01/03/2011

A winning approach

A winning approach

Bank lending to small and medium sized businesses (SMEs), remains a hot topic, yet, with over 2,500 investments under its belt, Finance Wales has been successfully investing in Wales’ SMEs for over 10 years.


“We’ve worked with numerous Welsh businesses with real growth potential and we’ve helped many achieve their plans,” explains investment director, Peter Wright. “We’ve been able to work with them, understand their needs and structure a suitable deal which could be a mix of debt and equity.”

Investment as individual as your business

Matching the right funding package to an ambitious business plan from the outset is all important and can significantly influence future success, as Wright explains: “Loans can often be the first option businesses consider when they’re thinking about investing in their growth, yet even the best business plan can run into difficulty without an adequate capital base.”

Don’t rule out equity

For many businesses, a loan might not be the most effective way to finance their growth plans. Investments structured with equity can free up vital cash-flow and allow businesses to focus on creating long term shareholder value. Many businesses are unaware that equity can bring strategic benefits with the appointment of a nonexecutive director (NED), for instance.
 

Selecting the right type of funding and properly structuring a deal can really impact future success. A deal structured with equity investment can be effective and shouldn’t be ruled out without careful consideration.

Peter WrightFinance Wales' investment director
 
Llanelli-based Chromogenex Technologies Ltd received a £1.2 million structured debt and equity investment from Finance Wales and £290,000 from the Welsh Assembly Government to meet increased demand and expand into emerging new markets.

Taking the long view

Growth investment often requires a long term view. Making the right investment at the right time with the backing of a long-term investor over a number of rounds can be a major contributor to future success.
 
For instance, a number of debt and equity funding rounds helped Outlook Expeditions to secure its capital base and fund its expansion into the UK’s largest independent youth expedition provider to the education market.
 
“I believe a well-structured investment at the right time coupled with the backing of a strong, long-term investor is a winning approach.”