Peer-to-Peer Lending: The SME answer to borrowing for growth?
Posted: 24 February 2015 Filed under: Uncategorized | Tags: 2015, 2020, adrian wenn, B2B, BSK, business, crowdfunding, Event, finance, funding, growth, Kent, lending, LIVE, october, peer-to-peer, peer2peer, Vision, workshop Leave a commentFinance specialist Adrian Wenn from BSK-CiC takes a look at a new option for funding business growth that is rapidly growing in popularity: Peer-to-Peer Lending (also known as Crowdfunding).
The days are long gone when crowdfunding was dominated by young tech companies looking to fund the next big app.
Peer-to-peer lending has now become so mainstream that high street banks are even referring hopeful borrowers to some of the main crowdfunding platforms. However, understanding of how this type of lending works (and who it can work for) remains low among UK SMEs and their advisors.
David Cameron has been clear in his intentions to make sure UK businesses can efficiently access the finance they need to invest, grow and export – and all the politicians tell us how SMEs are vital to keeping strength in our economy. Yet sadly, too many businesses have poor experiences and low expectations of gaining finance from traditional sources and still feel that the external help they need is just not there.
For many smaller companies seeking the funds they require, the possibility of a loan application being declined by the bank or the prospect of endless forms to fill in and hoops to jump through can be highly discouraging.
Borrowing for growth is an important step when building a business, and retained profits alone are rarely enough to help a company really jump up to the next level. Whether it is for new premises, investment in better manufacturing equipment or acquiring specialist skills, those extra funds can often make all the difference: improved processes, new orders, faster production or more outlets all lead to more profitable businesses, which in turn lead to new jobs and a better local and national economy.
The rise of peer-to-peer lending means that many SMEs no longer need to worry about rejection because of their size, or the time it will take to be approved for a secured bank loan. Increasingly, they will have far more freedom and flexibility to access new finance as and when they need it.
Over the last five months, BSK has helped raise more than £1.25m for Kent companies through crowdfunding. These loans are usually raised within five days and have helped a number of clients to take opportunities they would otherwise have lost.
Crowdfunding is regulated, has its restrictions and is obliged to lend responsibly. So business owners still need to organise their paperwork properly, although there is usually far less of this to prepare and it is less detailed than a high street bank would demand.
The crowdfunding industry is growing up fast and it is helping to build strong, growing companies. In 2014, peer-to-peer lending surpassed £1.6 billion. And in 2015, it is expected to exceed £2.5 billion.
So as it becomes the norm to fund growth through peer-to-peer finance, you can start thinking of ways you can improve your business whenever you want.
To learn more about peer-to-peer lending and other alternative sources of business finance, please join Adrian’s free workshop at Kent 2020 Vision LIVE on 13th May at the Kent Event Centre.
Click here to reserve your place and receive the full schedule of workshops as soon as it is finalised.
All Aboard for Great Business Advice
Posted: 9 October 2014 Filed under: Uncategorized | Tags: 2014, 2020, advice, B2B, BSK, bus, business, Event, finance, funding, Kent, LIVE, mobile, natwest, neil hutchings, october, school, start-up, startup, Vision, workshop Leave a commentIf you want to find out more about running your own business, make sure you hop on board the NatWest Mobile Business School – housed in a converted double decker bus from the 1960s – when you visit Kent 2020 Vision Start-Up LIVE later this month.
Neil Hutchings, NatWest Director of Business Banking, said “We are delighted to be able to bring the Mobile Business School to this innovative event and to work alongside the local business community in Kent. The NatWest bus provides a unique way of taking support, advice and expertise out to future entrepreneurs, so please pay a visit on 22nd October.”
Sadly, you can’t use the bus to travel to the show, but you can use it to access a range of tools and information to help you start and expand your new business. when you visit Kent 2020 Vision Start-Up LIVE on 22nd October at the Kent Event Centre.
Click here to reserve your free place online.
Start-Up / Growth Finance and the Burrito Bond
Posted: 2 October 2014 Filed under: Uncategorized | Tags: 2014, 2020, adrian wenn, advice, B2B, BSK, burrito, business, crowdfunding, Event, finance, funding, Kent, LIVE, october, peer2peer, start-up, startup, Vision, workshop Leave a commentFinance specialist Adrian Wenn from BSK-CiC outlines some of the alternative finance options for new ventures and business growth
Funding your new venture is never easy, but getting it right is critical to the future success of your business. Sadly, obtaining finance from the conventional lenders can often be a stressful experience: multiple meetings, faceless credit committees and a slow time-consuming process.
With the Bank of England reporting that net lending to small and medium-sized enterprises (SMEs) reduced by over £1 billion in the first half of this year, you can be forgiven thinking that it is getting harder to raise cash for your business.
