Fast-growth companies looking for investment to take their business to the next level are being offered help through a £200m of growth capital fund launched by Santander bank.
Loans are available to businesses with an annual turnover of up to £10m which have a demonstrated history of high year-on-year growth in turnover, profit or employment.
The fund, part of the bank’s new Breakthrough programme, is designed to help address a recognised gap in the funding market for companies of this size and can be used to fund growth initiatives such as introducing new products, expanding overseas or recruiting new staff.
Breakthrough’s growth capital loans can be used as an alternative to equity investment where, as with many of the businesses Santander has worked with, business owners do not wish to relinquish a large proportion of the business they have built up in exchange for capital.
Fast-growth businesses have a major impact on the local economy. According to Experian data, there are 824 fast growth, or growth champion, businesses with a turnover of up to £10m in the South West – 6.8% of the region’s small businesses. Between them they employ 36,230 people and have a combined net worth of £637m.
Alongside finance, Breakthrough is also offering businesses access to a range of support and development programmes, not usually available to companies of this size.
These include fully-funded overseas trade missions, fully-funded internships, opportunities to learn first-hand from experienced fast-growth companies such as Google and LoveFilm, as well as networking events and training courses.
An event to introduce Breakthrough to local businesses was held recently at Bath University with talks from entrepreneurs Mike Soutar, founder of Shortlist Media; Lara Morgan, founder of Pacific Direct; and Chris Fieldhouse, commercial manager at Hewlett Packard.
Steve Pateman, Santander’s head of UK Banking, said: “We know there is a funding gap for smaller companies looking for growth capital and we want to help fill that gap. This is part of the role that banks can play in supporting a private-sector led recovery and stimulating local economic growth.
“It is not just money that drives business growth – but the people behind the business. We know from our own experience how challenging growing a business can be, so we are providing a package of support to assist British business owners in the steps they are taking to invest in and grow their business.”
The programme will be delivered with the support of regional boards. These boards will harness local knowledge to ensure the support available is tailored to meet the needs of companies within the region.
