: Cyllid Cymru Finance Wales - FINANCE WALES: BUILDING BUSINESSES
Finance Wales has been established because research among small and medium-sized enterprises showed that they regarded the cost and availability of financial backing as the biggest barrier to growth.
The Welsh Assembly Government has worked hand in hand with the WDA to set up Finance Wales which has formed strong relationships with a range of high profile partners, including HSBC, Barclays and The Royal Bank Of Scotland.
Using a comprehensive range of financial products and management support services, Finance Wales addresses the specific needs of entrepreneurs, start-up and growth businesses. Loans of between pounds 1,000 and pounds 100,000 operate in a similar way to a bank loan and are typically used to finance investment in capital terms. They cover a variety of business requirements, from start-up to development proposals.
Community loans range from pounds 5,000 to pounds 50,000 and assist projects or schemes within the social economy that are financially viable and will be beneficial to the community. The enterprise must be able to demonstrate that other funding options have been explored and will be in place.
Renewable energy loans range from pounds 5,000 to pounds 150,000 and are available to businesses with viable new energy plans to help fund the purchase of necessary equipment. Finance Wales has set up this assistance to encourage the use of renewable energy as an alternative to a non-renewable source of energy, i.e. fossil fuels, and as a means of cutting pollution.
Equity investments range from pounds 10,000 to pounds 750,000 and are aimed at Limited Companies that may have exhausted alternative debt or private resources but still require more funding. Mezzanine investments range from pounds 10,000 to pounds 175,000. This type of funding operates as a traditional loan, with an option to exercise an equity shareholding when the term of the loan comes to an end. Mezzanine funding will focus on assisting technology-based firms and companies who are, for a variety of reasons, going through ownership change.
Xenos, The Wales Business Angel Network - matches and introduces potential investors on its register to SMEs seeking investment. Investors are often able to give businesses the benefit of their commercial expertise to ensure the injection of capital really works.
In itself, money may not be the complete answer to business development needs and how that money is used is the key to success. …