Creative industries get £24 million boost

Creative businesses that are rich in Intellectual Property (IP), already generating revenue and have the potential to scale up could benefit from loans of up to £500,000 under a new scheme.

According to recent estimates, if the creative industries had proper funding, they could grow by 50 per cent and create 60,000 new jobs by 2023. However, 72 per cent of firms in the industry with the capacity to scale up are unable to because of a lack of growth capital.

Working in partnership with Triodos Bank, Creative England aims to plug that gap via the Creative Growth Finance Fund. Triodos Bank is providing £10 million of the fund, with £5 million coming from Creative England and a further £9 million of funds coming from Creative England’s returns reinvested over the four years.

The Creative Growth Finance fund will offer one of the most competitive interest rates available to smaller creative firms and tailored loan repayment structures to successful applicants. Moreover, there will be a regional network of investment and sector specialists on hand to advise the businesses that have taken loans.

Creative England, which supports the creative industries, has invested £20 million in creative businesses since 2012. Interestingly, it has used 81 per cent of this funding to help businesses outside of London and the South East, and 83 per cent of businesses supported have surpassed three years of trade, compared with a national average of 60 per cent.

Nigel Fry, General Practice Partner at Milsted Langdon, said: “There is great potential for creative businesses in the UK to grow if given the opportunity and financial support. This increase in funding is vital to help businesses foster innovation, creativity and to also prepare for the future.

“If any businesses are interested in trying to access finance from the Creative Growth Finance fund or they are interested in financing, in general, they should speak to our corporate finance team today.”

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