Finally, it’s still essential to consult and take advice. There are an interesting number of options for alternative sources of finance. New entrants are arriving and the boundaries between them blurring. At the same time, there is now evidence that the banks are recognising the need to compete, meaning that they too are changing their approach. Reviewing how your business is capitalised is a fundamental part of the business plan. It’s something to look at least annually and we can assist you with this process. For advice on obtaining investment or finding projects and opportunities to invest in, Scrutton Bland Corporate Finance team has the experience and access to networks to help. Contact Luke Morris on luke.morris@ scruttonbland.co.uk tel 01206 838466 .
The fundamentals are still there: Angels are about speed, the chemistry and fit of the individual and the expertise they can bring to bear, and the fact that they will be around for the long term – they are putting their own money in. Friendly, or at least understanding, capital. We are seeing a number of fresh initiatives in this area, including the growing local network of Angels locally, New Anglia Capital (see page 6), being worth a look. In conclusion Whilst there have been a number of changes in the state of business funding for SMEs in recent years, some fundamentals remain. Ultimately it is still about debt and equity, getting the ratio right and matching it correctly to your operations. And you still need to read the small print carefully. It’s still an art to balance the factors when looking to obtain: terms, availability, speed and costs. And it’s still demanding of personal communication skills, even if via an online platform.
Of course, it’s not all plain sailing, and you do need to watch the costs. But nonetheless we are seeing clients increasingly consider this when re-financing, which we did not see two or three years ago. Business Angel Investment It is estimated that there are 18,000 Business Angels in the UK. Business Angels are individuals, putting their own money (but also, their time) into an early–stage venture in exchange for a piece of the pie. “Nothing new there” I hear you say. And you would be right. What is new, however, is how the Angels are behaving. Technology, again, has had a huge effect in the last decade. Angels are increasingly working together, in syndicates, as it’s easier for them to communicate and network online. This means they are prepared to look further afield, and in acting together they will consider larger investments, or investments outside of their usual comfort zone. Equity investment at a level beyond what would be thought of as the usual Business Angel “start-up” space.
B U S I N E S S F I N A N C E | S C R U T T O N B L A N D | 5
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