Lambert Chapman LLP's Lisa Potter Looks at the Banking on Essex Scheme

I recently attended a Braintree Chamber of Trade meeting where one of the speakers was Ian Hatton from Essex CC.   He was there to inform us about the ‘Banking on Essex’ scheme which is supported by Santander Bank.   I am normally pessimistic about the promises made regarding the availability of loans for businesses but found that I was pleasantly surprised at not only the offering but their genuine enthusiasm to want to support SME’s in the local area.     Their focus is to ensure that the public and private sectors work together during these trying economic times to keep people employed and retain the skills in Essex whilst maintaining the entrepreneurial spirit in the county.

 The criteria that has to be satisfied prior to application is as follows:

• The business has to be based in Essex  (Southend and Thurrock are currently excluded)
• The business has to have traded for at least 12 months.   (This minimises the risk on lending to start ups)
• The business has to have less than £25m turnover and employ less than 250 staff

 The lending product being offered is:

• A Loan up to £100k – secured or unsecured
• Repayment period of no more than 5 years

 Information required from the business:

•  6 months of the latest bank statements
• Up to date management accounts.    Management accounts are a very important tool that helps businesses to review their current performance which is then used to plan for the future.   As a result it is crucial that this information is timely, accurate and meaningful.  We have significant experience in the preparation of management accounts including the majority of computerised systems such as sage and quickbooks.    We are there to help clients get the most out of their system and to ensure that the information can be obtained easily.
• A business plan for the future of the business.    A business plan uses the information collated in the management accounts to predict the future position not only in financial terms but in strategic terms as well.   It is very important that any business plan is useful not only in obtaining funding but as a driver for the business in the future.  If you don’t know where you are heading you simply won’t get there.     All the accounts Partners at Lambert Chapman have the necessary skills to prepare business plans that help with obtaining finance but more importantly help you to know where you are going. 

 Questions that were asked during the meeting of Ian Hatton were:

1. Would we have to move our day to day banking to Santander?   Not necessarily it depends on the level of borrowing involved.
2. What interest rates would be charged on the borrowing?   Typically,  4% base rate for secured borrowing; 6% base rate for unsecured borrowing.
3. Do you do overdrafts?  Not at present but this is something that we are looking into.
4. If the application is refused does that mean that is it?   No, we will look at why the answer is no and try to help the business get a positive result wherever possible.   

 Further details can be found on the Banking on Essex website.   http://www.bankingonessex.com/

In order to find out more information about the preparation of a business plan and management accounts do not hesitate to contact either myself or your contact Partner.    

 

Date:1 December 2009

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