Member Article

Berkshire’s businesses receive financial backing

Small businesses across the country are struggling to raise the capital they need to keep their operation afloat. Whether you’re a local business struggling to survive under the battle of the giants or you’re a new start-up seeking the finance to grow, the problem is spread right across the board. A report by the FSB (Federation of Small Businesses) last September announced that 42% of businesses that applied for a loan were turned down and their confidence was declining in the midst of funding frustrations. Almost a year later and SME’s are still struggling to find finance for their ventures, turning to alternative sources to secure credit.

The consideration that surrounds this problem is that small businesses need the support of the residents in their local area. In March 2013 the campaign Keep Trade Local was launched to champion small businesses in local boroughs nationwide. The campaign endeavoured to encourage residents to help preserve the businesses on their doorstep. The drive saw participants from Bracknell and Reading in Berkshire, amongst other places, get behind the businesses in their area. The notion was that if a great number of people joined the campaign, supporting the retailers of their borough, then hopefully the confidence of the small business owners would be regained. Whilst the achievement is to win more business, and fundamentally see a substantial growth, is that enough?

It’s not just local businesses that are struggling, but SME’s and new ventures need to secure their future too. A news report featured on the Goodman Business Parks website recognises that along with the Keep Trade Local campaign, more could be done. As well as challenging people’s perceptions of what can be done to support these firms, there is a need to commit to something on a grander scale. John Walker, Chairman of the FSB, said: “The message is clear – businesses want to grow and invest but they need a helping hand to do so”.

However with fewer lending opportunities available from banks, businesses need to search for finance elsewhere. Whether that is looking for an investor or finding an individual financier - access to funding is an essential way to not only expand but stay afloat amongst their competitors. The FSE Group has recently launched the Thames Valley Berkshire Funding Escalator, a loan scheme that enables SME’s based in Berkshire to grow and reach financial stability. Having committed £7.3 million of capital, there are three loan schemes for applicants to consider. The early stage SME’s and new found ventures can secure the funding they need to help enhance their business from the Commercialisation Loan Scheme, whilst the Expansion and Growth Scheme offers a larger loan to SME’s that are more established in order for them to implement and deliver greater expansion.

Kevan Jones, chief executive of The FSE Group, said: “We’re delighted to be working on this initiative as we understand the risks involved in lending, and have over 10 years of experience in assessing businesses and the value that they will bring to a local economy.”

This kind of growth funding offers SME’s financial support, enabling them to focus on the infrastructure of their business. By focusing on developing strong foundations for both our existing businesses and the next generation of businesses we can begin to create a strong market foothold. The expansion fund offered by Thames Valley Berkshire is just one step towards providing finance to a range of businesses from start-ups to more established enterprises. When traditional sources of finance are more difficult to obtain, these schemes provide potential business growth and aim to empower the local economy, boost lending and, in turn, support company growth.

This was posted in Bdaily's Members' News section by Sue Trevor .

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