A2F – Access to finance a two or three letter word
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.
