12/09/2016 BBC Business Live

This is Business Live from BBC News with Ben Thompson and Sally Bundock.

Fighting for funding, more and more small businesses

are turning to credit cards and even crowd funding to get the cash

Live from London, that's our top story on Monday, 12th September.

The squeeze on funding comes as banks consider charging firms

Also in the programme, Tata Steel gets ready

We'll find out if its troubled British business

After Friday's big sell-off on Wall Street, European markets

are playing catch-up and heading one way - down.

Fancy taking one of these for a spin?

We'll be talking to the boss of one of the leading firms in the sector.

He'll give us the lowdown on who is buying what.

Today we want to know - are you struggling to raise money

We're going to start today with money or a lack of it.

Poor access to finance is forcing more small businesses

across Europe and the US to turn to credit cards and crowd

Today's report from Hiscox insurance shows just how much pressure

businesses are under, given the current economic climate.

It found that 22 percent of small and medium-sized enterprises,

SMEs, are now finding it harder to access bank financing.

What's worrying is that 17% of those small firms are now using a credit

card to fund the business and that's also been rising steadily

10 percent are even considering crowd sourcing

cash through peer-to-peer lending sites to fund their business.

The report also shows just how difficult it is to succeed with 40

percent of people who set up their business in the past four

years still relying on income from outside sources rather

66 percent of small business owners reported that their revenues had

Jag Singh, digital expert and entrepreneur, is with me.

Good to see you. Before we get top tips for those struggling to get

funding, why are we in this situation? Surely the banks have

been pressurised and told by governments to lend, and that will

boost economic growth? They have. The package earlier highlighted

that. Some banks are considering charging for deposits to larger

businesses. I have got to qualify that there has never been a better

time for anyone to start their own business. You have got government

departments, big business, local government, business angels, angel

investors, all singing of the same crib sheet. It is a bit annoying

that banks haven't got the memo. There is this boy is left behind by

the banks which is being filled why others. -- this void. Peer to peer

lending platforms can fill in those gaps. That is the good news but it

isn't easy to get the attention you need to raise money when it comes to

grant funding. If you are a small business, you are not a sexy

technology business, something people are keen to invest in, it is

difficult to get the money that you need. But if you just go to the bank

and say this is my business plan and I need funding, that is easier. It

is. We are in a Catch-22 situation where banks have never been good at

lending to people without credit or something to show for it. In the

same way, banks require lots of collateral from businesses, and bees

fledgling businesses which don't have assets to up. We are finding

that entrepreneurs have got to remortgage their homes, dip into

credit card funding, the bank of mum and dad, not just for homes now.

Lots of entrepreneurs borrow money from friends and family. I think

that is the way it has been for the last 40 or 50 years. Those closest

to you believe in you and invest in you and they want to see you

succeed. That is your best chance of getting funding for your business.

What is the advice for investors as well? Those on the other side of

crowdfunding and have got ?1000 or something to put into a start-up?

How do you make sure you make the right choice and don't throw your

money down the drain? The best way to do that is to pick the best

crowdfunding platform and no two platforms are exactly alike. In the

last few years we have seen sector specific advice from people with

experience of the industry. If you are in the retail industry, go to a

platform that has people who have actually built businesses in the

retail industry investing on these platforms. Just really briefly, if

you are starting a business, you have got to think outside the box

when it comes to funding. Absolutely. Talk to everyone you

can, as many business angels as you can, talk to the government, they

have services for fledgling entrepreneurs and also big

businesses have set up in debate is where they are trying to pass on

their learning to smaller start-ups. Thank you for your time. It is about

angels, incubators, crowds, peers. It is all happening. Keep your

comments coming in. Natalia says she launched a business using

crowdfunding and it was a simple process and really worked for her.

