Finding the right finance for your business
The first of two articles outlining useful sources to look at for funding your business as it grows
If you are wondering how to fund the next stage of your business’s development, there are many sources that the Growth Hub can help you access. It can be confusing finding which one is right for your business but an expert can be available to advise you.
The Growth Hub and its Access to Finance team provide a valuable service which enables companies across the region to identify and access private and public funding opportunities.
One of the many sources of finance with which the Growth Hub works closely is the Northern Powerhouse Investment Fund, overseen by the British Business Bank.
If you can demonstrate that you have the potential to grow, you may be eligible for funding through the British Business Bank: the types of businesses which will be considered include start-ups and young companies, fast-growing small businesses, small businesses looking to relocate to the North, and those unable to source funding from banks or investors.
The Bank channels the £400million Northern Powerhouse Investment Fund to help small and medium-sized enterprises start up and grow, and also helps to plug gaps in commercially available finance. It ranges from a loan of £25,000 to £2million equity investments.
One of the companies the Growth Hub has worked with is Original Recipes, the Chesterfield firm which produces savoury potted terrines – thanks to help from the Growth Hub, their products are being sold nationally. This grant was a channel of support delivered by the Growth Hub’s Enhancement Project which offers a range of support aimed at high growth companies and is financed by the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020.
The business was able to move into new premises supported by a £25,000 grant through the Growth Hub Business Investment Fund while a second source of funding of £5,000 was used to look at extending the life of the terrines with innovative packaging.
Two of the Growth Hub team, Access to Finance Advisor Steve Errington and Business Growth Specialist Darren Buxton, worked with Original Recipes to advise them through the application processes.
And the third source of finance for Original Recipes was through the Northern Powerhouse Investment Fund with a £25,000 loan from the Finance for Enterprise stream of funding. This allowed the business to invest in new kitchen equipment and more than treble production.
David Lee, Investment Manager, Finance For Enterprise, said: “As a not-for-profit organisation, Finance For Enterprise works closely with business owners to help them choose the right form of funding to meet their needs. We worked with Original Recipes to help them access the Northern Powerhouse Investment Fund which was created with businesses like Original Recipes in mind, who require short-term investment to unlock the true potential of their business.”
The £52million Business Investment Fund (BIF) is facilitated by the Access to Finance team. You can read case studies of businesses which have received BIF funding on this website, for example how it helped a Rotherham inventor manufacture his computerised water-saving device.
The Sheffield City Region Growth Hub Enhancement Project is receiving up to £2.7m of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry of Housing, Communities and Local Government’ (and in London the intermediate body Greater London Authority) is the Managing Authority for the European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, business, create jobs and local community regeneration’s. For more information visit www.gov.uk/european-growth-funding