New research from Investec Bank reveals that 15% of businesses with an annual turnover of £1m or more have withdrawn money from their savings or deposit accounts to help fund their businesses over the past six months. This was because they were turned down for credit by banks, or the interest rate to be charged on the loan they had secured was too high.
The average amount of money they have withdrawn for this purpose is £91,310 each, or £2.83bn collectively.
Research by Investec among some of Britain’s most successful entrepreneurs reveals that over the next 12 months, 60% expect access to capital to be ‘very hard’ or ‘quite hard’.
Linda McBain, head of banking and treasury, Investec Bank, said: “Some businesses finding it difficult to secure capital are clearly turning to their savings to fund their enterprises. However, with interest rates on deposits so low, there is often little incentive to keep money in accounts. Our research shows that the average interest rate from a business deposit account on a balance of £50,000 is 0.67% gross AER [annual equivalent rate], with just under 17% of banks paying less than 0.1%.”
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more