Ask ICAS

Webinar Series
Funding business recovery and
expansion
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 Ask ICAS
Webinar Series
Funding business recovery and
expansion

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Ask ICAS
Webinar Series
Funding business recovery and
expansion
Disclaimer
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Ask ICAS
Webinar Series
Funding business recovery and
expansion
Your experts for today

Chris Mitchell Gary Torbett Martin McLaren CA

Senior Business Head of Financial Investment Director,
Development Manager, Readiness, Scottish Maven Capital Partners
Lendingcrowd Enterprise UK LLP
Ask ICAS
Webinar Series
Funding business recovery and
expansion
Debt Finance for Recovery & Expansion
Chris Mitchell, Senior Business Development Manager
Ask ICAS webinar – 8 April 2021
 About LendingCrowd
LendingCrowd is a non-bank lending platform that provides fast, flexible and
affordable loans to SMEs.
Since launching in 2014, LendingCrowd has delivered more than 935 loans, with
a total value of over £85 million, to businesses the length and breadth of Britain.
As a responsible lender, we work closely with borrowers to fund their needs. If a
borrower’s requirements are outside our product offering, we help them find
the right solution.
In partnership with:
 Coronavirus Debt Assistance Schemes
The Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS) and
Coronavirus Large Business Interruption Loan Scheme (CLBILS) closed to new applications on 31
March. They were replaced by the Recovery Loan Scheme (RLS) on 6 April.
BBLS CBILS/CLBILS RLS
Loans from £2,000-£50,000 Facilities* up to £5m (CLBILS – £200m) Facilities* up to £10m
100% Government guarantee Partial Government guarantee Partial Government guarantee
2.5% interest rate Interest rate varies by lender Interest rate varies by lender
Govt meets 1st 12 months’ finance costs Govt meets 1st 12 months’ finance costs (CBILS) Borrower meets all finance costs from outset
6-year max term 6-year max term** (3 years for CLBILS) 6-year max term**
Eligibility checks apply Eligibility and affordability checks apply Eligibility and affordability checks apply
Applications closed 31 March 2021 Applications closed 31 March 2021 Available 6 April to 31 December 2021
Borrower always fully liable for debt Borrower always fully liable for debt Borrower always fully liable for debt
*Loans, overdrafts, invoice finance and asset finance
**3-year max for overdrafts and invoice finance
 Debt Finance Opportunities
• Post-lockdown recovery
• Expansion
• New-venture planning
• Diversification and restructuring
• Stock and materials
• Recruitment and labour
• Marketing and advertising
• New premises and refurbishments
• Procurement
• Equipment and infrastructure
• Business acquisitions and buy-outs
• Debt consolidation
• Working capital
• Storage and distribution
• Developing new products and markets
 Debt Finance Solutions
Term Loan Multi-purpose

Commercial Mortgage Business premises

Overdraft Short-term/seasonal financing

Credit Card Business expenses

Asset Finance Capital expenditure

Invoice Finance Funding debtors

Asset-based Lending Raising cash against existing assets

Export Finance Reduces the risk of international trade

 Accessing Debt Finance
Any decision to lend is based on the assessed ability of the borrower to repay the debt over the agreed period

For decades, a handful of large banks have dominated the market for business lending.

The funding landscape is evolving rapidly, and businesses now have access to a wide range of finance providers, including
non-bank lending platforms such as LendingCrowd.