Another one here from EV. It is not for everyone. Beware because there

are expenses when you start out and if you missed your target to raise

money and it can be pretty shameful. Keep your comments coming in. Other

stories today: Electric car maker Tesla says it

will update its cars' autopilot function with new safety features

to prevent collisions. Chief executive Elon Musk says

that the cars would soon make greater use of the on-board radar

to detect obstacles ahead. The announcement comes just months

after a Tesla driver died when his car hit

a trailer that the autopilot Samsung is now asking people to stop

using their Galaxy Note 7 smartphones immediately and exchange

them as soon as possible. The company is undertaking a global

recall following reports Multiple global airlines have either

banned the Galaxy Note 7 from flights or asked users

to keep them turned off Shares in the tech giant have now

fallen by more than 8 Lots of stories on our website as

usual. This has been highlighted. The British Chambers of Commerce is

predicting a sharp slow down in the British economy in the wake of the

Brexit boat. They expect the UK economy to grow 1.8% this year as

opposed to 2.2%, which was their estimate in March of this year. Lots

more stories on the website so take a look when you have got time.

Over in Asia, there's more bad news for smartphone maker Samsung.

The company's shares have plunged after Samsung recalled

its latest Galaxy Note 7 due to a spate of incidents

Tim McDonald in Singapore can tell us more.

We touched on it then, airlines banning people from taking them on

flights. What more do we know? It is very bad news for Samsun, which is

telling everyone to turn it off, put it down, and go back to your old

telephone, at least until you can get in for a replacement. The

exploding batteries saga has been going on for a while. 2.5 million

Galaxy Notes were recalled. Passengers have put them in checked

luggage. But the Federal aviation authority, followed by a multitude

of other safety bodies, and the US product safety commission, they all

got involved telling owners not to use them altogether. Regal will be

some inks -- the recall will be very expensive, which is not such a great

look and it wiped $14 billion off the market capital company, all in

the same week when Apple launched the latest version of the iPhone.

They are then nearest rival. Thank you. A look at the numbers. That is

all we need to know. Tokyo shares slumping today, extending the global

sell-off that we saw in America after the Federal Reserve officials

said they would potentially back and interest rates rise there as soon as

this month. The speculation was that they might act as soon as this month

but that appeared to be off the table following the string of weak

economic data, but the comments suggest that may not be the case.

Let's look at what is happening in Europe following the lead set by

Wall Street on Friday. That is the current picture. We will assess that

in a moment but first let's go stateside and see what is happening

on Wall Street. This week we are turning our attention to economic

data. This data has been made even more important given the

disappointing jobs numbers for the month of August in the USA. Before

we can get to the data, let's talk about Monday. The CEO of JP Morgan

Chase will be speaking at the economic club in Washington, DC. The

conversation is expected to cover the state of the US economy, current

regulatory environment and economic and financial issues that the next

President will likely face. On Thursday we will get a key measure

of US retail sales. These numbers are important as two thirds of

America's economy depends on consumer spending. Finally on Friday

we get a look at information, the US Consumer Prices Index is revealed.

Inflation is one of two really key data points for the Federal Reserve,

America's central bank. We have got Richard Fletcher with us this

morning from The Times. Nice to see you. Looking behind me, not looking

good. Asia was grim. Friday was a massive fall on Wall Street. But it

in perspective. Is it all about what that Governor said on Friday?

Partly. And partly about Mario Draghi on Thursday. The markets have

rallied in recent months on the belief that there would be more

stimulus and central banks. We wouldn't see a rate rise in the USA.

And what has spooked the market is we have had a strident message from

the UCB on Thursday, which was no more for the moment, and then the

Fed, the President of the Boston Fed... And I suppose what upset the

market was the bad economic data from the USA, and they had ruled out

the idea of a rate rise in September. One in five chance. The

fact that he was talking about the possibility of a rate rise spooked

the market and now they have a one in three chance at the next meeting

and that is why we are seeing the sell-off of expertise. It is

interesting because we know that investors are fickle but looking

around the world at where to put your money for the biggest return,

that means we see volatility. Yes, and outside the economics we are

starting to see that there is a cost to the central bank easing. Problems

with pension funds, people chasing yield into more risky investments.

This central bank stimulus that we have seen since the financial

crisis, I mean, politicians and the general public are working out that

it isn't free. There is a cost to this. Whether that is pension

deficits rising or savers not getting a return. There appears to

be noise around whether this is working and a question over how much

longer central banks can continue to pump this money into the economy.

The plot thickens. Thank you. Richard will return to talk about

several other stories in the papers including coconuts, coconut milk,

the place to put your money apparently. And a lack of coconuts.

