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Finding finance: Dan Renton from Deloitte speaks to bdaily

As one of the directors of the corporate finance advisory team at Deloitte, Dan Renton is all too aware of how difficult it can be for businesses to find finance, especially SMEs and start-ups.

“Often its easier for companies to get several million pounds than the smaller amounts,” Dan explains, “The market is often directed at bigger an more mature companies, rather than smaller ones which come with more risk.”

For the past 15 years, Dan has worked closely with leveraged and private equity backed companies in Newcastle and the North East.

During this time Dan has worked on many high profile transactions, but like many financial professionals, he has witnessed a market change in lending practices over the past five years

“It’s a symptom of the economy – investors have had to become more wary because money is tight all round.

“The risks are higher, and it’s harder to get the right deals because the market remains so volatile.”

However, he is particularly supportive of the Business Growth Fund, a £2.5 billion equity investment fund backed by five of the largest UK banks. The Fund promises to provide businesses with capital to drive their future success – something Dan believes to be vitally necessary.

“Venture capital often goes towards acquiring something, whereas the Business Growth Fund actively supports business development and expansion,” he says.

While these financial constraints do make conditions harder for entrepreneurs, Dan believes this has also forced them to be much smarter when looking for finance.

After supporting many businesses through their search for investment, he firmly believes that it’s imperative for businesses to come up with a watertight idea before they face potential investors.

“Fundamentally, new start ups need to have a strong business plan, which considers the challenges and risks involved in their venture,” he explains. “Often they will only get one opportunity to speak with an investor, so it’s vital they build credibility and confidence from the outset.”

“When working with clients we look for logic throughout the business plan, and ultimately the strongest ones who will get capital while the weak ideas are left behind.”

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