The Advantage Transition Bridge Fund is support provided under Finance for Business,
as part of the Solutions for Business Portfolio of publicly funded business support.
Loans of between £50,000 and £250,000 will be considered for SME businesses based
in the West Midlands who have a viable business plan but are unable to secure
finance to progress that plan from normal commercial sources.
Applicants must have approached their bank or alternative provider first.
Loans can be agreed for up to a 3 year period and will be priced at a commercial
rate of interest usually in a range of 6% to 10% above Barclays Base rate. Any
collateral within the company to secure the loan will be taken, the availability
of which will influence the interest rate charged. An arrangement fee and a monitoring
fee will be charged.
We are required to undertake due diligence to assess the viability of the applicant
business and as part of the process an independent accountant, or other appropriately
qualified professional, may be commissioned to complete a review of the business
plan on our behalf, at the applicant's expense. The cost of the due diligence
will vary depending on the level of the work required.
Qualification Criteria
Purpose: To assist viable businesses which are facing difficulty in raising finance from
normal sources, as a result of the restrictions currently apparent in the conventional
credit market.
Amount: Minimum £50,000, maximum £250,000.
Term: Flexible, over periods of up to three years. It is anticipated that the loans
will be satisfied by 30th June 2012.
Interest Rate: Variable, but will reflect the nature of the risk undertaken.
Fees: An arrangement fee and monitoring fees will be payable.
Security: A charge on the assets of the business, and/or a charge on any assets purchased
with the loan, will generally be taken.
Availability: Only in circumstances where conventional lending sources are unavailable or
are already fully committed. Loans may not be used to repay or reduce existing
borrowings.
Requirements:
- An open dialogue with bankers to the business.
- A viable business plan, which should include: three years profit, cash and balance sheet projections.
- In some circumstances a viability report prepared by an approved independent advisor at the expense of the borrower.
- The following types of business do not qualify:
- Retail
- Property Investment
- Speculative Building
- Agriculture
- Coal and Steel
- Production of Synthetic Fibres
For further information please call Paul Wheeler on 0121 200 8195 or visit the
website by clicking here
Advantage Transition Bridge Fund Limited
4th Floor
Newater House
11 Newhall Street
Birmingham
B3 3NY
