Latest news with #SmallBusinessFinanceMarkets
Scotsman
08-05-2025
- Business
- Scotsman
Investment in smaller businesses is good for all
Smaller businesses are the lifeblood of Scotland's economy. Firms employing fewer than 50 employees account for more than 98% of the total business population, 42.7% of employment, and 27.3% of revenues, according to Scottish Government figures, underlining the vital role they have to play in helping the nation prosper[1]. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... As such, ensuring smaller firms have access to the financial support they need is absolutely critical. Access to the right type and amount of funding can help smaller businesses take the next step in their plans, whether they are looking to take on new staff, expand their premises or product range, or even grow into new markets. Every year, one of the trends the British Business Bank's Small Business Finance Markets report tracks is equity investment into smaller businesses, along with their attitudes towards and experience of external financial support across the UK. Through these metrics, we gain a sense of the health and confidence among these firms. Advertisement Hide Ad Advertisement Hide Ad Our 2024/25 report, covering the first three quarters of last year, found that Scotland's smaller businesses saw a 14.2% rise in equity investment volumes to £407 million – more than double the UK-wide increase of 6.6%. This also meant Scotland was on track to deliver the third highest annual figure for equity investment in the last decade, behind only the exceptional years of 2021 and 2022. Small businesses are the backbone of Scotland's business community (Picture; Adobe) The picture was similarly positive in terms of deal numbers. While a slight decline of 1.5% may seem negative at face value, it was the second-best performance of any UK nation or region. Only the North East of England delivered a positive year-on-year difference and the resilience in the number of deals meant Scotland was behind only London, with 135 compared to the South East's 107 in third. It was a similar story when it came to use of external finance more generally. A challenging economic environment was undoubtedly a significant contributor to a drop from 59% in H1 2023 to 41% during the same period last year among Scotland's smaller business population. However, this was still the second highest rate between 2021 and 2024, indicating a return to more normalised levels after 2023's spike. The healthy level of activity, despite an uncertain macroeconomic backdrop, is reflected in what we saw in the first year of our £150 million Investment Fund for Scotland (IFS). In that time the fund committed more than £10 million to smaller Scottish businesses, including the likes of Wilsons Pet Food in Ayrshire, Roslin biotech firm Ingenza, and Borders-based Sky-Pin Drones. Advertisement Hide Ad Advertisement Hide Ad The IFS has been specifically designed for Scotland to increase the availability and supply of finance to all parts of the nation. Loans range from £25,000 to £2 million, while equity investments reach up to £5 million, to help smaller businesses take the next step forward with their plans. It is highly encouraging to see Scotland performing so well – particularly given how integral smaller businesses are to its economy. With interest rates on a downward trajectory, financing conditions are improving and that should create a more supportive environment for deal-making during 2025. But, for now, the quantity and value of equity deals demonstrates the resilience of Scotland's smaller business community, as well as the strength of financial ecosystem that supports it.
Yahoo
17-03-2025
- Business
- Yahoo
Novuna Business Finance partners with BBB for green asset finance pilot
Novuna Business Finance has announced a partnership with the British Business Bank (BBB) to pilot a green asset finance variant of the Bank's Growth Guarantee Scheme. The initiative is designed to support smaller businesses in accessing funding for green assets that facilitate the transition to a low-carbon economy. The pilot will focus on financing assets such as electric vehicles (EVs), EV chargers, solar photovoltaic panels, heat pumps, wind turbines, battery storage systems, and biomass. Leveraging the existing infrastructure of the Growth Guarantee Scheme, the programme aims to increase the availability of affordable finance for businesses investing in sustainable technologies. The launch comes as small businesses place greater emphasis on sustainability. Novuna Business Finance research found that 88% of SMEs consider sustainability more important at the start of 2025 than a year ago. Similarly, the British Business Bank's Small Business Finance Markets report highlighted that 53% of smaller businesses are prioritising environmental sustainability over the next year. Geoff Maleham, Managing Director of Novuna Business Finance, said: 'We are proud to be working with the British Business Bank as their chosen lender on this innovative pilot. At Novuna Business Finance, sustainability is at the heart of our business, and we are committed to supporting SMEs in their journey towards Net Zero.' The Growth Guarantee Scheme, facilitated by the British Business Bank and delivered through its accredited lenders, provides facilities of up to £2 million to businesses that might otherwise struggle to secure financing. Launched on 1 July 2024, it supports various financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending. Novuna is a trading name of Mitsubishi HC Capital UK PLC. "Novuna Business Finance partners with BBB for green asset finance pilot" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
