Peal Partnership Limited

Peal Partnership has close links with a wide range of providers of finance.  We are able to advise on the most appropriate method[s] of financing companies and projects, and also make introductions to those funding providers.

• EQUITY FINANCE.  Typically providers of equity finance [private equity organisations and business angels] will look for very high growth situations, with compound growth rates of 25%+.    Finance is provided in exchange for a shareholding in the company.  A fundamental requirement is an experienced and able management team.  Other key requirements are being able to demonstrate commercial viability [will it sell and is it profitable?] and technical viability [does the product or service work?].  In general funders prefer companies that are already trading i.e. pre revenue situations can be more difficult to fund.

• DEBT FINANCE.  In general there are 3 key requirements: [1] is there a good proposition for the funding requirement i.e. is there an attractive story to tell?  [2] can the debt be serviced ie. is cash flow capable of servicing the capital and interest repayments and are profits / EBITDA [earnings before interest, taxation, depreciation and amortisation] capable of servicing the interest cost? [3] is there security for the debt?  In certain circumstances requirement [3] can be satisfied by using the Enterprise Finance Guarantee [EFG] scheme, whereby a proportion of the debt is guaranteed by the government.  We have substantial in-house EFG expertise.

• SALES INVOICE FINANCE.  A percentage of the value of sales invoices [typically upto 80%] is advanced by a bank or financial institution until the debtor pays - this is called Invoice Discounting.  Some funders offer credit control services in addition - this is called Factoring.  The cost usually comprises an interest charge for amounts advanced plus a services charge that is normally paid monthly.  A rule of thumb for this source of finance is that there should be minimal grounds for dispute.  Hence for example situations where there is invoicing in advance or percentage complete, may be difficult to fund using this source of funding.

• ASSET FINANCE.  This is funding for the purchase of new [or second hand] tangible assets.  It can also be used to raise finance for existing second hand equipment. 

• GRANTS.  The level of grant funding has dropped substantially in the UK in recent years.  Typically, grants are specifically targetted at certain regions requiring regeneration support, or at innovation.  Certain grants are available where there is cooperation between companies in two or more EC countries.

In addition to the above sources of finance, Peal Partnership is able to arrange funding for worldwide PROJECTS.  We have a close working relationship with funders who provide bespoke funding for projects requiring in excess of €30m, and there is no maximum.