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Business Lending set to hit a seven-year low

By David Yates on August 7, 2013 / Blog Post, business, Investment / Leave a comment

Business lending is on course to slump to its lowest level for seven years, a recent report warns. UK banks will lend £422billion to British firms this year – the lowest amount since 2006. This is well below the £575billion lent in 2008 before the financial crisis. The recent figures from Ernst & Young underline the crisis facing companies as banks starve them of the funds they need to prosper which poses a serious threat to the economic recovery. The report also warns that lending will not return to its pre-recession

Are Santander and Funding Circle set for a tie-up?

By David Yates on August 7, 2013 / Blog Post, business, Crowdfunding, Investment / Leave a comment

Santander is trying to enter the rapidly growing lend to save market and team up with one of its biggest players, Funding Circle, some reports have claimed. The UK arm of the Spanish bank is in discussions with Funding Circle – which lends money from private investors direct to to small and medium-sized businesses – in a move which could undermine the sector’s position as an alternative to the big banks. According to the Financial Times, Funding Circle’s ability to tap into the balance sheet of one the UK’s biggest

SEIS contributes to surge in use of government funding schemes

By David Yates on July 24, 2013 / Blog Post, business, Investment, SEIS / Leave a comment

Government funding schemes are attracting increased interest from start-up companies in the UK. The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Schemes (SEIS) are being used a whole lot more. According to recent figures released, the number of companies which applied to HMRC for approval under EIS and SEIS rose from 2,147 in 2011/12 to 4,075 in 2012/13. At 4oceans we would point to changes brought in back in April 2012 which expanded the scope of EIS, and saw SEIS introduced as the catalyst helping to increase awareness and

Companies Should Prepare in Advance for Due Diligence

By David Yates on June 28, 2013 / Blog Post, business, M&A / Leave a comment

M&A activity is heating up across the TMT sector and I am seeing a stream of transactions within my client base, but 2 recurring themes keep popping up which may scupper that all important deal – an approach or opportunity that arises very unexpectedly, and companies which are just not prepared for the Due Diligence process. This is particularly important in a hot M&A climate because success often means being prepared, in advance, to move through the deal process in an organised and timely fashion. Being ready and prepared for

Five Tips for a Successful Crowdfunding Campaign

By David Yates on June 11, 2013 / Blog Post, business, Crowdfunding, Investment / Leave a comment

We all have great ideas from time to time. The difference is that some of us know what to do in order to take it into the next level and some of us don’t. The good news is that help is now at hand if financing is the only problem that is holding you back. Crowdfunding is a fantastic way of turning your bright ideas into something real, and here are some ideas on how you can do this successfully. 1. Don’t Look for Sympathy You want to get hold

What is Funding for Lending?

By David Yates on June 11, 2013 / Blog Post, business, Investment / Leave a comment

We have probably all heard about the Bank of England’s Funding for Lending scheme, but do you actually know what it is? Funding for Lending allows banks to swap assets such as existing loans with the Bank of England in exchange for gilts, which they can then use to borrow money for their lending at close to base rate. They pay a small fee to access the scheme, of 0.25 per cent per year. This will remain the same if they keep grow net lending or keep it stable. If

Soros logs on to ultra-fast broadband

By David Yates on June 9, 2013 / Blog Post, Investment, telecom / Leave a comment

A tiny London broadband provider with just 49 employees has secured heavyweight backing from George Soros in a plan to roll out ultra-fast broadband internet connections to half a million British homes. Hyperoptic, founded in 2011 by Boris Ivanovic, a Serbian entrepreneur, claims to provide internet speeds of a gigabyte a second — 83 times as fast as the national average. The privately owned business has completed a £50 million fundraising with the bulk of the money coming from Quantum Strategic Partners, a vehicle that invests on behalf of Mr

Bank of England says lending falls again sharply but will improve later this year

By David Yates on June 4, 2013 / Blog Post, business, Investment / Leave a comment

Banks have taken over £16.5bn in cheap “Funding for Lending” cash but actual lending falls another £300m last month and still the Bank of England says things will improve as rates kick in. Do we really believe that? Lending by banks and building societies fell by £300m in the first three months of this year, despite access to cheaper funds through the Government’s Funding for Lending scheme. Since its launch last August Banks have drawn down £16.5bn of cheap funds from the Funding for Lending scheme, but total net

M&A fever epidemic hits UK Telecoms sector

By David Yates on May 20, 2013 / Blog Post, business, Investment / Leave a comment

There seems to be no end to the M&A fever in the Telecoms reseller marketplace in the UK and it seems to have reached epidemic proportions with new “deals” being announced almost daily. But what is driving all of this activity? The simple answer is that the major Banks have woken up to a sector which historically has generated very strong cash flows and have started to lend again. As reported in Comms Dealer recently, Chess Telecom has strengthened its role in the acquisition marketplace with a further £10 million facility

Banks accused of sabotaging deals via Crowdfunding sites

By David Yates on May 20, 2013 / Blog Post, business, Crowdfunding, Investment / Leave a comment

Banks have been accused of deliberately making it difficult for small businesses to borrow via crowdfunding sites by delaying paperwork and charging high fees. Crowdfunding sites like Funding Circle, which has arranged more than £100million of lending to firms, said that it is dealing with several cases of firms forced to wait months to receive funding because of hold-ups by high street banks. The problems arise because most loans arranged through crowdfunding sites require a charge over the firms assets in the event that the firm defaults on the loan.