Welcome to another Linkibuzz!
This week, we’ve scoured the Internet for a fresh new batch of the most relevant and interesting stories concerning of legal, entrepreneurship, and small businesses across the UK and world.
Our first story reveals the scandal involving Tesco, currently facing legal action caused by the famous supermarket chain’s accounting irregularities which led to an alleged loss of £150m.
Next, we examine the story of a fund set by BNP Paribas offering between 100 to 150 SMEs a financing solution that could very well dramatically upturn their business situation.
The third story deals with KPG, the global network of professional firms providing audit, tax, and advisory services, and its recent launch of an accounting service for small businesses exclusively.
Lastly, we go into the SME export gap present in the UK, which costs entrepreneurs a potential total of £141.3 billion.
Grab yourself a cup of tea, and enjoy the reads!
A group of investors is now suing the leading UK’s supermarket chain due to irregularities in its accounting system, which eventually led to a loss of an astounding £150m. “Shareholders were misled by information inaccurately provided to the market with knowledge by management”, said the representative of the firm that is funding the claim against Tesco. There has been no official comment from the British retailer. The legal action is expected to be filed by the end of this month, the outcome of which could impose a massive financial blow to Tesco.
Relying on a combination of bank lending and fund financing, BNP Paribas have announced the close of the European SME Debt Fund. The fund will offer exciting opportunities for 100 to 150 small and medium-sized businesses, which will have the possibility of applying for a medium term bank loan of about five years with a long-term loan of about seven to 10 years. The experts at BNP Paribas point out that the fund has a low default risk, a high recovery rate, and will enable investors to diversify their credit portfolios. Sounds like an incredible opportunity for many SMEs just looking for their fighting chance on the market – could this be it?
Bivek Sharma, head of KPMG Small Business Accounting, has announced that the purpose of their newly launched service is to help small business owners improve their efficacy through cost-effective accounting. Namely, as Sharma explained, accounting and financial admin can take an enormous chunk of time and energy for small business owners, who instead should focus every effort on developing the core of their business. KPMG’s service is based on a 24/7 online platform that will allow users to access their information from anywhere and at anytime, but the clients also get their own UK-based accountant, with regular check-ins and appointments on demand.
A report recently published by World First, a UK-based foreign exchange company, revealed that small and medium-sized enterprises are missing out heavily on exporting their goods and services, with only 5 per cent of them announcing the intention “to investigate export opportunities in the next five years”. The lost potential is even more mind-boggling considering the owners of exporting small and medium-sized businesses have seen an immediate increase in profit of 20%. When asked about the reasons of their reluctance and/or inability to place their products or services overseas, the SME owners have named language and cultural barriers as the main culprits. In addition, the country’s historical decision to sever the ties with the EU in July has certainly put a serious damper on the facilitation of export to other EU countries. What can SME owners do to make their voices heard by the Government and facilitate the existing export policies and conditions?
In this week’s Linkibuzz, we’ve hit the latest high spots of the SME landscape in the UK. Whether you’re looking for a diversification of your credit portfolio, innovative funding opportunities, or a more convenient and cost-effective accounting service, we hope these articles have inspired you and introduced you to some feasible ways of achieving your particular goals. Even if you’re happy with your current financial services that you have put in place, it never hurts to cast a wider net and explore the existing exporting opportunities, right?
Thank you for reading! Don’t forget to tune back in next week for a new round of exciting news articles and stories we prepare especially for you!