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
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