Secure the funding required to put your plans into action
The funding landscape is complex. Matching your needs to the appropriate finance from a mass of options is an intricate business. With no affiliation to any particular lender, or lender commission arrangements, our advice is truly independent. Anytime you want to bring third party finance into your business, we can help. We have access to the right solutions and will help you to bypass much of the labyrinth.
Find the right funding
There is no shortage of jargon in the funding market, below is an explanation of our terminology to simplify matters. Each page in this section is designed to explain more once you have decided which area feels right for you.
Scaleup capital: Equity investments of between £1m and £10m made in rapidly growing businesses that, whilst still very early in their development, have proven their concept and are generating revenue of between £1m run-rate or £1m trailing 12 months (depending on the fund). The investment will be made purely in equity but the investor is likely to seek to use preferred shares of some kind. All funds, subject to deductions for fees, will be retained by the business to be invested in its growth. This is also sometimes called a “late seed” or a “series A” round.
Development capital: Investments made by way of debt or equity (or a combination of both) in mature and profitable businesses. The range of investment again starts from £1m but has no upper limit. Any equity investment will likely be for a minority interest. A limited proportion of any amounts invested can be released to shareholders to allow for a partial de-risk but the majority shareholders will remain post investment. The remaining proportion of the money invested is used to drive growth. Due to the risk profile, development capital will be seeking a lower return on money than scaleup capital.
Management buy-out: Defined by the object of the transaction rather than the funding used. A management buy-out (MBO) facilitates a change in ownership and, within the new ownership, management of the business have a material interest. An MBO is normally supported by a combination of debt raised against the business, private equity and often an element of consideration deferred by the vendor. Management are expected to make a financial contribution which is material to them, but will normally not be material to the overall funding structure.
Refinance: Sometimes there are just better options on the market, either the appropriate funding wasn’t chosen in the first place, new products have become available or the business has developed such that lower cost finance is now available. Alternatively, end of term finance has to be replaced or rescheduled. Our refinancing services focus on debt and cover all types of facilities from asset-backed lending to term loans.