Blended Finance – The Perfect Recipe

Blue Sky Corporate Finance, explains why “Blended Finance” is becoming more and more attractive to small businesses in the region.

Historically businesses would look to their High Street banks to obtain all the finance they required to fund working capital and investment. However, since the credit crunch the banks have been less able to provide businesses with their full funding requirements. This has caused businesses to seek additional finance elsewhere, and it is not uncommon for a transaction to be funded by two/three or more providers. These may comprise of asset based lenders, the likes of invoice discounting, local funds, peer-to-peer lenders and other specialist funds.

These alternative lenders to bank borrowing have grown rapidly in recent years and now play a significant part in the list of funding ingredients. Not all of these new products are suited to all businesses and it is important that business owners talk to an adviser who knows the possible ingredients and which ones blend together best.

Paul Heaven, Managing Director, Blue Sky Corporate Finance explains: “Funding is as tough as it’s ever been for small businesses. Increasingly we are finding the solution has to be a blend – a combination of solutions. For example, we recently completed a deal for a client where we secured money from three different providers.”

Blue Sky Corporate Finance, offers un-biased advice and guidance on these alternative blends of financing. Blue Sky prepare the mixture of funding solutions most suited to a business requirements, whisk until the mixture is just the way they need it to be and cook until they have the finished product. For the topping, add a few drops and a good sprinkling of alternative finance. Hey presto, the perfect recipe for Blended Finance.

From a business’s perspective, the ability to acquire blended finance reduces the demands a single provider can often enforce upon them, thus avoiding the “eggs in one basket” scenario.

Veejay Lingiah, MD, Artbrand Publishing Ltd said “We knew that we needed finance for our rapid growth but when we entered into this process, I assumed that would come from one source. Blue Sky Corporate Finance provided invaluable help and advice, introduced us to the various finance providers, assisted us through the fund raising process, led the negotiation of the investment terms and supported us all the way.”