Pilot to give firms better chance of winning finance
York, North Yorkshire and East Riding Local Enterprise Partnership (LEP) is joining forces with major banks to develop the Certificate in Business Growth (CBG).
The CBG is a “bank-approved” accredited qualification, featuring a business plan, which seeks to raise the standard of funding applications, thereby increasing bank confidence and willingness to lend.
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Hide AdBarry Dodd, chairman of the York, North Yorkshire and East Riding LEP, who came up with the idea, said to the Yorkshire Post that, according to banks, start-up and young firms lack “a credible business plan” when approaching them for finance.
The CBG results in young firms being able to formulate “a thought-out business plan” on which its creator can answer questions, he said.
Mr Dodd added: “This is not a guarantee of lending. What this will do is help reduce the risk for all concerned.
“When you reduce risk you enhance your chances.”
Mr Dodd said it is expected the programme will be piloted in the region by January 1, adding that it is hoped it will be quickly rolled out across the rest of the country soon after.
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Hide AdMr Dodd said: “Everybody wishing to start a legitimate business visits a bank to arrange account facilities. If funding is required banks are reluctant to lend unless applicants have a good understanding of the proposed business and a credible business plan is presented.
“The CBG is designed to address both these issues.
“Bankers in Yorkshire are very positive about this initiative because it reduces risk; will improve business sustainability and assists in reaching lending targets.”
He added: “We are thrilled with the support received from banks for this key initiative which will directly support the many small businesses which are vital to our economy.”
The CBG, which will be suitable for retail, service or manufacturing companies, will be a series of online modules based around the preparation of a business plan.
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Hide AdLocal universities and colleges are working with the LEP to ensure the certificate is pitched at the right level to achieve full and proper accreditation.
Successful two to four-year-old businesses will be used as a focus group to help develop the modules of the CBG.
LEPs will provide the link between all the partners when the programme is rolled out nationally.
Young businesses across York, North Yorkshire and East Riding who are interested in working with the LEP to trial this certificate are invited to contact [email protected]
A spokeswoman from the British Bankers’ Association declined to comment.