Member Article

Access for finance guide into its second year

Key figures from across the region gathered at the Centre for Life last week for the launch of the second Access to Finance Guide produced by North East Access to Finance.

The 2011 Guide was introduced by Chairman Hugh Morgan Williams OBE and guest speakers at the event included Sir Ian Wrigglesworth, Deputy Chairman of the Government’s Regional Growth Fund and Rory Earley, CEO and Chief Investment Officer of Capital for Enterprise Ltd.

A year after it was published the guide has become a vital tool for fund managers, accountants and corporate finance lawyers as they look to guide their clients, through the complicated network of finance initiatives both within the North East and beyond.

Hugh Morgan Williams, said: “Accessing finance has not got easier for SMEs during 2010.

“Whilst the Finance for Business funds are beginning to get to grips with financing growth businesses with equity solutions, there remains a problem for companies accessing traditional debt finance; both on demand overdraft and term loans from the high street banks.”

Mr Williams added that although the main lenders have put together a £1.5 billion fund to help businesses with sales of more than £10 million pounds, there remains a significant issue for the majority of companies beneath that threshold.

With many businesses often being new and therefore without a track record, or having significant assets to pledge against lending propositions, banks have become increasingly difficult to access for this sector.

This was posted in Bdaily's Members' News section by Ruth Mitchell .