Chambernews Securing finance to grow your business By Ian Collins, Area Director for Bank of Scotland
Boutique hotel group The Edinburgh Collection has been enjoying an awardwinning year.
As fragile economic conditions continue to affect business across Scotland, it is perhaps understandable that there may be a lack of confidence among SMEs in the region about growing their business and securing finance to do so.
Channings, the four-star hotel near the west end, and the Holyrood apartHotel each received a 2012 Certificate of Excellence from TripAdvisor following consistently high feedback from travellers.
A key part of restoring business confidence is providing access to finance, which plays a crucial role for firms looking at their future needs. Investing is essential in order to capitalise on expansion opportunities and enable growth so Scotland’s companies must not be put off by perceived barriers which they believe may prevent them securing funding.
Ngaire Stanaway, General Manager of Channings, said: “TripAdvisor is widely recognised as a reliable and credible site by business and leisure travellers alike. To receive this award is a tremendous endorsement for the teams at both Channings and the Holyrood apartHotel and to the welcome and service we offer all our guests.“
One of the best places to start when looking to secure finance is with your business plan. It is important to spend some time creating a clear, strong plan with financial forecasts, clearly thought out for the next three to five years.You will also need to anticipate issues which may require additional finance going forward.
There were also successes at the Scottish Hotel Awards. Linda Murphy, Head Housekeeper at Channings, received a Superstar Housekeeping Gold Medal and Ngaire Stanaway, General Manager, a Hospitality Gold Medal. Five-star luxury townhouse hotel, The Howard, received a Friendly Service Award.
This is an important first step that will give both you and your bank a clear view of which options will meet your business needs in the short, medium and long-term. Beyond a good business plan, the bank will also want to see that your previous accounts are in order and fully illustrate the past performance of your business.You will also need to be able to demonstrate what the funding will be used for and a clear outline of how you will pay the money back, and over how long. Transparency is a vital part of this process. A good finance provider will then be able to offer guidance on which funding solutions will work best for your business and allow you to achieve your ambitions. At Bank of Scotland, we can offer a range of products to help you. Term loans are a structured borrowing method, based on lending against a security - such as your company’s assets or another form of guarantee. Overdraft facilities
4
A taste of success
BC October/November 2012
BC issue 19.indd 4
Ian Collins
can also provide a boost to your working capital if you are embarking on a project that may impact your cash flow. If you are looking to purchase new business premises, a commercial mortgage can also prove suitable. In addition to these, there are other funding options available which may be suited to small businesses. The Government-backed Enterprise Finance Guarantee (EFG) scheme, for example, is an ideal funding option for firms who have a viable business proposal, but lack the security to secure conventional funding. As part of Lloyds Banking Group, we continue to approve eight out of ten requests for loans and overdrafts and in the first quarter of 2012 we committed £3.2 billion of gross lending to UK SMEs. This means we are on track to meet our commitment of £12 billion for the full year.
* The Channings Schools Cookery Competition 2012, which this year had an Olympic theme, was won by 15-year old James Porteous of Balgreen. James recreated his dish, Podium Finish, with guest judge, radio Forth One presenter Grant Stott, and Channings Head chef Karen Higgins.
Channings Schools Cookery Competition 2012 winner James Porteous, 15, with Grant Stott, and Karen Higgins
To find out how Bank of Scotland can work with your business, please contact 01563 500 831 or visit www.bankofscotlandbusiness.co.uk
8/10/12 15:37:13