Alternative Sources of Business Finance Ian Gardner Business Development Manager Let’s introduce ourselves… BCRS Business Loans is a lender and manager of funds to provide access to finance for SMEs. We provide business loans from £10,000 to £150,000 Our sole purpose is to provide access to finance to enable businesses to grow and prosper. What we do… BCRS lends money to businesses that can’t access finance from the banks Reasons for being turned down by the bank… • Credit scoring • Risk appetite • Lack of security • Lack of contribution • Sector restrictions • CCJs / past history • Track record / experience Our loans can help fund… • New businesses - Premises & equipment costs • For existing business - Expansion/new contracts - Changed Terms of Trade - Fund initial stock. Buy in first stocks and pay for them to be worked on - Problems/losses - Investment in plant - Fund initial sales. Typically need to offer credit - Cover initial losses Why it works… • • • • • • Flexibility Personal, face to face approach Supporting local businesses Each case considered on its merits Ability to overlook odd historic problems Ability to broker deals informally Criteria… • • • • Viable local business Within the Midlands Loans from £10,000 - £150,000 Turned down by the bank Application Process… We need to see: - Plans, projections, forecasts - Latest accounts - Up to date Management Information - List of debtors & creditors - Last 6 months bank statements - Copy contracts, production schedules, call off schedules etc Terms… • • • • 1 to 7 year terms Average Interest rate 12% over base Arrangement fee 4% Security – Debenture – Directors guarantees – Tangible assets (wherever possible) Restrictions… • Outside our area – alternatives are available • Fundamentally unviable • Property Development • Paying off the bank Achievements… • Lent over £4.5M in 2014 to 163 businesses • Increasing lending by 30% in 2015 – to over £6 million • £22m+ lent to 800+ businesses since 2002 • Safeguarding over 2700 jobs and creating over 1500 jobs Contact… ian.gardner@bcrs.org.uk 07539 371517 www.bcrs.org.uk