Organiser
Tees Valley Unlimited / FW Capital
Eligibility
Tees Valley only – Darlington, Stockton-on-Tees, Middlesbrough, Hartlepool and Redcar and Cleveland.
Additional Information
The fund provides the cash security required for performance, warranty or advanced payment bonds, to provide access to large contracts that are currently out of reach.
The fund is open to companies of any size in any sector.
Average deal size
£100,000 to £2 million (with fund managers’ discretion over larger deals). We are limited to lending £4m to a business in any 36 month period. FW Capital will consider smaller deals where there is tangible benefit to the fund in terms of job creation/repeat borrowing etc. As the scheme is not aid, it can be used in addition to a grant without breaching any state aid limitations.
Deal structure and term
In simple terms, the cash acts as a short term loan to the company, lasting on average 6 to 24 months. Flexible repayment terms can be tailored around cash flow from the underlying contract or on overall business cash-flow. Typically we expect deals to be bullet repayment, mirroring the terms of the contract itself – but there are no significant restrictions on how we structure the repayment terms. Early repayment will not be penalised.
Companies could also price the cost of the using the fund into their tender, enabling them to unlocking significant new contracts with no direct cost to the business.
The fund aims to leverage private sector investment on a 1-to-1 basis (50% co-investment) across the life of the fund. This is an overall fund target though, and individual deals are assessed on a case by case basis.
The fund is fully recycling and companies are welcome to apply to the fund more than once.
Timescale
Give a decision in principle within 1 to 2 weeks, and have a deal completed within 6 to 8 weeks.
This is a commercial fund and on commercial terms, however was created using money from Regional Growth Fund.
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