Cs escalate4.12.13

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High Growth Kent

Content:

Bank funding

Equity funding

Government and Local funding

Alternative funding

Regional Growth Funds – what are they ?

• Interest free and usually unsecured

•Needs to be 50% match funded through own resources, traditional finance or have access to other funding

•Repayable over a maximum term of 5 - 7 years

Who can apply ?

•Sole trader, partnership, Ltd Co or Not for Profit business and qualify as a small or medium sized enterprise

•Viable Businesses

Eligibility criteria

Create or safeguard Employment – all proposals must safeguard or create jobs in the specific growth fund area

Demonstrate Need – for financial support

Viability – business must be viable and have good growth potential

Private sector Investment – match funding is required

Impact – must have a positive impact on the economy both locally and regionally.

Regional Growth Funds – where are they ?

Tiger

ExEKEscalate

Marsh

Million

Regional Growth Funds – where are they ?

Expansion East Kent is a £35million programme of financial support to businesses seeking to invest in East Kent to create jobs.The programme aims to unlock private sector finance, stimulating over £300million in associated investment over the course of the next three years and creating a major boost for the East Kent economy.

TIGER (Thames Gateway Innovation, Growth and Enterprise) is a £20Million fund that offers financial assistance to businesses looking to invest in new products, processes or markets, or potentially looking to expand existing activities where they will lead to increased sustainable employment.

Escalate (covering Local Authority areas of Maidstone, Sevenoaks,Tonbridge & Malling, Tunbridge Wells, Wealden and Hastings) is a £5.5M fund which was released in December 2013. Applications expected to be available from 6th December and we expect it to be similar to Expansion East Kent.

What can be funded

Tangible Assets – includes assets relating to land, buildings, plant, machinery and equipment.Intangible Assets – assets acquired from third parties by the transfer of technology or knowledge. E.g. patent rights, licences etc

Additional criteriaAssets must be used exclusively in Escalate area and be regarded as amortizable.Assets must remain in Escalate area for at least 5 years.Applicants must be a client of High Growth Kent or participating in the Growth Accelerator programme.SectorsManufacturing, Pharamceuticals and life Science, Media and Creative industries, ICT and software development – however does not preclude other high growth sectors applying provided they are not within the ineligible sectors.

What cannot be funded

Expenditure already incurred – must be for a new project or requirement.Specific sectors due to EU State Aid and RGF’s cannot invest in :•Primary Agriculture and horticulture•Iron, Steel, Coal, Synthetic fibres, Vehicles and Fisheries•Any unlawful or illegal business activity•Organisations engaged in political activity or lobbying at any level or activity of an exclusively religious nature

Businesses that have received and reached State Aid limits over a

three year rolling period . (Deminimus limit 200,000 euro’s)

Application process and timeline

Pre Application – 2 page online application form – notified within 7 days if suitable to proceed

Full Application – Business plan, Historic and projected accounts for 3 Years and additional information required such as CV’s, details of match funding, project costs etc – notified within 40 days if to proceed to next stage. This must be completed and submitted within 3 months.

Panel Interview – invited to pitch to Panel on why you should be funded – decision provided within 24/48 hours

BSK Support

• Business planning support and guidance through our High Growth Kent and/or Growth Accelerator service.

• BSK’s FINANCE FINDER Service, accesses over 500 Venture capitalists and Angel Investor networks.

• Help with presentations to investors.

• Support meeting Terms and conditions laid down by investors and access the funding you need.

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Options for match funding

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• Own or family investment

• Bank or traditional sources of finance

• Equity finance

• Crowd funding

Bank Funding…

Steps to take to make the Bank say YES

Discuss your requirements with the Bank and ask ?

1. Have they the appetite to lend for this purpose

2. What is their lending criteria? i.e. Loan to Value %,

repayment cover, maximum term, indicative fees and

rates

3. What information do they need for the application

4. What is the timescale before the funds will be available

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Bank Funding…

What the Bank or any lender will consider?• Purpose – and correct product – i.e. buying assets

using cash flow

• Management – reaction during trading difficulties

• Risk – both perceived and industry together with mitigates

• Repayment ability – what level of cover is available

• History – unpaids, defaults

• Security – available?