Despite numerous schemes and constant political pressure for banks to improve access to finance for businesses, credit conditions remain tight in the UK.
However, times are changing and there is now a multitude of options beyond family, friends, your credit card or the bank manager.
From the ashes of the credit crunch, new ways have emerged to help new and growing businesses find fast, fair and transparent finance. Crowd funding and Peer to Peer lenders provide online marketplaces which allows individuals and organisations such as the Government and local councils to bypass the banks and lend directly to small companies.
Crowd funding is one of the fastest growing sources of funding for businesses providing access to the financial markets which in the past were only available to large PLCs and multi-nationals. Funding is available from £5,000 into the millions.
The London Mexican food chain Chilango has just raised £2.2m via its Burrito Bond and Hugh Fearnley-Whittingstall’s River Cottage food and restaurant business raised £1m in just 36 hours.
According to the Peer2Peer Finance Association, £273m was lent in the three months to end-June 2014 and it estimates that £1bn will be lent this year compared to £950m in the previous three years combined.
There has also been significant growth in the number of specialist lenders operating in areas such as single invoice funding, trade finance solutions and property finance. The growth in the number and appetite of these specialist lenders was part of the reason why a record £18.9bn was lent by asset-based lenders in the three months to the end of June.
Banks will always exist in one form or another and will continue to be key providers of funding – but they are no longer a panacea for every financing requirement. Increasingly business owners are realising that there is a wider choice than ever before and they no longer need to have a relationship based on exclusivity with a bank.
To learn more about the many finance options now available, please join Adrian’s free workshop at Kent 2020 Vision Start-Up LIVE on 22nd October at the Kent Event Centre.
Click here for the full seminar schedule and online registration.
Fear of Failure: How to learn from others’ mistakes…
Posted: 22 September 2014 Filed under: Uncategorized | Tags: 2014, 2020, accounting, advice, B2B, BSK, business, Event, fear, financial, Kent, LIVE, october, rift, start-up, startup, sue nelson, Vision, workshop Leave a commentDo you dream of becoming your own boss? Well what’s stopping you? In a free workshop at Kent 2020 Vision Start-Up LIVE on 22nd October, Sue Nelson from RIFT Accounting will highlight the most common reasons for failure – so that you can avoid them.
When reading the financial pages of the daily newspapers or listening to the business news on TV, it’s easy to believe that big businesses are the key to the economy; driving us forward and providing employment to the masses. But this simply isn’t true.
Of the 4.8 million private sector businesses in the UK, 99.9% are SMEs (Small and Medium Enterprises) of which 75% are self-employed people (that’s 3.67 million) and 20% employ less than 9 staff (just under 1 million small businesses).
The real employers and engine room of the recovery are these unsung heroes who set up on their own. Yet a fear of failure means that many potential entrepreneurs never take that first step towards achieving their dream.
It’s not surprising they’re afraid. Being a UK startup is not for the faint of heart: 20% of businesses fail within the first year and another 50% will not survive the next three years. So, of the 330,000 new businesses set up in the last year, less than 100,000 will survive in the medium-to-long term.
But what about that dream? The one where you do something you love instead of sitting at your computer for another dreary day? The one about making that small fortune?
Don’t despair just yet. According to ONS and the Department for Business, Innovation & Skills (BIS), here are some other facts that don’t get mentioned on the news:
- Last year 37% of new businesses were started up by women
- 60% of new businesses are being set up from home
- 33% are in London and the South East
The Financial Times Guide to Business Start Up found that one-in-five failed businesses would still be trading if they had sought better financial advice and support at the outset, with the most most common reasons for failure being:
- Lack of information on financial performance: You must understand your finances so if there are any underlying problems you can take corrective action in time.
- Turnover-led instead of profit-led: Don’t be tempted to concentrate on maximising sales instead of focusing on controlling costs and increasing profits.
- Taxation and legislation: Don’t get into trouble with the ‘authorities’ – understand your responsibilities at Companies House and with HMRC.
- Cashflow: Monitor and control debtors and creditors in order to keep cash flowing through the business.
So if you have a great idea and real passion for your new venture, what can you do to overcome the fear of failure and ensure that, when you make that leap, you are one of those who succeed? The best way if to actively seek specialist advice and support during the setting up process. If you are going to become a start-up hero there is no such thing as a stupid question and Kent 2020 Start-Up LIVE provides a perfect opportunity to find out all you need to know.
It is also a great place to gain practical insights on branding, social media, marketing and funding, so that you can get off to a flying start when you make that exciting first step towards becoming your own boss.
Sue Nelson is the Director of RIFT Accounting and will be hosting a jargon-free workshop from 10.20-10.50am at Kent 2020 Vision Start-Up LIVE. Join her on Wednesday 22nd October to find out all you need to know about starting a business but were too afraid to ask.
