Northern organizations are increasingly taking advantage of improved usage of equity and alternative finance, however the volume and price of funding remains concentrated in London.

This is according to the latest researcher from Sheffield’s British Business Bank, who operate the Northern Powerhouse Investment Fund (npif).

British Business Bank’s 2018 Business Finance Markets report provides an in-depth picture in the small company finance market across the UK. Now in their fourth year, the report highlights the quantity, value, and appetite for SME funding round the UK regions.

Equity investment remains clustered in many cities, particularly yet not exclusively London. Around 11% of your final number of UK Equity Deals between Q4 2016 C Q3 2017 were held inside North, in comparison with 51% inside capital.

While London received more funding than any UK region combined, increasing funding through new geographically-focused funds can assist reduce disparities in regional growth.

The British Business Bank’s 400 millon Northern Powerhouse Investment Fund, launched in February in 2009, provides finance to businesses through Microfinance, Debt and Equity Finance to raise SME boost in the North of England.

The launch of regional funds be portion of a wider diversification within the finance industry for the North’s online business community.

The report reveals that, while small enterprises continue to be predominantly switching to their main bank for finance, there are actually encouraging signs that company owners are increasingly using alternative resources for funding, with 58% of SMEs while in the North now aware about investment capital to be a supply of equity finance from VCs and business angels.

Keith Morgan, British Business Bank CEO, said: “A core objective of your British Business Bank is to encourage greater diversity of finance, so that we welcome the development inside uptake of equity finance along with other options to traditional lending.

“We do, however, recognise you will find additional to remain performed on fully unlock the chance of north of manchester and bridge the funding gap involving the UK regions.

“We now take over in place regional funds, for example the Northern Powerhouse Investment Fund, to fund businesses through the North. We need to develop that momentum and work to diversify and expand the financial support on the market to SMEs.”

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