A YORKSHIRE fund director has urged SMEs not to “give up immediately” if they can’t get finance from
Published on Thursday 10 November 2011 09:33
Stephen Waud, director of the Business Enterprise Fund (BEF), which offers support to businesses throughout West and North Yorkshire, told the Yorkshire Post that the region “desperately needs” people to start businesses up and invest in existing businesses.
He said demand is down 20 per cent on last year, adding that this time last year it was running at £1.2m, in terms of the value of loans, but this year has reached only £900,000.
The fund’s target is to hit £1.5m by the end of March next year. Mr Waud said it was still proving “challenging” for SMEs to secure finance from banks, adding: “What we are finding is that people seem to be battening down the hatches. They seem to be less enthusiastic about growth. There seems to be a lack of confidence generally among SMEs. There’s a slowdown in people wanting to apply for funding.”
He said this is “understandable”, but he urged SMEs not to “give up immediately” if they can’t get backing from the banks, adding: “There are alternatives.”
The BEF is a not-for-profit funder to new and start-up businesses. It is currently running a ‘Lend a Million’ campaign to encourage regional business enterprise to grow. Mr Waud said: “Organisations like the Business Enterprise Fund offer a real opportunity for risk takers to have a go.”
Businesses interested in finding out more can attend the BEF’s ‘Five O’clock Club’ at the Leeds Metropole Hotel from 5pm today. To book a place call Heather George on (01274) 206660
Because of the difficulty that SMEs are having in trying to source finance and because the economy seems to be on a downward sprial, BEF have decided to come up with a new range of prodcuts to help SMEs grow their businesses.
With rates now between 7-14% and with our mentoring/business support included in the monthly payment, BEF are determined to do what they can to support SMEs at this difficult time.
Almost three in five small businesses have been successful with their bank loan applications in the past six months, according to research.
A total of 59 per cent of loan applicants have been successful while 72 per cent have had an overdraft approved, according to the latest SME Finance Monitor report by market research company BDRC Continental.
The study did reveal though that only 15 per cent of small and medium-sized companies have applied for new credits in the last year. BDRC Continental interviewed 5,000 business owners as part of the research.
John Walker, chairman for the Federation of Small Businesses, who is currently blogging for Insider on the issue of small business finance, said: “Small firms have been telling us for the past few years that they are fearful of approaching the banks for new finance, or to extend an overdraft, because they know they are likely to be turned down, or be offered a deal on terms that just aren’t favourable for them.”
The British Bankers’ Association welcomed the figures adding that the “picture is also complex with many customers clearly still concerned about the economic climate and so are less inclined to borrow”.
The Yorkshire deals market is improving with banks “desperate to lend”. That’s the message from Lester Wilson, head of DWF’s corporate team in Leeds, who told Insider there is currently a boom in the material resources and minerals sector.
Wilson revealed his thoughts after DWF said it has worked on deals nationally with an aggregate value of £700m for the first six months of 2011. It claims to be ranked third in the deals market in Yorkshire but has designs to climb up the ladder.
He told Insider: “There will be pretty high-profile transactions coming up for Yorkshire. The banks are freeing up lending so there has been an appetite for activity.
“The banks we are talking to at the moment are telling us they have money and they are desperate to lend.”
Wilson said his firm has been working on various deals in Yorkshire but remained tight-lipped due to confidentiality agreements. However, he did say there were a couple of “exciting IPOs” in the offing.
Recent deals the Leeds DWF office have worked on in the first half of the year have included advising on the flotation of Harry Hill’s In-Deed Online, investments and acquisitions for AIM-listed Obtala Resources and Paragon Diamonds and advising Countrywide on its joint venture with the Mortgage Advice Bureau to form Capital Private Finance.
When discussing which sector is having the most action, Wilson said: “For us, it’s very much material resources and minerals. As far as I can tell, investors seem to find that more attractive and manufacturing seems to be back on the agenda.”
And when talking about cash-rich businesses, he said: “Certainly, if a company has got cash, there are deals to be done.
“We have found we have been very fortunate on this front. If we’ve had clients where the banks have not been prepared to lend, there’s been fundraising from a number of individuals.”
Talking of the rest of the year and DWF’s ambitions, Wilson said: “We don’t have a target but we would be delighted if we can be ranked first (in Yorkshire). The Leeds corporate team has only been going for 18 months.”
Nationally, DWF recently reported a 35 per cent increase in net profit and a 15 per cent rise in turnover to £83m for the year ending in April 2011.
The Yorkshire deals market is improving with banks “desperate to lend”. That’s the message from Lester Wilson, head of DWF’s corporate team in Leeds, who told Insider there is currently a boom in the material resources and minerals sector.
Wilson revealed his thoughts after DWF said it has worked on deals nationally with an aggregate value of £700m for the first six months of 2011. It claims to be ranked third in the deals market in Yorkshire but has designs to climb up the ladder.
He told Insider: “There will be pretty high-profile transactions coming up for Yorkshire. The banks are freeing up lending so there has been an appetite for activity.
“The banks we are talking to at the moment are telling us they have money and they are desperate to lend.”
Wilson said his firm has been working on various deals in Yorkshire but remained tight-lipped due to confidentiality agreements. However, he did say there were a couple of “exciting IPOs” in the offing.
Recent deals the Leeds DWF office have worked on in the first half of the year have included advising on the flotation of Harry Hill’s In-Deed Online, investments and acquisitions for AIM-listed Obtala Resources and Paragon Diamonds and advising Countrywide on its joint venture with the Mortgage Advice Bureau to form Capital Private Finance.
When discussing which sector is having the most action, Wilson said: “For us, it’s very much material resources and minerals. As far as I can tell, investors seem to find that more attractive and manufacturing seems to be back on the agenda.”
And when talking about cash-rich businesses, he said: “Certainly, if a company has got cash, there are deals to be done.
“We have found we have been very fortunate on this front. If we’ve had clients where the banks have not been prepared to lend, there’s been fundraising from a number of individuals.”
Talking of the rest of the year and DWF’s ambitions, Wilson said: “We don’t have a target but we would be delighted if we can be ranked first (in Yorkshire). The Leeds corporate team has only been going for 18 months.”
Nationally, DWF recently reported a 35 per cent increase in net profit and a 15 per cent rise in turnover to £83m for the year ending in April 2011.
