Support package to help firms grow

OLDHAM companies seeking financial support and investment up to £2 million will be keen to learn more about The North-West Fund for Development Capital, managed by YFM Equity Partners.

The Manchester-based finance specialist has launched a new finance product, Mezz, to help growing businesses.

YFM Equity Partners believe Mezz is especially suitable for businesses that need more finance than their bank will provide to grow their business but do not want to raise traditional equity finance. This product was designed to meet the particular needs of North-West businesses after extensive consultation with local business advisors and chief executive officers of small businesses throughout the region.

The £45 million North-West Fund for Development Capital is one of six specialist funds that make up The North-West Fund, a £185 million investment vehicle available for small to medium-sized based in, or relocating to, the North West of England.

This funding comes from the European Regional Development Fund and the European Investment Bank.

The new Mezz product fills a gap in the market for a finance solution that is transparent and easily understandable — a loan with a small equity option. The Mezz product will suit businesses looking to finance their expansion plans, raise money for capital expenditure, develop new markets, recruit staff or fund everyday cash flow needs.

Joseph Bergin, head of YFM Equity Partners for the North-West, says: “We believe that the new Mezz product can meet the cash needs of business owners.

“We understand how frustrating it is for businesses in these challenging economic times who are struggling to secure finance.

“Our product gives them the benefits of an injection of new funding without them having to give up a large shareholding.”

Mr Bergin believes that YFM has the “right product at the right time” to help the North-West’s hard-working businesses grow. “We have been doing this for almost 30 years and have a portfolio of more than 200 companies throughout the UK.”

Key features of MEZZ:

::Companies must be more than five years old with annual profits greater than £250,000, based in the North-West.

::Minimum investment is £250,000 and maximum is £2 million;

::Investment will be in the form of a loan note with an option to acquire up to 10 per cent of the equity;

::The loan has a fixed interest rate and a repayment profile of up to seven years.