Boost roundtable with Rosebud: securing business growth finance

Gaining external funding can be a key part of fuelling a business’s growth and helping its leaders fulfil their ambitions. There is a wide range of publicly-backed and private finance providers as well as support options to help Lancashire companies secure growth funding.

As part of Business Finance Week, Boost partnered with Rosebud Business Finance to gather businesses, lenders and support providers from across Lancashire for a special roundtable chaired by Boost programme manager Andrew Leeming.

The discussion delved into why and how businesses can secure finance as well as the key things they should be aware of.

What are the typical circumstances a Lancashire business may consider external finance?

Jonathan Nelson, investment manager, River Capital

“The biggest driver we see is growth and it’s a question of how we can support that journey. River Capital is centred around putting money into the business ecosystem in a way that benefits the business, the people involved, and the wider community.”

Sam Forshaw, managing director, Lendedge

“People generally come to us because the banks have already said no. Usually, they want to grow but don’t have the balance sheet or assets the high street wants to secure a loan. My role is to give a reality check: is this credible or is it a dream world? That is always a difficult conversation to have!”

Laura Leyland, managing director, Fresh Perspective Resourcing

“When COVID hit, we needed money and took our first loan to support the business. We then subsequently took on more funding through the Northern Powerhouse Investment Fund II to fuel our growth. We wouldn’t have been able to grow in the way we have without that support - someone once told me finance is just a mortgage for your business, and it really is. I just wish I’d known about it sooner.”

Daniel Armitage, founder and chief executive, Neuro Sparks

“We also wanted funding to grow. We were doing well, but we’re a very people-heavy business with 20 staff around the country. Rosebud’s funding allowed us to invest in our CRM, marketing, and new staff to expand into workplace training – it was essentially to help us get the right people in and giving them the tools to do the job to the best of their ability so that growth and profit could follow.”

Godwin Anthony, founder, KTG Social Care

“We were using invoice factoring and other forms of finance and then I met with Boost, which gave us a trusted source of information about the best finance providers to support our long-term ambitions. The loan we secured allowed us to grow and also save money, because it was cheaper than other forms of finance, and the support we received from Boost helped us through that complicated initial funding process.”

What are the advantages and disadvantages of external funding?

Rebecca and Andrew McGregor (Kidz Party Bus and Pamper Bus)

“We were introduced to external finance through Boost who put us in touch with River Capital. We really benefitted from the personal contact. We weren’t just lost in a system, they really looked into us and our growth ambitions. It wasn’t an easy process, but having an external company believe in us gave us even more confidence about our business. We were so grateful that Boost guided us to River Capital, because otherwise we wouldn’t have known about them.”

Joe O’Connor, investment executive, FW Capital

“Finance is a partnership between the business and the investor. It’s got to work because when we invest, we will be working with a business for the next 3-5 years. Some lenders will give you £100,000 tomorrow at 25% interest but that’s not sustainable, whereas we might take 6-8 weeks but our rates are more affordable and we try to be flexible with our businesses. A robust process with a real relationship is a massive advantage.”

Dave Rushton, regional lead – growth lending, Allica Bank

“It can look like a great idea at the time, but funding also carries risks. Debt increases the cost in a business and having good people around you is really important - they can help you when issues arise.”

Laura Leyland

“Bootstrapping is sometimes seen as a badge of honour, but funding helps you grow faster and make more impact. The continued repayments can be tough if you have a quiet month but taking on finance gives you faith in yourself and your own business – having someone invest in you is a stamp of approval in what you’re doing.

“One of the things we found when dealing with Mark was his empathy and compassion. By its nature, finance can be quite transactional, but seeking out business support meant we had someone to guide us through the process which really made the difference.

Mark Gibbons, funding and partnerships manager, Rosebud

“Gaining external finance can be a really effective way to facilitate and accelerate growth, but it’s vital to dedicate the time to engaging with the process. Gaining support can really help with that and ensure businesses are fully prepared for funding.

“The reason the businesses who are here today have found external finance so beneficial is because they have engaged with the support which is available to them from Boost, Rosebud and other funded services in Lancashire.”

Godwin Anthony

“Before we gained finance, Boost did a full audit of our business to see if funding was right for us – that kind of helped us to make the decision. It validated our business and what we were doing and the best part is the support was fully funded.”

Stephen Greenwood, partner, Farleys Solicitors

“The advantage is that in addition to growth finance, you’re buying a partner to give you a secondary level of expertise, that can be important when your business grows or enters a new market. The disadvantage is that you are tied into payment obligations which remain in place even when your circumstances change.”

Tips for businesses to make themselves attractive to funders

Martin Emmott, fund manager, Rosebud

“Your business plan should be your bible. Not just something you put on a shelf, but a living document you refresh continually. It shows your thought process as much as the numbers. If you can’t articulate your business growth journey and expectations, how can a lender back you?”

Rebecca and Andrew McGregor

“We were completely honest and open with River Capital. We showed our track record and our passion for working with children. I think having that drive and belief in making it work was what made us attractive.”

Jonathan Nelson

“Passion can be as powerful as numbers. I’ve left meetings wanting to help purely because of someone’s energy and belief. We have a robust process for lending but that passion helps us build real relationships with businesses which breeds trust. It allows us to work together and be flexible if, for example, they have a difficult month - rather than the businesses feeling like they have to bury their heads in the sand.”

Laura Leyland

“A key thing for me was I felt I was on top of my numbers and could provide documents quickly when they were needed. Passion and transparency were important but so was showing consistent growth. Demonstrating we had an innovative business model compared to others in our sector also gave us an edge.”

Sam Forshaw

“Your personal credit file is crucial and a lot of people don’t appreciate that. At the end of the day, finance providers are lending to you, not your business. If your own finances are chaotic, underwriters assume the business’s will be too and many won’t touch you. It’s also important not to rush into the quickest option. The best lenders aren’t always the fastest, but they’ll give you a stronger foundation for growth.”

Dave Rushton

“Speak to people and lean on your network - that includes your advisers. For example, your accountant that you used when you first started out might not be the best expert for your current business. Planning ahead is also crucial to understanding how today’s borrowing will affect you in five years’ time because the wrong security could block you from future funding.”

Mark Gibbons

“For me it’s about preparation for funding and key to that is engaging in conversations early, so you know what providers look for. I like to think that when I go and see a business, there’s a good chance I can help them to gain funding - it’s important for them to put their best foot forward while being prepared for questions that might be thrown at them. Persistence is also important - most business owners hear ‘no’ more than once, so don’t be automatically dissuaded.”

Daniel Armitage

“Ring-fence time to speak with your advisors. I meet mine every Friday for 15 minutes and it’s the best thing I’ve done for my business – having someone impartial who will listen to you is really powerful.”

You can find out more about Rosebud here or understand the finance support available to Lancashire businesses through Boost on Boost's Support Directory.