Yorkshire business leader Gary Lumby looks behind the acronyms to explore the finance options availa
It seems the world of finance is trying to confuse many small businesses by using a plethora of acronyms to describe some of the new and existing funding streams that are available to them under the broad heading of access to finance.
It is clear that many small businesses need help with their financing requirements and cash flow and with banks being only partly the answer, many are turning to alternative sources of finance to help close their funding gaps.
That is often when the confusion starts because these funds have different names and application criteria which can cause headaches for small businesses that are looking for help. Whether it is Finance Yorkshire (FY) with their seedcorn, business and equity loan funds, or the Business Enterprise Fund (BEF) with loans specifically targeted at small businesses or social enterprises to the Viking Fund (VF) which is targeted at those businesses that have already been turned down by the banks, all have different criteria.
Then when we throw in larger funds such as the recently formed bank-backed-Business Growth Fund (BGF) or the government-backed-Regional Growth Fund (RGF) and the Enterprise Finance Guarantee Scheme (EFG) which is accessible via the banks, then there is even more room for confusion. The poor small business owner who is trying to understand where to go must really be perplexed at times.
However, the good news is that there is help out there to point small businesses in the right direction. Banks such as Yorkshire Bank, which as well as providing a range of finance solutions themselves, are working with all these alternative finance providers in partnership, to signpost their customers to the right sources of advice and funding so that the most appropriate funding packages are brought together and that customers are not left without access to finance.
Of course, Business Link Yorkshire is still very much open for business and their Information Centre and website can direct small businesses to all these finance providers and give them advice and guidance on qualifying criteria. In addition any firm of professional advisers such as accountants or business consultants should have an up to date database of all finance providers and will be able to give appropriate advice.
So help is available to those confused small business owners and if all else fails they should simply turn to Google and type in access to finance and relevant information will appear. So whilst it helps being an expert on acronyms, small businesses can find their way through the maze of abbreviations and find their own pot of gold.
Gary Lumby is the president of the Leeds, York and North Yorkshire Chamber of Commerce and director of small business banking at Yorkshire Bank.
BEF is launching its new ‘Lend a Million’ campaign and this year it is in the guise of the 5 O’Clock Club. This superb networking event that was very well attended in July has its next outing to the JCT600Audi dealership in Bradford on Canal Road.
Enjoying a drink some nibbles and a view round some excellent executve cars is an amazing opportunity to network with some likeminded professionals.
To book your place email info@befund.org or call 01274 207217.
It is 12 months since Business Enterprise Fund announced that it would commit to lend £1m to small businesses.
So successful was the scheme and so supportive were the accountants, solicitors and banks who signed up to it, that BEF beat its target by nearly 50%.
Supporters of the scheme included Bradford and Leeds Chambers of Commerce, HSBC, Barclays, Gordons Solicitors, Capital for Enterprise and Naylor Wintersgill Accountants.
Steve Waud, fund director, said: “In the grand scheme of things, £1.5m isn’t a lot of money compared to the lending that the banks do.
“But when considering the businesses that BEF has helped, one can see that it has gone a long way and done a lot of good.”
Thanks to the work of BEF, which includes expert mentoring as part of the loan agreement, 52 new businesses were started, 75 new jobs were created, 159 jobs were sustained and 24 existing businesses received the support they needed to stay open.
To celebrate and build upon the results of last year’s campaign, BEF has now announced an intention to repeat its success and commit to lend the SMEs of West and North Yorkshire £1.5m.
To help get the message out, a series of social events to encourage renewed support for the Lend a Million campaign will soon be underway.
BEF is a not-for-profit funder of businesses and provides loans from £500 to £100,000.
It works with banks and intermediaries to support those businesses unable to attract the financial investment they need to meet the business needs. Operating in North and West Yorkshire, BEF has loaned £4.65m in the last six years, supporting 230 businesses.
A Bradford-based fund which supports small firms that cannot access loans from mainstream lenders has smashed a ‘lend a million’ target set 12 months ago.
The not-for-profit Business Enterprise Fund exceeded its target of lending £1 million to entrepreneurs and businesses in West and North Yorkshire by 50 per cent.
Based on its success, BEF has set a target of providing £1.5 million of funding to small businesses over the next year.
Fund director Steve Waud said: “In the grand scheme of things, £1.5 million isn’t a lot of money compared to the lending that the banks do. But when considering the businesses that BEF has helped, one can see that it has gone a long way and done a lot of good.”
Its Lend a Million campaign was supported by accountants and solicitors who put firms in touch with BEF, as well as banks that referred firms seen as high risk which they could not help.
BEF, which provides mentoring as part of the agreement, helped 52 business start-ups with 24 existing businesses receiving support to stay open. The funding also helped secure 159 jobs and created 75 new jobs.
Mr Waud said the range of businesses helped included micro-breweries, a frozen prawn firm, a paper-shredding business, a play gym plus accountants, marketing and advertising agencies.
He said: “Following the success of our Lend a Million campaign, which we exceeded by 50 per cent, we’ve now set £1.5 million as the next target. The need for our services remains strong as the economic outlook is a tough one.”
BEF, which provide loans from £500 to £100,000, is to stage events to encourage renewed support for its latest Lend a Million funding pledge.
It was 12 months ago now, when the Business Enterprise Fund (BEF) announced that they would commit to lend to small businesses, £1 million.
So successful was the scheme and, so supportive were the intermediaries and banks who signed up to the scheme, that BEF exceeded the target by nearly 50%.
Supporters of the scheme included Bradford Chamber, Leeds Chamber, HSBC, Barclays, Gordons Solicitors, Capital for Enterprise and Naylor Wintersgill Accountants along with many others.
£1.5 million, in the grand scheme of things, isn’t a lot of money not compared to the kind of lending that the banks do; but when you consider all the businesses that BEF have helped you begin to see that a £1.5 million goes a long way and does a lot of good.
New businesses started 52
Jobs created 75
Jobs sustained 159
Existing businesses supported 24
To celebrate the success of last year’s campaign BEF want to repeat that success and commit to lend to SME’s in the West and North Yorkshire £1.5 million. Bef are running a series of events to encourage the support for the lend a million campaign for this year.
BEF is a not for profit funder of businesses, who provide loan from £500 to £100,000. They work with the banks and intermediaries to support those businesses who have been unable to attract the financial investment they need to meet the business needs.
Operating in North and West Yorkshire BEF has loaned over £4.65millions in last 6 years and has supported over 230 businesses.
