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FOUNDATION EAST ATTRACTS NEW MARKETING & MEMBERSHIP MANAGER

Richard Glinn first became a member of community finance organisation Foundation East in order to network with other local business people, but he has found working with the business finance organisation so rewarding that he has joined them full-time in a newly created role of Marketing and Membership Manager.

Richard was most recently Managing Director of Northgate PLC’s East Anglian Division. He grew the operation in less than 5 years from a temporary office in a portacabin and 20 vans to a 6 depot organisation with 4,000 vans and a turnover of £1.5m a month – a transformation he had previously achieved with a number of other companies.

Growing businesses and building key accounts are two of the strengths he is bringing to Foundation East. The organisation provides loans of up to £50,000 to businesses that have been refused bank finance and has a vibrant membership of business people and professionals who dedicate some of their time to helping other businesses to get on to the finance ladder.

Richard explains how he got involved: “Networking has always been invaluable in the businesses that I have headed up, and as Foundation East has a presence across the East of England I thought it would be a good way to meet a cross section of people. However as I got more involved I saw what a difference it was making to people’s lives and how worthwhile it is.

“Northgate was restructuring over the summer and I was pleased to accept the opportunity for a change. Many of the people we work with at Foundation East have seized opportunities to do something different and I can relate to this. It is great to be in a position to be able to help them.

“Foundation East has money to help people with good business ideas, and has access to a wealth of experience in its members. My task is to encourage more business people to participate both as members and clients. I think all of us would like to see the companies that we have helped to grow and become corporate members in the future.”

FREE advice helps 80 companies in the East raise finance totalling £10m

Eighty companies in the East of England have raised a total of £10m with help from the FREE ‘Understanding Finance for Business’ (UF4B) programme, proving its impact - but time is running out for others to benefit.

Delivered by St John’s Innovation Centre and funded by EEDA, ‘Understanding Finance for Business’ sees a dynamic team of successful entrepreneurs, experienced investors, banking and sector specialists helping companies identify and secure the funding they need to start or grow.  The programme started in August 2009 and has attracted over 1,000 entrepreneurs to date. Approximately 40% have gone on to attend the specialist workshops (focusing on grant, equity or bank finance) that follow the introductory session and around 150 businesses  have been offered one-to-one mentoring.

The last introductory workshop is scheduled for December 2011 but the sooner people sign up, the better chance they have of benefitting from the mentoring and practice pitches as these options may not be available beyond September. 

David Gill, Managing Director of St John’s Innovation Centre and a former corporate financier and investor at ET Capital, said:“Raising finance can be extremely challenging, particularly in the current market. Helping businesses in our region to raise over £10 million is true testament to the success of this programme and the track record of our team.   I would urge companies in need of finance to sign up quickly if they wish to get maximum value from the free support we are offering.”

There are introductory workshops in every county up to December 2011 when the programme closes, but to gain maximum benefit, entrepreneurs/companies should sign up for the workshops on 13 September (Norwich), 15 September 2011 (Stansted) or 21 September (Newmarket). 

Registrations are now open at www.stjohns.co.uk/finance, but places are limited. To find out more and register, visit www.stjohns.co.uk/finance or call Miranda Edwards on 01223 420252.

Further information: Marcie Bell, The Foundry House t: 01480 880986 Janette Pallas, St John’s Innovation Centre, t: 01223 421081 ·       Understanding Finance for Business is funded by the East of England Development Agency (EEDA). It is open to companies in Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk.          

The Understanding Finance for Business team comprises:

St John’s Innovation Centre was founded by St John’s College, Cambridge, in 1987 and provides early stage knowledge-based companies with business advice, strategic consultancy, introductions and flexible accommodation. It was the first innovation centre of its kind in Europe and has become world-renowned for its success as a business incubator.  

The centre exists to provide a dynamic and supportive incubation environment to accelerate the growth of ambitious innovative firms in the Cambridge region. 

SJIC offers business address and serviced office accommodation services to early start businesses. A full business incubation service is offered to tenant companies, incorporating a range of business support, training and advisory services.  Successful innovative firms including Autonomy Corporation PLC, RedGate Software Ltd and Jagex have occupied units at SJIC in the past. For more information go to www.stjohns.co.uk

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Entrepreneur follows her dream  

Support ‘home grown businesses’ call from Foundation East

Membership drive will fuel growth in local economy 12th April 2011 - Community finance company, Foundation East, is launching its 'support home grown local business' campaign to encourage new members. This year the mutual society has loaned £750,000 to businesses that had been refused bank finance despite having a viable business plan.