Click here for the full seminar schedule and online registration.
Exclusive appearance: Johnstone Midget Coach
Posted: 4 May 2014 Filed under: Uncategorized | Tags: 2014, 2020, B2B, brighton, BSK, business school, Centre, culture, dave francis, evening, Event, Exhibition, innovate, innovation, Kent, LIVE, management, may, process, Vision, workshop Leave a commentYou will spot a unique piece of automotive history at this year’s Kent 2020 Vision LIVE, in the shape of a beautiful 1950 Harrington 1:25 scale coach…
Making a special appearance at the Kent 2020 Breakfast Cafe and throughout the show on the SEC Signworks stand, the Johnstone Midget Coach has been lovingly restored by South East Coachworks‘ skilled team of craftsmen and apprentices.
Previously used as a tourist attraction along Brighton seafront until the 1960s, this extremely rare vehicle is fully petrol powered but seats just two passengers, sitting in a single row behind the driver.
Visitors can hear the full story behind this fascinating vehicle by visiting SEC Signworks on their outdoor stand at the show, situated between the newly built exhibition hall and the Clive Emson building (where the free keynotes and workshops take place).
Click here to book your FREE place online!
Kent 2020 Vision LIVE 2014, 14th May 2014, Kent Event Centre (County Showground)
Free workshops on intellectual property, design and pro-active innovation
Posted: 24 April 2014 Filed under: Uncategorized | Tags: 2014, 2020, B2B, copyright, design, design council, Event, Exhibition, free, growthaccelerator, innovation, intellectual property, Kent, LIVE, management, may, patent, trademark, Vision, workshop 1 CommentVisitors can attend special workshops presented by experts from The Design Council, GrowthAccelerator and the Intellectual Property Office (amongst others) at next month’s Kent 2020 Vision LIVE.
The FREE workshop programme runs throughout the day alongside the main Kent 2020 event, providing illuminating advice on key issues and challenges for all businesses hoping to use innovation to help them grow as the economic recovery continues to gather momentum. Here are just a few of the highlights from the full programme on 14th May…
11.30am-12.00pm: Using Design as a Tool for Business Growth
Join the Design Council to learn how design can aid business growth and drive innovation when used strategically within a business. This session will introduce the government-funded Design Leadership Programme from the Design Council, designed to show how the use of design can helping you to reach new customers, open new markets and improve the bottom line.
12.15-12.45pm: Growth Through Innovation – What Type of Innovator Are You?
Innovation means different things to different types of businesses: from the development of new products, services or market segments, to internal process or efficiency improvements that may be completely invisible to customers. Mark Addy from GrowthAccelerator explores the key routes to pro-active innovation, illustrating these with successful real-life examples.
3.00-3.30pm: An Introduction to Trade Marks, Copyright, Designs and Patents
Every business will own Intellectual Property – the name you trade under, the look or the function of products you make or use, even the brochures you create to promote your business. All these elements can be protected if they are important to your business and the Intellectual Property Office can help you understand how patents, trademarks, designs and copyright can prove an asset to your business.
These concise 30-minute briefings will provide an excellent introduction to these key areas of innovation, providing you with practical tools and insights to help your business succeed. You can view the full schedule of workshops and keynotes online at http://www.kent2020live.co.uk, including additional workshops on Social Media, Business Funding, Customer Segmentation, R&D Tax Credits, Health & Safety and Apprenticeships.
Pre-book your places now by clicking here to register for Wednesday 14th May.
How do successful companies manage innovation?
Posted: 19 March 2014 Filed under: Uncategorized | Tags: 2014, 2020, B2B, brighton, BSK, business school, Centre, culture, dave francis, evening, Event, Exhibition, innovate, innovation, Kent, LIVE, management, may, process, Vision, workshop 1 CommentA free workshop by an acclaimed thinker will help attendees to understand the ‘process’ of innovation at this year’s Kent 2020 Vision LIVE…
Contrary to common belief, a study of 107 highly innovative companies has recently revealed that there is no such thing as a standard ‘innovation culture’. Rather, innovative companies succeed in combining opposites: they are creative but disciplined, optimistic but cautious and agile but structured.
Visitors to Kent 2020 Vision LIVE can find out more on 14th May by joining a free workshop presented by Dr Dave Francis from the Centre for Research in Innovation Management at Brighton Business School (part of the University of Brighton).
This concise 30-minute briefing will introduce the Centre’s research-based approach to managing innovation effectively, providing you with practical tools and insights to help your business pro-actively innovate more often.
Join Dr Francis on Wednesday 14th May by clicking here to book your place now!
Kent 2020 Vision LIVE 2014, 14th May 2014, Kent Event Centre (County Showground)