Business Funding

Nearly all businesses at some stage require finance. From start up to replacing an existing facility, from asset funding to commercial mortgages, the variety of requirements is extensive. The correct funding for a business is important and time spend will increase profits if handled correctly. Raising funding can be a time consuming exercise, however there are lenders in the marketplace that are actively seeking realistic business propositions. Many businesses tend to rely on the existing relationship with its current bankers, without reviewing either the existing facility or preparing itself for a possible increase in requirement, before it is needed.

Business Angels have a wide knowledge of the various areas of business finance and can source the most cost effective funds. We often are involved in the preparation of the business plan submissions that bankers and asset funders now require.

Small Firm Loan Guarantee Scheme

The SFLGS exists to facilitate small businesses to raise finance from approved lenders. The scheme provides loans between £5000 and £250000 (£100000 limit for businesses with a trading history of less than two years). The applicant Company must provide a viable business plan to the prospective lender – this is an essential part of the scheme and enables the lender to assess the proposal put forward. The key areas that need to be covered are:

• Type of Business with Product/Service provided
• The Market to which it is to be sold
• Management team
• History of the existing business
• If a new start up – Ethos behind the proposal
• Strategic Plan
• Budget/Cash Flows
• Profit and loss plus Balance Sheet projections

The scheme is designed for those individuals who do not have adequate security. The designation of ‘adequate security’ is subject to interpretation by the lender. Business Angels work with the management team to prepare the most effective Business Plan for the prospective lender. With its wide circle of contacts Business Angels will then source an appropriate lender to consider the business proposal and attend meetings with the business/lender to ensure the funding application achieves effective presentation/consideration.

Factoring / Invoice Discounting

If your business does not have a financial track record, is proposing a period of rapid growth or does not have adequate security funds can be raised on your approved sales invoices. The advantage is that your business grows in line with sales, providing funds for development. You can borrow up to 80% of the approved invoices, with the balance, less charges, being paid once the invoice is settled. Once your clients are approved, limits are set and you can borrow on sales invoices up to the limit agreed. Interest costs are generally 3% over base rate plus a service charge on gross turnover. These charges are agreed prior to committing the business to the arrangement. Business Angels can source the most appropriate Invoice Discounting/Factoring Company and be involved in the initial meetings and administrative set up.

Property Finance

Finance can be provided to fund a commercial property purchase; however lenders will seek a deposit on the purchase price and a viable business plan to ensure that repayments can be maintained. The deposits generally vary between 20% t0 35%, dependant on the applicant. All types of commercial property purchases are considered and include:

• Offices
• Industrial Units
• Shops
• Hotels
• Agricultural Units

Vehicle / Plant Finance

If a business has existing unencumbered plant / vehicles / machinery these can be refinanced to raise working capital or if you are considering purchasing new vehicles or have a capital expenditure programme a package can be prepared to effect the lending solution most effective for your business.