If you’re building or buying real estate as a long-term hold, make sure that property is going to cash flow very well, even if that means you utilize more equity and accept a slightly lower return. Debt-service coverage ratio (DSCR or just DCR) is calculated by taking the net annual cash a property produces and dividing it by the total annual payments for any/all debt on the property. So, if a property will generate £100,000 per year after all expenses such as taxes, maintenance, vacancy, etc., and you put a loan on it where the total monthly payments for the year equal £50,000, then you have a 2.0 DCR. 

If you are investing in a project or looking to create one, don't underestimate the importance of being conservative, making sure it your location is right and paying close attention to supply and demand. 

(source/credit: John Bogdasarian) 

For many people, talking about money is one of the last things they want to do. When you're single, it’s relatively easy to keep track of your own finances and financial goals, without having to discuss, plan and compromise together with a partner. However, when you’re in a relationship, it’s important to maintain an open dialogue about shared finances and goals, and in fact, that dialogue can lead to stronger investment decisions as well. Misalignment around financial goals can often lead to friction that could put both the investments and the relationship at risk. 

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• Are you investing to have more passive income that will allow you financial freedom and the choices that come along with it? Or 
  
• Do you want to build capital therefore, focus is capital growth Or 
  
• Do you require both income and capital growth? 

Whilst there is no wrong answer, clarity on objective will determine what and how you invest in order to accomplish your end game/ goals. 

"All that glitters is not gold" Location, Location, Location, Research, Research, Research – KNOW THY MARKET 

Successful real-estate investors aren’t made overnight! It’s not easy to succeed in real-estate investing! However, there are some tips to become successful in this field! Think Realty published 13 Steps to Real-Estate Investment Success. Let's check them out!

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The UK economy is in a strange place. Employment figures are at a record high, but overall growth remains sluggish. Rosier figures for the long-term health of the economy come along, then they’re downgraded. Small businesses are flourishing, but major high street retailers are going out of business on a weekly basis.

One clear and strong success story, however, is the UK tech industry. Showing amazing growth and proving attractive to investors, there seems to be no slowing the sector.

The Facts

Fresh figures from Tech Nation have echoed other sources in showing the tech industry is growing 2.6 times faster than the rest of the UK economy. In 2016, it was worth £170 billion, in 2018 this figure has grown to £184 billion. The report also showed that, outside of London, there are 16 ‘silicon suburb’ towns across the UK with a much higher than average tech employment rate, with towns like Bristol leading the way.

The report also underlined how fast tech firms in the UK are growing. UK GDP grew by 1.7 percent in 2016-17, but over the same period the tech sector grew by 4.5 percent. Alongside this was a five-times rise in the number of jobs in the tech industry, making it one of the healthiest and fastest growing employment sectors.

The Investment

All of this growth inspires, and in turn is fuelled by, a great deal of investment. International investors were particularly enthused by the UK tech industry, pouring money into firms in the hopes of finding the next Deliveroo or Zoopla. In 2016-17, British tech companies raised a total of £4.5 billion from venture capital sources, a doubling of the previous years total.

This could be, in no small part, due to the fact that many of the UK’s tech firms have an international reach and investors see great technology with an in-built global reach. A full third of London tech businesses, for example, have foreign clients, which outstrips the reach of California’s Silicon Valley. Domestic and foreign investors are seeing companies that have a bright future, very healthy growth and international reach. So, it should come as no surprise UK tech companies represent an attractive investment.

This has been shown in a number of high profile exits. Machesterfashion.com was sold for £750 million to a private equity investor and Leeds firm CallCredit was purchased for £1 billion. The incredible growth and underlying base for UK tech firms is providing fertile ground for firms with good ideas and the drive to succeed, with buyers and investors on hand to capitalise.

If you’re an ambitious tech firm, take a look at our business finance and capital investment options, we can help you get your hands on the money you need to move forwards in one of the most vibrant, successful sectors in the world. 

The UK has a rich history of technological research and advancement. Beginning with Alan Turning’s first leaps in the world of computer learning, the UK has always been somewhere that leads at the forefront of new and emerging technologies and AI should be no different.

However, this isn’t just an are for the conglomerates and large-scale concerns. Small businesses have an important role to play in the rapidly growing field of Artificial Intelligence. Here, we’ll examine how smaller businesses can play a leading role in a field that is only set to grow and grow.

Barriers

As AI and its related applications have expanded beyond all measure, so too has the computing power, data needs, and costs associated with pushing the discipline ahead.

A recent report from Digital Catapult talked to just over ten percent of UK start-ups involved in AI and machine learning, and found that more than half of them need more computational power in order to grow. However, many smaller firms are struggling to access this need because of prohibitive costs. This means that the talent and ideas are there, but the investment for many firms is lagging behind. 

