With over 300 debt finance options currently available to businesses, we thought it timely to have a look at that market. Presenters include: . Michael Cass (Capitalise) . Rachel Taylor (SWIG Finance) . Andrew James (PKF Francis Clark) In addition to an overview of the debt market, presentations will include tips on how to access the finance that matches your business’ requirements.

1. D E B T F I N A N C E : T H E M A R K E T

2. HOUSEKEEPING
@pkfFrancisClark

3. PROGRAMME
 8.20 – Presentations
 Andrew James (PKF Francis Clark) – Getting finance ready
 Mike Cass (Capitalise) – The debt market and the capitalise
platform
 Rachel Taylor (SWIG Finance) – An alternative funder, their
product and their requirements
 9.10 - Questions
 10.00 - Close

4. BACKGROUND – NEWS ITEMS
 “How finance directors can grow their business by
getting the right funding” – “Faced with an array of
alternatives from peer-to-peer lenders to high street
banks and specialist debt funds, it can be difficult to
know where to begin.” (Director of Finance – 25 July
2019
 “Business borrowing soars in June” – “However,
some lenders have warned that the credit market is likely
to contract in the coming months as the chances of a no-
deal Brexit increase (Peer2Peer Finance News – 29 July
2019
 “What every SME should know about personal
guarantees” – “Start-ups and SMEs looking for sources
of funding need to think carefully before signing personal
guarantees, according to a leading corporate lawyer.”
(Bdaily News – 30 July 2019)
 “How accountants are helping SMEs secure
funding” – “In addition to their advice and origination,
accountants also help SMEs to develop the business
plans and financial forecasts that make the case for
funding.” (Financial Director – 18 July 2019
• Lots of debt finance
options
• Uncertainty ahead –
knowledge of
finance options
essential
• Borrowers should
be wary of PGs
(increasing
prominence in
alternative lending?)
• Accountants are
increasingly ‘go to’
people for
information on
range of funding
options and to get
‘investment ready’

5. R A I S I N G D E B T F I N A N C E
By Andrew James (PKF Francis Clark)

6. FINANCE RAISING - WHERE DO YOU START??
Understand
your
requirements
Understand
funding
options and
funders
requirements

7. KNOW YOUR REQUIREMENTS
 Know your business
 How the finance will be used … Capex? Working
capital? Both? (see projections)
 Where in the business life cycle are you?
 Business plan including SWOT / KPIs/ Risks
 Projections – to quantify funding requirement
 External funding necessary?
 Term that funding is required
 Different elements to carve out
 Ability to service debt
 What ifs
 Personal
 Security
 Risk

8. FUNDING OPTIONS - A BRIEF OVERVIEW
Equity Debt Grants
Crowdfunding

9. FUNDERS REQUIREMENTS – DEBT
(GENERAL)
 Their money back with interest! And if not what is their fall back position
 So, they want to know
 Can their debt be serviced
 What collateral can they secure against
 How can they keep check… covenants!
 They care less about…
 Future growth/value
 Having a seat on the board
 Job creation
 CSR?

10. APPROACH THE MARKET – REACTIVE V
PROACTIVE
 Reactive – driven by need
 Lack of time of to evaluate the offer?
 Right finance?
 Was there better rates available?
 A deal that offered lower security?
 No offer..
 Proactive – driven by want
 How the finance will be used
 The right type(s) of finance
 A better deal, better rates
 A better decision overall

11. APPROACH THE MARKET - HOW
 Speak to us about finance
options
 Grants
 Equity
 Debt
 Crowdfunding
 Getting ready
 If then conclude Debt…
 Your bank
 “Alternatives”
 300+ options…

12. APPROACH THE MARKET - GET YOUR PIGS IN A ROW
 Business Plan
 Projections
 Housekeeping
 VAT and tax returns
 Accounts and Management accounts
 Credit score
 Personal – “Red lines”

13. FINANCE RAISING (PROACTIVE) - WHERE DO
YOU FINISH?
Understand
your
requirements
Understand
funding
options and
funders
requirements

14. Debt - The Range
ADVISER-LED FUNDING PLATFORM

15. PKF Francis Clark provides your access-point to finance

16. Marketplace
funding
Access a marketplace of over 100
lenders on the platform
❏ Continuously updated
❏ Agreements with 100 lenders
GROW
https://app.frame.io/r/dd152f9b-
ae13-47e2-b697-ad96b30eb964
https://demo.capitalise.com

