The document discusses financing business growth through various options like bank loans, equipment leasing, and personal funds. It emphasizes the importance of planning, having accurate financial projections, and only borrowing what the business can realistically repay. While the current market conditions present challenges, opportunities also exist for businesses that do their homework and work with a trusted advisor who can assemble the right financing package. Key information like business plans, financial statements, and personal details will be required from all funding sources.

1. Financing Business Growth
Presenter
Mark Johnson

3. Bamboo Tree
Fastest growing woody plant in the world
Grows very little until year 4
In the 5th year, the tree can grow 80 feet
BUT they don’t grow up every year – but
continue growing under ground.
Build your foundations!!

4. Cash flow
• Most small businesses that fail within the first 3 years do so
because of lack of cash-flow, not because of a bad product.
• Up to 50% of businesses fail in the first 12 months & 70% within 5
years
• Know your numbers ‘Dragons Den’ type questions, T/O, P&L, GP,
net profit, margins
• Key is; planning, planning & planning!

5. Key points for today
• Bank funds, equipment leasing & EFG loans (replaced the old
DTI) and other local grants or just use your own money
• Information required from all lenders
• Recession has severely impacted on niche sectors like Soft play
but with good housekeeping, funding is out there
• Market conditions – UK recovery stuttering, rates are set to be
on hold for the foreseeable future.
• But this creates opportunities…

6. Information Required
• Business plan; directors background & CV, SWOT
analysis, location details, (serviceability security ability)
• Financial projections; be realistic with accurate
assumptions, ask your accountant for help
• Personal net worth statements for all directors - none
home owners will not get finance without a suitable
guarantor
• Common sense underwriting

7. Information Required
• Personal bank statements for all directors - not including
any unpaid items or missed mortgage repayments
• Investment, clarity ref bank and personal, (often lenders look
for match funding)
• Clean credit search
• Other commitments e.g. cards, HP, should be limited
• NO CCJ’s or x bankrupt

8. Bank V’s Leasing
• Bank normally take security on your property
• Bank normally used for working cap and refurbishment work
• Leasing is secured on the asset only with a personal
guarantee
• Leasing for equipment only
• Repayment periods; Bank loans 5-7 yrs, equipment leasing
over 3 yrs normal for a new business up to 5 for established
• Lenders like to see match funding i.e 100k loan with either
100k cash contribution / 100k equity in the back ground

9. Types of equipment one can lease
QURIKY KIT FINANCE!
• The Play Structure
• Catering Equipment
• Furniture
• EPOS
• CCTV
• Air con

10. A good advisor
• Able to provide a the mix of bank and equipment finance
• Package your file professionally to both bank and leasing
houses
• Have access to a number of funding institutes
• A good business may have a healthy mix of bank funds,
equipment leasing & personal cash, with head room on each.

11. Understand the risks
• Don’t over borrow
• Charges on property or DG / PG
• What is a personal guarantee / can I have a third party
guarantee
• You will be pursued
• Do your homework

12. Summary
• Common-sense underwriting
• Do not over borrow
• Be committed from the start & once open that's just the
start!
• Clearly the market is still challenged but this also creates
opportunities
• Recent case studies; The play factory / Yellow Sub, Play
arena, The Zone, Treasure chest
• Look up enterprise funding magazine
www.ukbusinessgrants.org for grants
• Find a trusted advisor

13. Presenter
Mark Johnson
Johnson Reed
www.johnsonreed.co.uk/softplay