12 business success
for high-growth businesses
A groundbreaking new offering from Barclays is transforming the way many fast-growing Thames Valley businesses can access substantial funding of up to £5 million for future innovation and expansion
After a successful pilot programme, the bank‘s new Innovation Finance product has now been rolled out across the region, with a clear focus on the technology, media and telecoms (TMT) sector.
Barclays‘ aim is to be the bank with the best high-growth offering in the UK market, and Andrew Sharman, relationship director at Barclays Corporate, says he believes it is leading the way in helping to boost business growth for fast moving local companies.
”As a clearing bank, what we are doing is pretty unique in terms of offering venture debt into this part of the market,” he said.
”Ours is a true relationship role with our customers; we act as their central point of contact and help them find the solutions they need, whether that‘s with the support of the bank or through our interactions with other external professionals in the market.
”It‘s very much about understanding our customers‘ markets and the challenges they are facing. This enables Barclays to engage earlier with businesses who show strong potential so we can support them through their growth period, something which historically has been hard for banks to do.”
Sharman looks after businesses in the £5m to £25m space, while colleague Chris Cole takes care of small mid-cap organisations in the £25m+ turnover bracket. As relationship directors, they work with existing customers and potential new ones, and Sharman is keen to make the point that the new deal applies equally to both.
”Now the product is available in the Thames Valley, customers can be assured that either Chris or I will be with them at every stage of the growth process,” he continued. ”These businesses are going through an incredibly rapid change and having one consistent relationship with someone who understands your business and has the expertise you require is very valuable.”
Relationship director Cole added: ”Our Innovation Finance solution will unlock
funding for well-capitalised high-growth businesses, who may previously have found that their strategy of re-investing profits has prevented them from raising conventional bank finance.”
The Innovation Finance product has been made possible through the European Investment Fund (EIF), which aims to promote access to finance for SMEs and small mid-caps across the EU, supporting innovation and helping to create new jobs and development.
It enables the bank to provide support from post- seed-early-stage revenue generating businesses with high growth, through to moderately- capitalised businesses with a growth rate of more than 20%, in addition to well-capitalised businesses with revenue of over £5m.
Companies which meet the eligibility criteria will be able to take advantage of competitive rates, flexible repayment options and a choice of interest rate structures. And, because the loan is partially guaranteed by the European Government, it is available to businesses that would not ordinarily have sufficient financial security for bank funding.
Innovation Finance may be used for a wide range of business needs, such as investment in new premises, technology or to fund expansion into new markets at home or abroad.
”If a rapidly growing business invests a significant lump sum in order to take the organisation towards its next stage of growth, then clearly that will suppress profitability in the short term and they will be likely to make losses,” added Sharman, who sees cybersecurity and Cloud technology as two key growth areas in what he calls a very ”buoyant” Thames Valley market.
”By engaging earlier in the process, Barclays can now help drive that growth. This new product enables us to help fund that period and, because we understand what they are doing and why, we can support the management team‘s strategy, enabling them to keep going while reaping the benefits of our offering.
”This is about being involved at every stage, right from early seed funding to the ultimate sale, exit or IPO.”
Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP. February 2016.
www.businessmag.co.uk Details:
Andrew Sharman
andrew.sharman@
barclays.com 07867-352873
Chris Cole
chris.cole@
barclays.com 07775-540109
www.barclays.com
Innovation Finance package
Barclays launches new
Andrew Sharman
Chris Cole
The views expressed in this article are the views of the author alone and do not necessarily reflect the views of the Barclays Bank PLC Group nor should they be taken as statements of policy or intent of the Barclays Bank PLC Group. The Barclays Bank PLC Group takes no responsibility for the veracity of information contained in the third part guides or articles and no warranties or undertakings of any kind, whether express or implied, regarding the accuracy or completeness of the information given. The Barclays Bank PLC Group takes no liability for the impact of any decisions made based on information contained and views expressed.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2016
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