The Debt Boutique

Pre-Pack & Transaction Funding Specialist Debt Packagers

Funding Opportunity of the Month – January 2010

• Grants from £100,000 upwards
• Available across England & Wales (except London)
• Available for Turnaround situations

We have tied up with a firm of grant specialists who are able to source grant funding for turnaround situations where:

• there is a realistic turnaround proposal (so no dead ducks)
• the bank or other existing funders remain supportive (which essentially means that the new funds are not simply to be taken in reduction)
• the funding is justified by the sustainability of the business and protection of the jobs of substantial parts of the workforce (but not necessarily all)

Funding can be arranged quickly, in one case within three weeks, and is typically in the range £200,000 to £300,000.

Applicants will require full business plans including three year forecasts (ten year forecasts required for sums in excess of £500,000).

The first step is an initial review of the prospect and assessment of the grant support that may (or may not) be available. At £75 for this initial report is this something that a business seeking funding can afford to miss?

When time and success are of the essence, use the specialists

As experienced turnaround and financing professionals we understand the need for the right deal, on the right terms, delivered in the right timescale.

For more details of how we may be able to help your clients contact Mark Blayney on:

Tel: 01434 345528
Mobile: 07769 686450
Email: help@turnaroundhelp.co.uk

About The Debt Boutique

The Debt Boutique is a specialist service focused on the professional and swift arrangement of packages of structured finance, across the whole of the UK, to support time pressured Pre-Packs and other Transactions.

It combines the skills and experience of two leading practitioners in the area.

Institute for Turnaround member Mark Blayney is a Chartered Accountant with a 20 year background in SME corporate insolvency, turnaround, restructuring and refinancing including experience in intensive care banking and asset finance broking.

He works closely with Stuart Hare, one of the UK’s leading commercial asset finance brokers and founder member/director of the NACFB, with 25 years of experience in working with IPs and bank work out teams on refinancing rescues and exits.

www.debtboutique.co.uk

www.turnaroundhelp.co.uk

http://debtboutique.financial.officelive.com/default.aspx

According to research by BACS Payment in March 2009, payments owed to SMEs have risen by almost 40 per cent in the last year to £26 billion and many businesses are caught in an unsustainable cycle of companies billing quicker and taking longer to pay.

Figures show that SMEs are being forced to wait up to six weeks after the agreed payment date to receive payment.

Yet, says HSBC, just one in 10 businesses are currently using invoice finance to free up their cashflow according to research from HSBC Commercial Banking.

With cash released – in most cases – within one day of the invoice being issued, invoice finance makes funds available which can enable SMEs to respond quickly and decisively in challenging market conditions.

With the recession placing increased pressure on UK businesses – 64 per cent of SMEs say that managing cashflow in the current economic climate is their biggest challenge for growth.

Effectively managing cashflow is just one of the tips included in an online video launched by HSBC Commercial Banking which features a collection of stories from real businesses, practical advice from financial specialists and economists offering top tips on beating the credit crunch.

Noel Quinn, HSBC’s head of commercial banking UK, said: “We are urging businesses to ensure they have the right financial tools in place and are seeking appropriate advice to help them weather the storm. Ultimately a healthy cashflow is critical in a downturn and businesses do have the option, through invoice finance, of working with a financial partner to implement their payment collections on their behalf – allowing them to focus on the running of their business.

“We understand the pressure that businesses are under in the current climate and in a bid to alleviate some of the pressure we have already announced the availability of a £1 billion working capital fund which has been specifically designed to assist SMEs and make the day-to-day running of business more manageable.”

Contributed by BCR Factorscan www.factorscan.com

Half of the fund has been earmarked for Cornwall and the Isles of Scilly, while the remaining £5 million will be used throughout the rest of the region. 

The agency says that small businesses are a core element of the economy and says it is important to support them through the current difficult conditions. 

