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Press Release 15th January 2008
NEW PARTNERSHIP INCREASES THE OPTIONS IF YOU'RE LOOKING TO RAISE FUNDS
BFX Capital Finance To Fill The Funding Gap |
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A new venture is being launched on 3rd February 2008 to help companies and individuals looking to raise funds who face a long-standing problem . raising finance when the loan sought is too big to fund via an overdraft but too small to interest traditional venture capitalists.
BFX Capital Finance provides short and medium term funding solutions for businesses looking to raise £25,001 - £5 million but unable to do so through traditional channels. Its focus is around short-term (3 months to 364 days) mezzanine funding, enabling businesses or professional practices to invest in growth and development.
BFX Capital Finance already works with lenders and providers of funding to assist companies who may not be able to extend their borrowing from regular sources any further, or where there may be a need for some restructuring before existing providers will feel comfortable lending more.
It is unusual in taking a broad view on the security available to secure funding. As well as property and plant and machinery, consideration is given to secure against work in progress or order books, intellectual property, book debt or personal guarantees.
A joint venture between funding and strategy advisors Cartmill Associatesand M&A specialists Eagling Consultants, the launch follows on the back of a highly successful trial period, during which a series of deals have been completed. These ranged from an advance of £98,000 to a medium sized Property Holding Group, which was secured on Company Assetts , to a 6 month bridging facility of £679,000 secured on UK & European Property.
Each application will initially be evaluated by the senior Umderwriter , who' said: "BFX Capital Finance is aimed at a wide selection of businesses, ranging from manufacturers through to professional firms. By taking into account a far broader range of security, which traditional funders cannot always consider, we believe we can assist many companies who's growth is currently held back by lack of access to funds."
"Far from competing, we are looking to complement traditional banking and financial sources by supplementing their existing arrangements or providing total solutions for the client's funding requirements. Taking this broader view on the security available often allows the existing funder and client to retain current relationships for the future."
Notes To Editors:
1) For more information, or for pictures please contact Charles Farret on 08712 10 97 20 |
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Business Banking Online to Surpass Bank Branches
23rd January 2008
Online banking by small businesses will surpass banking in branches in five years time, according to a survey by BFX Corporate (Corporate Division of The Business Finance Exchange), the UK's leading financial intermediary for small businesses.
In a recent poll of small businesses1 already using the internet, 65% said that in five years time they expect to find most of their financial services and funding solutions for their businesses using the internet. Just over 1 in 3 (34%) said they still expected to be using their bank branch in the next five years.
The results also revealed that small businesses had limited access to alternative channels for financial services five years ago. Over two thirds (67%) of small businesses had to use their bank branch and the internet was used by only a paltry 5%. Since that time the playing field has levelled. Currently small businesses are using both channels at about the same level, with 49% using their bank branch, and 45% using the internet.
Nick Eagling of BFX Middle East & World Markets said: "The small businesses surveyed are currently using the internet nine times more than they were five years ago, and at the same time their usage of the bank branch network has dropped by a third. This trend indicates that in five years time small businesses usage of the internet could surpass bank branch activity for the first time."
BFX Corporate's research illustrates that banks will have to respond to the change in demand from small businesses to treat the online channel as a primary means of servicing the needs of small businesses as well as driving new customer acquisition.
Mr Eagling, comments: "What we're seeing in action here is a new generation of web-savvy entrepreneurs and small business owners choosing to find financial services for their business online the same way they have found personal financial services."
The research also revealed that some small business customers are more loyal to their branches than others. Royal Bank of Scotland (RBS) small business customers use of the internet is currently the highest (56%), rising to a massive 72% in the next five years. Whilst around 50% of RBS customers currently use their branch only 22% still plan to do so in the next five years. Lloyds small business customers also exhibit this diminishing reliance on their branches with 44% fewer expecting to use their branch in five years.
Conversely, over 56% of NatWest customers have indicated that they will still use their bank branch in five years time. This is over one-third more than any of the other banks surveyed in terms of loyalty to the bank branch.
Barclays Bank customers appear most optimistic about moving to the internet, with almost three quarters (73%) expecting to find finance online in the next five years, a massive increase from 41% today.
Mr Eagling concludes: "The research reveals that small businesses are increasingly adopting the internet and the convenience that it affords them. Few banks currently offer their customers a quality online experience. Those who continue to ignore this growing segment of small business customers will lose market share. |
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