sold social network Bebo to AOL last year for £418m, intends EFC to bridge a funding gap that’s previously limited the development of European tech businesses, and catalyse a US-style eco-system where tech entrepreneurs actively look to reinvest in emerging companies.
“We aren’t taking institutional money. All the money comes from founders; people who have done it before,” Birch told today’s Sunday Times.
Birch and Hoberman say EFC will fill the funding gap between business angels who typically invest between £50,000 and £250,000 and VCs, which tend to invest £1m-plus into ideas beyond initial concept stage.
They’re joined by Peter Dubens, who built up the Pipex broadband business sold to Tiscali for £210m in 2007 and Hoberman’s old friend Rogan Angelini-Hurll, the former city analyst who an turned down the chance to co-found Lastminute.
According to Hoberman, who more recently co-launched interiors site MyDeco.com, there couldn’t be a better time for EFC to launch: “We are going to see some great, disruptive companies coming out of this downturn,” he said.
www.ukba.co.uk
Thursday, 19 March 2009
SME debtors increase by 40%
Overdue payments to small and medium-sized businesses in the UK increased by over 40% last year, taking the total that small companies are owed to over £25bn, according to research by Bacs Payment Schemes Limited.
The number of SMEs owed money across the UK increased from 51% in 2007 to 57% in 2008, and the national average of outstanding payments owed to small firms increased to £38,000 - up £8,000 from 2007.
Small businesses in the Midlands have been hit the hardest in the UK, with the average company in this region claiming overdue invoices amounting to just under £70,000.
"Late payment and bad debt are the scourge of business owners. Often, they are major factors behind businesses being forced to close," said Phil McCabe, spokesman for the Forum of Private Business.
"The amount of money owed to small firms has soared over the past year as big businesses seek to create credit lines for themselves by squeezing their suppliers. In addition, despite the Government's pledge to pay its suppliers within 10 days, public organisations continue to be among the worst culprits."
www.ukba.co.uk
The number of SMEs owed money across the UK increased from 51% in 2007 to 57% in 2008, and the national average of outstanding payments owed to small firms increased to £38,000 - up £8,000 from 2007.
Small businesses in the Midlands have been hit the hardest in the UK, with the average company in this region claiming overdue invoices amounting to just under £70,000.
"Late payment and bad debt are the scourge of business owners. Often, they are major factors behind businesses being forced to close," said Phil McCabe, spokesman for the Forum of Private Business.
"The amount of money owed to small firms has soared over the past year as big businesses seek to create credit lines for themselves by squeezing their suppliers. In addition, despite the Government's pledge to pay its suppliers within 10 days, public organisations continue to be among the worst culprits."
www.ukba.co.uk
Monday, 16 March 2009
European Investment Bank's €15bn fund for SMEs
In the current economic climate it is more important than ever to ensure that you are doing everything possible to increase your company's access to finance.
The European Investment Bank set up a €15bn fund in September, that the first UK banks signed up to in January, with the sole purpose of lending money to small and medium-sized firms at a discounted rate over the full term of the deal.
UK Banks signed up for the EIB's scheme include; The Royal Bank of Scotland/Natwest, Barclays Bank, Close Brothers, and most recently, Abbey. RBS is borrowing 250m, Barclays 150m and HBOS secured a 250m loan to lend to UK SMEs.
Any small and medium-sized business that employ less than 250 staff and have a viable business plan can apply to any of these banks for access to the EIB loan.
Find out more: click here.
www.ukba.co.uk
The European Investment Bank set up a €15bn fund in September, that the first UK banks signed up to in January, with the sole purpose of lending money to small and medium-sized firms at a discounted rate over the full term of the deal.
UK Banks signed up for the EIB's scheme include; The Royal Bank of Scotland/Natwest, Barclays Bank, Close Brothers, and most recently, Abbey. RBS is borrowing 250m, Barclays 150m and HBOS secured a 250m loan to lend to UK SMEs.
Any small and medium-sized business that employ less than 250 staff and have a viable business plan can apply to any of these banks for access to the EIB loan.
Find out more: click here.
www.ukba.co.uk
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