Enterprise Finance Guarantee Scheme

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Business Angel

  • #41
    Strass-Rocker said:
    HI, does anyone have any further updates on this topic.

    Good or bad?
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    Yes, the Enterprise Finance Guarantee scheme is slowly coming alive. We are finding banks more receptive and have helped two clients obtain EFG's of over £100,000 this month alone, and have several more in the pipeline which we expect to mature in May.

    John
     
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    apprentice1

  • #42
    Hi

    i have been running my business since August 2008 and things have been going ok cnsidering we are in the middle of the worst recession for decades - not in a state of prfit and just about hlding ur own but i'm not cmplaining.

    We are now at a stage where we need some extra funds for wrking capital purposes and to buy new stock. I initially approached my bank RBS regarding the Enterprise Guarantee Fund - they said i could apply but did not appear very enthusiastic which concerned me. I was approached by HSBC regarding a business accunt and mentioned the scheme to them - they were very enthusiastic and i am now ging t prceed with them.

    My concern is that they will want me to offer my home as security - it's not that i don't believe in the business but i've already re-mortgaged in order t start the business and i know that if it doesn't succeed then i will be able t contiune with my mortgage repayments. I have 2 young children and have to think about them. Anyway, i am about 30k in negative equity so will this mean they won't want to look at the house anyway. Also, as a new business i have made some small losses but have now learned form my mistakes and feel in a much stronger position to take the business forward - will the banks be looking for a 'profitable' business t lend to or will we be in a good position as a small grwing business where things can only get better (hopefully!). My stock is worth quite a lot of money - will this be security enough?

    Any advice would be much appreciated.
     
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    apprentice1

  • #44
    Hi

    it's a slow process! My accountant is still working on my accounts and i'm slogging over my business plan. HSBC appear to be pushing the fact that i have a house (despite the fact that it's in negative equity). I fear all is not going to be straightforward!

    My representative from HSBC has said that he will try and cllarify this situation - no-one seems to know what they are doing! Part of the criteria for an EFG application is that there should be no security available (which clearly there is not) but the banks are determined to oush for this.

    Will keep you updated.

    Anyone else had any success?
     
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    apprentice1

  • #46
    Hi

    does anyone know if it possible to submitt applications to more than one lender at a time. I am currently applying with HSBC and know that it can be a lengthly process. If i were to be turned down i would have to start the process over again.

    Also do i need to open a business account with the lender before i can submitt an application for an EFG loan?

    Anyone had any luck with this yet?
     
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    S

    saxondale

  • #53
    MrMen said:
    Wow so no one has had any success with the EFG yet?

    Not even one person?
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    so when YOU posted this you obviosuly hadn`t bothered to read the whole thread?


    MrMen said:
    Considering the person in question already answered, which you could obviously see, your post is pretty useless! :|
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    could that person be me (on page 2) then? oh thats right ........... you`re missing page two.

    I love the "EFG sucks because I can`t get one" vibe
     
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    MrMen

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  • #54
    saxondale said:
    so when YOU posted this you obviosuly hadn`t bothered to read the whole thread?


    could that person be me (on page 2) then? oh thats right ........... you`re missing page two.

    I love the "EFG sucks because I can`t get one" vibe
    Click to expand...


    What did you stand to gain by pointing out that the one person who said they had got it had already directly responded to me, other than trying to be a smart ass?

    I have not said I cant get one, so I have no idea what you are talking about you seem to be out of your depth a little, so why not go be unhelpful to some one else?
     
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    saxondale

  • #55
    MrMen said:
    What did you stand to gain by pointing out that the one person who said they had got it had already directly responded to me, other than trying to be a smart ass?

    I have not said I cant get one, so I have no idea what you are talking about you seem to be out of your depth a little, so why not go be unhelpful to some one else?
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    you havn`t read the whole thread at all have you?



    You might want to start at post #54 and work backwards.
     
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    MrMen

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  • #56
    saxondale said:
    you havn`t read the whole thread at all have you?



    You might want to start at post #54 and work backwards.
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    Yes I have read the thread, but I went back and reread it, I actually didnt notice your reply....I think you could have just said "I did" rather than the odd response you gave!

    I assumed you were being funny hence my response! My apologies!
     
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    saxondale

  • #59
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    MrMen

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  • #60
    saxondale said:
    where abouts in the country are you - something like


    http://www.dfil.co.uk/dfil/dfil_default.aspx

    http://www.yorkshire-forward.com/helping-businesses/funding-for-businesses


    ?
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    Im in Birmingham, I have looked a little at business angels but again Im not well versed, I spoke to a firm this week and he told me as a rule of thumb they would want me to give some control of my company and look for 3 - 5 times their initial investment amount back.

