Oliver Jenkins on unlocking potential and winning contracts
For many Welsh SMEs the costs of servicing larger contracts can
be a key growth issue often impacted by the availability of
short-term funding and working capital.
Such costs can include one-off debtor finance,
stock purchases, project finance and security for advanced-payment,
performance and warranty bonds.
In April this year the Welsh Government
launched the £20 million Wales Capital Growth Fund, which is
managed by Finance Wales, to provide Welsh SMEs with the short-term
funding and working capital they need when bidding for new
The five-year fund allows for Welsh SMEs to
apply for loans of between £50,000 and £2 million for terms of up
to 18 months.
Whether a business is looking to expand in
domestic markets or considering potential export opportunities, the
availability of this additional short-term finance is excellent
Our investment in Pro Steel Engineering is an
example of how the Fund can help. The Newport-based
structural steel engineering specialists were able to win a
landmark contract with the Fund’s backing.
Pro Steel is now using a £1 million loan from
Finance Wales to deliver an essential part of the £200 million
remodelling project at the Queen Elizabeth Olympic Park in
Winning the contract to undertake this
high-profile redevelopment is a real milestone for the business and
potentially a huge springboard for its future success. It’s
also showcasing what Welsh businesses can achieve.
Like many SMEs in Wales, Pro Steel Engineering
is a young, ambitious company with a highly skilled workforce led
by a strong management team.
The potential was there but the business
needed an injection of short-term working capital to give it a
competitive edge in the market.
Many established Welsh businesses have the
capacity and technical know-how to beat the competition and win new
contracts. They’re often shortlisted at tender stage, but lack the
cash reserves to set up the bond facilities or fund the working
capital requirements that are needed.
The Wales Capital Growth Fund is changing this
picture and providing more and more Welsh SMEs with the backing
they need to unlock their potential.
If you think your business could benefit from
an injection of short-term finance then contact us today to speak to one of our local