Banks Lend to own customers, strictest credit appetite

Non-bank Lenders Lend across industry, amiable credit appetite and application process

Private funders Typically operate in niche markets

Government schemes Designed not to displace private sector lenders

 Accessing Non-bank Finance
Scottish
Enterprise Bank Referral
Direct approach Scheme

Non-bank Finance

Professional Finance brokers

advisers Professional
bodies

Chris Mitchell, Senior Business Development Manager

07432 866 347
chris.mitchell@lendingcrowd.com
LendingCrowd is the tra ding name of Edinburgh Alternative Finance Li mited, Company Number SC468392, a uthorised and regulated by the Financial
Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Servi ces Com pensation Scheme.
The company’s registered office is 23 Ma nor Pl ace, Edinburgh, EH3 7DX. Copyri ght ©LendingCrowd 2021.
Gary Torbett,
Financial Readiness Team Leader

ICAS Webinar

Thursday 8th April 2021

What Scottish Enterprise does

1. Works to stimulate the Scottish Investment Market

via market research, networking & monitoring of
investments and the market in general

2. Co-invests in Scottish companies via a range of

Support the funds
Scottish Finance
Market 3. Provides loan funding to Scottish companies
through the Scottish Loan Scheme

4. Supports Scottish companies looking to raise

finance via the Financial Readiness Service
Supporting Growth Companies

Place Net Zero Inclusive Growth

Funds & Programmes
SCOTTISH CO-INVESTMENT

LENDINGCROWD

ENERGY INVESTMENT FUND

Internally Managed Funds

▪ Invest up to £2m pa
▪ Co-Invests alongside a range of private co-investors
▪ Invests in start-up, early stage and established companies
▪ Investor led, but SE involved in deal process
 SLS
Scottish Loan Scheme

• Loan funding from £250k -£2m to growth focused Scottish Companies

• Loans can be used for a variety of reasons
• Companies should have 2 years' trading history with a minimum £250k + turnover and be
profitable (or projecting profitability within the next 12 months)
• You must have a viable business plan which demonstrates you can pay back the loan
• Your business must be based in Scotland or ready to locate to Scotland (and located in
Scotland before any loan funds are made available)
• You must have a viable business plan which demonstrates you can pay back the loan
Externally Managed Funds
• Innovative peer to peer lender (first in Scotland)
• Loans - £5k-£500k, repayment periods 6 months to 5 years
LENDINGCROWD • Interest rates from 5.95%
• Supported over 790 Companies
• SE has committed £6.5m of funding to the platform

• Specialist life-science VC headquartered in Edinburgh

• Invests in early-stage high growth life science Companies in under-ventured
EPIDAREX CAPITAL • Will invest into University spin-outs
• International management team with proven track record
• SE has committed £5m to Epidarex II Fund.

• Fund will invest in UK Management Buyouts (“MBO’s”), supporting existing management teams
MAVEN REGIONAL acquiring the business from the owners and supporting growth of the business.
• Sweet spot of between £5m and £15m of equity per transaction
BUYOUT FUND • Committed funding for Buy and Build strategies
 Investment Approach
From 2003, the Growth Investments Team has:
➢ Invested £624m
➢ Achieved £1.75bn leverage
➢ Received £241m income
➢ Created a current investment portfolio of
291 companies with a value of £296m
➢ Co-invest with private sector investors
➢ We co-invest alongside range of
investor
➢ Invest on fully commercial terms
➢ SMEs – growth and export potential
➢ Gap investors – no displacement or
crowding out
➢ Public sector investment 50% or less
➢ Economic benefit to Scotland
➢ Significant operational presence in
Scotland
➢ Commercial returns
What the Financial Readiness Team does
Helps companies get ready to fund raise

Team of Financial Readiness specialists

Guide companies through complexities of various finance options
Identify most appropriate funding package
Work with companies to be funder ready
Support companies in securing funding
Provide access to relevant public sector support

In 2019-20
Assisted 393 companies with advice/guidance on raising finance.
Assisted 75 companies raise £105m of finance.
Key messages when seeking funding
Establish your funding need and build proposition around that​
Think about target audience and their known or perceived requirements​

Your proposition must be viable

Think about the questions you will be asked​

• Why do you seek funding ?​
• What’s in it for the funder ?​
• When and how do they get their money back ?​
Changes to SE Grants

Our new funding model is simpler and more inclusive. It’s changing the way we support
businesses, and will help create jobs and promote a greener economy. The majority of our
new grants will be delivered as funding calls – these are a series of funding rounds that
open and close for fixed amounts of time. They’ll be focused on helping businesses with
specific projects or to achieve specific outcomes.

