Continuing economic uncertainty means most businesses are still cautious about raising finance in 2013, research finds. According to a study of 800 business leaders by YouGov on behalf of Baker Tilly, more than 80 per cent of businesses that raised finance over the last 12 months had turned to their bank to meet those funding requirements. However, despite the generally positive attitude towards banks revealed by the study, businesses are still very cautious about increasing their debt. Fewer than one in four say they plan to raise finance this year,
Read more →In January 2013, the amount business owners will be able to write off as tax-deductible capital expenditure in the year of purchase will increase from £25,000 to £250,000. This is a massive boost and far more significant than the previous government’s attempt at encouraging investment amongst business owners. Back in April 2010 the relief was £100,000, which was also generous, but not perhaps quite large enough to enable a lot of companies to write off all their capital purchases in the first year. This new limit however will achieve
Read more →Daisy is a shopaholic. In its brief history, the business telecoms group has bought 18 companies. This has come at a cost. Customer churn has meant the group is consistently in the red. It was a similar story this half, as losses accelerated due to mounting amortisation costs. Cash conversion improved, however, which should provide some relief for investors. Daisy’s shares currently trade on a forecast price/earnings ratio of 6.5, below the sector average and TalkTalk’s on 13.9. Unlike TalkTalk, though, Daisy does not pay a dividend, however, it has promised to
Read more →Most business would fold in less than three months without an overdraft despite the facility being reined in, ABN AMRO Commercial Finance says. Findings from its study reveal that 71 per cent of small and medium sized businesses SMEs have seen overdraft limits reduced by finance providers, while 86 per cent have seen overdraft fees rise. However, the statistics also show that 48 per cent rely heavily on the finance option to keep the business operating. Some 89 per cent of respondents admit that their business would only last
Read more →Small and medium sized business SMEs in the UK are increasingly turning to alternative forms of finance to fuel operations, with the use of credit cards growing. Personal savings and credit cards are becoming more common forms of SME capital, findings from Western Union show. The money transfer services International Trade Monitor reveals that access to credit continues to be a worry for SMEs, with 30 per cent saying that its is a top concern. The research also finds that 21 per cent are turning away from banks and actively
Read more →Findings from online lending platform Funding Circle show that seven in ten people in Britain would be prepared to invest in UK companies. The survey from Funding Circle, a business which was set-up in August 2010 and has allowed businesses to borrow £40 million, shows that £72 billion could be injected into the UK economy. Breaking the statistics down further reveals that the average saver is prepared to invest £2,080 into businesses looking for finance. The study, compiled by OnePoll on behalf of Funding Circle, reveals that almost two thirds
Read more →Findings from the latest Business Insolvency Index from Experian shows that every UK region besides the North East, East Midlands and Eastern posted a decrease in the number of business insolvencies in July. The biggest fall in England was recorded in the South East where 249 companies entered insolvency, a decrease of 19.4 per cent. Within the UK, Scotland has seen the sharpest improvement. The UK region, which traditionally has some of the lowest insolvency rates, saw 65 businesses fall away in July, a fall of 25.3 per cent over
Read more →Details of a new scheme to help make £80 billion of loans more accessible and cheaper for households and businesses have been announced by Bank of England and the Treasury today. George Osborne, the Chancellor, and Sir Mervyn King, Bank of England Governor, first revealed the “funding for lending” scheme last month, under which the Bank of England will give banks cheap access to finance if they then lend in turn to cash-strapped businesses and home-buyers. via Bank reveals cheaper loan scheme | The Times.
Read more →Findings from GrowthBusiness’ M&A on AIM 2012 reveal that although the number of acquisitions and disposals only grew by one, spend on deals climbed 50 per cent to nearly £2 billion. The report, sponsored by Crowe Clarke Whitehill and Howard Kennedy, finds that that M&A activity has grown despite AIM’s population diminishing by 6 per cent over the past 12 months. Deal figures for the first quarter of 2012 showed a similar number of acquisitions over the same period in 2011, and a surge of 31 per cent to £362
Read more →With all the talk about Barclay’s, and soon other banks we presume, manipulating LIBOR, I have had many people asking me what it is they actually did. I found this article in the Times which explains what LIBOR is and what Barclay’s were accused of doing. Essentially Barclay’s reduced its LIBOR rate dramatically towards the end of 2008, giving the impression that it was stronger than other banks, increasing its exposure and in the end making larger profits for itself. LIBOR is calculated as an average rate of the 16
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