Day: September 20, 2020

Start-ups get cash injection of £25m without risk of personal guarantee

As Companies House data shows a rise in start-ups born during the pandemic, new data has revealed that savvy entrepreneurs in the UK collectively secured £25m of funding for a new venture in the past three years through personal guarantee backed loans that were protected by Personal Guarantee insurance.

That means if the business does fail, 80% of the loan will be settled by the insurance rather than the business owner’s home, savings and other personal assets being called on to settle the debt.

As access to small business funding is increasingly expected to depend on signing a Personal Guarantee, Purbeck is urging start-ups to factor Personal Guarantee Insurance into their thinking when shopping for finance.

Todd Davison, MD of Purbeck Insurance Services said: “For many, borrowing money is their only way of starting and growing a business.  Creating a business is risky enough without taking on a personal guarantee

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Royal Mint to stop production of £2 and 2p coins due to excess stock

The Royal Mint will not produce any new £2 or 2p coins for at least a decade, as its stocks remain high because of the slump in use of cash, a trend that has accelerated during the coronavirus pandemic.

The rapid decline in demand for coins has left the Mint, which has been producing coins in Britain for more than 1,000 years, with a mountain of excess stock.

It reported in March 2020 that it had stocks of £2 coins 26 times over its target, and was eight times over target for 2p coins.

The fall in the use of cash has been detailed by a report from the National Audit Office (NAO), which monitors the effectiveness of public bodies.

A decade ago, cash was used in six out of 10 transactions, but by 2019 that had fallen to less than three in 10, and some forecasts suggest it may

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Lessin: Deals between tech companies, media will impact coverage

Jessica Lessin, the founder and editor in chief of tech news site The Information, writes about the editorial impact of deals between technology companies and publishers.

Lessin writes, “I have said it before, and I will probably be saying it again and again and again: Tech companies and news organizations have very different priorities, values and opinions about the purposes of news business. You don’t need to look far to find examples of these same tech companies refusing to pay publishers around the world for their articles, even while they are striking these one-off deals with the largest publications.

“And while I respect the journalists and editors at thews news organizations too much to imply that they are going to ease up on their touch coverage because of a deal, it would be absurdly naive to assume that stronger financial ties between publishers and tech platforms won’t change coverage

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