Business Loans Unsecured by cmo50070

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									Tony Goulbourn
  Chief Executive
            Objectives
• Inform about SYIF

• Examine feedback from you

• How we shape the future
          Key Messages
• 469 investments totalling £50 million
• Momentum of investment continuing
• Additional £4 million injected by
  Yorkshire Forward
• £10 million to be invested up to end of
  2008
• Contingency Fund from January 2009
Business Loans £15k - £150k

      Andy Chaffer
     SBF Business Director
Business Loans £15k - £150k
• Core market remains funding the gap in
  projects for established businesses
• For early stage deals depends on
  certainty of forecasted income
• Investment amount reflects risk and we
  look to package deals with other
  funders
Business Loans £15k - £150k
• Up to £1.3 million available to invest by
  end of 2008 which provides headroom

• Additional money is available if needed
     Investments by year
      4
     3.5
      3
     2.5
£M




      2
     1.5
      1
     0.5
      0
           2003   2004      2005     2006       2007   2008
                         Ye ar e nde d M arch

                                   SBF
Business Loans Interest Rates
• Headline rate remains 12% but retained
  rebate concept
• Rates are fixed for term of the loan
• Interest Rate Rebate available dependent
  on risk subject to meeting on-going
  conditions (Includes Management Accounts, QPR’s,
  Dividend Covenants etc)
Business Loans Interest Rates
 Business Stage    Rebate     Net Rate


  Established &      4%         8%
    Profitable
   Established       2%         10%

   Early Stage    No rebate     12%
               Summary
• Ample money to lend to established and
  early stage businesses

• If you have clients with funding gaps
  please give me a call……………..
Equity Linked Packages


   Mary Broadhead
    Investment Director
  Equity Linked Packages
• Equity linked packages from £100k to
  £2.5 million
• All stages considered
• Returns linked to perceived risks
• Syndication with other investors possible
  Equity Linked Packages
• Performance to date
     • 82 investments in 44 companies
     • £22.2 million invested to June 2008
     • Some exits achieved already, more
       in the pipeline
  Equity Linked Packages
• Up to £4.7 million available to invest by
  end of 2008

• Additional money is available if needed
     Investments by year
     7

     6

     5

     4
£M
     3

     2

     1

     0
         2003   2004   2005         2006   2007   2008
                       Year ended March

                              Cap/Dev
      Types of investments
• Mezzanine loans for established, profitable
  businesses (may include a small equity upside)
• Equity packages for earlier stage or riskier
  proposals (minority stakes only)
• Terms of investment are structured to fit
  each individual deal
  Seedcorn Fund


Jonathan Dixon
Deputy Chief Executive
Key Goals of Seedcorn Fund
• To enhance the SYIF product range
• To increase the level of investment in
  early stage knowledge based businesses
• To test the market, delivery mechanisms
  and financial instruments
        Seedcorn Fund
• Total investable value - £4.685m
• 2 portfolios:
    Proof of Concept
    Commercialisation
• Budgets for mentoring and management
  support
         Seedcorn Fund
• £2.5 million invested
• £2.1 million committed for investment by
  the end of the year
• Additional investments of £1.2 million
  anticipated before end of 2008 (funded
  from interim fund)
         Lessons Learnt
• Collaboration model can & does work
• Importance of milestone investments
• Importance of developing management
  capability
• IP is mobile and therefore significant for
  inward investment
  Microloans


Fiona Greaves
 Loans Manager
    A Consortium Approach
• SYIF – lead. Managing agent for the
  investor
• DonBAC: providing loan management for
  non-social enterprise
• Key Fund: for social enterprise
             Microloans
• Simple access & low bureaucracy for the
  client
• Intensive support process for the client
• Cost effective delivery for the Investor
  (BiG)
• Managed with a commercial focus
Amount of Loan                  Details              Business Location


    £15k - £50k        Sole traders, partnerships,   Doncaster (immediate
(exceptionally up to       limited companies          travel to work area)
      £100k)
    £1k - £15k         Unsecured. Loans in name        South Yorkshire
                         of owners of business
    £500 - £15k          BiG Business Loans.               Sheffield
                       Unsecured. Loans in name
                         of owners of business
                          & social enterprises
          Activity to date

• BiG - £96K in 22 businesses
• BiG – additional £31k approved
• Donbac - £23k in 3 businessses
      Tony Goulbourn
• Conclusions
• Feedback
• Shaping the Future
             Conclusions
• Proved the market
• Proved the business model
• The Fund will create a legacy fund of
  circa £19 million for South Yorkshire
            Feedback
• EKOS commissioned to undertake
  survey – August 2008

• Objective: To seek intermediaries
  views on SYIF's current operations
  and the proposed Regional Successor
  Fund.
Feedback - Satisfaction with SYIF

 • High satisfaction levels – 82% satisfied
   or very satisfied with overall performance

 • Strong endorsement of services
   (mentor/NED and pre-investment support)
Feedback - SYIF & the Finance Gap
• Finance gap greatest for new starts (89%) &
  for early stage businesses (76%)
• Exists even for established small businesses
  (62%) & for medium & larger businesses
  (37%)
• SYIF helps meet the gap through its products
  e.g 74% for small business fund
 Feedback - The Successor Fund
• Awareness is high (76%)
• Value as a regional resource recognised
  (96%)
• Should address areas of greatest market
  failure (early stage, new starts and
  technology based businesses)
• Two thirds say not sector prioritisation
      Shaping the future
• The Contingency Fund

• The Successor Fund
                    www.syif.com
                                       01709 386 377


     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 Finance Ltd (company registration No. 01925556) and Key Fund
                                                       Yorkshire Ltd (Tel 0114 242 8900).

								
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