SMEs & Entrepreneurs Club – 11th Session
Thursday 20th January 2011
Funding Growth
Key Speakers: Christopher Clark, BDO
Dominique Landreau, Accor
Co-Chairmen: Cedric Filet, Aldelia Ltd
Nathalie Zimmermann-Nénon, NZ Consulting
Attendees:
Yan Bechet HSBC Bank Plc, Fabrice Beillevaire Fromagerie Beillevaire UK Ltd, Catherine Berasategui The
Connaught, Michelle Davenport Piper Smith Watton LLP, Rafael dos Santos London UP! Accommodation,
Geraldine Fabre Pritchard Englefield, Jean-Christophe Fonfreyde Papillon Consulting Ltd, Virginie Gil AGS
Four Winds International , Ronald Graham Edwin Coe LLP, Laurent Guilbaud Currency Change Ltd, Stan
Harris Lyndales, Lawrence Holland Expense Reduction Analysts, Sharokh Koussari Howard Kennedy, Tom
McNeile L'atelier des Chefs, Olivier Mougin C.W.F. Children Worldwide Fashion , Laurence Parry, French
Resources, Karine Pommat Kuwahara Limited, Julian Rampton Royds LLP, Anne Roques Evolution
Coaching, Lauriane Roussel Salans LLP, Frédéric Sancho Ascenda Management Consulting, Emmanuelle
Savarit Analyse-Concept , Jean-Michel Sylvestre Charmont Investments , Alexandre Terrasse Jeffrey Green
Russell, Jean-Philippe Verdier London Business School
CCFGB:
Nadia A. Ziani, Head of Membership/ Patron Account Manager
Jonathan Rosen, Project Coordinator
1. Introduction by Cedric Filet
After welcoming participants, Cedric Filet introduced the session by welcoming new members and talked
the group through the format of the session which would include a presentation from BDO and Accor
followed by an engaged discussion with the participants. Mr. Filet introduced the first speaker Christopher
Clark, a partner at BDO and the topic presented ‘Funding for SMEs’
1
2. Presentations by Speakers:
2.1 Christopher Clark, BDO
Christopher delivered a comprehensive presentation on the technical aspects of Funding Growth in the
SME business world. He advised participants on:
The funding Triangle: The different kinds of funding available including Equity, Loan Stock, Mezzanine, Bank
finance, incorporating amount of funding and keeping in mind risk of return.
Debt Considerations: Risk, relative cost, Tax deductible interest, balance sheet presentations.
Debt Options: Invoicing Discounting (‘ID’), Asset based lending, Cash flow lending
Options for equity injection: Private, What Equity providers are looking for, How to structure an
investment.
2.2 Dominique Landreau, Accor
Dominique delivered an insightful presentation on his experiences of Growth funding within the hotel
industry. He took participants through the following points:
The growth of the company: the present business in new markets
Components of long term investments: Currency, rate and duration of debt, banks and security,
prepayment penalties, economic conditions.
Property specifics: Property generally speaking needs to undertake more risks: loan contracts.
Vital Components: A perfect knowledge of the business, perfect knowledge of local conditions,
2.2 Round Table Session
Participants gained knowledge from the speakers, particularly on gaining funds from banks as an SME.
Christopher stated that the challenge is convincing the bank that there is a guarantee to gain the money
lent returned, this is where private equity is a much greater risk, hence why they can impose a greater fee.
Current relationship with the bank is something not to ignore, if they know the business they are less
reluctant to provide an investment, hence a detailed business plans could prove immensely beneficial.
Each loan is dependent on case details.
There was a feeling from the group of a lack of care from the bigger banks towards the smaller business. It
was then added that feelings towards the bigger banks are slightly antagonistic as dedicated account
2
managers are practically nonexistent, particularly when decisions are made concerning funding growth
they are often made through box checking without any real knowledge of the company in question; there is
a lack of understanding towards small businesses. Thirty years ago banks knew everything about the client,
now things have shifted; there is no longer a personal relationship, perhaps due to a high staff turnover. A
relationship manager is often assigned in France as there are specifics that are needed to be dealt with
constantly by a dedicated person. This is not the case in the UK.
It is also necessary to understand the economic climate. Banks are lending relative to caution, particularly
in the current climate with dangers of over lending.
AOB & Next Sessions:

The next topic will be Social Media on March 3rd

LinkedIn group information will be communicated by Jonathan Rosen within the next few weeks
3