Alternative finance is badly named. This label suggests that opting for financing routes without involving the big banks is unconventional or “out there”.
But that’s certainly no longer the case, as people increasingly recognise the benefits of these smaller, more nimble businesses.
Last year, around £15bn was pumped into British SMEs from alternative finance firms – an indication of how mainstream the sector has become. And it’s more than just the funding gap that’s prompting this surge, because people are now realising that they can get a speedy service which simply isn’t feasible when going through the banking channels.
In the past, businesses only approached the alternative sector for funding when banks turned them down, but even that is starting to shift.
Read the full article at: http://www.cityam.com/271232/why-alternative-finance-now-mainstream
Every year, tens of thousands of small businesses see their loan applications refused by the big banks.
In fact, figures from the British Business Bank (BBB) indicate that this amounts to around £4bn in loans annually – a staggering figure when you consider that this is preventing businesses from being able to reach their full potential.
SMEs are expected to contribute £241bn to the British economy by 2025, up 19 per cent from last year’s figure of £202bn, according to research from challenger bank Hampshire Trust Bank and the Centre for Economics and Business Research.
So we shouldn’t underestimate how important SMEs are to the economy. And yet many companies are in dire need of finance, which is stunting their growth, and hindering job creation in the process.
Read the full article at: http://www.cityam.com/273886/gbp4bn-problem-stunting-sme-growth-
Business owners that remain cautious with regards to business funding, could be restricting their ability to grow.
The majority of SMEs do not trust traditional lenders to support their businesses according to two disparate reports.
Last week, BDRC issued its latest SME finance monitor, which showed that 8 out of 10 SMEs are refusing to apply for new finance as a result of Brexit uncertainty.
Despite ongoing uncertainty, the report clearly shows SME appetite for growth remains strong, with 45 per cent of small businesses stating they have plans to expand in the coming year, says Mark Sismey-Durrant, Hampshire Trust Bank’s CEO.
Read the full article at: http://www.growthbusiness.co.uk/british-businesses-hesitating-take-new-funding-research-2552298/
The UK’s biggest peacetime repatriation operation has been launched to bring home 110,000 holidaymakers after Monarch Airlines was placed into administration.
A total of 300,000 future bookings were cancelled as result of the firm’s collapse, the largest to hit a UK airline, and Monarch passengers were told not to go to airports because there would be no more flights.
The Civil Aviation Authority (CAA) said it was working with the government to secure a fleet of more than 30 aircraft, flying to more than 30 airports, to bring the stranded tourists back to the UK.
“We know that Monarch’s decision to stop trading will be very distressing for all of its customers and employees,” Andrew Haines, Chief Executive of the CAA, said.
Read the full article at:http://www.telegraph.co.uk/news/2017/10/02/monarch-airlines-goes-administration-leaving-110000-holidaymakers/
BRUSSELS (Reuters) – European Union regulators approved a British plan allowing bailed-out Royal Bank of Scotland to support smaller alternative banks with funds totaling around 835 million pounds ($1.1 billion) to encourage competition.
The British government struck a deal with the European Commission in July for the plan, after RBS was unable to sell business banking unit Williams & Glyn and failed to meet one of the conditions of its 45 billion pound bailout.
The deal is significant for RBS as it ends the bank’s state aid commitments which is considered a major milestone on its path to recovery as well as its ability to pay dividends again.
see more at: http://www.businessinsider.com/r-eu-gives-nod-to-rbs-competition-plan-lifting-state-aid-curbs-2017-9?IR=T
The City watchdog is to launch a crackdown on peer-to-peer (P2P) lending in a move designed to protect investors from platforms that do not provide sufficient financial information to investors.
The Financial Conduct Authority (FCA) is understood to be considering much tougher curbs in a long-delayed review of the crowdfunding industry in the early autumn. It is understood to be ready to demand that platforms such as Funding Circle and Ratesetter provide more detailed information on the past performance of loans. P2P lenders may also have to be clearer about how much due diligence is carried out on companies looking to borrow money on their sites.
P2P has grown rapidly over the past decade as businesses seek alternative forms of finance. The services, which pool investors’ cash and lend to businesses and consumers, have been accused of masking the true performance of the loans. Some have reduced lending rates, leading a number of investors to question whether they are being properly rewarded for the risks they take.
It is understood the FCA has singled out the industry for scrutiny, raising concerns that a valuable source of finance for start-up businesses could be stifled.
See more at: https://www.thetimes.co.uk/article/watchdog-to-crack-down-on-peer-to-peer-lenders-cfg5sxzkm?shareToken=c62ac46264656693a3839dbaca55b73e
A report from Siemens Financial Services shows that late payments cause UK SMEs to miss out on over £250 billion of liquid cash flow every year.
Unpaid invoices and the costs associated with companies pursuing customers’ payments, as well as long payment terms, mean that SMEs in the UK are missing out on over £250 billion of liquid cash flow every year. Integral to the UK economy, SMEs account for 47 per cent of all private sector turnover.
Delayed payments from customers can threaten SMEs’ ability to trade, stifle appetite for growth and recruitment and, in the worst cases, lead to insolvencies. As a consequence, leaving SMEs to cope with the problem is harming the economy as a whole.