We will explain all. Still to come: Riding

a multi-million-dollar We speak to the man you go

to if you have the cash Sadly that is not really in our

price range just now in this job. You're with Business Live from BBC

News. Trade unions are gathering

for the TUC's annual Our business correspondent

John Moylan is there. Nice to see you. It seems the EU

referendum is the key talking point. Tell us what people are saying. Yes,

the first gathering of trade unions since the momentous vote to leave

the EU. The rallying cry here has been as workers must not pay the

price for Brexit. What they are getting is that there are many

rights that we enjoy as workers here in the UK that are enshrined in EU

law. Unions want to make sure that in the years ahead, as we move to

exit the EU, that those rights are not going to be negotiated away,

eroded in any way, and they will be maintained. That has been a big

theme and it is something that unions are still trying to get to

grips with. Just talk us through the agenda for the session. It has been

a pretty turbulent time for the unions, and also as far as support

for the Labour Party is concerned, what are we expecting to hear in

regards to that? Interestingly, Jeremy Corbyn, the leader of the

Labour Party, will be down here at the event, on the fringes of the

event this evening and tomorrow. One of the big talking points today is

the groves of casualisation and insecure employment in Britain,

which has been identified with a firm like Sports Direct where

conditions in their big warehouse were described as being like a

Victorian workhouse. Unions are stepping up pressure on firms that

use these insecure working models. Firms like courier firms and taxi

firms, which have a lot of people on their books but they are all

self-employed, so they don't enjoy basic rights. The head of the TUC

will say that greedy firms treat their workers like animals and they

will have no place to hide. A look at the BBC web page, Business

Live page, Primmark owner has a ?2 million pensions deficit. A

successful retailer, Primark. It is as a result of higher interest

charges next year. A sadly familiar tale as far as many pension pots are

concerned. Laying out plans there about how they intend to plug the

gap in the fund. There is lots more on the Business Live page and there

is more on crowdfunding, the ways to raise funds if you need to.

You're watching Business Live. Our top story:

Small and medium sized business in Europe and America

are finding it increasingly difficult to access funding.

According to Hiscox Insurance, many are turning to crowdfunding

or credit cards to finance their operations.

Let's look at the financial markets. It is a sea of red. Speculation

about a rise in rates in the United States. A sell-off across-the-board

in early trade, really following the lead set by Asia and the US.

Super yachts are one of the ultimate status symbols.

Little surprise then that the rich and famous are keen

to get their hands on one with Russian oligarchs,

Gulf royalty and successful company bosses all driving up demand.

And pop stars, celebrities, they are valued at $22 billion today, the

global super yacht industry can be lucrative for companies that get

their business models right. Fraser Yachts are one

of the companies that's vying They specialise in super yachts over

30 metres in length. For those of us that rely on more

mundane forms of transport, that's the length of two

double decker buses. The company is currently

advertising one yacht, But you could save some

money and charter it Raphael Sauleau is Chief

Executive of Fraser Yachts. Good morning. Good morning. Thank

you very much for coming in. Pleasure. You have been the boss of

this company since April this year? Yes. Tell us where you were before

and how you journeyed to become a Chief Executive of a company like

this? I was with a management company so dealing with larger

boats, cargo ships and now I'm looking after yachts, hotels, and

other properties and then I ended up with Fraser Yachts which is a great

company. It is an interesting industry. Let's talk about the

element of a status symbol. We talked about the price tag. Even if

you were to rent it out every day at $250,000 for the week and you would

never make your money back. These are the ultimate things of someone

who has got plenty of money to spare and it is not an investment, it is a

toy? That's a toy, but it is very emotional for individuals who like

to invest in super yachts. That's a journey from the day they order the

yacht, to the day they build the yacht, to the day they collect the

yacht. Yes, of course, it is like buying a big house, so you get

personally involved in the concept and the project and then it is for

your own pleasure and some like to use it for commercial purposes as

well. We assume your clients are difficult, hard to please, have

weird requests, is that true? Or is that just our, you know, superficial

sort of idea of the rich and famous? No, some of them like to know what

they're going to have and they know what they want, but they're not

necessarily difficult or hard to please. It is like you and I when we

buy a house, we want to buy curtains or a certain type of carpet. Some of

them have very specific ideas so they can come across very difficult,

but at the end of the day when you invest that amount of money in an

asset, you want to make sure it fits your expectations. Naming no names,

give us some examples of strange requests? Some of them, they would

like to have a special fit for a yacht or a helicopter pad. But if

they have a supersized yacht, I mean we talk about 30-feet to 100 feet,

the bigger ones you have to put the anchor down at sea and get in your

smaller one to get into the really beautiful marinas on the the Riveria

for example? Some countries don't follow by having adequate Marines.

