Deals are still being done in East Lancashire (From Lancashire Telegraph)
When news happens, text LT and your photos and videos to 80360. Or contact us by email or phone.
Deals are still being done in East Lancashire
4:14pm Monday 2nd March 2009
Despite the recession, the corporate market in East Lancashire is still active.
Deals are still being done, and funds are still available, if you know where to look!
Banks are certainly more cautious of the businesses they are supporting with funding, but this is no bad thing. Those businesses with a good strategy for growth, and a bright future, are still being given the funding they need.
There are some very good companies out there that are being helped in their working capital requirements and expansion or acquisition plans, which is heartening to see.
At Pierce we are advising businesses to work with bank funding and to use this as the cornerstone of your financial plans.
Working capital requirements can then be supported by loans under the Enterprise Finance Guarantee – bank loans with 75 per cent of the funds guaranteed by the Government. This was a policy announced earlier in the year with great fanfare.
HMRC is also doing its bit to support businesses. In his pre budget speech in November, the Chancellor announced it is now possible for businesses to defer payments such as VAT, PAYE, NIC and Corporation Tax for anything up to 12 months as long as the proper notification is made first.
This is a notable softening of the Revenue’s attitude in recognition of the difficult trading circumstances, particularly deferral of PAYE which has never been available until now. Previously, late payment of any tax liabilities may have resulted in a penalty. Interest still applies other than on deferred VAT payments.
These funding streams can themselves be supplemented as necessary with grants and investment from venture capital funds. Locally there are a number of excellent funds with which Pierce works including Enterprise Ventures, their Coalfields and Rosebud Funds, and Yorkshire Fund Managers.
Don’t forget grant funding. Check at the Business Development department at your local council to see if there are any business grants available – larger grants to help with investment in plant & equipment or research and development are accessible from the NWDA.
A good case has to be made to secure these grants so professional help is advisable.
The recession has made securing funding more difficult, but certainly not impossible, and a good advisor should always be able to help.