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Bank Funding…

What to do if the answer is NO !As long as you are a sustainable profitable business with

growth aspirations talk to us about :-

• Other alternative sources of funding

• Finance finder

• Regional growth funds

• Etc

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Equity Funding…

• Investors provide cash into your business in return for a share of the business itself.

• You give up a percentage of your business (shares) in return for short, medium or long term funding.

• Investor may also want a strategic say in your business (non-executive position)

• Investor may have added attraction of being able to help your business achieve its goals/access new markets through their network (Dragons Den)

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Terms…

• Short term: May include equity loans, repayable within an agreed period plus a return linked to profits.

• Medium term: Investors are attracted to the growth strategy of the business and significant return on their share of the proceeds when the business is sold.

• Long term: Investors will expect to recoup their investment (plus a strong return) from their share of business profits.

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Could you work the crowd?

What we are going to cover

Background to crowd funding

Different types of platforms

Which one would work best for you?

Top tips for reaching

your crowd funding goal

How we can help

Reaching your crowd funding goal

Put realistic budget in place

Think about your rewards or pledges

Be clear and transparent

Tell a really compelling story

Market to your online networks pre launch

Keep engaging….

High Growth Kent

so far we have ……………..

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•We are funded by KCC and receive match funding from EEN.

•We have short interventions with High Growth Companies and help them with strategy , planning and identify other services such as Growth Accelerator which could benefit them

•We can assist them with their regional growth funds applications

•We are able to provide them with a discounted bespoke report which identifies possible sources of grants , traditional and new types of funding and lenders that have appetite in their particular sector

•We are able to introduce them to contacts / possible clients or suppliers in over 50 European countries

.

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Growing your Business

GrowthAccelerator

Version 1 Date 21 Aug 2013

• Delivering better services/products to more people

• Happy, well trained and managed staff & volunteers?

• Financially robust – 12 months working capital?

• Do you have sustainable income growth?

• Meet all the latest and up-coming legislation?

• New premises?

• New equipment?

• New services?

• Wider geographical reach?

• Just want to get there quicker

Where is your business going?

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GrowthAccelerator

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• Not enough time in the day

• Not enough people with the right skills

• Wrong people in the wrong job

• Tough budget decisions to make

• Too much time managing people and not the goals

• Uncertain annual income

• No strategy for marketing and PR activity

• Inconsistent quality in delivery of services

Do you face lots of challenges and barriers?

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GrowthAccelerator

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• Identifying the key challenges

• Creating a growth plan

• Business development coaching

• MasterClass workshops

• Alumni networking

• Leadership & management training*

*Grant funding of up to £2,000 on a matched basis

Helping you achieve your objectives through…..

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GrowthAccelerator

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•Eligibility

- Registered in England

- Independently owned

- Less than 250 employees

- Under £40m turnover

The Client Journey (1)

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Suitability

- Ambition

- Opportunities

- Capacity

GrowthAccelerator

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– GROWTHmapper®

– Face to face meeting with Growth Manager to scope requirements

– Introduction of Growth Coach with defined outputs agreed in scope of support

– Access to Leadership and Management support for Directors & Senior Managers (Conditions apply)

www.growthaccelerator.com/success-stories/video-diaries

The Client Journey (2)

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GrowthAccelerator

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Micro and start-up (up to 4 employees) £600 +VAT

Small (5 to 49 employees) £1,500 +VAT

Medium-sized (50 to 249 employees) £3,000 +VAT

Now ask why you need to be VAT registered?

The costs for SME Organizations

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GrowthAccelerator

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Any Questions?

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GrowthAccelerator

Version 1 Date 21 Aug 2013

Thank you

Alex Ledger

[email protected]

07850 742174

www.bsk-cic.co.uk