You’ll have seen in the news that US tech specialist lender Silicon Valley Bank collapsed on Friday – the biggest failure of a US bank since the 2008 financial crisis. New York-based Signature Bank (which also specialised in the tech sector) has been taken over by US authorities.
Bank shares around the world collapsed at the news, and in the UK, the government and the Bank of England brokered a deal for HSBC to take over the UK arm of SVB. We may notice a shift in lending culture over the next few months – possibly a reluctance among banks to open new accounts.
With 2008 still fresh in many memories, we can expect a more cautious approach from some banks. However, in the UK, the Financial Services
Compensation Scheme (FSCS) protects deposits in the event of a bank collapse: up to £85,000 for individual accounts and £170,000 for joint accounts.
Regardless, remember that some banks are part of larger groups (which means your total deposits with the group may be larger than you think) and also that not all banks operating in the UK are regulated here, so they might not be covered.
If you have more than £85,000 across your bank deposits, now is perhaps the time to revisit your strategy for how you are investing and moving your money and check that the FSCS applies.
Review your year
As all self-employed people know, preparing for financial year end (FYE) is important not only for your tax returns and staying compliant but also for analysing the health of your business.
💸 Knowing how much money you’re spending and how much you’re bringing in is a vital part of sustaining and developing your business.
💸 Reviewing insurance, agreements and contracts to see if they are still relevant is also a good idea.
💸 Has your business grown during the past year? Have you taken on more employees? If things have changed, your paperwork might not be up to date.
💸 Look at your insurance especially, as they may no longer be binding if your business has grown or changed focus. And as doing business becomes ever more technological, check that you are insured against cyberattacks.
A recent survey by PolicyBee revealed that 40% of SMEs could be underinsured, and a whopping 44% are not insured at all. So take stock of how you are looking after your business. Don’t forget your household finances during your spring clean, especially considering the ever-rocketing cost of living. Look particularly at your mortgage this year. Are you paying the best rate possible? Shopping around for a better deal is even easier nowadays – a quick internet search can easily find mortgage calculators.
SmartPurse is now a part of a prominent business incubation program
Tenity, the financial ecosystem that brings together investors, mentors, start-ups and corporations, has announced the latest edition of its international incubation programme, and we’re thrilled that SmartPurse is among the seven companies (from almost 300 applications) selected to take part.
During the next four months, SmartPurse and our fellow chosen start-ups will be supported in the evolution of our platform as we strive to democratise financial education among women worldwide. We’ll receive advice from global financial experts on refining our business ideas and future strategies.
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