Commentators expect there to be a rise in the level of private investment into small and medium businesses throughout 2012.
“Envestors’, an investor network company, reports that in the last 6 months it has experienced a 25% rise in the number of investors looking for companies to inject their cash into and a significant rise in the number of companies seeking private investment and it seems likely that this will continue into 2012.
With many companies still facing difficulty in obtaining funding from the traditional bank route and with the banks maintaining their cautious approach to new lending, private investors have been filling the gap. The introduction of the Seed Enterprise Investment Scheme (SEIS), in April 2012, which will offer 50% tax relief to investors willing to put up to Â£100,000 into early start-up businesses, is also likely to boost private investment levels. Provided the investment terms are properly documented, this can only be a heartening trend for those SME’s looking to grow and expand in 2012.