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Uk’s Photocopier Consumables Limited overcome financial hurdles
Forward thinking accountants Askews has been helping new clients to access vital funding at a time when financial help for start-ups is in short supply.
New start-up Photocopier Consumables Limited (PCL) turned to the financial advisors after being isolated from traditional funding streams. Using their 69 years of combined experience in business and finance, Askews was able to point PCL in the direction of a business funder willing to take a risk on the venture.
Funding is a huge hurdle for young companies as banks approach them with caution, unsure whether to take a gamble on a new business that could fail as easily as it succeeds. A recent study from The European Central Bank found that firms reported a worsening in the availability of bank loans (20%, up from 14% in the previous survey round) for start-ups. For those businesses turned away from banks, it can be difficult to launch a start-up venture.
Ian Burns, managing director of PCL, initially approached Askews in August 2011 for support with his research and development. As well as helping the company with its business strategy and planning and financial forecasting, Askews has also facilitated an introduction to an appropriate funder that has supported the business with a finance arrangement.
Ian Burns said: “The business idea was an amalgamation of the many years of experience of all three directors in the photocopier industry. The hard part was getting the funding we needed, especially with all the banks tightening their purse strings. I’ve known Neil for 2 years after initially being introduced by other small businesses that already worked with him and highly recommended him, therefore was already aware of his company’s knowledge and expertise of start-ups. They’ve built up a wealth of contacts built up through their reputation over the years which has helped us when getting the important introductions we need. Askews has been really efficient pointing us in the right direction as well as helping us to focus on our strategy and vision and incorporating this into our planning documents.”
Although PCL’s directors had over 50 years experience within their industry sector, they recognised that they needed external expertise in getting their venture off the ground. Askews were able to put PCL in contact with Skipton Business Finance, parented by Skipton Building Society that has provided all the funding for the start-up. Richard Cole Corporate Manager at Skipton Business Finance said: “We know that start-ups can struggle to get their businesses off the ground as they have no financial track record. Unlike the larger banks we don’t look at their facility, we look at how we can improve their cash flow. We work from our parent company’s ethos of wanting to create wealth in jobs in the region. At Skipton we have ten years of history with lending to start-ups and have the expertise in regards to new businesses. We look at start-ups for organic growth, and possess one of the largest portfolios of start-up businesses across the invoice finance industry.”
Moving forward, Askews is now organising the company’s international credit agreements with their suppliers, and organising how they will implement international payments.
Askews Accountants takes an innovative and progressive approach to helping businesses. Neil Askew, managing director said: “We understand the process involved for taking products to market and launching them. It is risky to develop a start-up business in this climate, which is why I would advise any entrepreneurs to make the most of any professional support available to them. A good business idea, presented properly will normally be fundable somewhere – which is what we did with PCL.
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