During the last 5 years over 200 businesses in the North West including 69 in Merseyside have benefitted from loans from The North West Fund for Loans Plus, managed by FW Capital.
Gary Guest, Fund Manager at FW Capital urges more Merseyside businesses to take up the funding, which will not be available after 30th June 2016.
What exactly is the Fund?
Here he explains more:
The fund was launched five years ago as part of the £155 million North West Fund. It’s backed by the European Investment Bank and the European Regional Development Fund and was set up to help businesses achieve their growth plans.
How much can I borrow?
We provide loans from £50,000 to £750,000 in a single round
Who can apply for a loan?
What about companies that have been trading less than three years?
- Limited Companies only
- The business must primarily sell to or provide services to other businesses (over 50% of their revenue)
- Businesses from a wide range of sectors are eligible for a loan. However certain sectors are excluded such as property investment and development, agriculture, fisheries and shipbuilding.
Our loans can help young businesses as well as established businesses.
Is there any other criteria?
What can businesses use the loans for?
- The business can apply for a loan if it has been unable to obtain all the funding it needs from its bank or other primary lender.
- The new loan must be for growth. It cannot be used to re-finance existing debt.
- The business must be able to service the loan from its current or forecast profit/cash generation.
- The company has to be based in or relocating to Merseyside
Loans can be used for a wide variety of purposes related to growing or expanding a business, including:
What are the terms of the loan?
- Costs associated with recruiting staff
- Purchase of business trading premises/improvements to leased premises
- Growth capital
- Stock purchases
- New equipment
What advice would you give to a business thinking of applying?
- Minimum term of 3.5 years and maximum term of 7 years;
- Interest only periods are available at the beginning of the loan, subject to underwriting;
- Our standard security is a debenture which would rank after any existing lenders;
- We may require personal guarantees from the directors;
- Typical interest rates of 6% to 12% fixed, depending security and risk profile.
Don’t be put off if you’ve previously been unable to secure the funding you need. If you have a robust business plan and can service a loan, we would be delighted to discuss your requirements in more detail.
Contact the Merseyside team: