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Maximise your Chances
of Success
There are various schemes and initiatives around which offer access to finance
to businesses – particularly those which have been refused finance
from mainstream lenders (see below). Enterprise Enfield Business Advisers
can help you decide which is the most suitable type of finance for you and
assist you with the preparation of a sound and viable Business Plan to access
these programmes. Simply call 020 8443 5457 to make an appointment with
one of our qualified Business Advisers to discuss your options.
Grants
There are few of these available - especially for new businesses. New business
support tends to be in the area of subsidised or free help and advice and
subsidised / free training programmes. However, new and existing business
can check their eligibility for a grant in their area by visiting any of
the following websites: www.j4b.co.uk
, www.govgrants.com,
www.grantfinder.co.uk,
www.grantsearch.co.uk
.
Bank borrowing (loan or
overdraft).
Your bank is likely to know how your business will be able to repay a loan/
overdraft by looking at your business plan and financial forecasts, they
may well ask for security. Enterprise Enfield Business Advisers can help
you put a business plan together to submit to your bank- simply call 020-8443
5457 for an appointment.
London Start up and Growth
Funds
If you have been refused finance from a mainstream lender, there are a number
of initiatives available which offer access to finance, these include OneLondon's/
Business Link's London Business Start-up and Growth Funds.
London
Business Start-up Fund
To benefit from this fund you must be either planning to start a business
within 3 months or be in the first 2 years of trading. Unsecured loans are
available of up to £7,500, repayable over up to 3 years by Direct
Debit. No interest is charged, but there is a monthly management fee. Open
to businesses located anywhere in London.
As these are loans of last resort, evidence is required that finance has
been refused by a recognised mainstream lender, this must be accompanied
by a comprehensive business plan. Successful applicants are allocated to
an Adviser and are required to join the Mentoring Programme delivered by
Enterprise Enfield for and on behalf of Business Link for London.
Contact www.one-london.com,
telephone number 0207 940 1571
London Business Growth
Fund.
To benefit from this fund you must already be running a sound business,
have plans to expand and need funding. Unsecure loans are available of up
to £20,000 repayable over up to 5 years by Direct Debit. Open to businesses
located anywhere in London.
As these are loans of last resort, evidence is required that finance has
been refused by a recognised mainstream lender you will also need a comprehensive
business plan and a recommendation from the adviser allocated to you and
trading accounts that can be certified for at least 12 months.
Contact www.one-london.com,
telephone number 0207 940 1571
Objective 2 Loan Funds
The Objective 2 Loan Fund: Start up Loans
part of the LDA's Access to Finance programme
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These loans are available to businesses who are unable
to obtain all the support they need from mainstream lenders |
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Owners/directors must show their wholehearted commitment
to the business in provision of available finance time and other resources |
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Businesses may have been trading for up to 18months |
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Adverse credit history does not automatically bar an application |
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Some activities and purposes are excluded |
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Loans up to £20,000 |
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Repayment term up to 3 years |
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Interest charged at 4% above the current published EU
specified UK reference rate |
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No facility fees payable |
For more information and to confirm eligibility contact ron.gardner@one-london.com
The Objective 2 Loan Fund: Growth Funds
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These loans are available to businesses who are unable
to obtain all the support they need from mainstream lenders |
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A minimum 20% of loan value must have been invested in
the business since start up |
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Owners/directors must show their wholehearted commitment
to the business in provision of available finance time and other resources |
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Businesses must be trading successfully for at least 1
year, as evidenced by certifiable accounts. |
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Adverse credit history does not automatically bar an application |
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Some activities and purposes are excluded |
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Loans up to £50,000 |
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Repayment between 3 & 5 years |
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Interest charged at 4% above the current published EU
specified UK reference rate |
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No facility fees payable |
For more information and to confirm eligibility contact ron.gardner@one-london.com
North London Enterprise
Fund
This fund is supported by the Phoenix Fund and administered by HBV
Enterprise, a not-for-profit company whose mission is to help generate economic
activity in 7 London Boroughs. It has managed loan funds for over 12 years.
The fund is available to pre-start and existing businesses with under 50
employees. Applicants must show how Enfield, Barnet or Haringey will benefit
economically as a result of their proposed activities ie: through job creation,
business expansion, development of new products and markets etc.
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Between £3,000 and £25,000 can be borrowed,
however, it is expected that some money comes from your own finances
or a commercial source such as your bank. |
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The term of the loan is negotiable to a maximum period
of 5 years |
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Interest is charged at 2% above Bank Base Rate |
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A fee of 1.5% (min £75) will be charged when the
loan is drawn down |
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A standard condition is the acceptance by the borrower
of regular monitoring of the results of the loan. |
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Fund staff will keep in regular contact with you, this
on-going support is free of charge. |
For more information and to confirm your eligibility contact Viv Abbott,
Fund Manager, HBV Enterprise 020 7254 9595, www.hbv.org.uk
Enterprise Credit Union
The Enterprise Credit Union is a co-operative banking system owned
and run by its members. Membership is open to North London Enterprise Club
and North London Chamber of Commerce member business owners as well as their
employees, spouses, partners and children over 18. Individual members must
save a minimum of £10 per month (maximum savings: £5000). An
annual dividend is paid on savings.
