Full Circle Partners, the Edinburgh-based firm created by Blackcircles.com founder Mike Welch, provides an alternative source of cornerstone investment and support to Scottish businesses looking to take their product to the next level. This new venture, founded in September 2017, resulted from the need to bridge the funding gap left by banks after the financial crisis.

Since the 2008 financial debacle, banks have become notoriously tight-fisted in their lending to small businesses and while other sources of funding have emerged, none have yet to fill the void left by banks. With the Bank of England’s base interest rates predicted to increase in May, it is going to become even more difficult and costly for businesses to borrow from traditional lenders.

This lack of funding will hinder Scotland’s economic future, which is why it is so crucial that it is bridged. Veteran entrepreneur and one of Scotland’s richest men, Jim McColl has said that more needs to be done to address this funding gap. McColl believes that it has resulted in an uneven playing field for Scottish businesses competing with European companies, who receive considerably more investment and support from their government.

More Flexibility Than a Bank

Full Circle Partners has also launched a property development fund, which is aimed at securing finance for developers to acquire assets or complete projects. The fund aims to invest £20 million over a 12–18 month period in and is already it is backing six projects around the Central Belt.

Aside from funding, Full Circle Partners also offers advice to owners on company structure, legal matters, marketing and how to achieve exits.

Tyre tycoon Mike Welch said: “It’s just about having the flexibility. Where the computer in the big institutional investment or organisation says no, we can say yes.

“That fundamentally doesn’t mean we are going to take more risk, it just means we have the flexibility to assess and appraise an opportunity and extend the finance or the investment to bridge that gap.

“Where there’s a great product and really strong developers we’re well placed to have a conversation and bridge any gap between them and the traditional funders.”