Business Survival in a Recession

The economic climate at the moment means that it is more important than ever for businesses to be able to access appropriate and targeted business support.

The major business support agencies have existing and new services that address some of the issues that businesses are experiencing and these go some way towards helping to protect jobs and save companies at risk.

For further information contact Michelle Gordon on 01255 686376 or mgordon@tendringdc.gov.uk.

Tendring District Council have also published a Credit Crunch leaflet which looks at the help and advice that is available for residents and businesses in the District and an Economic Recovery Action Plan which sets out the actions that have already been taken by the Council to help businesses and residents through the recession and lists the actions that will be taken to shape service delivery in the future.

Business Link

In response to suggestions that the UK is already in a recession, Business Link has issued a Ten Point Plan to help your business survive the economic slowdown.

These steps are a starting point for anyone who is worried about the survival of their business.

Response2Redundancy

As part of the Beyond 2010 programme, EEDA and the European Social Fund (ESF) have allocated £2.2 million to the Response2Redundancy (R2R) package. This scheme offers job advice and training to those facing redundancy as well as offering employers subsidies to retrain staff who are to be made redundant.

R2R focuses on providing funding for people to gain qualifications at NVQ 2, 3 or 4 so that they can return to the labour market with something new to offer. It also covers key and basic skills, and runs group sessions on "soft" skills, such as interview techniques and CV preparation.

This programme is managed by The Consultancy Home Counties (TCHC) on behalf of ExDRA (Essex Development and Regeneration Agency).

If you are interested in applying for funding from this scheme please contact Lorraine Gimson at lorraine.gimson@tchc.net.

Job Centre Plus

Recruitment Services - Free support for businesses is available to retain and recruit the right people. From the Vacancy Advertising Service reaching millions of candidates to Local Employment Partnerships working with employers to understand your recruitment and training needs and access the appropriate assistance to help your business grow and prosper.
Contact: Peter Willis
Tel: 01245 214266
Email: peter.willis1@jobcentreplus.gsi.gov.uk
Web: www.jobcentreplus.gov.uk/employers

Redundancy Support including Rapid Response Service - Working with partners supporting employers who are making people redundant, by helping employees to identify transferable skills, job-focused training to develop vocational skills, CV and job search support, and advice on claiming benefits.
Contact: Karen Downey
Tel: 01245 214265
Email: karen.downey@jobcentreplus.gsi.gov.uk
Web: www.jobcentreplus.gov.uk/employers

Jobcentre Plus - Jobseeker Services - An online and telephone based service for all customers including those being made redundant. Providing information about alternative jobs, matching to vacancies, CV creation and job searching skills and information about benefits.
Tel: 0845 6060 234
Textphone: 0845 6055 255
Web: www.jobcentreplus.gov.uk

For more information on the full range of services that Jobcentre Plus can offer, visit their website.

Enterprise Finance Guarantee

The Enterprise Finance Guarantee is a guarantee facility for small businesses intended primarily to improve the availability of working capital through term loans and the consolidation of overdrafts. It will also support lending for business growth and development in cases where a sound proposition may otherwise be declined due to a lack of security.

Loans of between £1000 and £1 million are available through this scheme.

The guarantee will cover the following types of lending:

• new term loans (with terms between one and ten years)
• existing lending where lenders might not otherwise refinance the debt
• conversion of part or all of an existing utilised overdraft into a term loan in order to release capacity in the overdraft to meet working capital requirements (conditional on the lender being prepared to continue to provide an overdraft and the serviceability of both the term loan and the overdraft).

Small businesses in the UK with an annual turnover of up to £25 million are eligible. Loans for most business purposes to businesses in most sectors are eligible. The principal exclusions relate to businesses in the agriculture, coal and steel sectors, and to the financing of individual export orders.

Delivery of the Enterprise Finance Guarantee, including the decision on whether or not it is appropriate to use it in connection with any specific lending transaction, is fully delegated to the participating lenders. There is no automatic entitlement to receive it, nor is there any pre-qualification process for it.

Working Capital Guarantee Scheme

The Government is making guarantees of up to £10 billion available to banks, which will support bank lending of up to £20 billion. The purpose of this facility is to release capital which banks can redeploy in order to increase all types of lending above their current plans to businesses with a turnover of less than £500 million.

