Business News Round Up (19/05/2022)
Almost a quarter of Scottish businesses are being hit by more late payments due to the rising cost of living
Almost a quarter (24%) of Scottish small or medium-sized enterprises (SMEs) have seen the number of late payments they receive increase since the cost of living has gone up, according to new research from Barclays. The new findings indicate that rising prices have started to impact payments between businesses, as 19% of SMEs said that they’re finding it more difficult to pay suppliers themselves because of the cost of living crisis. Late payments negatively impact a business’s income, which can result in cash flow instability, and are the single biggest cause of business failure. For some businesses, this owed money might prevent new hiring opportunities or investment back into the business, as 6% said that the amount they are owed in late payments could be used to recruit more staff and 8% said they could expand their products or service offering, growing their business. For some businesses, the stress of waiting on late payments has more than just an impact on their finances as a third (33%) of respondents said they have felt anxious, or their wellbeing has suffered as a result of late payments and 17% said that they have had sleepless nights. However, over half (60%) say they would refuse a job with a potential customer if they were known for paying late.
Northern scaleups secure more than £175m in investment
Businesses in the North attracted more than £175m in Venture Capital (VC) investment in Q1 2022, according to KPMG’s latest Venture Pulse Survey. The money was raised across 65 deals in the region, with the largest type of financing deal in the North being early-stage VC. Some of the major investments in the North West in Q1 include Chester-based Oxbury, a commercial bank focusing on agriculture who raised £31m and Manchester-based Sourceful, operators of a supply chain and sourcing platform, who built up almost £16m. Relative Insight, developers of a comparative text analysis platform from Lancaster, also raised £5m. Nisha Sharma, M&A director at KPMG in the North West, said “We are still seeing a fantastic range of businesses attract huge investments here in the North West. From digital banks to innovative ESG-focused disruptors, businesses in the North West are leading the way on new ideas to challenge the norm. That’s why we hold our Tech Innovator competition each year, to showcase the incredible, innovative businesses we have in the region. If you know of a North West scaleup who fits the bill, they should be applying to our competition as a platform to demonstrate the uniqueness of their proposition. Who knows, we might find another unicorn.”
https://www.insidermedia.com/news/north-west/northern-scaleups-secure-more-than-175m-in-investment
Firms urged to invest in face of tough few months
Rishi Sunak has told business leaders he will cut taxes to encourage them to “invest more, train more, and innovate more” in the fight against global cost pressures. The Chancellor, addressing the CBI annual dinner, said the next few months “will be tough” and promised that “where we can act, we will.” Amid mounting pressure to cut taxes and tackle soaring energy and food bills, Mr Sunak said businesses should “never, ever doubt we are on your side” but he warned that he “cannot pretend” it will be easy to cut the cost of living. Repeating his message to MPs yesterday, he said: “There is no measure any government could take, no law we could pass, that can make these global forces disappear overnight.” On the day that inflation was confirmed at 9% and expectations are that will go higher, he added: “The next few months will be tough. But where we can act, we will.”
Hospitality tech firm exceeds £500,000 funding target within 15 minutes
A hospitality tech firm has hit its £500,000 goal in pre-Series A funding within 15 minutes of going public on Crowdcube. Executives at ePOS Hybrid are now extending the crowdfunder, upping the target to a maximum of £2m. The Edinburgh-based start-up, which also has an office in London, has grown rapidly in the past two years. Its initial seed funding round took place in early 2020, when it achieved 145% overfunding from an initial £250,000 target. The company offers connected point-of-sale and digital ordering solutions, aiming to automate a bar, restaurant, or takeaway’s operations, streamlining customer ordering, stock control and kitchen management. During the past two years, ePOS Hybrid’s technology has processed more than £97m of transactions for UK businesses, expanding its user base to 900 UK locations, with more than 7.5 million consumers using its products. The latest investment should let ePOS Hybrid to roll out its tech to more businesses in the UK, while also supporting international expansion.
https://www.insider.co.uk/news/hospitality-tech-firm-exceeds-500000-27005892