Qualification Criteria

Purpose: To assist viable businesses which were facing difficulty in raising finance from normal sources, as a result of the restrictions in the conventional credit market.

Amount: Minimum £50,000, maximum £250,000.

Term: Flexible, over periods of up to three years.

Interest Rate: Variable, but reflected the nature of the risk undertaken.

Fees: An arrangement fee and monitoring fees was payable.

Security: A charge on the assets of the business, and/or a charge on any assets purchased with the loan, was generally taken.

Availability: Only in circumstances where conventional lending sources were unavailable or were already fully committed. Loans could not be used to repay or reduce existing borrowings.

Requirements:

• An open dialogue with bankers to the business.
• A viable business plan, which included: three years profit, cash and balance sheet projections.
• In some circumstances a viability report prepared by an approved independent advisor at the expense of the borrower.
• The following types of business did not qualify:
  • Retail
  • Property Investment
  • Speculative Building
  • Agriculture
  • Coal and Steel
  • Production of Synthetic Fibres

Advantage Transition Bridge Fund limited was jointly financed by Advantage West Midlands and the East Midlands Development Agency.

For further information please call 0121 200 8195 or e-mail enquiries@advantagebridgefund.com

Advantage Transition Bridge Fund, 10th Floor, Temple Point, 1 Temple Row, Birmingham. B2 5LG

Registered in England No. 5441448