Royal Bank of Scotland has announced a £3 billion cash injection for small businesses. The NatWest parent said it would make the funding available to small and medium sized enterprises (SMEs) through 12 regional funds. RBS, which is due to be 70% owned by the State, has come under increasing pressure to step up lending to businesses crippled by a shortage of credit in the economic downturn. Regional funds of £250 million are to be launched across England, Wales and Scotland, with Ulster Bank administering the Northern Ireland scheme. RBS said the move was part of its commitment to pump an additional £6 billion into lending to UK borrowers. As well as providing extra debt finance, the new fund will provide businesses access to other options to help them manage their capital and cashflow. The bank said the fund will offer customers a choice of financial support including small business loans of up to £15,000 from 7.9% annual percentage rate (APR) and over … [Read more...] about £3bn announced for small businesses
Business
888 gets the nod for online bingo business Wink
Internet gaming firm 888 today splashed out £60 million on an online bingo business founded less than two years ago. 888 will pay Wink Bingo owners Daub Limited up to £59.7 million for the business which includes online brands Posh Bingo and Bingo Fabulous. The deal follows the takeover of the Foxy Bingo and Think Bingo businesses by 888's rival PartyGaming in a deal worth nearly £100 million in July. The fast-growing online bingo industry is proving attractive to internet gaming firms such as 888 and PartyGaming, which are increasingly searching for alliances. Wink Bingo was launched in early 2008 and now has over 60,000 active players, making it one of the most popular online bingo sites. It made revenues of £15 million and profits of £1.3 million in the first 11 months of this year. 888 agreed to pay £11 million up front to buy the business with the price having the potential to reach as high as £59.7 million depending on performance in the year to … [Read more...] about 888 gets the nod for online bingo business Wink
£2.1bn 3i busy in stake-buying
Big buyouts may have disappeared from the corporate finance scene but plenty of companies are inviting in minority investors rather than go for a sale. That is the message from the granddaddy of the UK private equity scene, 3i, which today said it is on track to hit its annual target of 20% returns - profits from sales of investments and dividend income as a proportion of total investment portfolio valuation - and reported a 60% increase to £2.1 billion in its investments in the 11 months to end-February. "We are still seeing good growth opportunities especially in our growth capital business in which we take minority interests in businesses," said finance director Simon Ball. "We have been a significant net investor in businesses which may have previously been looking to sell the business wholesale but which are now looking for minority investors who might be able to help." 3i cashed in investments to the tune of £1.6 million in the 11 months, down 16% on 2006. … [Read more...] about £2.1bn 3i busy in stake-buying
2012 Games are on a loser with London businesses
Britain's Olympians may be bringing home the gold, but London businesspeople are not sure the 2012 Games will be worth the trouble. Only 16% of businesses in the capital believe the next Olympics will be of any benefit to them, with just 12% saying they are excited by the prospect of the event, a survey has found. Small businesses are the most sceptical, claiming the real Olympic gold will flow to big corporations able to strike sponsorship deals. The survey by think-tank Tenon Forum shows that across the country just 10% believe the 2012 Games will boost their business while 15% think they will hurt them and 71% say they will have no impact. Two-thirds of Northern businesses dismiss the Games as a London event. Michaela Johns, director of business services at Tenon, said the result was disappointing. "The 2012 Olympic Games have the potential to generate a huge amount of revenue for the uK's businesses," she said. "This is not just for the obvious targets, such as the leisure, … [Read more...] about 2012 Games are on a loser with London businesses
Open for business: How South Africa is delivering on its potential
A trip to South Africa can be life-changing. Every year, millions of people visit the vibrant country to enjoy its unique natural beauty and experience its rich cultural diversity. South Africa’s reputation as a world-leading tourist destination is firmly established, and the nation is increasingly an exciting proposition for investors from across the globe. In the 21st century, South Africa is firmly open for business. … [Read more...] about Open for business: How South Africa is delivering on its potential