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Raising Finance
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Raising additional financeNegotiations with LendersThe business branches of the high street banks provide the main source of finance for small and medium businesses. Success depends on the way in which a proposal is put to them. We have daily contact with key people within the local banks. We use these relationships to make sure your best case is put to them and is most likely to receive a favourable response. See how we helped David avoid angry parents by raising £2m Many of our clients get into difficulties because with hindsight they had arranged finance on inappropriate terms. Most reasonable lenders would wish to allow for a renegotiation of terms as long as the explanations stack up. For example, Mike miscalculated the ability of his business to afford capital repayments and we helped him present a case for rescheduling. It can happen that existing lenders lose confidence with their customers and the relationship breaks down. In these cases, it can be best to have a constructive change to another lender. We can help you through a difficult process, adding our independence to counter any natural suspicion about the real reasons for change. Asset Based FinanceIncreasingly small and medium businesses are turning to various forms of sales ledger finance. We have relationships with many of the providers of facilities suitable for these cases. We can advise you as to which are appropriate and help you prepare a proposal. We can also advise on whether the amounts that customers owe are being properly controlled.
Case StudiesAs you will see from our examples, a large proportion of our restructuring and hive out cases involve arranging finance for the ongoing entity. Dealing with an asset-based lender can often result in a quick decision turnaround but putting the business case to them properly is key as we explained to Graham. Equity RefinancingVenture capital is long-term, committed share capital, to help companies grow and succeed. The money may be required to fund a start up, expand, buy in to a business, effect a turnaround, or revitalise a company. The most common form of venture capital is that provided by specialist institutional investors. On a smaller scale it may come from an individual business angel or a consortium of business angels. Business AngelsObtaining funds from a private investor in exchange for an interest in the equity of a company is an under utilised source of capital. Its advantages are that the return on the investment is usually tied to the success of the business and a business angel will usually be willing to provide experienced management support. We have our own network of business angels and can help identify a compatible individual, or where larger sums are required, put together a consortium prepared to invest in the future of the business. |
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This document explains the relevant position only in general terms. We do not intend it to be used as formal advice about a specific situation, for which you should consult with a qualified insolvency practitioner and not rely upon this document. Portland would be pleased to advise you formally and you should contact one of the directors listed to arrange this. Portland regrets it is unable to accept any responsibility to anybody who seeks to rely on this document. |
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