@ SWLEP
Visit the SWLEP online at : www . swlep . co . uk
What is best for a business - a grant or a loan ? the company to continue its growth trajectory , doubling its turnover year on year and taking its headcount from 23 in 2019 to approximately 250 , most of whom are employed from the Wiltshire area .
Consolite Technology Working predominantly in the defence sector , Consolite Technology is a leading designer , manufacturer and supplier of night vision lighting technology . It began in 1980 with the design and manufacture of cockpit lighting indicators for the UK Sea Harrier programme and has worked on a variety of projects including the modification and supply of lighting on warships and aircraft carriers .
Having secured additional premises in Warminster , they needed their GPIF loan to complete building work to provide the appropriate layout needed , including new lighting testing facilities , manufacturing capability and additional warehousing . The purchase and installation of the equipment meant that they could improve their productivity and assist their scale-up aspirations .
Gold Traders Ltd Gold Traders approached the SWLEP as they wanted to establish a new auction house by converting a retail site . The scheme included a café and art gallery to be housed within the premises . The plan was also to engender green credentials by installing solar photovoltaics as well as electric car charging points . The company also hoped it would help reinvigorate the High Street in Royal Wootton Bassett , which , along with others was hard hit by the pandemic .
The GPIF loan enabled the company to complete the mixed-use conversion and by doing so , they planned to increase their headcount from 10 to 24 . The company is keen on staff training and they wanted to provide training in valuations , marketing and business administration . This dedication to training may have contributed to the decision by Wiltshire Council Trading Standards to award Gold Traders accreditation from the Buy with Confidence scheme , making them the first gold buying business in the UK to receive the accreditation .
‘ An analysis of eight companies who were early clients of the loan fund , shows they averaged a net asset improvement of 91 %’
What an easy question ! It is obviously a grant . Nothing to pay back , cash for free , nothing to lose . Is it really that simple a choice ? Grants are ideal in some cases . They offer a sum of money towards the total funding cost of a business project , and this money does not have to be repaid , unlike a loan . They ’ re often funded by Government initiatives , so target certain types of businesses and projects to help enable growth in these areas .
Grants can encourage you to develop areas of your business you might not have considered , such as employing a consultant or examining your environmental impact . These projects can help make businesses more efficient , better for the planet and explore new lines of development .
However , there are downsides to grants . They only offer a percentage of the cost of your project – generally between 10-30 per cent , though some grants can be as high as 50 per cent . You are responsible for sourcing the rest of the funding needed to complete the project .
Start-up businesses are often excluded from grant support . Grants are usually funded by taxpayer money , so agencies need to ensure that the projects they fund offer good value for money , and that ’ s difficult for them to gauge when your business doesn ’ t have a track record . Most grants will consider start-ups from two years of trading .
Grants can be highly competitive ; everyone loves a bit of free money after all ! Your project needs to represent great value for money and match well with the priorities of the grant .
They are also restrictive with what they cover and are often only available for two purposes ; the purchase of equipment ( capital funding ) or consultancy , which includes research and development ( R & D ) projects ( known as revenue funding ). They cannot be used for marketing or working capital for your business .
Grants are often conditional . They are intended to support business growth , meaning that you often need to agree to create jobs at a rate set by the grant provider . You may have to agree to pay the Real Living Wage , hire from underrepresented groups or reduce your carbon emissions .
Grants are generally retroactive , meaning that you agree your project ahead of time with the agency , complete your project , and the amount agreed upon is repaid after the project is completed . This is both an anti-fraud measure and a way of the agency controlling the amount of funding they release .
Are loans a better option ? In fact , they can be a great opportunity for your business . There are larger sums available to individual applicants , enabling you to fund the entire cost of your project upfront . A well-established company with a strong financial base , should find traditional debt financing from a retail bank to be their best option .
As a not-for-profit company , SWLEP Ltd offers loans but is interested in those companies earlier in their development that might well find it more difficult to obtain a traditional bank loan .
We offer both secured and unsecured loans with varying interest rates to reflect the difference . Generally , unsecured loans offered by not-for-profit companies come with interest rates higher than that offered by a bank . That is not the case with SWLEP Ltd so if you are interested , get in contact through hello @ SWGrowthHub . co . uk . paddy . bradley @ swlep . co . uk 0771 841 951
Paddy Bradley , Chief Executive Officer at the Swindon and Wiltshire Local Enterprise Partnership
To find out more about the SWLEP visit www . swlep . co . uk For specific business support , contact the Swindon and Wiltshire Growth Hub . Visit www . swgrowthhub . co . uk call : 01249 477287 or email : hello @ swgrowthhub . co . uk
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