Fast Track to Growth: Will the bank lend? article banner image

Companies across Devon are being offered the chance to take part in the county’s first Fast Track to Growth Programme to help them develop and implement plans for growth in 2016 – for free. Fast Track to Growth has been developed by SouthWestfd, PR, Astley Media and Exeter Innovation Centre, and Stephens Scown is supporting the programme. Simon Morris, partner in the corporate team in Exeter, has written a series of articles to highlight certain challenges to successful business growth and how to overcome them. 


Can your business attract bank finance? Many people and companies find it harder to borrow. That’s because there will be a number of criteria which need to be met to demonstrate that your business is robust enough to repay the funding. There are some basic considerations which to assist in evidencing your business’ financial robustness:

Business Plan: Many smaller businesses will seek funds, but without putting in a great deal of thought or viewing matters from the lender’s perspective. For example, a business plan could consider the following points:

Assets – banks like assets which have a value and can be sold. These can be secured in favour of the bank reducing the banks risk. Assets which can be secured include property, stock and plant and machinery. Intangible assets – like debts may also be considered. Intangible assets, such as intellectual property are often not usually perceived as being good security;

Debt Repayment – if your business can’t demonstrate that it will have revenues sufficient to pay interest and the loan then a bank will unlikely lend;

Capital – this can be viewed as the sums invested by shareholders in a company. If that initial capital investment is not sufficient the company may not have the means to fund the assets and people it needs to operate and grow or repay a loan. A bank may require further capital to be invested before funding invested.

Owners – the business owners/shareholders will be expected to take the biggest risks. The owners/shareholders will make the biggest gains is the business is a success. A bank’s revenue will be limited to the amount of interest it receives on the capital sum. Finance for a risky proposition will be less palatable to a bank. The lack of information or a business plan will demonstrate or may evidence more risk. If so this risk will need to be funded by the owners.


If you would like to contact Simon to find out more about the Fast Track to Growth programme, then please call 01392 210700 or email