What are Private Investors?

Private Investors (also known as business angels) broadly fall into two categories: Professional Investors and Retail Investors.  All investors within the B&Y network are Professional Investors.  Typically they have significant sums to invest and are looking for exciting opportunities where the business can grow and make good returns.

They will normally be experienced in business, and have particular interest in your sector. They will believe in your business and will invest for a share of the equity. The terms of any investment will be flexible and subject to negotiation.

Some seek an involvement (to varying degrees) in the day-to-day running of the business, and bring with them a wealth of experience and knowledge.  Others are passive, comfortable to leave the management to the day-to-day operations.  Almost all will seek a place on the board.

Retail investors are drawn to crowd funding and other peer-to-peer operations. Generally speaking retail investors are looking to spread their risk into many different ventures and be part of a large syndicate. They will not add value to the management team.

What does the investment process involve?

Meetings are almost always conducted one-on-one with the investor, as we find this to be the clearest means for communicating your specific need.  Investors will liaise with us after this meeting to work towards making an offer and a straightforward due diligence process, leading to completion of investment.

There will be several meetings with the investor prior to completion. This is a relationship of trust and we want you to be comfortable moving forwards. While it is true that investors are under no obligation to invest their money, our experience and industry connections have given us a very high completion rate. 

Who are your investors?

Investors registered within our network are classified as sophisticated or high net-worth individuals typically investing between £250,000 and £25 million. They are experienced in independently evaluating the suitability of an investment opportunity and often bring management experience or industry contacts to further help your business.

Can you help with restructuring?

We understand the difficulties and implications created by poor cash flow. Many of our clients have benefited from both formal and informal restructuring of their businesses.

 

In certain cases we can help to re-structure the business from an advisory position.  We are experienced in re-negotiating terms with banks and major creditors, replacing existing financial arrangements such as factoring, CID or leasing with more appropriate arrangements.

 

When a business has been suffering financially for some time or there is a danger of insolvent trading it is important to receive the right advice. We have licensed Insolvency Practitioners on hand to offer such advice. We can help you understand the various ways and benefits of utilising a formal procedure.  This will give your business the best chance not only to survive but to prosper.

 

As a business you may take comfort in the knowledge that many investors take an open view on the position of the business – they will back new start (NewCo) and CVAs as well as working with existing creditors and banks within the existing framework.  We have helped numerous clients proceed confidently through the restructuring process and return successfully to a stable, well financed position and a profitable business status.

What is a CVA?

These days most business owners are aware of the term Company Voluntary Arrangement (CVA).  Simply put, it is a formal procedure by which a business enters into a binding agreement with its creditors. This enables the company to trade as normal, easing cash flow and allowing the Directors to remain in control, allowing them to focus on the business’s recovery instead of the stress that comes with debt management.

 

We have helped over 100 companies enter into a CVA – a track record virtually unmatched in the UK. Many of our clients had been advised to seek administration and closure; some have approached us faced with winding up petitions; yet we’ve been able to rescue them, helping them through the CVA process and back onto a more sound financial footing.

 

At B&Y have an enviable track record in constructing CVA’s, ensuring they are properly put together and given the best chance to succeed.  Uniquely, we are able to raise capital to run alongside the CVA and support the business as it moves forwards.  Cash-flow as working capital are vital, and it maybe that the business is best served with this twin approach.  You can read about the results from the CVAs we have constructed in our Case Studies section. 

How do you liaise with HMRC?

Over the past few years HMRC have been operating a Time to Pay service for businesses who are struggling to pay their taxes on time.  Various statistics have been offered, but one that stands out is that at its height over 300,000 businesses took advantage of this scheme. These were all SME’s.

 

For companies with a previous exemplary record in payments to HMRC, a Time to Pay (TtP) is relatively straightforward to organise.  Twelve months can be obtained – we have successfully negotiated a 24 month payment plan for one client – and if you are truly confident that your cash problems are under control and can be managed once this payment plan is in place, there is no reason why you can’t organise this yourself, without the need for advisors.

 

We help dozens of companies every year.  Our Advisors add value in the following situations:

  • Where you cannot agree the terms that you seek
  • Where legal action is being threatened or undertaken
  • Where an existing Time to Pay arrangement has fallen backwards
  • Where other creditors are pressing and cash flow is too tight to manage

What is Asset Based Lending and Invoice Discounting?

Most businesses are aware of the principles of Invoice Discounting and Factoring. In simple terms finance companies and banks will advance against invoices/debtors in order to improve the cash flow of your business. Typically they will advance 80% of the value of the invoice raised, paying the balance upon receipt of payment of the invoice. These companies will charge fees based on the amount borrowed together with a service charge for managing your account. The majority of small businesses operate their cash flow with these schemes, with their principal bankers holding the lion’s share of the UK market.

Less known is that in the past two years or so new lenders have appeared who are more sympathetic to the situations business owners find themselves in.  For example, lenders are able to “discount” single invoices rather than offer term contracts. There is trade finance available for companies with orders and contracts.

We are experts in this field and will offer best advice at all times as to what is the most appropriate and cost effective solution to your funding needs.

What is Leasing?

Leasing for SME’s has a very similar feel to trade finance in so much as there are only a handful of active lenders in the UK.  We know all of these lenders and are able to offer you guidance, support and advice when you need to consider leasing for your business.

You may have products that would benefit from being offered to customers wrapped up in an HP agreement, saving your customers’ vital cash-flow.  You may be looking to buy equipment yourself and want to see what the market has to offer before making a decision on what’s best for you.  In either scenario, it’s worth picking up the phone or dropping us an email and let us see how we can help.

What is Trade Finance?

The UK trade finance market is relatively small in terms of number of active participants.  We believe we know all the lenders operating at present, although we always keep an eye out for new entrants. In addition, there are some private lenders that we know who are looking to lend to SME’s for Trade finance purposes.

Do you charge fees?

Like all professional advisors, we are a fee-based business. We are known in the industry for offering very good value for money with our unparalleled track record of success. We will set out our charges clearly for you.  Our earnings are driven by your success.  We are happy to have an initial conversation to discuss your situation at no cost and with no commitment on your part. All information is kept in the strictest confidence.

Contact us now

020 7637 7755

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