These companies, along with those the society lent to in previous years, continue to prosper. Foundation East wants to build on its successful model and loan even more in the coming year. Foundation East is a membership society, similar to a cooperative. Its members are individuals or organisations that want to help other local people to grow businesses of their own. ‘Home grown businesses' that have thrived include Chordal Green, a joinery company making handmade furniture, who needed finance to expand its workshop to meet demand for its quality products. It was refused finance by its bank, but following a growth loan from Foundation East, it has flourished and taken on two young apprentices.

Katy Ford, Chief Executive, Foundation East says: "Our members get a real sense of achievement when the companies Foundation East has supported do well. If, like Chordal Green, they are also creating local jobs and training up the next generation of craftspeople, this is a real social return on their investment. "Friends and family have often been the initial source of finance for early stage businesses, and we are revisiting this concept by offering the wider community an opportunity to support their local economy.

“The decision to award a loan is made by a panel of members, many of whom are entrepreneurial business people or professionals themselves and who understand the skills and energy needed to run successful ventures. “We want to encourage individuals and established businesses to participate in the work of Foundation East so that more small, local businesses can be assisted to grow, not just with the finance they need, but with valuable support from a wide network of useful contacts.”

To become a member, individuals or companies make a social investment in the form of shares. This money is used to leverage further funding which then allows a greater amount to be lent to the business community. Other finance comes from grants, contracts and borrowing but members are the lifeblood of the organisation.

Vince Glue, co-founder of Chordal Green, says: “The help from Foundation East has allowed us to grow our business and to expand our workshop, to enable us to take on two apprentices. This was a major development for us in 2010. There can be very little support for anyone wanting to offer apprenticeships, but we know how valuable they are to young people.

“We’re really happy with our apprentices - they are both diligent and hardworking. I believe that the skills they are developing with us will stand them in excellent stead for their future career.”

Corporate member, Richard Glinn, Director at Northgate Vehicle Hire (East Anglia) Ltd, says: “Running a successful business can dramatically improve people’s lives, wellbeing and even health – the whole community feels the benefits. Being part of the loans panel gives me the opportunity to get involved with other interesting and self-motivated people, who share the same values.”

Foundation East is a membership organisation that provides small business loans of up to £50,000. An investment in Foundation East, through the purchase of shares, enables members to assist in the growth of small local companies. For more information on how to become a member see membership.

 

Delight as community investment tax relief saved in budget

Philanthropy has been given a boost by the budget, the community finance organisation, Foundation East, is delighted that Community Investment Tax Relief (CITR) will continue. The scheme is designed to encourage social investment by individuals and organisations, with funds being made available to businesses and community organisations that have been refused bank finance.

Katy Ford, Chief Executive of Foundation East, says: “This is brilliant news as the future of CITR has been in doubt for some time. Community Finance companies throughout the country have conducted a concerted lobbying campaign to retain this tax efficient incentive and will now consult with the government to see how the scheme can be made more effective.”

CITR was launched ten years ago to stimulate altruistic investment through Community Development Finance Institutions, such as Foundation East. These social enterprises provide fair and affordable business and personal loans to those unable access finance from banks.  Corporate or individual investors purchasing shares in Foundation East under the CITR scheme earn tax relief of 5% per year for five years on the amount invested. Nationally CITR has raised £70m to date. 

Although Foundation East will loan to any business that has a viable business plan, the organisation is particularly interested in supporting initiatives that offer a community benefit.   Katy continues: “We hope this endorsement will encourage more individuals and companies to become members of Foundation East, their investment helping to boost economic growth in the eastern region.”

CITR represents the only widely applicable tax relief available to the social investment market for both corporation tax and income tax payers. For more information on how to become a member see membership or call Katy Ford on 0845 293 7751.

