34 funding your business


Good advice will still secure business funding


Despite many barriers still in place making it difficult to secure funding for businesses, there are new and innovative ways to ensure a good proposal is backed with the finance it needs, says HWB director Alan Williams


The banks are still working under capital constraints placed on them at the depth of the recession and proposals are looked at in far more detail than they would have been previously.


Having said that, a good proposal from a sound business is still capable of being funded and there is more appetite from banks to come back into the funding arena. Bank managers, in particular, are keen to lend but that funding takes time to come through.


There is no doubt that bank lending has shifted. Traditional debenture- backed lending is far less prevalent, with significantly more funding being provided by sales invoice finance. This works particularly well for sectors such as recruitment but is far more difficult for businesses where there are stage payments or


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payments on account, such as the construction industry.


The Government has talked for years about initiatives to help businesses – and taken a step in the right direction with the chancellor’s recent extension of the Funding for Lending scheme and Enterprise Finance Guarantee Scheme in the Autumn Statement. It shows he’s listening to business frustration about funding but that rhetoric takes a long time to filter down to SMEs.


The chancellor’s March Budget and a General Election in May will create an air of uncertainty at the start of the year and lenders may be tempted to sit on their hands while they wait to see what changes are announced.


The Government has a difficult balancing job to generate growth in the economy while trying to reduce


debt. But SMEs need to see more initiatives to increase the release of funding.


Alternative means of funding are becoming increasingly popular. Crowdfunding, which uses the connected power of the web to attract interest, now accounts for more than 1.5% of all UK funding. That’s a big impact for an initiative which has only been around for a relatively short time.


It will be interesting to see how the crowdfunding sectors of bonds, equity and reward funding develop. The chancellor’s introduction of tax relief on losses when a crowdfunding loan investment fails may also encourage more private individuals to finance projects.


Funding is available if businesses go about it in the right way and at


Finding funding at Altitude


Altitude Partners provides direct investment of between £500,000 and £2 million to growing businesses in the south. For companies needing financial backing and a helping hand, it not only provides investment, but also strong support to management teams in developing highly- successful businesses in their own sectors


The challenges facing SMEs today are multi-layered, and include domestic and international strategy, recruiting the right staff resources and establishing a robust financial platform to build from.


In facing these challenges, Altitude is aligned with the management teams and provides strategic input and management support through its extensive networks, to help grow the businesses.


As a result, Altitude’s investments have all seen strong growth. Altitude backs businesses which are growing organically and through acquisition, as well as supporting management teams


undertaking management buyouts.


Altitude is actively seeking to invest in manufacturing, leisure, retail and the service sectors. It can tailor each investment differently and provide follow-on investment, which is essential for growing companies.


Simon White of Altitude said: “The southern region has a wonderfully diverse base of good businesses, but many businesses experiencing growth find themselves either undercapitalised or with the wrong shareholder base for significant expansion. A conventional blend of professional equity investment and, where appropriate bank


debt, gives a strong financial base on which to expand.


“We have significant funds available and are always seeking to back good management teams and owners who recognise the opportunities to grow their businesses over the next few years.“


With current investments in healthcare, telephony, manufacturing and software, investments are not restricted to specific sectors.


Details: 023-8000-2030 www.altitudepartners.co.uk


HWB, we can introduce them to the appropriate lenders.


We can also advise on the right type of finance for a proposal and have the experience and knowledge to successfully package and present it to any providers of finance. There is always a danger of over-trading as we come out of a recession and there is no more important time for businesses to make well-informed decisions for continued growth.


Details: Alan Williams 023-8046-1201 www.hwb-accountants.com


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2015


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