After an initial period, generally 3 months, members can borrow up to 5
times the amount they've saved. Interest at loans is set at 1% per month
on the reducing balance. Members get FREE life insurance cover on savings
and loans and there are no arrangement or completion fees.
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Loans can be up to a maximum of £5,000 for individual
start-ups and up to £10,000 for team-led start-ups or existing businesses.
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Competitive interest rates: 12.68% APR (1% per month on
the reducing balance). |
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No arrangement fees or completion fees for loans. |
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You will have to provide evidence that you have been refused
finance from at least one normal commercial lender. |
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A written business plan demonstrating the viability of
the business proposal must be submitted with your application. |
You will usually be expected to approach the Phoenix Fund through an intermediary
who will provide assistance to write your business plan and on-going help
during the duration of the loan. This loan is repayable over up to two years.
If your application for a Phoenix loan is successful, you will still be
able to apply for an ordinary Credit Union loan, when you have been a member
for three months.
For further information call the Credit Union on: 020- 8366 8244, www.enterprisecreditunion.co.uk.
SBS Small Firms Loan Guarantee
Scheme
This scheme can only be considered where conventional lending is denied
due to lack of security. Loans are available for periods of between two
and ten years on sums from £5,000 to £100,000 (£250,000
if your business has been trading for more than two years). SFLG guarantees
75% of the loan. In return for the guarantee, the borrower pays DTI a premium
of 2% a year on the outstanding amount of the loan. The commercial aspects
of the loan are matters between the borrower and the lender.
To be eligible, you must be a UK company with an annual turnover of no more
than £3m (£5m if you are a manufacturer). Many business activities
are eligible but there are a number of exclusions. Loans are available for
most business purposes although there are some restrictions.
For information and eligibility criteria call the Loan Guarantee Unit on
0845 001 0032/0033 web: www.dti.gov.uk.
Prince's Trust
The Prince's Trust helps people aged between 18-30 who are unemployed/ under
employed or of limited means to start their own businesses. For eligible
applicants who have been refused finance from other sources they provide
low interest loans of up to £5,000 and grants up to £1,500.
For further information call the Prince's Trust: 020-7543 1234, www.princes-trust.org.uk
Business Angels
Business angels are private investors who usually provide business finance
in return for an equity stake in the business, however they may also provide
other long-term finance in addition to, or instead of, equity. A business
angel will generally commit between £10,000 and £100,000 to
a single investment, however, there are business angels who will invest
larger or smaller amounts either individually or in syndicate of informal
investors. Business angels invest in almost all sectors and all stages of
business development.
Most business angels wish to be hands-on investors; often they will play
a significant role in the month to month management and strategy of the
business. This may be joining the board, offering consultancy help or even
working on a part-time basis. The key factors which business angels take
into account when assessing an investment opportunity are:
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The expertise and track record of the entrepreneur and
his/her management team |
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The characteristics and growth potential of the market
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The fit between the characteristics of the business opportunity
and the business angels' own investment preferences. |
Finding a business angel
There are a number of Networks around- including the British Business Angels
Association - a not-for-profit company, which is sponsored by major financial
institutions and supported by the Department of Trade and Industry. For
more information see www.bbaa.org.uk.
Some of the networks can provide help in raising finance from other sources,
provide a vetting service and help in preparing a business plan for a small
fee. However, business angel networks are only one way in which to find
a business angel - the use of personal and business contacts remain the
most common ways in which entrepreneurs and business angels are introduced
to each other.
Grants for Research and
Development
This DTI fund, which replaced the SMART Award, provides grants to help individuals
and small and medium-sized businesses to make better use of technology and
to develop technologically innovative products and processes.
Micro Projects
Up to £20,000 for companies with less than 10 employees
Available for simple, low-cost development projects lasting no longer than
12 months. The output should be a simple prototype of a novel or innovative
product or process.
Research Projects
Up to £75,000 for companies with less than 50 employees
These involve planned research or critical investigation lasting between
6 and 18 months. The result of the project could be new scientific or technical
knowledge that may be useful in developing a new product or process.
For more details contact your local Business Link- or see the website www.businesslink.gov.uk/bdotg/action/home
Asset finance
You may wish to consider HP or leasing arrangements on such things as vehicles,
equipment, computers.
Creditors
Taking credit for supplies rather than paying cash provides some short term
finance but you need to be certain that you will have the cash to pay this
when the invoices fall due.
RSA Loans and Grants
Loans of up to £3000 are available to Enfield residents running new businesses,
who have been refused finance from other lenders. The fund, provided by
The RSA Trust, is administered by Enterprise Enfield and can also provide
up to £750 of the £3000 as a grant. Details of the fund are as follows:
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The fund will provide a maximum of £3000 of funding,
normally on a loan fund with repayments of 1% per month of the
outstanding balance (APR 12.68%). |
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A grant, not exceeding £750, can be made in some
cases. |
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If a grant is agreed, then the finance, including the
loan, cannot exceed £3000. |
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Beneficiaries must have a viable business plan and the
business must be situated within the borough of Enfield. |
For further details of how to apply, contact Enterprise Enfield on 020
8443 5457 to make an appointment with a Business Adviser.
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