Debt Finance

When considering debt finance it is worth bearing in mind that most investors will expect an initial financial commitment from the founders of the company. Family and friends may also be able to help with some level of start-up finance while the Business Plan is finalised. This might help bridge the gap until other sources can be approached.

CommercialiSE PoCKet

This fund provides funds to academics, students, alumni and small companies for early stage business ideas. PoCKeT is specifically for “proof of concept” projects that need to access the expertise of a Higher Education Institution (HEI) or Public Sector Research Enterprise (PSRE) to make them a commercial reality. PoCKeT awards range from £5,000 to £50,000. This fund is managed by Finance South East and terms and conditions apply – follow the link to Finance South East’s website for more information.

Finance South East’s Accelerator Fund

This fund fills the gap between traditional debt and equity funding. It can be a stand alone funding source but is usually complementary to other sources of finance e.g traditional bank debt, equity and the Small Firms Loan Guarantee. Terms and conditions apply but essentially businesses can borrow between £25,000 and £100,000 with repayment over 3 to 5 years. Fees apply and in place of an equity stake, a premium will be levied based on annual turnover.

http://www.financesoutheast.com/ourfunds/index.aspx?id=94

Department of Trade and Industry Knowledge Transfer Partnerships

This programme enables businesses to bring in academic expertise from Universities. The DTi will subsidise the costs but companies have to provide some of the funding. - possible consideration later in company development when company has funds to put towards this.

Helpful hint: This programme might be useful at a later stage in a company’s development when funds are available to allocate towards the funding. (Cheryl – could you check this note from your original document, I’m not sure what it means ‘ Useful to contract out for software developers’ )

Knowledge Transfer Partnerships

Welcome to KTPonline Department of Trade and Industry Small Firms Loan Guarantee This initiative, set up with specified lenders, provides a government-backed guarantee for firms unable to obtain a conventional loan as they have insufficient assets. A guarantee is made to the lender covering 75 per cent of the loan amount for which the borrower pays a 2 per cent premium on the outstanding balance of the loan and this is payable to the DTi. This scheme can guarantee loans of up to £250,000 with repayment terms of up to ten years.

Helpful hint: This scheme is not considered suitable for pre-revenue companies.

The Small Firms Loan Guarantee | Business Link