Explore more insights

Innovate UK’s new loan scheme and the power of audacity

Following on from the success of its pilot scheme, Innovate UK has formally kicked off its Innovation Loans programme.

Ollie Maitland Aug 13, 2019

From now until 11 September, your SME clients can apply for a share of £10m to work on highly innovative, late-stage projects.

Far too often, innovative ideas fail before they can even get going, not through lack of will or trying -- but simply a lack of capital. Accountants will be intensely familiar with how the day-to-day realities of staying afloat mean many businesses simply tread water rather than innovate.

 

The cost of this mass limiting of ambition can’t be truly measured, but without a doubt, there are a treasure trove of unrealised ideas and innovations that could have, as the old Silicon Valley cliche goes, made the world a better place.

Google’s co-founder Larry Page has gone on the record about what he calls “moon shots”. These are ideas that are singular, and not interested in only incrementally improving on a competitors product. Page told Wired Magazine:

[I]t's always about the competition. But it's hard to find actual examples of really amazing things that happened solely due to competition. How exciting is it to come to work if the best you can do is trounce some other company that does roughly the same thing?

In other words, real breakthroughs are a conscious effort driven by something more intangible than just market competition. The audacity and the will to make these breakthroughs exists already, what’s needed now are effective mechanisms to channel resources to fund these ideas.

That is what Innovate UK’s SME loan programme is trying to address, and where accountants can help their clients access the capital they need to grow. For businesses who receive the funding, the loans will be used to support cutting-edge innovations become successful commercial realities.

What does it mean for SMEs?

There is a pot of £10m available, and micro, small or medium-sized enterprises (SMEs) who are conducting highly innovative, late-stage projects can apply for loans between £100,000 and £1m are per project. To be considered, your project needs to demonstrate:

 

  • A clear game-changing idea
  • How the idea can lead to innovative products, processes or services significantly ahead of the current field
  • Practical financial plans

 

If that sounds like one of your clients, then definitely encourage them to apply! Beyond Innovate UK’s programme, however, there is still plenty to do about the UK’s SME funding shortfall.

By now, we’re all familiar with the challenges innovative SME businesses face accessing funding. Programmes like Innovate UK’s are welcome, but its also up to the entire SME funding ecosystem to catch up. Over half (55%) of UK SMEs are unable to access the funding needed to grow.

As the country faces up to economic challenges in the months and years ahead, The UK cannot afford its potential being constricted by a funding infrastructure not fit for purpose. Accountants can and should be central to this mission.

Ultimately, this can be the profession’s own moon shot: transform funding into an advisor-led activity that supercharges innovation rather than stifles it. 

Incidentally, it was fifty years ago this year that the original moon shot paid off: The world watched the Apollo 11 crew set foot on the moon in 1969. We have to keep that spirit of big ideas and bold ambition alive. The UK’s businesses are ready, the rest of us need to catch up.

 

Create a culture of funding for your firm 

finance
profitability
help
alternative finance
invoice finance
fintech
news
accountant
case study
trade finance
contract finance
working capital
startup loans
refinancing
fashion finance
merchant cash advance
future accountant
product of the month
women in funding
partner of the month
business tips
accountants
accounting
product
forecasting
live session
accountex
2019
capitalise
funding
monitor
ai
international women's day
covid19 coronavirus
corporate finance
accounting firm
m&a
asset finance
hire purchase
businesses
credit score
rls
business funding
business credit score
south africa
business
adviser
small business
business loan
property finance
commercial mortgage
credit imporvement
spring budget 2023
small businesses
spring budget
ccj
inflation
commercial mortgages
trade debtors
cash flow
truck finance
late payments
lorry finance
manufacturing
building a financial safety net
healthcare
trade debtor days
overdraft
bridging loan
credit checks
interest rates
overtrading
templates
balance sheet
construction
bad debt
company credit checks
debt collection
credit control
check company credit
business loans
instant offer
credit scores
credit review service
economy
company credit check
commercial property
revolving credit facility
line of credit
property
recovery loan scheme
growth guarantee scheme
business finance
business credit scores
Follow Us
Sign Up to Receive Updates

Signup to our newsletter

Have insights about the accounting community sent straight to your inbox. Sign up to our newsletter.