Business finance remains tight, but region optimistic over future
Yorkshire and Humberside businesses continue to be affected by a finance gap, but are confident that conditions will improve over the coming year, according to an independent online survey.
The findings come in a report commissioned by South Yorkshire Investment Fund which gained the views of 104 intermediaries who work closely with businesses around the region.
Intermediaries, which include corporate finances, business support organisations, Business Link advisors, banks, accountants and solicitors, advise companies to help them develop and grow.
Around 93 per cent of intermediaries feel businesses continue to be affected by a finance gap, of which 14 per cent said it affects all or almost all of their clients.
Even though 88 per cent of intermediaries indicated that market conditions and accessing private finance have become more difficult over the past 12 months, they are more confident that accessing finance will improve, with 56 per cent believing it will be better in 12 months time and 78 per cent in two years time.
The independent research, performed by Sheffield based ekosgen, also highlighted SYIF’s existing market position and builds upon an equivalent study conducted last year.
It helped identify that the vast majority of intermediaries (81 per cent) feel that SYIF fills a gap in the market for access to finance, an increase on the 78 per cent from the 2008 survey.
When intermediaries were asked about the type of SYIF product that they had recommended to clients over the past 12 months, the small business loan was cited as the most frequent.
SYIF’s equity linked investment product is the second most popular, as it had been recommended by almost three quarters (72%) of respondents over the past 12 months
The research provides an important interim evidence base for informing SYIF’s current and future activities.
Seedcorn, loan and equity linked investments, ranging from £15,000 to £2.5m are available from SYIF, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
For more information about South Yorkshire Investment Fund, please visit www.syif.com or ring 01709 386377.
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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).