Following an announcement from the government that future funding for small businesses in the north of England could be in jeopardy, funder Ultimate Finance has sought to reassure SMEs that it has significant funds to support growing businesses in the region.
The warning came from David Gauke, chief secretary to the Treasury, who advised parliament that he could not guarantee any future EU funds, referred to as Jeremie (joint European resources for micro to medium enterprises). Until now, the finance has proved vital for more than 1700 SMEs, as other funding dried up, and has been instrumental in creating 10,000 jobs in the last six years.
Ultimate Finance is reassuring SMEs who may be affected not to push the panic button, as the company is well positioned to provide them with the necessary funds to help them grow.
It is able to make this commitment due to strong financial backing from its parent organisation, international private investment company, Tavistock Group, which means it does not have to rely on banks or financial markets for funding.
In addition, Ultimate Finance is also a chosen partner of the British Business Bank, a government-owned business development bank dedicated to making finance markets work better for smaller businesses. This enables the company to lend and invest more, especially to younger and faster growing companies.
Ultimate Finance has, post Brexit, increased its loan book to more than £100 million for the first time, representing a rise of 33% in the last 12 months.
Noel Haverly (pictured), head of sales in the North and Scotland for Ultimate Finance, said: “These were already uncertain times for SMEs in the North following the Brexit vote so a warning from the Treasury is going to create even greater concern within the sector.
“With this in mind we’d like to reassure businesses that Ultimate Finance is well placed to provide the financial support required to handle the inevitable challenges they will encounter over the coming weeks and months.
“We can, and will, continue to provide our existing and new clients with the cashflow solutions they need to sustain their businesses through this unsettling period and help them come through it successfully; the one thing they may be sure of is the strength, support and commitment of Ultimate Finance.
“We will continue to be flexible by finding the correct funding solution to help businesses realise their full potential.”
