Access to Finance: Sharp rise in MSIF start-up loans
THE Merseyside Special Investment Fund (MSIF) increased the value of loans it made in the six months to September, and backed more start-ups.
It said it invested around £5m, up from £3.4m during the same period last year.
This cash went into 91 businesses, 71 of which were classed as start-ups. This compares with 86 businesses last time including 55 start-ups.
The fund has a number of different loan pots offering up to £50,000, including the Government-backed Start-up Loan Fund which commits unsecured finance of up to £10,000 at 6% interest. It also handles larger equity and loan deals which last year accounted for up to £5m of the £9m loaned by the fund.
Lisa Ashby-Dowling, MSIF investment manager for start-ups, said: “A lot of banks are referring to us because they’re not able to provide the finance, or they can only do a small part of it – they might have a client who can get £5,000 but needs £12,000. We’re definitely getting a lot more inquiries.”
MSIF has backed companies operating in a range of different sectors. It was an early supporter of wind turbine maintenance firm Windtex and committed a further loan of £50,000 this year. It was originally based in Kirkby but has since moved to Warrington.
Greetings card business Chocolate Envelope has secured a start-up loan this year, along with teaching app specialist Little Lamb Phonics.
