If youre serious about growing and expanding your business but can't get a bank loan large enough to complete the project, there are alternative finance options you can access.
The Northern Powerhouse Investment Fund specialises in providing loans to businesses with a clear growth plan but the risk was too high for bank investments. Whether you have a start-up, scale-up or growing business, your loan request will be considered by the fund managers on a case-by-case basis.
The investment fund has a number of different loans that you can consider, including: microfinance, debt financing, and equity financing.
Microfinance
It can be difficult to find lenders for willing to invest in business ideas or to help develop a small business into something more profitable. The fund offers microfinance loans Fund loans of £25,000 to £100,000 to support working capital needs. Theres no fees for paying back early and the repayments can be made over a period of five years.
Debt financing
Debt financing provided by the Fund is tailored to helping early-stage and more established businesses expand and develop. You can receive a loan between £100,000 and £750,000 which can be used for growth activities like hiring new staff, purchasing machinery, or moving premises.
Equity financing
You should consider equity financing if you know your business needs a large amount of money to facilitate a significant growth project that will destabilise a market and have a high return on the investments that both you and the Fund have put in. You can receive equity finance between £50,000 and £2million to expand your business.
Many business owners are hesitant to use equity finance, viewing it as losing a portion of their business. However, the finance and business support available through the Fund means your business will become more profitable than it ever would have been without large investment. You will take a larger profit through 80% ownership of a business with a £10million turnover than having 100% ownership of a business worth £1million.
Find out more
To find out more about these loans, grants or fully funded training support programmes, get in touch with Hows Business, by emailing [email protected]. As the single point of contact for business support in York, North Yorkshire and East Riding, we can quickly assess what support your business needs most and get you started down the right road to success.