@TheBusJourney #SMEJourney

The Business Journey

Event No.6

26 August 2014

@TheBusJourney #SMEJourney

Danny Bulloch

What to consider

before asking your Bank

for support

Introduction

Welcome

Help you to articulate and confirm how much finance you need and for

what purpose

Demonstrate a sound business operation

Demonstrate ability to repay lending

Help to mitigate risk for the your Business and the Bank

The right product mix for the right outcome

Next steps…………….

How much do I need to borrow ?

What is the purpose ?

What will it cost ?

How much can I put towards the proposal ?

How long do I need the finance for ?

What are the benefits of proposal ?

Demonstrating a sound business operation

Provide a Business Plan – be realistic

What does the business do – keep it simple

What’s the USP

Details of the Management Team including strengths and areas of

expertise or where further support required

What are the barriers ?

SWOT analysis

Financial Information

Repaying the funding requested

What are the borrowing costs ?

How profitable is the business – historic financial information

Current cash position – Creditors v’s Debtors – CASH IS KING

How profitable will the business become – financial projections

Are the projections sustainable – what if’s ?

Mitigating risk

What security is available

Fixed rate v’s variable rate

Enterprise Finance Guarantee

Security may be required. Product fees may apply. Over 18’s only

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS

ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Product Mix

Overdraft – working capital

Credit Card – working capital

Loan funding

Asset Finance

Invoice Discounting

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS

ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Security may be required. Product fees may apply. Over 18’s only

Funding Options to meet your needs

Access to additional finance to help you respond promptly to fluctuating conditions.

Business Overdrafts:

•Boost working capital

•Improve cash flow

•Cope with unforeseen expenses

Longer-term borrowing:

•A range of fixed or variable business

loans available to assist the financing of

assets, capital expenditure or projects

Enterprise Finance Guarantee Scheme

We are participants of this government back initiative to make funding available to companies with viable business proposals who can’t obtain conventional finance due to lack of security. Funding may be accessed via a loan, overdraft or invoice finance.

Security may be required. Product fees may apply. Over 18’s only

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS

ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Solutions to control expenditure, manage working

capital requirements and improve cash flow

Benefit Business Credit Card Business Debit Card

Gives you

flexibility

Spread the cost of purchases with up

to 45 days interest-free credit

Access your business current account to

pay for goods and services

Helping you keep

on track

Use ‘Cards OnLine’ to view detailed,

itemised statements

View your current account balance online

with Digital Banking

Keeping you in

control

Set individual card limits for

employees

Assurance of when payments are to leave

your account so you are aware of your

available funds

Exclusive

discounts to RBS

Group customers

On a range of goods and services that could help save your business money

Stay safe online Get an extra layer of security for online by registering for RBS Secure

Access to

emergency cash

Withdraw up to £300 if your card is lost or

stolen

Capitalise on opportunities with asset financeAsset finance from Lombard could help you to:

•Upgrade business equipment:

From machinery, technology or

business equipment to furnishings

•Fund equipment from as little

value as £5,000

•Release working capital

•Improve profitability

•Reduce the risk associated with

ownership

•Manage cash flow

Consistently award winning service:

Voted ‘Best Leasing & Asset Finance Provider’ by Business Moneyfacts: 2009, 2010, 2011.

Lombard North Central PLC. Registered Office: 3 Princess Way, Redhill, Surrey RH1 1NP, Registered in England No. 337004.

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS

ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

RBS Invoice Finance: Benefits for your businessThe real value of many businesses is often tied up in stock and unpaid invoices. Invoice Finance

can help you in four easy steps:

•1. Approval •Assess debtors’ credit worthiness

•Manages and approves credit limits

•Monitors risk of debtors

•Enables effective credit decisions

•Minimises bad debts

•2. Funding •Access to initial lump sum advances

against existing debtor book

•Invest in growth (acquisition/organic)

•Improves customer and supplier

negotiation

•Advance up to 85% of the value of invoices

within 24 hours of receipt and the remaining

amount, will be paid, less our charges, once

your customer has settled the invoice in full

•3. Credit control •Getting paid quickly increases your cash

flow and gives you flexibility

•We manage credit control for domestic

and export debt

•Cost savings from outsourcing conditions

•Time saving for management team to focus

on achieving their ambitions

•4. Protection •Gives greater confidence in trading

•Protects profitability and cash flow

RBS Invoice Finance Limited, registered in England No. 6222. Registered office: Smith House, Elmwood Avenue, Feltham, Middlesex TW13 7QD

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS

ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Further information

www.hmrc.gov.uk tax information and free workshops

http://www.hmrc.gov.uk/startingup/index.htm - guidance on tax and NI when

starting a business

www.patent.gov.uk patent office

www.bl.uk British Library

www.britishchamber.org find your local chamber of commerce

www.fsb.org.uk – the UKs leading business organisation

http://www.j4b.co.uk/ various grant information available in UK and Ireland

www.meetup.com sometimes free networking events in your local area

http://www.e-synergy.com/site/Home.aspx early stage seed capital for IT

companies

Ask your local council whether they have services to support business

http://www.natwest.com/business.ashx free material and guides

http://www.natwest.com/business/business-school.ashx - online business school

http://www.mentorsme.co.uk/ find yourself a mentor

http://www.eventbrite.co.uk/mytickets/ organise your event – no cost if tickets are

free

www.smarta.com – business information portal, practical guides & advice

Thank you for your time

Q & A’s

@TheBusJourney #SMEJourney

Questions for Danny?