Date: Tue 19th July, 2011
Venue: 35 Newhall Street, Birmingham, B3 3PU
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This breakfast forum is intended to be a thorough examination of the regional business finance picture.
Panel to include:
Sue Summers, chief executive, Finance Birmingham
Andrew Wilson, chief executive, WAA
Andy Lyndon, investment director, LDC
Stuart Layzell, investment director, Business Growth Fund
The launch in Birmingham in May of the government’s £2.5bn Business Growth Fund (BGF) was intended to be a solution to the problem of SMEs accessing finance. It was also of course an indication that that problem still exists.
The banks say they are still lending to SMEs and point to the money that has been loaned out under the Project Merlin deal struck between the banks and government in February. But anecdotal evidence from small businesses suggests getting banks finance is pretty impossible unless you are a large company with a track record. Where does the truth lie?
The BGF will invest between £2m and £10m per business in return for a minimum 10 per cent equity stake and a seat on the board. But those businesses need to have a minimum turnover of £10m. Is that the level where funding is needed or has the fund set its sights too high to be of help to most SMEs? So where do those smaller businesses turn?
Fund chief executive Stephen Welton said at launch that it is important to note that the BGF is not replacing bank lending but providing long-term capital.
So do companies need to re-think their finance needs, away from pure debt and towards giving away a portion of equity in exchange for backing - a sort of Dragon’s Den funding solution?
And does that mean initiatives of this kind are effectively competing with the private equity market?
And what of non-equity initiatives such as Birmingham City Council’s Business Loan Fund, launched last year to provide a package of loans to local SMEs. Has it made a difference?
We also look at alternative sources of funding. We consider to what degree asset-based lenders and invoice financiers can fill the funding gap? Is the business appetite for ABL there? How widely is it used in the region? What type of companies are using it?
If you need any more information, please contact Lianne Sunderland on 0161 907 9741.
Our events are regularly over-subscribed therefore please register your interest as soon as possible. If you have been successful you will receive a confirmation email one week prior to the event. Please click here to register your interest.
If you are interested in attending this or any other Insider event please contact Richard Carey on 0121 204 1490.
Timings for this event are as follows:
7.30am – Registration and breakfast
8.00am – Meeting commences
9.00am – Approximate close
Event sponsored by:
