Focus On: Funds Available for Property Purchasing Assistance
Published: February 2007
(Left to right) Clive Downward, Investment Director with Managing Director of Labfacility Martin Riddett.
Clive Downward (left) with Martin Riddett.
In addition to providing help with working capital requirements, MBO funding and other solutions to business funding gaps, SYIF can provide vital funding assistance for property purchase.
This can range from contingency funding to cover additional costs incurred when moving into either rented or purchased premises or working in conjunction with existing lenders to provide funding for the initial purchase.
Here are some examples:
Previous businesses which have benefited from SYIF’s property funding include Sheffield company Dale Office Interiors which secured an £80,000 loan to cover additional costs during a company expansion programme.
The funding package assisted Dale Office Interiors with its working capital requirements during a period of expansion which involved the purchase of their factory out of a lease agreement and the refurbishment of showroom space.
Rotherham company, Labfacility Ltd, used a £125,000 SYIF property loan to cover a funding gap which facilitated the company’s move to new premises in Dinnington.
Specialising in the manufacture of temperature sensors, thermocouple connectors and precision electronic thermometers, Labfacility had most of the funding in place for the move, which was completed by SYIF.
The funding came as part of a £445,000 package which consisted of £365,000 purchase price of the property plus £80,000 moving expenses.
“Without the assistance of SYIF, Labfacility would have found it tremendously difficult to have achieved the funding required for the purchase in the time frame required and we are eternally grateful for their help.” Managing Director of Labfacility, Martin Riddett.
In Doncaster, Northern Precision Ltd, which specialises in sheet metal fastenings, benefited from SYIF’s property funding with a £100,000 loan to refurbish new premises in Armthorpe.
The funding package enabled Northern Precision to create workable space in a leasehold property, partitioning part of the space into offices and purchasing racking and storage solutions.
“The support we have received from South Yorkshire Investment Fund has proved invaluable in helping us realise our ambitions of having a working environment that is the envy of the industry.” Managing Director of Northern Precision, Tony Mortlock
The businesses secured the funding packages because they were able to demonstrate that they could service their existing loans plus the new finance taken on in relation to the properties.
Clive Downward, Investment Director of SYIF’s small business fund, added: “We were only too happy to help these businesses – and we want to help even more companies across South Yorkshire.”
If you believe South Yorkshire Investment Fund may be able to help your business with property purchase assistance, please call our enquiry line on 01709 386 377
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About South Yorkshire Investment Fund
South Yorkshire Investment Fund provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.
South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.
Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.
For further details please contact Suzanne Tinkler, on 0845 649 0000.
South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).