In this article we look at four companies, featured in this edition, that have been successful in accessing the funding they need. Some found their banks helpful whereas others turned to less familiar sources.
Start-up businesses have a range of alternative funding options should their bank not be able to assist either in whole or in part, and Viewpoint Games in Leamington, is typical of the kind of high tech company the government is hoping to encourage.
Established in September 2014, Viewpoint Games are independent software developers specialising in Virtual Reality game technology.
They were awarded funding from Creative England and the Coventry and Warwickshire Reinvestment Trust (CWRT). Neil Campbell, one of the joint founders of Viewpoint games said “CWRT is a great resource for companies such as Viewpoint Games as banks are reticent to lend to companies that aren’t already generating an income. The Start Up loan enabled Viewpoint Games to get our VR Karts onto the market so we can now generate income."
Mike Musson, chief executive of CWRT, said: "Leamington Spa is a hot spot for gaming start-ups, and we are excited to support Viewpoint Games during these early days." CWRT offers start-up loans between £1,000 and £75,000 to entrepreneurs across the West Midlands.
Learning Labs is another high tech company that has been able to secure funding. The company has developed the FlashSticks® mobile app, which gives instant translation in more than 40 languages for any object scanned.
Learning Labs, which is based at Innovation Birmingham Campus, the base for Birmingham's tech community, successfully raised £500,000 to forward fund production costs, the addition of many more languages and future development, with the help of HSBC and the Aston Reinvestment Trust, (ART) a Community Development Finance Institution (CDFI) which provides loans to businesses and social enterprises in the West Midlands.
Both ART and Innovation Campus Birmingham are able to steer businesses in the right funding direction and often, as in the case of Learning Labs the funding comes from a combination of sources, with the alternative sector topping up a bank loan. As Dr Steve Walker, ART’s Chief Executive told us “Finance packages are becoming increasingly common as the solution to a business’ financial needs.”
It isn’t just start-up businesses that need finance. In order to grow, many young, yet profitable companies need funding for the next step in their expansion plans. Malvern based, Hallowood Furniture was already a well-established business importing high- quality furniture from China, but needed funds for a new headquarters and to expand their operations. In this case their bank, HSBC was able to help with a six figure commercial mortgage. HSBC has also provided Hallowood Furniture with a trade facility to increase the number of products it imports and sells.
Mengyao Wu, owner and financial director of Hallowood Furniture, said: “HSBC’s support has enabled us to fund our first commercial property, marking the start of an exciting new stage in the company’s development. Along with the new trade facility, this move will allow us to grow further and achieve our ambition of adding five new stores over the next year.”
Andy Willett, HSBC area director for business banking in South West Midlands, said: “Hallowood Furniture is still a young business and I am pleased we have been able to fund their new headquarters and expansion into new markets at home and abroad.”
Swadlincote Windows were also successful in obtaining funding from their bank, Barclays, for new headquarters and expansion. The company, which was founded in 1998, has moved production to an 18,500 sq ft unit, which will allow them to increase its range of UPVC products.
Mick McGuinness, director of the Swadlincote Window Company, said: "We have seen an increase in orders with a lot of new business coming from local authorities, and identified a need to move to larger premises.
Robert Barke, Senior Business Manager at Barclays in South Derbyshire, said, “The Swadlincote Window Company is a great example of a business who has continued to look for new markets in order to expand the business. I am pleased that we have been able to provide the funding for the new site which supports the business’s strategic growth plan."
As ever, the advice remains, when trying to source funding make sure that you have a realistic business plan with all your figures and projections in place to enable you to repay any borrowing. Talk things through with your professional advisor who will help you tailor your proposal to the best effect.
Cast your net wide, there plenty of possibilities.