Media contacts: Claire Lynn/ Rachel Holdsworth, PR consultants, Holdsworth Associates Tel: 01954 202789, email: claire@holdsworth-associates.co.uk

About Foundation East Foundation East is an Industrial and Provident Society established in 2004. Its members are individuals and organisations that support its vision: to increase prosperity and quality of life by providing finance to viable businesses that have been refused bank finance.
Foundation East raises funds from its members, both individuals and corporates, in the form of non-transferable shares. Finance also comes from charitable and local government grants. Business loans are leveraged against this capital which is held as a security deposit with Unity Trust Bank.There is a growing consensus across society that a more pragmatic approach is needed to support local businesses, and of the wider benefits that can be gained from maintaining employment in the community. 

According to the New Economics Foundation there are around 80 community development finance institutions in the UK, who have financed 15,000 businesses and sustained or created 33,000 jobs.Foundation East demonstrates that new thinking is possible and it is making a difference to peoples’ lives.

Katy Ford is invited to No 10

December 2010 Katy Ford, Chief Executive was invited to attend talks with policymakers at No 10 to discuss how community finance companies like Foundation East can work with the Government to develop the Big Society Agenda. Five other community finance companies, the CDFA and representatives from BiS were also invited. Pictured is Katy with Tim Heath from the East London Small Business Centre
   

Foundation East launches 'safety net' loan for small businesses Setting up Skeldale Flock takes family from benefits to business

November 2010 - Foundation East, a leading community finance company, reports that even small businesses with excellent prospects have struggled to access bank lending this year and as a result it is launching a new ‘safety net’ loan to provide fast access to essential funds.

One of the businesses that Foundation East has supported is Skeldale Flock. Despite debts accrued when Stuart Matthews gave up work to care for his wife Elizabeth who was ill with cancer, the strength of their business idea secured a loan from Foundation East.

As a result the Cambridge couple have established a sheep farm in Barton, turning a hobby into a business to help them to come off benefits. Foundation East is a ‘lender of the last resort’ providing loans for businesses that have been refused bank finance despite having a viable business plan and cash-flow analysis. The membership society is using the launch of its Annual Review to highlight that help is available.

Foundation East Chief Executive Katy Ford says: “Over the last year Foundation East has noticed an increase in demand from businesses that would previously have received bank finance. We have been concerned that the problem has been one of cash-flow and some timely support is all that is needed to keep these businesses afloat.”

As a result Foundation East has created a new type of lending to support established companies stay in business.“In addition to the start-up and longer-term loans, we are also talking to businesses about a bridging-loan facility that they can access at short notice. This will help, for example, to pay suppliers in order to meet orders.

“We are actively lending to small businesses and keen to receive applications. Now is a good time to build a business, some of the strongest businesses are those that have survived harsh economic climates.”

Applicants need to have a basic business plan and cash-flow analysis which is discussed with them in detail by one of Foundation East’s Business Loans Managers. The Manager will come out to meet the people involved and see what they want to achieve. The final decision to lend is made by a panel of members – business people and other professionals – who understand what it takes to make a success of a business.Foundation East is acutely aware that early-stage businesses need more than finance to thrive. This year it introduced a coaching scheme for people setting up new businesses and this is proving very successful.More information on loans or becoming a member is available on the website www.foundationeast.org or by calling 0845 293 7751.

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Notes for editors: case studies are available Media contacts: Claire Lynn/ Rachel Holdsworth , PR consultants, Holdsworth Associates Tel: 01954 202789, email: claire@holdsworth-associates.co.uk Foundation East contact: Peter Wood, Business Loans Manager Tel: 0845 293 7751. About

Foundation East Foundation East is an Industrial and Provident Society established in 2004. Its members are individuals and organisations that support its vision: to increase prosperity and quality of life by providing finance to viable businesses that have been refused bank finance.Foundation East raises funds from its members, both individuals and corporates, in the form of non-transferable shares.

Finance also comes from charitable and local government grants. Business loans are leveraged against this capital which is held as a security deposit with Unity Trust Bank.There is a growing consensus across society that a more pragmatic approach is needed to support local businesses, and of the wider benefits that can be gained from maintaining employment in the community.

According to the New Economics Foundation there are around 80 community development finance institutions in the UK, who have financed 15,000 businesses and sustained or created 33,000 jobs. Foundation East demonstrates that new thinking is possible and it is making a difference to peoples’ lives.