UK manufacturers can secure vital funding says Exception ceo

Wright said: "Coming out of recession is a dangerous time for growing businesses, as this is the crucial period when expansion needs to be funded. Many businesses, already trading under a debt burden, can lurch into the quicksand of 'over-trading', which sees them unable to service their interest payments, despite the upturn in market conditions. "During our dealings with investors, we have learnt that there are several key areas that the 'money men' focus on before committing to backing. "Without a strong track record of profitable underlying trading, a business is unlikely to get past the first hurdle. Manufacturers need to show that in normal market conditions, their business is stable and they have a robust set of accounts. "Secondly, potential investors look closely at the management team, its skill levels, experience and willingness to commit to the business. Often, financiers favour teams that invest their own capital, known as 'hurt money', in the business as this shows serious commitment. "Institutions are also interested to see how the management dealt with the challenges of the recession. How did the directors approach cash management? What strategies were used to retain liquidity in the slump? Redundancy payments, retaining stock, sales ledger management, customer and supplier relationships are all areas that will come under scrutiny. "Banks don't like risk and manufacturers who address this issue, improve their chances of securing finance. In our case, we have worked hard to spread our risk across several different markets – medical, transport, telecoms and energy – to ensure our portfolio balances across the economic cycle. "Finally, you need to be realistic about the valuation attributed to the equity of the company as this is sometimes a final stumbling block in securing funding. From our experience, the cash and support of the investment community is there for manufacturers with the right track record, management team and strategy."