Stephen Peacock, the organisation’s executive director of enterprise and innovation, adds: ‘Viable and growing companies throughout the south-west need help accessing finance. This fund will go some way towards alleviating these problems.’ 

John Berry, executive director of SWIG Capital, which will hold the fund, stresses that the scheme is not intended to bail out companies, but to support the growth of those which can make a difference to the regional economy. 

Last week, the £1 million Inspire Gateshead project was launched to target resources and services at entrepreneurs, start-ups and growing companies, as well as helping those from disadvantaged areas establish their own enterprises.

The Eternitas Fund will deliver a fast and flexible source of finance and management expertise to struggling businesses across the UK, during a time of unprecedented economic upheaval.

The fund has been established and will be managed by leading North West figures Andrew Redmond, Andrew Duckworth, Neil Duckworth, Alec Craig and David Shaw – all respected names from the region’s top financial and legal institutions. 

An investment commitment of up to £20m is being sought from investors over a five year period (2009-2014).  

Well-known North West entrepreneur Andrew Redmond – the founder of leading debt advice company Debt Free Direct –  said: “We have entered a year of unprecedented change for UK plc, a time when innovative new approaches will be needed if we are to prevent solid businesses going to the wall.

“Business turnaround and restructure are at the top of our list of investment priorities; 
our structure will enable us to move quickly to deliver management strategy and flexible funding to ailing businesses, and to safeguard jobs wherever possible.

 “We will also be looking at acquisition opportunities – in particular, distressed property, asset and debt portfolios – in order to maximise returns for our investors.“

Andrew Duckworth – partner in specialist distressed asset investor Winterhill Asset Management – added “Our unique combination of expertise and contacts will enable us to generate a flow of immediate opportunities for the Eternitas Fund.  We are anticipating an extremely busy 12 months.”

http://www.eternitas.co.uk/

Peter Mandelson’s recent announcement of £20bn of Government-secured loans for SMEs divided opinion. Given the scale of the economic challenges is this enough to help companies retain business and even grow?

You don’t have to look far to see how the lack of credit is affecting businesses trying to secure or renew bank funding. In the last quarter of 2008, according to the Forum of Private Business (FPB), 33 per cent of small businesses sought finance and of those around 47 per cent were either partially or completely rejected by UK lenders.

The new Government scheme hopes to get credit moving by removing the risk associated with loan defaults should businesses go bankrupt but the scheme’s ability to stimulate recovery may well depend on whether individual SMEs can find good business opportunities in the new climate. These are loans not grants and can’t rescue an enterprise struggling with its core strategy, yet it could be just the helping hand needed for those incapacitated by the lack of credit.

I feel positive about the funding being made available for ambitious businesses and am excited about the role my own organisation, Finance South East (FSE), has to play in helping businesses through this difficult time. The recently set up Transition Fund, which is funded by SEEDA and managed by FSE, provides loans to high-growth SMEs having difficulty obtaining finance from the commercial sector and while it’s still early days, initial successes highlight how Government-backed loans can work.

Finance South East continues to assist businesses at all stages of development, providing finance for a variety of activities. Current funds and services under management include:

• Accelerator Fund: a £10m mezzanine loan fund providing up to £200,000 for a range of growth activities
• South East Seed Fund: a £5m equity fund investing up to £250,000 on a matched-funding basis to SMEs, including university spin-ins/spin-outs
• Commercialisation Fund: a £3m fund providing repayable finance of up to £60,000 for proof-of-concept and commercialisation activities
• Transition Fund: providing loans of up to £150,000 to established SMEs
• Grant for R&D: helps start-ups and SMEs carry out research and development work on technologically innovative products and processes
• GBI (Grant for Business Investment): a discretionary grant scheme typically providing 10-15% of a project’s eligible capital expenditure
• South East Capital Alliance (SECA): a business angel network introducing high quality, investment ready companies to potential investors from across the region

http://www.financesoutheast.com