The need for talent is also an ongoing concern for many SMEs. With the rise in AI has come the need for employees with the right skills. Big and small firms are left to fight over talent originating from a limited pool, with bigger companies able to offer more in terms of renumeration and investment in work environments.

Solutions

While this might all sound insurmountable, there are plenty of options for the smaller enterprise when it comes to embracing and pushing forward the AI sector.

Smaller firms need access to powerful computational tools and resources, and big names are starting to take notice. Digital Catapult has teamed up with companies like Nvidia, SpiNNaker and Google Cloud to offer smaller businesses the insight and hardware needed to push their AI processes forward. Offering both a space for experimentation, learning and the actual tools of greater computational power, the plan is to give smaller companies with big ideas a space to learn and flourish. 

The government is also taking a keen interest in the field. They recently announced  a £300 million fund for investment into businesses in the AI sector. Looking to exploit the UK’s knowledge and reputation for technology development, the government clearly thinks the UK can become a world leader in the field. 

Whilst there are barriers to small businesses in AI development and deployment, there are also huge opportunities. Tech giants and the government see the potential and it is only a matter of time before barriers come down under the weight of the benefits. 

Looking for a new investment or opportunity in business is often an overwhelming task. There is a huge amount to consider before taking the plunge into a new sector.  You need to appraise the present and the future prospects, whilst keeping an eye on potential volatility and market changes. And, with so many tech-related sectors seeing growth, an understanding of complex products is required.

With that in mind, we’ll explore a few emerging and established sectors that are worth exploring today.

Artificial Intelligence

AI is seeing a tremendous spike in its applications and uses. Sectors from manufacturing to construction to healthcare are all making use of this powerful technology. Everything from planning to decision making processes are feeling the touch of Artificial Intelligence, and so investment opportunities are ripe.

The technology will only grow in importance going forward, finding more and more ways to enmesh itself in all manner of sectors and industries. With companies in a vast array of fields seeing the benefits of less manual errors and increased productivity, Artificial Intelligence is an intriguing opportunity. 

Elder Care

It should come as no surprise to anyone that the world is definitely getting older. By 2050, it is predicated 22 percent of the world’s population will be 60 or over. Whilst this means strains on pensions and healthcare, it also presents a fascinating opportunity.

With an older population comes the need for home-based and residential care. This, in turn, means more care homes, care staff and home visitors. These sectors will see huge growth in the coming years and, because the need for them is not going anywhere, elder care represents a solid, long-term investment option.

Cybersecurity

The last couple of years have seen a number of high-profile cybersecurity breakdowns. From governments to user data, it seems that no one is completely safe. All of this had led to huge surges in investment and spending, as cybersecurity as become a key concern for many.

In terms of growth, cybersecurity is one of the biggest sectors around. Cyber Security Ventures outlined in an article how global spending on cybersecurity services and products will exceed $1 trillion dollars from 2017 to 2021. Overall, the market has grown by 35 times in 13 years. All of this makes it a ripe sector to enter. 

If you’re looking for capital to back your SME, contact the GIC Capital team now. We offer a bespoke, personalised service to help you find the the right lending solution for your entrepreneurial ambitions.

The impending doom of Brexit is still hanging over many SMEs heads, particularly with regards to expanding and trading globally and boosting profitability.

Recent figures released by accountancy firm Moore Stephens have revealed that only 6% of SMEs that were polled felt that the government is listening to and taking on their concerns about leaving the EU.

This statistics suggest that the Government have their work cut out for them when it comes to convincing SMEs that leaving the EU will be beneficial to them.

So, what are the benefits and drawbacks of leaving the EU for SMEs?

Benefits

The chance to expand into more vibrant marketplaces

Some think that Brexit will enable UK businesses to diversify into make dynamic markets operating outside of the EU. In China and India for example, growth rates are still strong and significant even despite recent slowdowns in trading.

More talented workforce

Brexit could help your business in terms of accessing a wider and more talented staff pool. At present, the freedom-of-movement obligations mean that there are limits on non-EU immigration. Liberating these obligations could mean that it would be easier for your SME to recruit high-calibre staff from non-EU countries.

A reduction in red tape

A lot of the EU regulations that are currently in place burden SMEs, particularly in terms of time consuming bureaucracy that can impede on innovation and growth. Leaving the EU may mean that the government is in a position to roll back some of these regulations.

Drawbacks

Slowing down of trade within the EU

Membership of the EU means that UK SMEs can export to Europe easily and the lack of import taxes also allows businesses to operate at the same level as companies across the Continent. Leaving the EU would negatively impact on both of these factors.

UK investment

There is speculation from those who are against Brexit that leaving the EU could damage the UK’s reputation as one of the world’s leading financial centres, which could in turn result in a decline in UK investment across the board.

The economy and jobs

Figures from 2000 have revealed that around three million UK jobs are linked to trade within the UK. Exiting from the EU may mean that SMEs will struggle in terms of a lack of EU residents moving to the UK in pursuit of work.