At the end of 2012 Business Secretary Vince Cable pledged £55million of Government funding to the Business Finance Partnership scheme (BFP), with match funding from the private sector expected to attract at least another £55million. The funds will be made available to sole traders and SME’s through the BFP.
BFP has been set up by the Government and aims to increase the supply of capital through non-bank lending channels and hopes that it will work in tandem with the new Business Bank to help address the gaps in the supply of finance available to sole traders and SMEs. They will make available a network of 1,000 business finance advisors to help small businesses identify the best type of business to support their needs.
The Government have also announced that they will also make £300 million available to smaller businesses that are struggling to access finance through traditional lenders as part of the first phase of its ‘business bank’. The fund is intended as an extension of the BFP programme. The Government will invest into a managed lending fund or other lending vehicles alongside private sector investors for direct onward lending to businesses. Direct capital investments could take the form of equity or debt, but the Government will provide no more than 50% of the total investment and will be on the same terms as private sector investors.
Applications for finance via the business bank are now open to businesses operating in the UK with an annual turnover of below £100K.
Get in touch if you would like further advice regarding the appropriate funding for your business.
Tel: 01233 630000