What is the attitude of clearing banks, equity funders and other finance providers in the current market?

As the economy starts to move out of recession and business optimism grows, I am often asked this question. The Government actively tried to stimulate growth by encouraging funding and this has manifested itself in a number of schemes during the recession. Some have been marketed and promoted by funders with patchy success.

However, there are now real signs that all lenders are showing more confidence in the economy and a willingness to lend, so looking at propositions more favourably. Access to venture capital and private equity appears strong and there are a number of regionally based funds keen to lend, particularly for propositions in excess of £2 million.

One notable feature of this has been setting up the Business Growth Fund – specifically set up to address the £2m to £10m area where there has long been a perceived "funding gap".

In addition, those providing more traditional, debt-based forms of finance have come back to the market with renewed vigour. Those with a sustainable proposition – perhaps a strong trade debtor book or inventory of plant and equipment, will get a favourable hearing from potential lenders.

However, one strong lesson learned from the recession by funders is that they will look to a strong well-structured proposition before committing to any lend. Particularly, funders are looking to see:

•Profitable business with sustainable revenues

• Good balance sheet

• A strong management team with a well-put-together business plan

• Strong financial controls

• Good corporate governance.

Lenders now take time to review any proposals and test them. So for those looking for funding, take time to structure a business plan, think it through and demonstrate its viability. This will also see the business provide a road map for management and monitoring as the business develops.