The ability for emerging technology businesses to access finance has received a boost, following the establishment of a dedicated new team by Clydesdale and Yorkshire Banks.
The Banks’ Emerging Technology Unit has been created with the express aim of supporting high growth businesses in the sector – businesses which may have, historically, been under served by lenders.
The creation of this team is part of Clydesdale and Yorkshire Banks’ partnership with the British Business Bank under its ENABLE Guarantee programme, announced earlier this year. Up to £125m of new lending by Clydesdale and Yorkshire Banks, will help more small businesses achieve their growth ambitions.
The Emerging Technology Unit will form part of the Banks’ Specialist and Acquisition Finance team, which complements its Growth Finance team – established in 2010 as the first high street lender to provide senior lending to businesses with strong intellectual property portfolios and existing venture capital.
The team will be led by Tom Brock in Glasgow, who has extensive experience supporting the sector. He will be joined by other team members based in Glasgow and Oxford, capitalising on both regions’ reputations as sources for technological innovation. The team will have a UK-wide remit and customers will have access to a dedicated and experienced relationship manager.
Paul Shephard, Director for Business and Private Banking at Clydesdale and Yorkshire Banks, said: “The creation of our Emerging Technology Unit is to support an important and growing part of the UK economy.
“The nature of British business has shifted considerably in the last few decades from one of manufacturing, industry and production, to one of knowledge, service and innovation. Traditional manufacturers still play an important part in our economy, but the emergence of technological innovation is something we have the expertise and desire to support.
“This is also an illustration of our commitment to British businesses by matching the right expertise with the right customer. Our bespoke lending initiatives support trading businesses by looking at things differently to take into account intellectual property, intangible assets, and sales history.” The Banks accept potential customers may have short term losses, but will also look for them to have:
In return, the Banks will be able to advance senior debt and working capital facilities of up to £1m. Debt requirements above this level will continue to be served by the established Growth Finance team.
The UK Government has identified the technology sector as a key driver of future growth, innovation and employment. It is supporting the sector through a range of initiatives.
Keith Morgan, British Business Bank CEO, said: “We are delighted that Clydesdale and Yorkshire Banks are launching this new unit as part of our partnership under our ENABLE Guarantees programme. It is great to see the early impact of the programme in bringing new revenue streams to smaller high-growth British technology businesses, which have such potential to build the UK economy.”