TODAY’S HEADLINE

Connecting businesses with the alternative finance sector

Reports in last week’s press highlighted the issue of businesses who are unable to obtain banking finance and discussed how they could be connected with the alternative finance sector, which includes crowd funding. We asked Norm Peterson of North … [Read More...]

Connecting businesses with the alternative finance sector

Reports in last week’s press highlighted the issue of businesses who are unable to obtain banking finance and discussed how they could be connected with the alternative finance sector, which includes crowd funding. We asked Norm Peterson of North East based Growth Funders to comment on the proposals. Proposal: Small businesses that are rejected for bank funding are to be offered access to an “SME dating agency” that will connect them with independent lenders who are willing to back them. Norm’s Response: It makes sense to signpost rejected applications to alternative finance providers.   We are already receiving introductions from traditional banks.   However, there is a more fundamental change emerging in the market.   The early alternative finance players are developing what’s being referred to as an “online marketplace”.   By creating an online marketplace structure where borrowers and lenders can connect, marketplace lending makes it possible for lenders to achieve higher … [Read More...]

Connecting businesses with the alternative finance sector

Reports in last week’s press highlighted the issue of businesses who are unable to obtain banking finance and discussed how they could be connected with the alternative finance sector, which includes crowd funding. We asked Norm Peterson of North East based Growth Funders to comment on the proposals. Proposal: Small businesses that are rejected for bank funding are to be offered access to an “SME dating agency” that will connect them with independent lenders who are willing to back them. Norm’s Response: It makes sense to signpost rejected applications to alternative finance providers.   We are already receiving introductions from traditional banks.   However, there is a more fundamental change emerging in the market.   The early alternative finance players are developing what’s being referred to as an “online marketplace”.   By creating an online marketplace structure where borrowers and lenders can connect, marketplace lending makes it possible for lenders to achieve higher … [Read More...]

If you have clients providing management services you may wish to review their contracts

The African Consolidated Resources (ACR) decision could have implications for UK holding companies. The facts of the case are familiar where one group company supplies management services to another, the twist comes in the tribunal’s line of reasoning that neither ACR or HMRC appeared to propose. Their interpretation of “consideration” was the point that gave rise to this note. The tribunal concluded that “the flat fee of £10,000 a year payable to ACR by its subsidiary was not consideration for the management services provided because there was insufficient evidence of an economic link between the value of the management services provided by ACR and the price paid by the subsidiary”. This rather unexpected conclusion raises a number of interesting and potentially wide-ranging points, which may well give HMRC further ammunition in their long-running fight against VAT recovery by holding companies. Management services are often calculated on a flat rate basis or a proportion of a … [Read More...]

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