FINANCE EAST. Trevor Overall Fund Manager

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Judith Vanessa Fitzgerald
8 years ago
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1 FINANCE EAST Regional Funding for SMEs Trevor Overall Fund Manager

2 Finance East Limited Who are we? What are the funding options available from FE? Where does it fit into the funding cycle? What are we looking for? Q & A?

3 Finance East Who Are We? Stand alone, commercial operation delivering innovative funding solutions via debt and access to equity Team based in Ipswich ( part of FSE Group ) Focus on Growth SMEs across East of England

4 Regional Growth Loan Scheme - EEDA EEDA Business support services - Mezzanine Loan scheme = higher risk profile Focus on Growth businesses seeking medium term funding - term 2/5 years Purpose business growth / investment purposes - not pure working capital, re-financing or start-ups Limited companies only Sector exclusions Minimum turnover 500,000 p.a. - flexible

term funding - term 2/5 years Purpose business growth / investment purposes - not pure working

5 Regional Growth Loan Scheme Terms Amount 50k - 200k - normally tranched vperformance Interest rate 5-9% ABR Fees 2% arr fee / 1% annual fee / 500 security ATL 0.25% - 1% of annual turnover Security Mortgage Debenture (priority given) Personal Guarantees (limited / unsupported)

6 The Funding Cycle - Where does LEVEL OF INV. RISK the RGLS sit? ASSUMED BY FINANCIER > RISK -v- REWARD? HIGH > APPROPRIATE? > PACKAGING Founder Family & Friends Grants / POC Awards Business Angels EEDA RGLS VCs / VCTs Quoted Equity Mkts Commercial Banks LOW SEED START-UP EARLY GROWTH DEVELOPMENT ESTABLISHED STAGE OF ENTREPRENEURIAL DEVELOPMENT

> PACKAGING Founder Family & Friends Grants / POC Awards Business Angels EEDA RGLS VCs

7 What are we looking for? Focus on Growth businesses seeking medium term funding Clear demonstrative growth potential Credible Business strategy Business Plan Viable product / service with evidence of market traction & demand sales / order pipeline Committed Management Core elements Managements ability to execute the Plan / Order pipeline / Strong financial controls

Credible Business strategy Business Plan Viable product / service with evidence of market

8 Business Angel Co-Investment Loan Scheme - EEDA Loan scheme alongside Business Angels = earlier stage - higher risk profile Focus on Growth potential businesses Purpose business growth / investment purposes market entry / development -not pure working capital, re-financing or start-ups Limited companies only Sector exclusions No minimum turnover level pre-revenue upwards

growth / investment purposes market entry / development -not pure working capital,

9 Business Angel Co-Investment FLEXIBILITY Loan Scheme - Terms Amount 50k - 125k 2-7yrs Total new financing 60% Angels / 40% COIN Interest rate 8-12% ABR ATL 0.25% - 1% of annual turnover yr 2 onwards Security Mortgage Debenture / Risk Equity options consider

10 The Funding Cycle - Where does LEVEL OF INV. RISK the COIN sit? ASSUMED BY FINANCIER > RISK -v- REWARD? HIGH > APPROPRIATE? > PACKAGING Founder Family & Friends Grants / POC Awards Business EEDA Angels COIN Loan EEDA RGLS VCs / VCTs Quoted Equity Mkts Commercial Banks LOW SEED START-UP EARLY GROWTH DEVELOPMENT ESTABLISHED STAGE OF ENTREPRENEURIAL DEVELOPMENT

> PACKAGING Founder Family & Friends Grants / POC Awards Business EEDA Angels COIN Loan

11 COIN - What are we looking for? Focus on Clear demonstrative growth potential Credible Business strategy Business Plan Viable product / service with evidence of movement to market traction & demand Committed Management Core elements Management ability to execute the Plan

strategy Business Plan Viable product / service with evidence of

12 How can we work together? FE offers potential solution where Bank cannot assist RGLS / COIN Early stage / no track record Weak(ened) balance sheet Lack of tangible security Existing facilities stretched BUT - require financing to invest to deliver growth via a credible sales / order pipeline Packaged financing Bank / Angels / VCs / RGLS

track record Weak(ened) balance sheet Lack of tangible security Existing facilities

Finance East The Process Initial telephone call/discussion with FE team Core information available provided Initial assessment process to application

13 Finance East The Process Initial telephone call/discussion with FE team Core information available provided Initial assessment process to application Return of application + information From there process 4-6 weeks to approval via internal assessment & Credit Committee Funds out! ( & back in over time!! )

Return of application + information From there process 4-6 weeks to approval

14 Finance East Contact details General contact Stuart Ager / Trevor Overall trevor.overall@financeeast.com / Simon Howarth simon.howarth@financeeast.com /

ager@financeeast.com 01473 722910 / 07825 699407 Trevor Overall trevor.

15 QUESTIONS?

CfEL Equity Scheme Data

CfEL Equity Scheme Data Summary CfEL manage a range of VC schemes providing equity finance targeted towards high growth potential SMEs on behalf of the Department for Business, Innovation and Skills (BIS).