    I had thought maybe the EFG would be a better option? Can I ask how long did you application take? from start to finish?

    Thanks for the links btw
     
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    saxondale

  • #61
    MrMen said:
    I had thought maybe the EFG would be a better option? Can I ask how long did you application take? from start to finish?
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    first meeting in April, forms filled in in September - money in bank February the year after.


    that doesnt really do it justice though, we were right in the middle of it when no one knew what money was going to be available or when.

    3-4K on fees and a lot of shouting at walls.
     
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    MrMen

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  • #62
    saxondale said:
    first meeting in April, forms filled in in September - money in bank February the year after.


    that doesnt really do it justice though, we were right in the middle of it when no one knew what money was going to be available or when.

    3-4K on fees and a lot of shouting at walls.
    Click to expand...

    :eek: lol well the lady from the bank cant wait to get out to see me! she even rung me today, apparently she is bring the forms with her.

    She didnt mention any fees what were they for?

    Also there seems to be some confusion on whether you can have property? I have but I was told by someone that it is a requirement that I dont have ANY assets?
     
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    saxondale

  • #63
    MrMen said:
    :eek: lol well the lady from the bank cant wait to get out to see me! she even rung me today, apparently she is bring the forms with her.

    She didnt mention any fees what were they for?

    Also there seems to be some confusion on whether you can have property? I have but I was told by someone that it is a requirement that I dont have ANY assets?
    Click to expand...

    legal fees

    forensic accountant

    legal fees

    bank admin fees

    did i mention legal fees

    the bank will want a personal guarantee of you .......... yes its against the rules but they will still want one

    barclays have still got my whole presentation on a memory stick somewhere, promised me the world if I signed up for all their accounts ....guess what happened.
     
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    MrMen

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  • #65
    saxondale said:
    legal fees

    forensic accountant

    legal fees

    bank admin fees

    did i mention legal fees

    the bank will want a personal guarantee of you .......... yes its against the rules but they will still want one

    barclays have still got my whole presentation on a memory stick somewhere, promised me the world if I signed up for all their accounts ....guess what happened.
    Click to expand...

    :eek: oh flip!!

    I am suprised you had to go through all that to say the least but lets see where this goes ay?
    Barclays have been saying the same for me, I was so suprised that the account manager was so helpful I kinda felt something was wrong!
     
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    avantime

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    Mar 22, 2009
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  • #69
    MrMen said:
    Ahh I see not too bad did the bank give you any conditions before you could have the loan?

    Also how old was your business when applying if you dont mind me asking?
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    I have been trading for about 14 years now - making picture frames and have now moved into oak furniture. I think sticking to it helped with my application.

    To get the loan we had to incorporate, sign personal guarantees and a debenture. Having the loan has made a massive difference.
     
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    MrMen

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  • #70
    avantime said:
    I have been trading for about 14 years now - making picture frames and have now moved into oak furniture. I think sticking to it helped with my application.

    To get the loan we had to incorporate, sign personal guarantees and a debenture. Having the loan has made a massive difference.
    Click to expand...

    I can imagine, having this loan would do my business the world of good too, to be frank we have grown way too fast if there is such a thing lol!

    But the financial strain on me personally is a nightmare right now, I could really use a cash injection that doesnt come directly out of my pocket!

    Before you applied did you have all of your paper work ready? i.e management accounts business plan etc or did you do some of that whilst applying?
     
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    MrMen

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  • #72
    jim_price said:
    You mention fast growth - is working capital (specifically debtors) your problem? If so, invoice discounting might be worth looking at, not especially cheap but cheaper than some of the EFG rates I have seen offered.

    I believe Advantage West Midlands is pretty helpful for SMEs in your area.
    http://www.advantagewm.co.uk/what-we-do/helping-business/finance-for-business.aspx
    Click to expand...

    Well what we need is to hold a much larger amount of stock and larger range, people regularly come to our site and buy the stock we have and we can see from the statistics if we held more stock we would sell more. The frustating thing is our suppliers dont tend to hold that much stock so we have a fairly small window to buy it from them and if we miss it, even if the traffic is there and we have the money then the items are no longer available and it tends to be the larger companies who make the money as they were holding the stock physically

    In my mind I would really say we need a cash injection to expand, if we were given a pot of money it would also help our profits too as the larger amounts we buy from suppliers the better prices we would get.

    Thanks for the link I shall look at that now.

    Edited to say: I just looked at the link and I am already in contact with some of the companies featured on their such as Advantage Business Angels and Beer and Young again my main issue is lack of information on how the process works but they are quite helpful so I'll see where it goes!
     
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