Finance Yorkshire offers funding pot to growing Yorkshire businesses

BUSINESSES in Yorkshire and the Humber have the opportunity to tap into a £30m pot of funding to accelerate growth.

The team behind the £90m fund, Finance Yorkshire – which provides businesses across Yorkshire and Humber with funding to start and grow – said it aims to create opportunity for companies in the region with its latest fund.

Alex McWhirter, chief executive of Finance Yorkshire, said: “The Yorkshire economy at this moment in time is very strong and I think it is healthy. Over the last seven to eight months we have seen a real expansion and change in the mood.”

McWhirter was speaking at a Round Table discussion held at the Finance Yorkshire headquarters in Barnsley, hosted by TheBusinessDesk.com founder David Parkin.

“Finance Yorkshire so far has invested £56m into companies in Yorkshire and the Humber ,” McWhirter said.

The fund has made 456 investments in the region.

“We have another £30m we are going to invest over the next 14/15 months, applications are up, enquiries are up, we are seeing a very strong demand for our finance at this moment in time.”

Finance Yorkshire provides Seedcorn, Loan and Equity Linked investments ranging from £15,000 and £2m, to help small and medium businesses (SME’s) raise the funding they need often alongside investment from the commercial market.

McWhirter said he doesn’t see the banking situation changing and getting finance shouldn’t be made easier. 
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“We don’t think financing should be easy. I think there are a lot of business people who don’t understand the aspects of finance. There is no silver bullet to it,” he said.

“We take a lot of time to understand the business and help them. We want to see ourselves as part of the business going forward but we don’t want to take it over. We are trying to help you achieve your ambition – whatever that is.”

Caption: David Parkin and Alex McWhirter with the Round Table attendees.

Andrew Burton, investment director at Finance Yorkshire said the role of Finance Yorkshire isn’t to be in the business for the long-term.

“We’re a gap funder. We always look at what your plans are for the future. We have one fund we have to invest across a range of businesses, so we have to always look at the risk ratio for us.

“Every business is unique and there is a unique financing for it. There is no one solution for business.

“I’d like to see all the companies we have invested in be successful. And that won’t be because of us, it is because of the people who have taken the investment and have worked hard. Our money is a leverage opportunity for business owners.”

George Ayliffe, business development manager at Finance Yorkshire, added: “I’m now looking forward to creating opportunities for businesses to grow and become the businesses of tomorrow rather than the businesses of today.”

One of the issues raised at the Round Table event was a lack of knowledge

around finance.

Shaun Watts of Hull-based ISIS Commercial Environments, which was formed earlier this year after office interiors specialist Chameleon Business Interiors and warehousing design and fit-out company iGSG Group merged, said he believes there are a lot of small companies who don’t know where to go for finance apart from the bank.

“Everyone in a small business has had their head down trying to survive but in a small business you have got to act quickly. There are a lot of companies who haven’t got a clue who to speak to about finance,” he said.

“A lot of people running small businesses don’t really understand the financing of the business and I think where people struggle is knowing who to speak to for advice.”

Viv Parry founder of Leeds-based Exquisite Handmade Cakes, which has received a Business Loan from Finance Yorkshire, said she thinks it is important companies feel supported.

“It is important that financial providers understand the needs of businesses. Businesses need to feel supported, not like it is a battle ground. Professional services need to work with the banks to give them the knowledge to find out about these options like Finance Yorkshire,” she said.