ARE YOU LOOKING FOR FINANCE & FUNDING FOR YOUR BUSINESS?

Raising funds to support your growth is essential to any business and in the current economic climate, can prove a major challenge for any organisation. There are many finance options available but deciding which is the best route and then providing the information necessary to secure funding through that option can prove a tricky process.

This article will outline financing options that you might like to consider when raising funds for your business:

BUSINESS GRANTS

For a new business, a grant can be a perfect way to kickstart your growth. However, with so many grants available and high levels of competition, how do you make sure that you have the best chance of winning? Before you start the process it’s essential to have a comprehensive and up to date business plan and a clear breakdown of what you intend to use the grant money for. A solid view of your business history and an outline of how you intend to meet the grant’s objectives are essential as well. Grants often won’t fund the whole of your project, so sometimes it is necessary to look for additional investment sources.

BANK LOANS

A traditional way of funding your business is through debt financing or a loan direct from the bank. Usually banks will not fund start up businesses due to the risk, but do make loans to existing businesses. If you are considering this option you need to be crystal clear on the reason for and the amount of loan that your business needs. You should take time to get your personal credit history in order as well, because if your business is less than three years old this may be taken into account. A good credit score will significantly increase your chances of securing funds.

You should review bank options as well, as you may have a greater chance of securing funds through a smaller, newer bank such as Metro, rather than one of the larger banks. Once you have selected your proposed lenders, you will need to prepare your business plan and pitch carefully before talking to the bank. Swindells have successfully helped all types of businesses to secure bank funding - if you would like further information on this option do get in touch using the contact details below.

ANGEL INVESTORS

One financing option that is becoming more and more popular with new businesses is Angel Investing (equity financing). Angel investors are private investors who provide business capital to businesses in return for an equity stake – think Dragon’s Den. They usually offer their expertise in business and you can secure a valuable advisor early on with this option. You must make sure if you are considering this, that you are willing to have another voice in your business and be prepared to give up some of the equity for the advantages.

VENTURE CAPITAL

For larger businesses and in certain circumstances start ups, Venture Capital may be a viable option. Venture Capital is usually provided by a professionally managed fund that invests in businesses deemed likely to provide high rates of return. A VC investor supplies funds in return for a stake in the business, but will expect to be able to sell their stake and make a large return within 3 to 5 years. VC funding might be attractive to businesses that are unable to secure business loans from financial institutions due to insufficient cash flow, lack of collateral or a high risk profile.

CROWD FUNDING & ALTERNATIVE OPTIONS

Crowd funding is a relatively new option available to businesses at any stage. Or you can go one step further like Brewdog and privately offer equity in your company to your customers. These non standard financing options need to be carefully planned and the rules of each need to be strictly adhered to but can provide an excellent and innovative option for extra loan capital.

SWINDELLS’ EXPERIENCE:

Raising finance in today’s climate is becoming more complicated while investors and banks want have a lower risk profile than they once did. We have lots of contacts in the banking industry as well as business angels, equity investors and mezzanine finance providers. We also know what information they are looking for to make their decision.

We can help give you the best chance of securing your funding by:

• Helping you to prepare business plans, cash flow forecasts and proposals to finance providers
• Creating professional and exciting presentations
• Advising on whether debt or equity is the right direction
• Discussing alternative options to debt, such as invoice discounting and maximising working capital

Get in touch with our managing partner Melanie Richardson to discuss how Swindells can help your business secure financing & funding:

Melanie Richardson - Managing Partner

Email: melanier@swindellsaccounting.co.uk

Tel 01825 763366