20
Mar
2018
Follow the Money - FinOvate Points Way to Funding International Business Expansion
You have the product, you’ve tested the market. The time is right to take your business to the next level. And when you want to explore the options for expanding internationally, it’s important to consider all feasible sources of funding and support.
FinOvate – a new solution offered by HFI Consulting International – aims to help companies identify funding paths that will allow expansion goals to be achieved.
HFI managing partner Hugh Fraser said that, in his experience, many businesses that have created game-changing technology can struggle to introduce it to new markets without external funding support.
He added: “It is taken as read that private equity houses and new commercial bank lending has become an empty stage in recent years and the hangover of investment losses and constraints on new bank lending will be a challenge and potential brake on the recovery.
“However, there are a number of specific sources we would encourage companies to consider, the first being Scottish Enterprise Scottish Investment Bank - which can provide up to GBP£10 million of equity funding on a matched basis. -
“On the debt side, the British Business Bank-managed Enterprise Finance Guarantee Scheme can provide up to GBP£1.2 million of loan financing, of which 75% is underwritten by the BBB.
“A third source of support is the UK Export Finance of the Department of Industry (DIT) which provides a range of credit facilities, credit insurance and bonds and guarantees facilities for exporters.”
In addition, GBP£180 million funding is available from the Oil and Gas Technology Centre for technology development. Although this is focused on anchoring the UK oil and gas supply chain in the north east of Scotland this is inextricably linked to the internationalisation and export potential of these businesses and their technology.
Beyond UK and Scottish sources of funding, companies looking to collaborating with companies in Saudi Arabia can look to the Saudi Arabian Development Fund, the Saudi Arabian Human Development Fund and British Offset funding which specifically supports joint ventures in the kingdom..
Hugh added: “The key message is that ventures which may look too hard to progress from a financing point of view may move into the do-able spectrum if businesses are fully aware of the funding support which may be out there.”
If you would like to learn more about HFI’s FinOvate solution, please don’t hesitate to contact us.