Some of the tenders can be massive too. So you have for example, we

have an exploration yacht. He has to go in the tender to reach the marred

Rhine that. Asia is really trying to get involved. Correct. There is a

lot there, and it is not just about buying and selling, it is about the

making and the business behind the business, isn't it? I think Asia has

grasped the importance of the business because it is not a

playground for the rich and famous, it is a big industry, where you have

mariners and the small boutiques and shops... A lot of employment? A lot

of employment as well. Asia took a lot of time to understand that fact.

The Med is still the place to be in the summer for 86% of the market and

then you have the Caribbean fort winter season. It is fascinating. I

love stuff like this? Who doesn't? It is about having the biggest one.

Someone gets a bigger one and you cut your's in half and you add

another bitment because you can do that these days? You can. That's

what I will be considering this year. Thank you. Thank you for

having me. To the Indian business capital

Mumbai now where Tata Steel will release its latest set

of quarterly results It could be a busy week

for the company which, in the coming days, is also expected

to offer an update on its recent attempts to sell off

its troubled UK operations. Sameer Hashmi has been assessing

Tata Steel's fortunes. If you talk about Tata Steel,

there are two sides to the company, the struggling European operation

which is at the centre of attention. It's estimated that the company has

been losing over ?1 million every day when it comes

to its UK operations. It's also its largest

market in Europe. But if you look at Tata Steel's

performance here in India, The company has been

consistently profitable. In fact in the last financial

year it made a profit of over $700 million,

but the problems in the European market have been weighing the larger

company down for some time now. Last year, Tata Steel reported

a loss of nearly $500 million. Well, analysts expect the company

to keep making profits here in India because demand for steel

is rising over here. Tata Steel's plans of selling

off its UK operations hit a road Now, the company is in talks

with other steelmakers to merge its operations

in the European markets. And investors will be interested

to know if those plans We will get the numbers from Tata in

a few hours' time. The Caribbean is running out of

coconuts. Coconut water is a really trendy drink. My kids brought

containers home. Rihanna promotes it. Coconut fell out of fashion.

They were seen as adding to high cholesterol so you saw a huge fall

in the number of farms in the Caribbean and it is now fashionable

and there aren't enough of them and they're not very good the ones that

are there. It is coconut oil. It is the fad of cooking with health

stuff, not only drinking the stuff, but cooking with it and everything

else. In two weeks' time there will be a health scare the other way!

Amber Rudd is admitting Britain may have to pay to visit Europe. Just

explain. This was, so it came out over the weekend and effectively, I

mean they are not ruling in or out either way, but they are saying

ahead of negotiations with Europe and Europe are bringing in a sort of

visa waiver programme for those outside the Schengen Agreement and

that will be the UK and therefore, ahead of the negotiations there is

talk that we might have to pay 60 euros every time we want to pop over

to France or go to the beach in Majorca. The Greece debt crisis has

fallen away from the headlines. Deliver reforms or lose the bail out

cash Greeks are told. That's a familiar headline. It is back.

According to Europe they have only delivered two of the 15 reforms they

need for the two trillion or two billion of funding and therefore,

guess what? Greece is back! Interesting actually. The Prime

Minister held that little summit last week, didn't he with Francois

Hollande and those crew, sort of looking at the future. The economic

challenges. Hey-ho, we will keep an eye on it. That's another Business

Live. Yes, it has been fun. We will see you, same place tomorrow.

Tomorrow. Bye-bye. Hello. It is a dry enough and bright

enough start for central and eastern parts of British Isles because you

are a long way from the weather front that's dominating the weather

scene across Western Scotland and Northern Irelandment one of the

other factors of being away from the frontal