Frequently Asked Questions
What is Finance South West?
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What is the European Objective Two area?
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What sort of funding do you offer?
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How much does it cost?
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How much funding can I apply for?
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What do I do to apply?
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What happens if I haven’t got a business plan?
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Do I have to find other people with funds as well as Finance South West?
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How quickly do I have to pay the money back?
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How quickly do you make a decision?
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Do I have to be a company, what if I’m a sole trader?
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Does my business have to be based in the Objective Two area – what if I want to re-locate here?
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Are there any businesses that you don’t lend or invest in?
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How do I talk any of these issues through with you any further?
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What is Finance South West?
We are a local business finance company launched in 2005, with its head office in Plymouth. We work with businesses in the European Objective Two area (see below) that need finance to start, grow or change ownership. Our speciality is to fill gaps in funding that the banks and others can’t meet. We provide the missing piece of finance that allows a commercially viable project to move ahead. We work closely with the banks, accountants and other funders.
We do not provide grants.
Finance South West is a private company limited by guarantee.
What is the European Objective Two area?
Because Finance South West involves the use of European funding we can only invest in businesses in certain geographic areas. These areas include Plymouth, West Devon, Torridge, North Devon, South Hams, and parts of Torbay, Bristol, Mid Devon and West Somerset. There is a postcode checker on our website to check whether you fall into the region where we can help you
What sort of funding do you offer?
We provide anything from straightforward loans right through to venture capital, and anything in between.
How much does it cost?
Despite the fact that we take a greater risk than other lenders and investors, we still lend or invest money at a net rate very similar to the banks and other commercial investors.
How much funding can I apply for?
We can offer loans from £20,000. The maximum we will invest in a company is £1 million.
What do I do to apply?
First of all just call us to talk things through, or fill in the enquiry form here on the web site. At some point we will require some form of business plan – for a small loan this can be very simple. We will talk it through with you.
What happens if I haven’t got a business plan?
Most businesses don’t have business plans ready made. We will tell you what information you need, and we can even refer you to someone who can help you put it together. We may even offer you our Gateway to Finance scheme.
Do I have to find other people with funds as well as Finance South West?
We provide the remaining finance that’s needed to make your investment or project happen. We do not normally provide more than half the total sum borrowed or invested. If needed, we can point you in the direction of additional funders from which you can choose.
How quickly do I have to pay the money back?
Our loans are usually repaid over three to five years. Our larger investments, in the venture capital area for instance, are usually for a period of around five years.
How quickly do you make a decision?
Our loans are usually repaid over a set term of three to five years. Our larger investments, ie in the venture capital area, generally target a five year investment period but can be more flexible depending on the circumstances.
Do I have to be a company, what if I’m a sole trader?
We are equally happy to work with sole traders, partnerships or companies.
Does my business have to be based in the Objective Two area – what if I want to re-locate here?
If you are intending to relocate to the Objective Two area within 12 months of us investing in or lending to you then we have no problem. Otherwise you need to be located in the area when you apply.
Are there any businesses that you don’t lend or invest in?
We do not normally invest in basic farming – though diversification is another matter, guesthouses and hotels, or shops and restaurants. However if there is a unique aspect to your restaurant, shop or hotel please still tell us about it and we might be able to help
How do I talk any of these issues through with you any further?
Either fill in the enquiry form here on our website, or just give us a call on 01752 609230.