Apprenticeship Providers: Finance to take advantage of the training boom
The government’s Apprenticeship Levy means a boost for businesses that deliver training - we can help you the finance you need.Speak to one of our experts020 4525 5312
- Spread the cost of any equipment
- Use the latest IT systems
- Release cash tied up in equipment
- Rates from 6%
- Take on staff, extend competencies
- Expand into new sectors - like MBA
- Create training material
- Contract finance
Any Funding Need
- Tax bill? Spread the cost
- Fund marketing
- Commercial mortgages for 2% above base rate
- Provide mobile training facilities
The Government’s promise of 3 million new apprentices by 2020 has revolutionised the training industry, with the Apprenticeship Levy offering a key source of additional funding.
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With 15 different bands of funding available, ranging from £1,500 to £27,000 per subject, there is increased scope for developing skills at all levels, from semi-skilled operators to postgraduate engineers. Innovative providers are also finding ways to use levy funding for management training and MBA qualifications.
If you run a training organisation, you now have tremendous scope for building your business and developing new services. But, to take advantage of the potential the sector offers, you will need to call on a range of funding solutions.
At Rangewell, we are uniquely placed to offer the finance you need - and the products we offer include some innovative new ways to answer the key challenges the world of training can offer.
Contract Finance - providing upfront funding
Those familiar with government funding for training recognise that payments from government sources, although absolutely reliable once agreed, are likely to be slow. This can create cashflow issues and put a brake on growth.
Typically, funding must be applied for on behalf of each trainee. However, even when approved, funding from the Education and Skills Funding Agency (ESFA) may not be made available until a period of weeks or months has passed. Conventional solutions, such as Invoice Finance, are not appropriate with government funding arrangements, where monthly invoices are not employed.
The solution is Contract Funding. Contract Funding can provide a cash advance based on the value of a government educational contract, offering the convenience and rapid funding of an invoice finance solution, while avoiding the need to provide invoices.
A Contract Finance solution can provide cash advances based on each contract confirmed, and cover both the company contribution and the 90% EFSA contribution.
This could provide you with:
Immediate access to 90% funding until ESFA instalments are received
Immediate access to the 10% balance until employer contributions are received
Outsourced credit control – no need to chase employers
Funding which can grow and keep pace with a growing workload
Funding for your equipment
Whatever sector you train for, you will need equipment so you can offer hands-on training. From basic hand tools to demonstration rigs for engineering, we have found that asset funding can often provide the most cost-effective solutions.
Hire Purchase can help you spread the cost of buying equipment that you want to go on giving service for years. Leasing can provide the latest equipment without the cost of owning it.
Funding for premises
Catering for increasing numbers of apprentices will place increasing demands on your premises. If you want to provide a full training academy, you will need premises in a good location, ideally with parking as well as public transport access. This may be a major cost for your training practice and you may need to borrow for the deposit on a long-term lease. Find out more about Unsecured borrowing
Alternatively, you might want to buy premises with a Commercial Mortgage.
Commercial property mortgages are arranged on an individual basis and you can find out more about commercial mortgages here.
Are you a tenant who wants to buy their premises from their landlord?
Funding to refurbish your premises
You need to present a safe and modern interior to provide a productive learning environment, and to attract client organisations. Find out more about finance for refurbishment
Working Capital Finance
Working Capital Finance is designed to boost the working capital available to a business. It's often used to provide cash to pay staff and suppliers during a period of growth and is designed to be repaid in the short- to medium-term.
Our finance experts can help solve your working capital needs.
Growth Finance is a special type of funding designed to fund your growth plans. Even if you do not have the long trading history and profit record that lenders usually require, we can help you find solutions.
Get our help finding the most competitive lending for your needs.
Unsecured and Secured loans
Tax Loans help you to spread the cost of your quarterly and annual tax demands into affordable monthly payments, making them easier to deal with, and helping you avoid cashflow problems.
Our finance experts can help you deal with your tax bills.
Jigsaw funding for your training business
If you have a major project, such as acquiring another business you may require funding from more than one source. At Rangewell, we are experienced at creating this kind of ‘Jigsaw’ funding, which allows us to use our financial expertise to provide the most cost-effective solution for each aspect of your financial plans.
Contact us to discuss how jigsaw funding can provide answers for you.
REAL EXAMPLES OF WHAT WE CAN DO
Provide Contract Finance to help a training company operate under the EFSA funding protocols
Find a lender to provide the most competitive commercial mortgage to acquire premises for an academy
Help arrange funding for every stage of a training company’s expansion programme
Find the most effective source of funding to help a company take on skilled staff
Find funding to help deal with tax bills
Last update: 16 May 2022
Download Rangewell’s free and detailed guide to business lending for Training and Apprenticeships Businesses
What kinds of funding are available for training and apprenticeships providers?
How can they provide extra funds for you - without reducing funds available for your business?
Why you must find the right lender to cut the costs of lending for your business
Are there any downsides of external borrowing for your business?
What paperwork will you need to provide with your finance application?