Capital for Enterprise Fund

This fund will allow business development by selling debt in exchange for an equity stake in their business. It will cover equity and quasi-equity of £250,000 and £2 million for companies with turnover up to £50 million who have viable business models and growth potential in need of long term capital.

Trade Credit Insurance Top-Up Scheme

Eligible businesses will be able to purchase "top-up" credit insurance cover under a new scheme which will help businesses whose credit insurance has been reduced by their provider.

Trade Credit Insurance covers businesses against the risk of bad debt due to the insolvency or protracted default of their buyers. It can provide a replacement of working capital when bad debts and late payment impact on cashflow.

The scheme is open to eligible businesses trading in the UK, with a trade credit insurance whole-turnover policy. If your credit limit is reduced you can purchase top-up cover via your existing credit insurance provider who will administer the scheme on the government's behalf.

For further information on any of these schemes visit the Business Link Real Help for Business website.

Designing Demand - Generate

Designing Demand is a compelling package of business support from the Design Council. It helps businesses discover how to become more innovative, more competitive and more profitable. It does this by giving managers the skills to exploit design by spotting opportunities, briefing designers and running design projects that deliver.

One-day workshops show managers and business advisors how good design makes money. Then, intensive services bring top-level expertise direct to the boardroom to find opportunities and work on projects.

Workshops, services and up to five days' Design Associate support are provided at no charge. The only direct cost is design consultancy fees. Each design project is different, but as a general guide businesses have seen substantial returns on design investments of between £5000 and £14000.

Businesses can find out more and register for a one-day workshop on the Designing Demand website.

Foundation East

Foundation East is a Community Development Finance Institution (CDFI) which, since 2004 has been providing loans of up to £50,000 to existing and start-up businesses in the East of England when they have been refused by a bank.

This not for profit organisation serves the six counties of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk. Their latest Annual Review, which details many recent local success stories from around these counties, can be seen on their website:
www.foundationeast.org.

Foundation East also develop Community Land Trusts, enabling communities to refurbish, own and control local assets. This initiative is designed to create affordable housing and managed workspaces, particularly in rural communities. Their first successful project was the creation of eight managed business workspaces at Miles Ward Court in Halesworth, Suffolk.

Business lending terms are designed to respond to customer needs:

• Lack of security is not necessarily a barrier to lending.
• A poor credit history or no credit history will not automatically exclude a client from borrowing.
• Interest rates remain constant at 19% throughout the loan term with an initial arrangement fee of 2%.
• • There are no termination penalties for early repayment.
  • There are no annual reviews or annual re-arrangement fees.
  • The Business Loan Managers remain in contact with their clients, at no additional cost, through monthly calls and quarterly meetings.

Foundation East measure success through jobs created, jobs saved and ultimately, being able to eventually return a business back to the main banking sector. Their Business Loan Managers look for drive, passion and a good business idea which is supported by a credible business plan.

For further information and details regarding the application process visit their website or call 0845 293 7751.

VentureNavigator

VentureNavigator is a free, impartial online service for start-ups, entrepreneurs, and businesses looking to the next stage of growth.

Available 24 hours a day, VentureNavigator has been developed to provide constructive feedback to help you avoid the common pitfalls and problems that many businesses experience.

The information and feedback that you receive will help you take a strategic look at your business plan, your strengths and weaknesses and what you should do next.

VentureNavigator also hosts an online community where you can ask a question and let the experience of others provide the answer.

Doug Richards, one of the founders of VentureNavigator, Chairman of Library House and former "Dragon", has developed 6 Tips for surviving the economic downturn to help businesses identify the key areas to focus on to help survive the recession.

Business Debtline

Business Debtline is a national telephone helpline for the self-employed and small businesses with debt problems in England, Scotland and Wales. The service is free, confidential and independent and has existed since 1992. Business Debtline is now part of the Money Advice Trust (registered charity no. 1099506).

What does Business Debtline do?

The service provides self-help advice to its callers and also produces written self-help packs and fact sheets to back this up. Expert advice on the full range of debt issues from dealing with tax arrears to avoiding repossession of home and business is offered.

The service can also assist callers with the setting up of debt management plans for England & Wales or Scotland through its sister organisation, National Debtline.

Visit the Business Debtline website for further information.