We know that raising finance is not easy in the current economic climate, however good financial information will improve your chances of success.
To support your finance application consider analysing your financial accounts (as per our last email), produce a financial forecast and consider providing a forecast of your business that shows how it would still perform if external factors were to impact your business, such as an interest rate rise or reduction in customers or price.
Your business could be financed in a number of different ways and quite often a combination is used. You can consider:
- Your own personal monies
- Conventional bank finance – overdrafts, commercial mortgages, business loans, commercial investment mortgages
- Asset finance – hire/lease purchase, finance lease, operating lease, contract hire, sale and leaseback
- Invoice discounting and factoring
- Equity finance
- Private investors – business angels
We would suggest that you explore the appropriate options for your business and from our experience the key considerations in relation to your choice of finance should be:
- Speed of decision
- Price – interest rate and fees
- Security required
- Quality of service