Read the full article at: http://smallbusiness.co.uk/late-payments-uk-smes-2539988/
1.Work on your handshake: Don‘t offer up a flimsy or sweaty hand. Instead, when you meet with prospective employers or interviews, offer a firm handshake, with one or two pumps from the elbow to the hand. It‘s a good way to illustrate your confidence and start the interview off on the right note.
2.Get serious: If you take a casual approach to the initial interview with a company, especially with a screening interviewer from the human resources department, you may be sealing your fate. Job seekers should treat every interview as if it‘s their one and only chance to sell themselves to the recruiter.
3.Get the practice: If you find yourself being offered an interview for a job you are not really interested in, go on the interview anyway; you can make contacts for future job opportunities and get valuable interview practice.
4.Be enthusiastic: Bring a positive attitude to your interview. Most interviewers won‘t even give a second thought to someone who has a negative presence or seems like they almost need to be talked into the job. “You‘re selling yourself, and part of you is the positive approach you‘ll bring to the office every morning,” says Alison Richardson, a recruiter for several New York financial firms. “That smile and friendly demeanor go a long way.”
See more at: http://theundercoverrecruiter.com/how-to-impress-your-interviewer/
The use of invoice finance by UK and Irish businesses has risen by more than £8 billion in the 10 years since the credit crunch, new research shows.
According to the Asset Based Finance Association (ABFA), the body representing the invoice finance and asset-based lending industry in the UK and the Republic of Ireland, there was a record high of £22.2 billion of asset-based finance advanced to client businesses at the close of Q4 2016, compared to £14.1 billion in Q1 2007.
The ABFA adds that over the same period, outstanding traditional businesses loans have fallen 8% from £440.7 billion in January 2007 to £406.9bn in December 2016. The current figure is 31% below the peak for business loan books, which reached £591.4 billion in January 2009.
Read the full article at: http://www.assetfinanceinternational.com/index.php/global-news/news-emea/emea-articles/15295-use-of-invoice-finance-rises-8bn-in-a-decade
CYBG PLC, owner of Clydesdale and Yorkshire Banks, is making a minimum of £6 billion of lending available from 2017 to 2019 to help fuel the growth of small and medium sized businesses in the UK. The Bank’s long-term commitment to lending includes significant amounts of finance available across the UK economy through 2017.
£1 billion available to support the day-to-day finance needs of SMEs.
£350 million targeted at providing facilities for medium sized businesses seeking finance for growth up to £200 million in lending available to SMEs in the agriculture sector supporting the UK’s rural economies.
£650 million available to support our other key sectors that provide lending for major property purchases, financial services and the UK’s industrial base.
What businesses want:
The survey also indicates that of those SMEs seeking finance from a bank:
24 per cent intend to use the finance to hire new staff
20 per cent plan to invest in new infrastructure or capital equipment
20 per cent plan to buy or refurbish premises
18 per cent would use new finance for working capital
9 per cent say they would invest in Research & Development.
Read more at: http://smallbusiness.co.uk/smes-challenges-access-finance-banks-2537961/
LONDON — Britain’s booming fintech sector is facing a skills shortage, according to exclusive data provided to Business Insider, with many job listings going unfilled after two months.
Data from job listing site Indeed.com, one of the world’s biggest recruitment websites, shows that mechanical & engineering project managers are the hardest jobs to fill in British fintech, with 31% of vacancies going unfilled after 60 days.
All of the other 10 hardest jobs to fill have at least 20% of listings unsatisfied after 60 days.
The stats will worry many in the Fintech sector, which has been a key area of growth in the UK economy in the years since the financial crisis. Last month Chancellor Philip Hammond said in a release announcing the Treasury’s first-ever Fintech week: “The Fintech sector is one of our fastest growing sectors, adding more than £6.6 billion into the UK’s economy and attracting more than £500 million of investment.”
See more at: http://uk.businessinsider.com/hardest-fintech-jobs-to-fill-in-uk-according-to-indeedcom-2017-3
Alternative, or non-bank, lending got a big boost in 2008 when the mortgage meltdown caused banks to roll up their welcome mats. In that era of recriminations, no bank wanted to go out on a limb and lend to anyone other than the most creditworthy customers. Today, businesses have learned that alternative lending, which includes commercial business loans, factoring, peer-to-peer lending and crowdfunding, can solve many problems quickly and efficiently without a lot of the delay and paperwork associated with bank loans.
Still, some business owners have negative misconceptions about alternative lending, so we’d like to clear them up:
Only bank-rejects apply to alternative lenders:
While it’s true that many businesses find it easier to qualify for a loan from an alternative source than from a bank, many owners prefer dealing with alternative lenders, as they tend to be more flexible, less judgmental and faster to respond. Many alternative lenders do not require collateral, can process an application in a few hours, and fund a loan within a day or two. One feature that IOU Financial borrowers truly appreciate is daily automatic repayment, which means a business doesn’t have to face a large monthly payment that can disrupt the business’ cash position.
Read more at http://www.business2community.com/finance/5-common-misconceptions-alternative-lending-01781141#VWAd0a3Ou0wHkck8.99