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…
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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…
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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…
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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