But the 41-year-old Scot plans to change that by launching an Internet service for businesses catering to homosexuals.

"We are going to legitimize gay business," he said during an interview in the private cigar room of one of his two London night-spots, the labyrinthine, multi-storey Voodoo Lounge.

Despite the much-hyped "pink pound" - the notion that gays and lesbians have high disposable incomes and a propensity to spend - he says gay business has never been taken seriously in the financial markets.

"What I'm trying to do is make the banks aware that you can actually be involved with these companies and be safe," said McKay, who worked as a fisherman, roofing contractor and oil rig worker before.

Fear of AIDS

The Voodoo Lounge and McKay's other restaurant-bar, the Edge, have a combined annual turnover of just under 6 million pounds ($9.4 million). He employs 110 people and among his various investments plans to put about 100 million pounds ($156.6 million) into four hotels.

Acquisitions relating to his website, temporarily named theclan.com, will total about 30 million pounds ($46.9 million), he said.

Despite his assets, he said he and other gay business entrepreneurs face abnormally tough lending requirements.

"The owner of a straight bar can borrow at least 10 times net profit from a corporate bank. A gay bar can get only four times, even if it has higher turnover," he said.

At least one high street bank has told him explicitly that it did not wish to finance him because he was at high risk of dying of AIDS, he said.

Landlords also pose problems, with property companies typically asking for a year's rent in advance for a gay business when three months is the norm, and at least double the normal deposit. A reference from the royal family for roofing work at Balmoral castle helped him get his first London commercial lease.

His idea for the website was inspired by young entrepreneurs launching gay businesses who started coming to him for advice after facing slammed doors at financial institutions.

Different on the net

McKay singled out National Westminster Bank as especially homophobic, though he emphasized that the problem was only on the corporate banking side - he does his personal banking with NatWest - and that younger bank managers were more accepting than older ones.

A spokesman for NatWest said the bank strongly rejected any accusations of homophobia.

"If any customer feels that they have been unfairly treated by us, we would urge them to contact us to discuss their concerns," the spokesman said.

He said NatWest has supported the gay rights group Stonewall for several years.

McKay said he has had positive reaction on funding theclan.com from Internet incubator funds Oxygen Holdings Plc and Legendary Investments Plc.

Phil Carvosso, a financial advisor catering to gays and lesbians, said they were faced with discrimination when it comes to personal finance.

"You walk into a bank to get a mortgage with your boyfriend and they act like you're something they just scraped off their shoe," he said.

"You still get people that are being discriminated against in terms of blood samples."

Like the laws of economics, social attitudes appear to be different in the world of e-business.

Asked if his company had any qualms about investing in a company with gay web portals, a spokesman for an on-line music provider said: "Oh God, no. Not nowadays."

(Agencies via Xinhua)