Tag Archive for Alternative finance

Hot Business News Today

Pitalia Capital to invest £50m in small businesses

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By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Pitalia Capital has launched a £50m equity fund to invest in small businesses across Britain.

The money will be used either to fund growth for early stage companies or to back management buyouts of mid-sized firms.

The fund can deploy up to £10m per transaction.

>See also: Forward Advances wants to lend £250m to small businesses by 2023

Pitalia Capital is part of the Pitalia group of companies and funded by entrepreneur Anil Pitalia.

John Davies, who has more than 20 years’ experience in venture capital, private equity and corporate finance, has been recruited from Seneca Partners as managing partner to spearhead this small business investment drive.

Davies was investment director at Seneca Partners for six years, where his deals included its exit from digital business communications specialist Mission Labs in a deal valued at £40m, giving Seneca a 4.2x return for investors.

>See also: How to win a £25,000 Business Boost grant for your small firm

He was also deeply involved in Seneca Partners’ investment in Manchester-based Wejo, the connected vehicle data company, which recently announced plans for a $1bn Nasdaq listing.

Davies said: “What makes Pitalia Capital different is our personal approach

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Hot Business News Today

Pitalia Capital to invest £50m in small businesses

by  •  • 0 Comments

By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Pitalia Capital has launched a £50m equity fund to invest in small businesses across Britain.

The money will be used either to fund growth for early stage companies or to back management buyouts of mid-sized firms.

The fund can deploy up to £10m per transaction.

>See also: Forward Advances wants to lend £250m to small businesses by 2023

Pitalia Capital is part of the Pitalia group of companies and funded by entrepreneur Anil Pitalia.

John Davies, who has more than 20 years’ experience in venture capital, private equity and corporate finance, has been recruited from Seneca Partners as managing partner to spearhead this small business investment drive.

Davies was investment director at Seneca Partners for six years, where his deals included its exit from digital business communications specialist Mission Labs in a deal valued at £40m, giving Seneca a 4.2x return for investors.

>See also: How to win a £25,000 Business Boost grant for your small firm

He was also deeply involved in Seneca Partners’ investment in Manchester-based Wejo, the connected vehicle data company, which recently announced plans for a $1bn Nasdaq listing.

Davies said: “What makes Pitalia Capital different is our personal approach

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Hot Business News Today

Business finance options for UK construction firms

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Originally written by fundingoptions on Small Business
Despite the pandemic, the construction industry is growing at its fastest rate since 2014, according to the latest IHS Markit/CIPS Construction Purchasing Managers’ Index (PMI).
This trend is set to continue. Building works for both residential and commercial properties have continued throughout the last 12 months and more are in the pipeline as demand rises.
However, this surge in demand for construction services, alongside factors such as increased shipping costs, has left construction materials, including cement, some electrical components, timber, steel and paints, in short supply.
The Federation of Master Builders says this means some building companies may have to delay projects and others could close entirely.
Fortunately, there are lots of construction finance options out there to help affected firms manage their cash flow and pay suppliers and staff during this busy period.
What is construction finance?
Construction finance is a type of business finance designed for building contractors, sub-contractors and other companies operating in the construction industry.
Lack of funds can lead to delays which ripple down the supply chain. Construction finance provides businesses with the capital they need in order to fund their building projects.
Think of it as a kind of funding bridge: a solution to cover costs

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Hot Business News Today

Business finance options for UK construction firms

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Originally written by fundingoptions on Small Business
Despite the pandemic, the construction industry is growing at its fastest rate since 2014, according to the latest IHS Markit/CIPS Construction Purchasing Managers’ Index (PMI).
This trend is set to continue. Building works for both residential and commercial properties have continued throughout the last 12 months and more are in the pipeline as demand rises.
However, this surge in demand for construction services, alongside factors such as increased shipping costs, has left construction materials, including cement, some electrical components, timber, steel and paints, in short supply.
The Federation of Master Builders says this means some building companies may have to delay projects and others could close entirely.
Fortunately, there are lots of construction finance options out there to help affected firms manage their cash flow and pay suppliers and staff during this busy period.
What is construction finance?
Construction finance is a type of business finance designed for building contractors, sub-contractors and other companies operating in the construction industry.
Lack of funds can lead to delays which ripple down the supply chain. Construction finance provides businesses with the capital they need in order to fund their building projects.
Think of it as a kind of funding bridge: a solution to cover costs

Read more...

Hot Business News Today

Forward Advances wants to lend £250m to small businesses by 2023

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Originally written by Timothy Adler on Small Business
Forward Advances, the merchant cash advance provider, wants to provide £250m worth of cash to small businesses in the e-commerce space by 2023.
The lender, which set up in April 2020, is one of a new wave of small business funders base lending decisions based how much you are selling each month. In recent months Clearbanc and eBay have both launched their own versions of what’s known as merchant cash advance in Britain, while PayPal has been offering it for some time.
By tying its technology to your bank data, accounting software or social media ad accounts, a lender has a real-time view of your monthly income. This means repayments fluctuate as a percentage of income, rather than being a fixed amount each month like a bank.
>See also: One third of small businesses turn to Bank of Mum and Dad
Although well-established in America and in Sweden, where the concept originated, merchant cash advances are still a relatively new concept in Britain.
Hasam Silva, managing director of Forward Advances, said: “In the US merchant cash advance or revenue-based financing is a well-understood product but, in the UK, less so. Half of all founders I spoke to last

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Hot Business News Today

Forward Advances wants to lend £250m to small businesses by 2023

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Originally written by Timothy Adler on Small Business
Forward Advances, the merchant cash advance provider, wants to provide £250m worth of cash to small businesses in the e-commerce space by 2023.
The lender, which set up in April 2020, is one of a new wave of small business funders base lending decisions based how much you are selling each month. In recent months Clearbanc and eBay have both launched their own versions of what’s known as merchant cash advance in Britain, while PayPal has been offering it for some time.
By tying its technology to your bank data, accounting software or social media ad accounts, a lender has a real-time view of your monthly income. This means repayments fluctuate as a percentage of income, rather than being a fixed amount each month like a bank.
>See also: One third of small businesses turn to Bank of Mum and Dad
Although well-established in America and in Sweden, where the concept originated, merchant cash advances are still a relatively new concept in Britain.
Hasam Silva, managing director of Forward Advances, said: “In the US merchant cash advance or revenue-based financing is a well-understood product but, in the UK, less so. Half of all founders I spoke to last

Read more...

Hot Business News Today

Using Islamic finance for your small business – what is it?

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Originally written by Timothy Adler on Small Business
What is Islamic finance?
Islamic finance is a means of funding or banking money in a way that respects the principles of Sharia law, guided by Islamic economics. In Arabic, Sharia means the clear, well-trodden path to water. The fundamental principle of Islamic finance is to avoid any financial activities which could be deemed either harmful (Haram) or risky for the user.
The main difference between Islamic finance and standard finance is that charging interest in forbidden. Conventional banks and lending facilities earn money by charging fees and monthly interest charges for borrowers.
The principle features of Sharia-compliant finance are:

A ban on what the Koran refers to as “riba” and we would call paying interest
Sharing losses as well as profits

What is Sharia-compliant finance?
Sharia-compliant finance bans excessive risk or uncertainty, as well as restricting any form of gambling or speculation.
Businesses involved in the activities below cannot use Islamic finance:

Alcohol
Gambling
Tobacco
Pork
Entertainment such as music, TV or cinema
Pornography
Arms sales

Do you have to be Muslim to use Islamic finance?
No, you do not have to be Muslim as long as your business is halal (allowed) or promotes a social good.
What kind of small business suits Islamic finance?
Islamic finance dictates that a business

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Why Rishi Sunak is going to be good for small business

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Originally written by Timothy Adler on Small Business
Forget about the fact that you probably could not have a finer education – our new chancellor won a scholarship to Winchester College, a dauntingly intellectual public school – where he became head boy – followed by graduating with a first in politics from Oxford University and then an MBA at Stanford, probably America’s version of Cambridge. (Our dear prime minister scraped a 2:1 while at Oxford, mainly down to his laziness.)
And it’s nothing to do with him being the son of a shopkeeper pharmacist and her GP husband, who experienced the day-to-day hardscrabble of running a family business. (They had their future chancellor son do the bookkeeping.)
No, the reason why new chancellor Rishi Sunak bodes well for small business is because of a paper he wrote for free market-leaning think-tank Centre for Policy Studies three years ago.
In it, Sunak – then an ordinary MP for Richmond in Yorkshire – argued that the government should support the creation of an investment exchange for SMEs, where ordinary savers like you and me could lend money to small businesses, trading bonds like shares.
This Retail Bond Exchange would generate fresh capital for SMEs, while at the

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5 reasons why SEIS/EIS is the best funding route for tech startups

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Originally written by Alistair Marsden on Small Business
As an entrepreneur, it’s crucial that you understand the scope of the funding landscape. You wouldn’t start your business without knowing the market and your customers inside out, and the same approach should be taken to investment.
Often, entrepreneurs can become so preoccupied with chasing funding that they lose sight of the bigger picture. They don’t fully consider which funding source is the best fit for their business in the long term.
What is SEIS/EIS investment?
The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are a huge part of that funding landscape. They are designed to encourage investment into startups and early growth-stage companies through offering tax incentives to investors.
Investors can place a maximum of £100,000 (SEIS) or £1,000,000 (EIS) per tax year in return for equity.
Tech startups in particular can snap up a lot of this investment – the higher startup failure rate in the tech sector means that these businesses can easily prove that investor capital has to be at risk for both SEIS and EIS.
Some organisations that provide operational support to help found startups – for example through mentorship and the provision of a team and other resources — have

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Four fintechs share £40m funding pot to boost small business finance

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Originally written by Timothy Adler on Small Business
Four fintechs have been awarded £40m between them to address the £10bn funding gap caused by the lack of small business finance.
The £40m is part of a £775m programme funded by Royal Bank of Scotland as a condition of its bailout during the financial crisis.
A total of £425m will be given in cash grants to rival business banks and financial technology companies to support small businesses.
Previous recipients include Nationwide, Investec and the Co-Operative Bank.
Read: Best small business loans in the UK
Iwoca
Iwoca has been awarded £10m in funding, pledging to make £5bn available to small businesses by 2023.
The lender has pledged an additional £13m on top of the £10m grant to help open an office outside of London with at least 50 staff.
The £10m grant will expand Iwoca’s SME customer base to 150,000.
Since Iwoca launched in 2012, the small business lender has already funded 35,000 businesses in the UK, raised £350m in equity and debt finance.
Iwoca will make finance more accessible through the introduction of OpenLending, a customisable self-serve “plug & play” platform for a growing number of SME fintech partners involved in small business finance.
And Iwoca has partnered with Xero, the online accounting

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