Mark Lane from the Newcastle Chronicle looks at corporate finance trends in the North East and asks what the region’s business owners need to do to gain backing for their growth plans.
Asked what they are looking for when approached for finance, a very common theme emerges from the region’s finance professionals: good management is the key.
Richard Moore is head of new investment for Calculus Capital, which specifically focuses on providing growth equity finance which is tailored for SMEs. He says: “A lot of good quality businesses are unable to secure external funding and are turning to EIS/private equity funding, which now fills a vitally important part of the company funding cycle, both for early stage companies and those requiring scale up capital.”
Asked about the common mistakes owners make when approaching Calculus for private equity funding, Moore said: “A number of small businesses that approach us for funding are often unsure about the amount of capital they are looking to raise and whether they are ready for the formal approach of an institutional shareholder both at investment and going forward.
“Often small businesses underestimate the amount of capital they require, or timelines to bring products to market, ramp up sales etc. As we have worked with many types of businesses and seen thousands of business plans, we are in a good position to guide business through the funding process and advise them on future growth plans.”
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