New funding opens for growing businesses in the South East
The British Business Bank has launched a £210 million investment fund. It aims to help smaller businesses start, develop and grow.
What the fund offers
The South East Investment Fund provides flexible finance for ambitious companies. In practice, it offers two main routes:
- Loans ranging from £25,000 to £2 million
- Equity investments of up to £5 million
Consequently, businesses at very different stages can apply. A start-up might borrow modestly, whereas a scaling company could seek significant equity backing.
Where the fund applies
The fund covers Buckinghamshire, Oxfordshire, Berkshire and Hampshire. In addition, it includes the Isle of Wight, Sussex, Surrey and Kent.
Although this fund targets the South East, similar schemes exist elsewhere. Indeed, British Business Bank-backed funds now operate across every UK nation and region outside London. Therefore, businesses in other areas should check what is available locally. You can explore the options at british-business-bank.co.uk.
Funding as part of your growth strategy
News that new funding opens for growing businesses offers a timely reminder. Finance should support a wider plan, rather than sit apart from it.
For example, external finance might help you:
- Purchase equipment or upgrade technology
- Recruit and train employees
- Develop a new product or service
- Enter another market
- Strengthen working capital
Before applying, owners should answer three questions honestly. How much does the business need? What will the money achieve? How will the investment improve performance?
Borrowing too much raises costs unnecessarily. Conversely, borrowing too little may leave a project unfinished.
Loan or equity?
The choice between debt and equity deserves careful thought. A loan usually requires repayment with interest. However, the owners keep full control of the business.
Equity investment works differently. It rarely demands regular repayments. Instead, the investor takes a share of the business. As a result, they may influence important decisions.
Preparing a strong application
Funders will expect evidence, not optimism. Typically, they ask for:
- Current management accounts
- Financial forecasts
- A clear business plan
- Proof that owners understand the risks
Moreover, preparing this information helps management test the proposal. Sometimes the process confirms the plan. Occasionally, it reveals that the timing is wrong.
Plan early
Whenever new funding opens for growing businesses, the best-prepared applicants move first. Early planning therefore makes a real difference.
We can help you assess your funding requirement. We can also prepare robust forecasts. Above all, we can present your financial case clearly to lenders or investors.
Talk to us today
Are you considering raising finance? Get in touch with our team and we will help you approach it with confidence.
