You know that general complaint? That UK banks don’t lend to new businesses? That they should? That entreprenurialism cannot thrive without a radical change in Britain’s banking industry?
There’s a reason why debt isn’t perhaps the right way to finance such things:
Mind Candy, the developer behind the children’s online game Moshi Monsters, is seeking a delay to loan repayments over fears its future is threatened by mounting losses.
The company said it was in negotiations with its lender, the technology start-up specialist TriplePoint, to push back the first repayment on a loan it took out in 2014.
The bill is due in July and Mind Candy said that if it is forced to begin paying the £6.5m at an interest rate of 12pc there may be “significant doubt over the company’s ability to continue as a going concern” if sales do not improve.
Debt has to be repaid you see, equity doesn’t.