“You don?t need to sell equity”After the conversation shifted to growth and the entrepreneurs struggling to access funding and investment to scale their company. Willingham challenged the idea that investment is always the right avenue. ?How many people have come to me and said: ?I need an investor?. Actually, when you look at the business, you don?t need investment ? you actually just need working capital. That?s all you need. You don?t need to sell equity, you just need to bridge this gap every month, two months. So many people just assume ? I have no money, therefore I need an investor. ?What do you want? ?200,000 to fill the monthly gap? That?s not what you want. You want ?200,000 to grow the business, but that?s very different to working capital. Pryce suggested that the lending landscape continued to be a harsh environment for small companies, with owners ?quite scared to borrow and would much rather have an investor?. Willingham suggested that incoming open banking reforms could change the fortunes of those struggling to access finance. ?We?re so relationship-based with our banks, and that?s a real challenge because a lot of people don?t know where start trying to form that relationship with a bank. ?Having a more digital system, where you can look at a credit rating of business, lenders can see you are doing it right, and look at your requirements and your data. They look at it in a digital environment as opposed to ?lets have another coffee?, which it how it still works today and why it?s so difficult to borrow from banks.?
Open bankingThe open banking package of reforms are being led by the Competition and Markets Authority and will give business owners access to new financial products and services from providers regulated by the Financial Conduct Authority (FCA). In short, banks are being forced to open their data to third parties for the first time. Individuals can choose to let regulated providers have access to their spending data in return for tailored services. For example,?choosing to give a regulated price comparison website access to bank account information, you?ll receive results based on what you actually spend. The reforms are expected to inject fresh competition into Britain’s banking sector, and as Willingham noted, entrepreneurs could benefit from a digital-first environment. __________________________________________________________________________________
What open banking means for brands and consumers Open banking is here, and the implications are far reaching. So, if we wind the clock forward, what do we see? __________________________________________________________________________________
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