After intensive and very successful beta-testing, a “third way” of Internet Marketing is being launched at E-Commerce Expo 2007 by Strategy Internet Marketing: Pay-Per-Results (PPR).

John Courtney of Strategy Internet Marketing commented: “Until now there have been two main methods of Internet Marketing: Pay-Per-Click (PPC) and generic Search Engine Optimisation (SEO).  Pay-Per-Click has become very popular because the client only pays every time a prospect clicks on his advert.  Search Engine Optimisation, while very effective, is traditionally priced with up front fees which puts some clients off as it demands a financial commitment and the SEO company is paid regardless of how well they perform.

This Pay-Per-Results (PPR) method is really combining the best of Pay-Per-Click and the best of Search Engine Optimisation. We are only obtaining generic listings but we have priced it like PPC.

One electrical e-commerce client that Strategy Internet Marketing has been working with over the past few months on Pay-Per-Results (PPR) has seen dramatic increases in both traffic and sales and a substantial return on investment.”

Strategy Internet Marketing is a division of Strategy Consulting Limited which has just celebrated its 10th Anniversary.

FURTHER INFORMATION AVAILABLE FROM JOHN COURTNEY ON 07976 436757 OR 0117 377 8237 OR ON STAND 103 AT E-Commerce Expo 2007

We have since the government abolished the DTI and replaced it with BERR (department for Business Enterprise and Regulatory Reform) received a number of enquiries to ask if the old DTI scheme no longer exists.  The scheme is now supported by BERR and follows the same rules and regulations as it did with the DTI and is very much still in existence with two of our clients having drawn down funds guaranteed by the scheme in the last two weeks.

Here is some useful information regarding The Small Firms Loan Guarantee Scheme:

Many small to medium-sized enterprises (SMEs) have viable business plans that need funding, for which a loan would be appropriate. However, some SMEs may be unable to obtain a conventional loan because they do not have assets to offer as security, because the owners have already invested all of their own funds into the business.

The Small Firms Loan Guarantee (SFLG) helps to overcome this by providing lenders with a government guarantee against default in certain circumstances, whereby the government act as guarantor for 75% of the debt and the lender will generally cover the other 25% unsecured.

The SFLG is a joint venture between the Department for Business, Enterprise and Regulatory Reform (BERR) and a number of participating lenders, largely banks. Participating lenders administer the eligibility criteria and make all commercial decisions regarding borrowing.The cost of the guarantee is two per cent per year on the outstanding amount of the loan, payable to BERR.  The bank will generally charge anywhere from 2% to 6% above base lending rate.

Some changes were made to the SFLG in December of 2005 to reflect the recommendations of the Graham Review. As a result, the SFLG focuses on newer businesses. The main features and criteria of the scheme are:

• A guarantee to the lender covering 75 per cent of the loan amount, for which the borrower pays a two per cent premium on the outstanding balance of the loan to BERR.
• The ability to guarantee loans of up to £250,000 and with terms of up to ten years.
• Availability to qualifying UK businesses with an annual turnover of up to £5.6 million and which are up to five years old. This is generally determined by the date the business came within the charge of corporation tax (for a company) or became liable to pay Class 2 National Insurance contributions (for a self-employed individual). In the case of a business transfer the five-year age limit applies to both the business making the acquisition and the business being acquired.
• Availability to businesses in most sectors and for most business purposes, although there are some restrictions.

In order to be eligible for the scheme an applicant requires and extremely strong Business Plan and needs to be able to demonstrate that they have invested as much money as they possibly can into the business themselves, the bank will potentially match fund the applicants investment if the business plan is strong enough. 

The applicant must have no personal equity or assets available for a guarantee in order to be eligible for the scheme.

One of the main misunderstanding with the scheme is the 75% guarantee, many clients make the mistake of believing that the bank will offer 75% of the required funds if they can produce 25%.  This is not the case as explained in the first paragraphs BERR acts as guarantor for 75% of the loan in the event that a business has no means of guaranteeing the debt.

—————–

Stephanie Iles

Strategy Consulting Limited

steph@strategyconsultinglimited.co.uk