Seeking finance for a business venture these days is no easy matter. Despite the banking bailout and the disgustingly named quantitative easing that floods their coffers with new money, the Banks are reluctant to look at new businesses. The government appears to realise that it is only by entrepreneurs energetically creating new jobs that we will emerge out of this double dip recession, so how they are going to square this particular circle will be interesting.
In terms of a social enterprise such as fostering there is the additional complicating factor that the finance needs to support the ethical values of the project. It's about delivering financial success through the quality of the service rather than the service supporting the financial needs of the investors. It's a fine distinction but is hugely important. It means the service must come first...always.
This is an incredibly frustrating time for an entrepreneur. The plan is in place, no doubt having been worked on late into the night over many months or even years. Everything is ready to go. We're aching to get moving on a venture that we don't believe can fail. But we have to wait while decisions are made elsewhere.
I'll be logging this period here as a kind of diary both for myself and any readers who may be considering the same path.
Currently our loan application is under consideration. Much of that is down to how it can be underwritten against security. At times this seems more important than the business plan itself.
If we are denied a loan on that basis we can then apply for the governments social enterprise guarantee. This is where the government underwrites the security of up to 75% of the loan.
A work in progress and the time to focus on keeping inspired, staying hungry and prepping for the big day.
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