While many Government-sponsored schemes are now drawing to a close, post-pandemic funding is still available, while private equity investment is booming. According to the most recent equity market update from Beauhurst, a record £10.7b was invested during the first half (H1) of 2021, more than double the amount raised during H1 2020, and an 84% increase on the previous record in H1 2019. In total, a record 1,296 deals were announced, with 384 companies securing their first equity round, a 52% increase from H1 2020.

Among the key Government-backed initiatives still available is the Recovery Loan Scheme, explained Melanie Ellyard, a senior manager at the British Business Bank. The scheme is open until the end of the year, with loans of up to £10 million available through a network of accredited lenders.

There is also support for companies that took out a Bounce Back Loan but have concerns about repayments, she continued. This is the thinking behind the Pay As You Grow options, which offer more time and flexibility to repay loans.

Although not a scheme as such, Jordan Dargue, an angel investor and investment director at NorthInvest, urged businesses to look at R&D Tax Credits, which companies can claim against specific projects, and which can help ease cash flow problems.

Start-up Loans also remain crucial as a way of stimulating the recovery, said Melanie, by unlocking the talent which will ultimately help boost the UK’s economic recovery.

The flexible, unsecured loans have proved a lifeline to young entrepreneurs, she explained, offering an important way to secure funding without having to take on a lot of debt. They also include 12 months of support from a mentor and since 2012, over 80,000 have been issued.

But Phil was also conscious that some businesses are struggling with debt as a direct result of the pandemic and advised them: “not to stick their heads in the sand if they have got issues, but to speak to a trusted advisor.”

A key change in the investment landscape, continued Phil, is that companies are adopting a blended approach to finance. “It’s about drawing funding from different areas and pulling them together into a coordinated package,” he said. This includes equity investment, and Jordan explained that there was plenty of evidence that investors were actively seeking new opportunities again.

These are among the topics that will be covered during The Cash Crunch, a session at PROGRESS21 dedicated to looking at ways of raising capital in a Post-COVID-19 world. A second session – Investment for Growth - will look at what interventions and developments are needed by both public and private sectors as the UK economy looks to get back on track. This will further explore new investment trends that have recently emerged along with key topics around the funding scene locally, regionally and nationally and what this could mean for businesses.

Planning and restructuring post-pandemic also came under the microscope, with advice that businesses need to make sure they are still fit-for-purpose as the country opens up again. “It’s not necessarily about pivoting and creating a whole new business model, but more about thinking what you can do better,” said Phil.

A few ideas put forward included more local supply chains, making sure that debt is properly managed, and keeping control of cash flow by not paying for things that the business doesn’t really need.

Melanie also suggested that: “You can’t rely on the old ways of doing things anymore – financial forecasts, five-year business plans - for a lot of businesses these have all gone out of the window.”

And Jess Jackson, investment director at the GC Business Angels, added: “As a founder, you need to know your numbers and be on top of the figures. There is no point relying on your accountants for this because you need to know what’s happening today, not two months ago, to be able to make the right decisions.”

The panellists also discussed ways in which access to finance could be made more inclusive. According to the Annual Investing in Women Code, just 15% of applicants to Government products are women, while the Cornerstone Report: Access to Venture Capital points out that just 3% of venture capitalist funded founders in the UK identify as black.

If you are based in Greater Manchester and want to learn more about the post-pandemic funding landscape, new investment trends and financial tools available to future-proof your business don’t miss PROGRESS21 Business.

PROGRESS21 is one of the first face-to-face business events in Manchester for over 18 months and takes place at Manchester Central on September 23.