‘The Financial Mail on Sunday’ (29 January) carried a heart stopping story of this wonderful couple, Lucy and her brother Simon Price, who have sold their recycling business and have used the proceeds to set up a fund.
This will provide short-term loans to cash strapped manufacturers. The £1.5m fund will make loans of £50,000 to £100,000 for up to twelve months. The founders emphasise how emotional it can be trying raise finance.
“This is wonderful” announced Mr. Angry after collecting his latest social services cheque. “These marvellous people are putting their money into a fund which will help British businesses. I feel rather emotional.”
The fund will base its lending decisions on a strong balance sheet (er…if it’s strong why does the business need short-term finance?). The arrangement fee is £2,000.
Mr. Angry is apoplectic in his praise of this initiative. “Tell Vince Cable I say” he shouts as he reaches the pub.
Mrs. Angry has also read the article. “Mr. Angry” she shouts. “Look at this.”
She has identified the quoted rates of interest. “Between two and five per cent a month.”
“Mr. Angry, that’s 60% per annum.”
“Bloody hell” he cried. “That’s money lending.”