Finance Review For Business Across West Midlands
Dr Steve Walker
ART Business Loans
Solihull Business Club
First Business Plan...
- Business plan remains the starting point.
- Does the business owner understand and own the plans?
- Can evidence be provided re realism of forecasts.
What's The Priority
- Confidence and Enthusiasm
- If borrowing, provide as much evidence as you can that you can repay.
- If grant seeking –meet the criteria and know what is required.
- Resources and Tips www.artbusinessloans.co.uk
Sources of Finance
Viability and risk the key to all types of finance:
- GRANTS- do not have to pay back –be amount v time aware.Satisfy the terms and the grant providers expectations.
- DEBT – Loans- Repay capital and interest Where from? proof required forecasts.
- EQUITY- High growth and profit expectations- shares in return for risk.
For a list of sources of private and public sector finance see-
CARE- USE OF THE GOOGLE FIRST PAGE!
Very few provide funds for start ups-if they do locally very small amounts.
However they can provide some free help and support-mentoring.
Testing a product or service - advice and help in areas of business.
Most larger grants are now linked to growth and job creation- can be sizeable schemes but will require some matching funds.
A changing world – seek advice.
Editors Comment Experiences says if anyone will know it will be ART where you can be sure of impartial honest advice.
Public Sector supported schemes
Government or regionally/locally backed loan schemes including specialist schemes.
Usually workshops and one to one support and mentoring –mostly free.
National Start up loan scheme now any age. Soft loans (6%). Providers also of mentoring free of charge.
www.startuploans.co.uk- for up to date list of providers.
Sources of Finance
Banks are still lenders – but criteria tightened. Sometimes even difficult to understand what they are!
Overdrafts/Loans from Banks and other lenders- linked to property, fixed assets.
Almost always linked to security especially the banks for amounts over £25000.
Business plan STILL remains the starting point.
- Peer Lenders will concentrate mostly on established businesses 2 yrs accounts filed.
- Funding Circle and Thin Cats are market leaders.
- Crowd Funding (small equity)- still untested at larger levels.
- Some innovative invoice discounters are emerging.
(ART) Lending Criteria
- Refused loan by bank and other sources.
- Viable proposition - application form/business plan-
- Concentration on the people and plan.
- Social and Economic Benefits to area-usually jobs created or preserved.
- Evidence of desire and ability to repay-viability.
ART -Business Loans
For existing and start up businesses-
£10000 to £150,000, secured and unsecured. Average deal size currently £32k.
Up to 7 year loan period . 3 years more usual for most working capital loans/start ups.
Can lend alone or as part of a package for large deals.
Commercial rates of interest and fees- 9.5/base> 18/base min 10%.
Compare banks for similar loans-times have changed. 15%>29%
Wide range of sectors and size of business supported.
CONTACT: 0121 359 24440121 359 2444 or visit www.artbusinessloans.co.uk
Contact ART -
if you are not having success raising capital elsewhere
Call Martin Edmonds, Graham Donaldson, Andy King or Steve Walker on 0121 359 24440121 359 2444