As we celebrate 20 years of NGI Finance, we thought we’d mark the occasion with something a little different. We spend a lot of our time talking about business loans, asset finance and invoice factoring (and rightly so) but finance as a subject has a genuinely fascinating history behind it. From the origins of banking to some eyebrow-raising numbers, here are 20 fun finance facts we think you’ll enjoy.
- The word “bank” comes from a bench
The term comes from the Italian word banca, meaning bench or table. Medieval money changers conducted their business sitting at benches in the marketplace. If they went bust, their bench was literally broken, giving us the word “bankrupt,” from banca rotta (broken bench).
- The world’s oldest bank is still operating
Monte dei Paschi di Siena, founded in Italy in 1472, is widely considered the oldest bank in continuous operation. It’s been lending money for over 550 years, which puts our 20 years into perspective!
- Credit cards almost weren’t called credit cards
When Diners Club launched the first widely used charge card in 1950, it was designed for restaurant bills. The founder Frank McNamara reportedly came up with the idea after leaving his wallet at home during a business dinner.
- The Bank of England was founded to fund a war
The Bank of England was established in 1694 primarily to help the government raise £1.2 million to rebuild the Navy after a costly war with France. It’s been a cornerstone of British finance ever since, though its remit has expanded somewhat.
- Most money doesn’t physically exist
Only around 3 to 8% of the world’s money exists as physical cash. The rest is entirely digital so basically numbers in databases. Every time a bank makes a loan, it effectively creates new money through a process called credit creation.
- The UK’s first cashpoint appeared in 1967
Barclays Bank installed the world’s first ATM in Enfield, north London, on 27 June 1967. The inventor, John Shepherd-Barron, reportedly got the idea in the bath after arriving too late to withdraw cash from his branch. The PIN was originally six digits, but he shortened it to four after his wife said she could only reliably remember that many.
- Invoice finance is centuries old
Invoice financing, which we offer here at NGI, isn’t a modern invention. Merchants in ancient Mesopotamia were effectively doing something similar thousands of years ago, advancing funds against future payments for goods. The principle hasn’t changed much, even if the paperwork has.
- The pound sterling is the world’s oldest currency still in use
The pound sterling has been in continuous use since around 775 AD, making it the world’s oldest currency still in active circulation. It’s survived wars, economic crises and the introduction of the euro.
- Switzerland has more banks than dentists
Or so the saying goes (we haven’t tried counting them!). Switzerland’s reputation as a global banking hub means it has an extraordinarily high concentration of financial institutions per head of population, though we wouldn’t recommend treating them as interchangeable.
- The concept of compound interest was described as the “eighth wonder of the world”
The quote is often attributed to Albert Einstein, though historians can’t quite confirm he said it. Whoever coined it wasn’t wrong. Compound interest (earning interest on interest) is one of the most powerful forces in personal and business finance. It’s why getting on top of debt early always pays off.
- The first stock market crash happened in 1637
The Dutch Tulip Mania of the 1630s is often cited as the first recorded speculative bubble. At its peak, a single tulip bulb could cost as much as a house in Amsterdam. When the market collapsed in February 1637, it wiped out fortunes overnight. Asset bubbles, it turns out, are not a modern problem.
- Unpaid invoices are costing UK businesses billions
UK small businesses are owed billions of pounds in late payments at any given time. It’s one of the biggest challenges facing SMEs, which is precisely why solutions like invoice finance exist to help businesses manage their cash flow while waiting for customers to pay.
- Hire purchase was invented to sell pianos
The hire purchase model (paying for something in instalments while using it) was popularised in the 19th century as a way of making pianos affordable to the growing middle class. It’s come a long way since then, and today it’s one of the most popular forms of asset finance for UK businesses acquiring vehicles and equipment.
- The first paper money appeared in China
Paper currency was first used in China during the Tang Dynasty (618–907 AD), initially as receipts for deposits of coins. By the Song Dynasty, the government had started issuing its own printed notes. It took several more centuries before the idea caught on in Europe.
- More monopoly money is printed each year than real money
Hasbro prints around £30 billion worth of Monopoly money every year. It’s a fun statistic, though we’d gently point out that Monopoly money won’t get you very far when it comes to securing a commercial mortgage.
- The phrase “in the red” comes from old bookkeeping
Before digital accounting, bookkeepers recorded profits in black ink and losses in red. The phrase “in the red” for being overdrawn or loss-making has stuck around even now that most accounts are managed on screen.
- Asset finance accounts for a huge slice of UK business investment
The Finance & Leasing Association estimates that asset finance supports a significant proportion of all fixed business investment in the UK each year. It’s one of the most practical and widely used routes for businesses to acquire the equipment they need without tying up capital.
- The first cheque was written in 1659
The earliest known written cheque dates to 1659 in England. For over 350 years, cheques were a cornerstone of business payments, though their use has declined sharply with the rise of digital banking and bank transfers.
- Businesses that plan their finances grow faster
Research consistently shows that businesses with a clear financial strategy (including access to the right funding at the right time) outperform those that don’t. It sounds obvious, but it’s genuinely something many growing businesses overlook until they hit a cash flow crunch.
- NGI Finance has helped businesses secure over £500 million in funding
We thought we’d sneak one of our own facts in here. Over the past 20 years, the NGI team has helped businesses across the UK secure more than £500 million in funding. From asset finance and business loans to invoice finance and commercial mortgages, we’re proud of every one of those deals and we’re looking forward to the next 20 years.
Whether you’re looking to finance new equipment, manage your cash flow or explore your funding options, we’d love to help. Give us a call on 01993 706403 or drop us an email at enquiries@ngifinance.co.uk to talk through what’s possible.