17. Why do we need help when
looking for funding
FUNDING PLATFORM FOR ADVISORS & THEIR CLIENTS

18. A new era of banking is here
Banking has moved from the high street to
online.
WHERE IS THE BANK MANAGER?
15,000 BANK BRANCHES CLOSED
IN THE LAST 15 YEARS 55,000 ESTIMATED BANK
MANAGERS ARE GONE

19. 10,000
new bank managers?
Long live the accountant

20. Market: Business owners behaviours

21. Market: 360+ lenders in the UK alone

22. Debt the Range
FUNDING PLATFORM FOR ADVISORS & THEIR CLIENTS

23. In action: Why funding?
FOUNDATION SERIES
Cash flow funding
Keep up with day-to-day running costs, such as
employee wages or overheads.
Growth funding
Help businesses realise their strategic expansion plans
for the long-term without impacting their short-term
cash flow
● hiring new employees,
● equipment purchases
● Working capital issues from increasing revenues
Business Shocks funding
Unexpected changes in cash flow are a necessary
part of running a business.
● Late client payments,
● higher than expected tax bills,
● repairing and replacing equipment,
● slow business periods
Emergency funding
Recovery situation - dire business consequence
Corporate finance
Large complex transactions

25. Why: Funding in numbers
£25,000 £100,000 £500,000 £1,000,000
Revolving credit facilities
Merchant finance
Unsecured Business loans
Asset Finance
Secured Business loans
Invoice finance
£5,000,000+

26. Why: Some of the Capitalise lenders
Banks Independents Fintech

28. Rachael Taylor
www.swigfinance.co.uk
info@swigfinance.co.uk
01872 223 883

29. Who are we?
Trustees from Cornwall Council, Cornwall Chamber of Commerce, Devon
County Council, Gloucestershire First LEP, Barclays and Lloyds banks.
Offices in Truro, Exeter and Bristol
FCA Regulated; Responsible Finance Provider
• Not-for-profit finance company
• Established 1989

30. What do we do?
Finance and support to SMEs
excluded from mainstream
finance in the Southwest
• Lack of track record/security
• Poor credit rating
• Not within credit policy
• Not investment ready
• No bank manager

31. Why are we different?
People not computers
• Potential not collateral
• Personal, professional service
• Relationship Management
• Honest advice
• Flexible

32. 1,320 start-ups
1,575 loans
£19,153,427
2,200 Jobs created and safeguarded
255 growth SMEs
589 (37%) Female-owned

33. ENTERPRISE LOANS
• £10,000 - £100,000
• Up to £250,000 in Cornwall
• Repayable up to 5 years
• 12% Interest ABR
• Flexible repayment terms
• Unsecured
• Backed by EFG

34. • £500 to £25,000 per business owner
• Businesses trading up to 2 years
• Fully funded business support
• 6% interest fixed
• Initial repayment holiday
• Repayable up to 5 years

35. APPLICATION PROCESS
1. Simple online application
2. Initial assessment
3. Provide information i.e. financials
4. Face-to-face meeting
5. Decision in 1-2 weeks
Application process supported by our local Business
Managers and advisors – happy to discuss

36. Mappix
A Cleaner Generation, one of the UK’s
leading solar panel cleaning companies,
purchased new specialist machinery with a
growth loan from SWIG Finance matched
with grant funding.
Charity needed investment in order to take the
platform out of test trading and launch it to a
wider market and approached SWIG Finance
for funding. She says: “I needed finance in
order to market the platform and continue to
build and develop it.”

37. www.swigfinance.co.uk
info@swigfinance.co.uk
01872 223 883
Get in touch – we’d love to hear from you
Thank you for listening

38. NEXT…
Q&A and/ or discussion
Future breakfast briefings??
• Business succession (e.g., EOTs; Valuation)
• Mitigating business risks (e.g., Cyber Security)
• External markets for growth (e.g., International Trade)
• Remuneration strategies (e.g., EMI)
• How to be investment ready / Increasing the value of
Family Business (e.g., Equity – crowdfunding)
And do not forget our blog, which contains details of new funds/
sources of SME funding that come to our attention, and our Finance
in the South West factsheet

39. 01392 667000
Exeter
01722 337661
Salisbury
01823 275925
Taunton
01803 320100
Torquay
01872 276477
Truro
01752 301010
Plymouth
01202 663600
Poole
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