This means the following grant schemes are no longer accepting new applications.

Research and Development

Regional Selective Assistance
Environmental Aid
SMART:SCOTLAND will be re-opening for applications soon.
 New Funding Call now announced – Funding for Green Jobs
Our green jobs funding is being delivered as competitive funding calls, which are rounds of funding that open
and close periodically for fixed amounts of time and from which the best projects will be chosen for support. The
green jobs calls aim to support businesses to create and maintain jobs that improve the environment, and to
support projects that align to the Scottish Government net zero policies. By ‘net zero’, we mean the Scottish
Government’s commitment to achieving net zero carbon and greenhouse gas emissions by 2045.

The first call is aimed at supporting businesses to:

•Create green jobs (these are new jobs that relate directly to the transition to net zero) or facilitate the transition
of a job from non-green to green
•Minimise environmental impacts by developing sustainable low carbon products or services
The first call will open for applications on Tuesday 18 May and close on Tuesday 15 June 2021. We’ll announce a
second call later in the year.
SE will be running webinars before 18 May which will give more information about the call and offer an
opportunity for you to ask questions.

To sign up for more info please visit -

https://www.scottish-enterprise.com/support-for-businesses/funding-and-grants/business-grants/green-jobs
Thank You Email - gary.torbett@scotent.co.uk
Equity Funding
Ask ICAS: Funding Business Recovery and Expansion

Martin McLaren, Investment Director

Maven Capital Partners UK LLP
 MAVEN TODAY
EQUITY FUNDING

• Network of 10 regional offices across the UK providing nationwide coverage

• Growing team of dedicated private equity, debt and commercial property

professionals

• £527 million total committed assets under management

• Active investor into a wide range of SMEs and property development opportunities

• Portfolio of c.200+ investments

• Investing in Scotland via

• Venture Capital Trusts (state aid) £1-5m
• Maven Investor Partners (HNWIs / family offices) £2-6m
• Maven UK Regional Buyout Fund £5-15m

• Growth & Development Capital, Replacement Capital, Buyouts, Acquisitions

 WHY EQUITY?
EQUITY FUNDING

More than just money

• Local people, local relationships, local teams

• Alignment of interests, management teams incentivised as equity holders

• Support the company’s management team taking a board position

• Experienced in supporting businesses through different phases of growth

• Ability to invest in subsequent funding rounds from committed capital

• Access to an investor’s knowledge, contacts and expertise

• Have advisory / non-executive director networks throughout UK

• Longer term capital

 FUNDING BUSINESS RECOVERY & EXPANSION
EQUITY FUNDING

• SMEs are the backbone of the Scottish economy, employing around 60% of the Scottish
workforce

• The pandemic has presented a great challenge for businesses across all sizes and
market sectors

• Many of these firms are now looking to recover, rebuild and grow

• Now more than ever, it is crucial that growth SMEs are connected with the capital and
support they need

• Equity funding has an even more important role to play, partnering with entrepreneurs to
achieve their growth potential

• Different types of equity funding – Angels, Growth & Development Capital (EIS/VCT),
Replacement Capital, Buyouts, Acquisitions

• Dry powder (unspent equity funds to be invested) will be key in lessening the economic
impact of Covid-19
THANK YOU
For more information visit:
mavencp.com
Ask ICAS
Webinar Series
Q&A
Further information and guidance
• ICAS website icas.com/professional-resources

• CA Connect on icas.com/caconnect

• Technical Helpdesk (Contact us on icas.com)

• Follow on Twitter @ICASaccounting

and LinkedIn ICAS - The Professional Body of CAs
ICAS Webinars – What's coming up
Ask ICAS
15 Apr ICAS/CIOT webinar: Building a better tax system
22 Apr Spring Tax Update: Personal taxes
29 Apr Supporting business through redundancies

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28 Apr Glasgow Area Network: CAs in Sport

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