Loan scheme places emphasis on future potential rather than past performance

Companies in the East of England that have a credible growth strategy and need finance are being encouraged by Finance East (part of The FSE Group) to apply for a loan via the Regional Growth Loan Scheme (RGLS). The RGLS, which focuses more on future potential than past performance, plugs a gap for established companies that have a credible growth strategy but have not managed to raise finance to implement their plans.

Finance East calls for loan applications

Raising finance can be particularly difficult for established companies whose balance sheets have been weakened by tough trading conditions and those that operate in sectors that are typically less appealing to business angels and venture capitalists, such as manufacturing or business services.

Anecdotal evidence indicates that banks tend to take a historic view of businesses, which precludes them funding a business without a healthy balance sheet, irrespective of its growth potential.  Equity investment may be an option but many investors focus on innovation and not all companies fit this mould.   In addition, securing equity investment takes time - something many companies don’t have - and it requires an obvious exit route; not all business owners are growing their business for sale.

The Regional Growth Loan Scheme, managed by Finance East part of The FSE Group, offers a solution for the owners of businesses that have been unable to raise finance elsewhere.  It is aimed at companies with turnover of £500,000 or more and growth forecasts of 20% - 50% per annum.  Importantly the team’s decision to fund a business is more focused on its potential than its performance to date.

Stuart Ager of Finance East explains:

“If a company’s past performance is less than resoundingly positive or they are experiencing cash flow problems, most funders will walk the other way.  However, when assessing companies for a Regional Growth Loan, we will scrutinise their growth strategy for the future rather than raking over the past. If we have confidence in the product, sector and team and the company has a robust plan for the future, we are likely to say ‘yes’ where others have said ‘no’.”

A loan via The Scheme can be used for capital expenditure, sales and marketing, personnel recruitment and/or project expenses. Loans of between £50,000 and £200,000 are available on 2 – 7 year terms.

Stuart Ager, Senior Fund Manager, Finance East, adds: 

“When clients come to us they have sometimes been offered a percentage of their total requirement and then need to find the rest.  Our openness to funding 100% leaves the company free to focus on its growth strategy rather than having to divert time to chase match funding.” 

For other examples of companies that have received loans, see notes to editors.

For more information on the Regional Growth Loan Scheme please go to www.thefsegroup.com/funding/sme/regional-growth-loan-scheme or email stuart.ager@thefsegroup.com 

 

Notes 

1.     The Regional Growth Loan Scheme is open to companies in Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk.

2.     Companies that have benefited from loans include:

·               Bedfordshire: Ebase and EtherNDE

·               Cambridgeshire: Intergence, Omnisense, Qualitetch and Cambridge Temperature Concepts

·               Essex: Atlantic Healthcare and Factory Lane Autos

·               Suffolk: Jacob Bailey, Omega Ingredients, Screens at Work and Stokes Sauces

3.     Key criteria are:

-       Existing customer base

-       Turnover £500,000 - £5m

-       Breakeven/modestly profitable

-       Operating in a growing sector

-       Credible growth strategy aimed at year on year growth of 20% - 50%

-       Looking for between £50,000 - £200,000

4.     The Regional Loan Scheme cannot fund start-ups, not-for-profit companies, social enterprises or unincorporated businesses

*******

Further information:

Stuart Ager

E: stuart.ager@thefsegroup.com

Tel: 01473 722910

 

Francis Kenealy

E: francis.kenealy@thefsegroup.com

Tel: 01473 722912

 

Marcie Bell, The Foundry House

E: Marcie@thefoundryhouse.com

T: 01480 880986

____________________________________



Read more

Looking for something specific?