Private Investment fulfils the needs of stressed SME’s.
There is a common theme to most of the enquiries we are receiving, in short it is a cash squeeze.
Whether the business is continuing to grow but needs further funding rounds to reach profit, or has a history of profits but these have been eaten up through the past two years, the bottom line is the same. “We need more cash to see us through.”
That’s fine until one considers the next question: “where from?”
A requirement for more capital does not turn your business from good to bad overnight. Business owners’ experiences through the past two and half years have been unprecedented, and not of their making. None of this solves the problem…. “Where do I find the money from?”
Bank support is somewhat of an oxymoron if you need more money. The Recovery Loan Scheme is not this at all. It’s a loan scheme for companies in growth who are not showing signs of stress or financial weakness. Underwriting teams across every funding sector are being more cautious, and it’s a fair bet to say this trend will continue for some time to come. For the business owner who’s numbers are not in great shape, it’s not surprising that lenders will be hesitant in offering additional support.
Thankfully, there is a solution that can work for most businesses and that is private capital, in the form equity funding. Private investors do back businesses where there is a proven business model and opportunity to make future profits. Often their capital comes with added skills and support, and this is to be welcomed.
Beer & Young specialise in raising capital quickly for businesses which have a need for capital. Our network of private investors in this area is unmatched in the UK. Investment from private investors can be the answer: it enables the business to secure its immediate future and gives it the funds necessary to plan for growth and profits.
There are solutions to the funding problems facing many UK businesses – below we have offered three recent examples of clients we have helped.
Beer & Young were approached to source urgent funding for a business that had reached a cash crunch whereby unless funding was received within three months, the business would be forced to close. Within one week of take-on we had sourced an overseas trade group who were very keen to enter into this market and looking for acquisitions and/or joint ventures. Within weeks a soft loan was accepted by our client to cover urgent working capital requirements. Further investment followed giving our client the money they need to develop their business and deliver growth & profits.
Ladies Fashion, bespoke design. Below is an un-edited note we received from our client after investment had been received.
“My business has been developing well for some time, but due to unforeseen circumstances, I found myself needing urgent funding support. My bank wouldn’t support me so I turned to B&Y. Not only did they resolve my funding issues, they also helped me through the process and made it all simple. I am truly grateful for their efforts and recommend any business owner to contact them.”
Having failed to raise cash eighteen months prior, an owner approached B&Y seeking a cash injection to rationalise current operations and to de-leverage the balance sheet in order to drive future profitability and growth. We delivered four investor meetings with four weeks of engagement, two made offers of funding. One proposal clearly stood out and terms were agreed by all parties. The existing shareholders were bought out and £500,000 in new capital was invested in the business to deliver future growth.