It’s a simple fact that no business growth can be achieved without suitable resource to back it up – so what happens when finance is famously difficult to come by? Well, first you have to check whether the reported loan drought is all that it seems…

Given recent reports in the media about the lack of funding available to SMEs, you’d be forgiven for thinking that financing the growth of your business is nigh-on impossible. However, this is not quite so – with the right approach there are options that can pave the way to a more successful future.

For example, in the East of England region, Finance East Loan Management Limited has now committed in excess of £3.3m in loans to 30 SMEs. Funded by the EEDA, the Regional Growth Loan Scheme is available to locally based limited companies with a minimum turnover of £500k, and which can demonstrate a need for long-term investment to deliver the strong growth potential that they are showing.

“We are well into our second year of existence and it is clear from the number of approaches we are receiving that there is significant demand for the type of loan facility we are offering,” explains Stuart Ager, Senior Fund Manager at Finance East. “In an economy that seems very patchy at present, the lending environment remains tight for growth orientated SMEs and we continually meet driven management teams who have strategies and market opportunity to expand, but cannot do so because of lack of finance – that is the role of the Regional Growth Loan Scheme – to provide a level of funding that will enable a business to move forward and add to the economic development of this region.”

The EEDA Regional Growth Loan Scheme fills the gap between traditional debt and equity funding.  It can be a stand-alone funding source, but is complementary to other sources of finance such as traditional bank borrowing. The loans are typically of amounts between £50k and £200k, paid in tranches, and repaid over terms of between two and five years. The interest rate offered varies between 5-9% over the base rate, depending on the risk level, while security is typically mortgage debenture, and also subject to a risk assessment.

As with any finance application, the key to success is a clear business strategy that can deliver the forecast growth, outlined in a detailed business plan. This is where CBHC can help. We can work with you to:

  • identify the ways in which funding willbest support your short and long term business goals
  • get your company’s financial statistics ready with detailed breakdowns of past performance, current status and forecast activity
  • provide you with relevant market intelligence that shows how you compare favourably against competitors
  • help you optimise your management structure
  • single out the KPIs (Key Performance Indicators) that have positive impacts on your business to demonstrate that you are a proactive, professional organisation.

If you are interested in applying for one of these EEDA-funded loans, do give our Corporate Finance team a call on 01245 453881 or 01245 453881 – and let us help you to get the funding that you need to take your business to the next level.