Insights into Raising Finance
Insight into Raising finance:
For : Start Ups, SME’s, Corporate, Franchisors, Franchisees, commercial and private property, Investment, Equity Finance, invoice finance, short-term finance and bridging loans
Raising Finance is not impossible ! Banks are lending ! and there are many alternative sources of funding available too!
Where ever you get your funding from- the right bank for your business and sector, and a good bank manager is vital to the successful future of your business. But alternative sources can also be used in conjunction with your banking facilities- and many can prove to be more tax effective.
Its a matter of assessing and working out the best sources of funding for your business; preparing in the right way and approaching the right funder/bank and bank manager for your requirements and business. We can help you with all of this !
Important Points and Tips:
- Personal status and readiness?
Banks/Funders are not just investing in your business and your “guestimated” business plan and financial forecasts, but in you as the
owners/Directors. Important is: Your background, years of and relevant experience, management of your personal ad business accounts, and
how you have managed and developed your business to date. Credit score is important.
Do not: miss payments; bounce cheques, go into unarranged arrears. If it happens- be transparent.
- Business Requirements?
Calculate what your business really needs and can afford- strategically? Not what you think it needs or you need personally! assess any changes
you can make internally to reduce your requirement e.g. chasing late payments; early pay incentives to clients; change your terms & conditions?
Are you ready for growth internally or is it too early?
Is there enough demand to satisfy your growth?
- Funding options – and choosing which is the right one/s for you?
Invoice finance and/or asset finance? VAT reclaim? Trade credit? Buyer finance? Stock finance? Equity finance? Crowd finance?
Overdraft facility/ loan/R&D tax benefits
Which is the right bank and find the right bank manager?
one type of finance or a number of them? staging the finance requirements?
Maintain your accounts well, keep a good relationship with your bank manager for future facilities; be clear and transparent!