Funding for SMEs - creating your ‘funding mix’

Seize the Day - Get Ready!

Funding and managing finances associated with your business is both important as well as difficult to manage. With various SME finance solutions and support available - 2016 is a great time to look at the opportunities or review your current funding facilities.

The market for providing finance to SME’s is going through seismic change. There continue to be good examples of experienced bank managers doing a great job of looking after established, successful companies, with strong balance sheets.

However, the traditional clearing banks are finding it increasingly difficult to provide the finance needed by many growing SME’s for working capital and growth.

Into this space have come a range of new providers including, Challenger Banks, Peer to Peer lenders and Crowd Funding providers. In addition, there is a much wider choice in trade, asset and debtor finance.

The region also has a growing range of Equity and Mezzanine finance providers, including regional funds such as MSIF and the Greater Manchester Investment Fund as well as a diversified range of venture capital and private equity providers. For early stage businesses, we are beginning to see some better co-ordination of business angel networks.

On Merseyside, we have also seen the re-emergence of some grant funding for growing businesses with St Helens Chamber managing an RGF Fund, with grants of up to £75,000 and MSIF able to provide larger grants.

To maintain business growth and value, it is therefore more important than ever for business owners to understand the funding options available. We are finding ourselves in an age where one source of funding just isn’t enough, which is resulting in more and more SMEs creating a ‘funding mix’.

In recent research, SMEs with access to higher levels of borrowing grew their turnover on average by 15.7% over the last five years, compared with 12% growth for those with no borrowing. Access to funding is one of the most important factors influencing the growth of businesses.

MC Vanguard can help by advising you on what the best ‘funding mix’ is for your business.

Have you completed a cash projections exercise for 2016?

Mapping out your cash requirements is an invaluable exercise for any business and thinking of where the source of funding comes from. Our Corporate Finance division, MC Vanguard Ltd, specialise in building business value and transactions which require funding.

In 2016, the team has launched bespoke funding workshops for clients so you can review your current facilities, look at your short and medium term funding needs as well as identify the best ways to fund your business in the short and medium term to ensure you meet your business goals. At the end of the session, we provide a report of funding recommendations including the sources listed above.

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