Gary Trueman
Royal Bank of Scotland
Ask the Expert: Access to Finance
Gary Trueman, regional director at Royal Bank of Scotland, offers practical support on securing business finance.
All answers are for general guidance only. Each case must be handled on the individual facts.
Q:I am looking to grow my business. What funding is available and what else should I do to help me get the funding I need?
A lot is talked about with regards to the availability of finance for SMEs. When you place initiatives such as the government’s Enterprise Finance Guarantee scheme and European Investment Bank funding together with existing bank balance sheets and product sets, there are probably more finance options available than ever before.
It is important you explore all the funding options available – these include bank finance, approaching venture capitalists, business angels or applying for a government grant for business investment. If you are seeking outside investment you must be clear of what investors want in return and always have written agreements in place.
In our experience we are seeing a greater combination of funding lines in support structures than before. Traditional lines of finance such as loans and overdrafts can provide a more short-term funding solution but if you are looking for more flexibility invoice finance could be the answer. It offers ways to access working capital by unlocking the value of invoices and protection against bad debts, although interest rates and charges apply on the cash advanced.
Asset finance is another alternative funding tool that many can consider when looking to update their assets and The Royal Bank of Scotland is working in partnership with Lombard to offer SMEs a £1bn UK Capital Expenditure (Capex) Fund which offers a smart and efficient way to fund equipment.
Whatever route you take it is vital that you communicate and are very clear on your proposition and requirements. Explain why you need the funding and how you can repay the debt repayments and fulfil the commitments.
When approaching a bank it is important to present a robust and detailed business plan outlining your business goals, performance and management experience. Your financial provider wants to see real life targets that are achievable.
Demonstrate your understanding of the market and highlight your experience. Banks will look at the complete package including financial projections and what plans you have in place should things take a turn – always have a ‘plan B’ - be it funding options, alternative suppliers or different routes to market.
Security may be required. Product fees may apply. Over 18s only.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE
REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT
The Royal Bank of Scotland plc.
Registered Office:
36 St Andrew Square,
Edinburgh
EH2 2YB.
Registered in Scotland No. 90312.
RBS Invoice Finance Limited
Registered office: Smith House, Elmwood Avenue, Feltham, Middlesex TW13 7QD
Registered in England No. 662221
Lombard North Central PLC
Head and Registered Office: 3 Princess Way, Redhill, Surrey RH1 1NP
Registered in England No. 337004. Telephone: 01737 774111 Facsimile: 01737 760031
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About Gary
Contact Details
Gary Trueman
Regional Director,
Royal Bank of Scotland
Gary.Trueman@rbs.co.uk
07768 021750
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