The UK alternative finance market was the largest amongst European countries, with €5.6bn of deal volume during 2016, compared with next largest, France, at €444m. Germany and the Netherlands both had over €150m of volume during 2016, whilst Finland were close at €142m.
Adjusted for population, Estonia had the second-strongest market after the UK. This could be a reflection of their e-residency programme and general policy driving technology-based business.
Overall, during the year 2016 alternative finance across the EU grew 43% to €7.67bn.
If you are interested to read further, the Cambridge Centre for Alternative Finance publish reports regularly to an exceptional standard. This report in particular can be found here.
Some 25 to 30-thousand creditors of Carillion, a large number of which will be small businesses across the country, have today been warned to expect in the region of 1p for every £1 owed, 1% of outstanding debt. This follows the news that the construction giant had less than £30m in cash compared with over £1.5bn in debts at the time of its collapse on Monday.
Many of the SMEs currently owed money by Carillion will find the coming weeks and months a major challenge. Suzannah Nichol, chief executive of UK Build, warned: "Previous construction collapses show that 17-18% of creditors do not survive the next five years.” The Times reports multiple sites in Manchester and the North that have already closed, and one business owed £800,000 that is very unlikely to survive.
Carillion announced today that it failed to agree a bailout deal with the government and its creditors, meaning it will go into liquidation soon.
Carillion employs 20'000 staff in the UK alone, being one of the largest suppliers to the public sector. The firm maitains 50'000 homes for the MoD, and manages over 900 schools in addition to a number of prisons and roads. It is also part of the consortium working on the vast HS2 project, and is the largest maintenance provider to Network Rail. Both jobs and ongoing work have been plunged into uncertainty this morning.
However, the ripples will spread further as Carillion's creditors, not just the banks who are owed £900 million, but businesses across the country who supply materials, contractors, and services to the company, will have to write off debts owed to them by the construction giant. The best case scenario will likely be a partial payment in the distant future.
If you are a supplier of goods or services to Carillion, and are owed money official advice suggests visiting https://www.pwc.co.uk/carillion. Liquidity Club may be able to assist with a workaround for any suppliers who have debts outstanding with Carillion.
Read more at: www.bbc.co.uk/news/business-42687032
Photo by Etienne Girardet
November 2017 was the 7th consecutive month of growth in UK manufacturing output, and the manufacturing index reached its highest point since February 2008. This coincides with the manufacturing sector's strongest run of growth since 1997.
One major factor in this growth has been a weak pound, making exports more competitive in the global market. Cars, renewable energy projects, marine and aerospace exports have all contributed to growth. It is also the first time that the US, China and Europe have been growing simultaneously since the recession.
FSB quarterly business survey shows small businesses increasingly pessimistic about their prospects. 1 in 7 owners expect to shrink or close down in Q1 2017.
FSB boss Mike Cherry once again highlighted the damage that late payments are causing small businesses, along with domestic economic challenges including rises in inflation, and increasing pension costs from the auto-enrolment scheme.
The West Midlands experienced the highest number of management buyouts (MBOs) since 2011 last year, although Management Buy-ins (MBIs) outnumbered MBOs by over 2 to 1. The region also saw average deal value triple from £37m in 2016 to £120m 2017.
This may reflect a global trend as Thomson Reuters has revealed that the number of worldwide mergers and acquisitions hit a record in 2017, a total of 49,448 deals.
The Sunday Times report that high-street banks are charging small businesses excessive interest for business loans, according to research from DueDil. Interest rates in excess of 25% have been reported.
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