Mortgages, Secured and Directors Loans
As director and shareholder of an SME or owner managed business you can provide additional financial support to it personally by way of Directors Loan raised against the security of personal assets usually your home. At Harrisons, we can advise you of methods to securitise your loan thereby protecting your investment as far as possible.
This is a common means of financing growth as the facility increases directly with the increase in turnover. Funding can be provided against the security of invoices raised to customers usually between 75% and 90% of invoice value . For more information click on Invoice Finance.
Enterprise Finance Guarantee
The Enterprise Finance Guarantee (EFG) is a loan guarantee scheme intended to facilitate additional bank lending to viable SMEs lacking adequate security for a normal commercial loan. EFG provides a Government backed guarantee for 75% of loan value to viable businesses with a turnoverof up to £41m and which are seeking loans of between £1000 and £1m. The borrower pays a 2% annual premium. For more information click on Enterprise Finance Guarantee Scheme.
Venture Capital and Business Angels
A venture capital agreement is a means of financing the development and expansion of existing businesses or the purchase of companies. In return for the provision of funding, the venture capitalist takes a proportion of the share capital (equity) of the company.
Business angels are wealthy entrepreneurs who provide capital in return for being part of a growing successful business. As with venture capital, in return for their investment, the business angel acquires an agreed percentage of the share capital (equity) of the company. As most business angels are entrepreneurs drawn from the corporate market you can often benefit also from their experience and ideas as well as funding.
In certain circumstances additional capital can be raised against the security of stock. For further information click on Stock and Trade Finance.
If your business is growing or is likely to in the foreseeable future or wish to discuss any of our products and services, please complete the Get A Quote, Contact Form or email email@example.com. Alternatively simply telephone our national rate number 0845 601 5343 or contact your local Harrisons office, details of which can be found within the Contact Us section.