Access to finance
Are you thinking about taking your business to the next level?
Whether you’re opening a new site, expanding your product or service range, or increasing production these all require capital. It’s an exciting move, but it often requires the right financial support. Before you dive into the world of funding, consider these practical steps:
- Assess your business stage: be upfront about where your business is currently. It’s a key factor in determining what funding options are available. This sets the tone for future success.
- Define your future: have a solid business plan. Imagine the impact of successful funding, estimate your future earnings, and grasp the financial details crucial for securing funds.
- Be realistic: determine the exact amount you need. Realism is crucial for making your project a success.
- Plan it out: get quotes and plan your needs thoroughly. This upfront effort ensures you understand if your project is doable.
- Look inside and out: check out various funding sources, both within and outside your organisation. The best fit depends on your own business situation.
In your journey towards sustainability and growth you will find there are many different options for external finance. It is important to take time to find out which ones will be the right route for you and your business.
Let’s look at some of the types of finance available:
Bank overdrafts – unlocking short-term financial flexibility
Discover the advantages of a bank overdraft, a dynamic line of credit on your business bank account that offers more short-term funding than your business’s own capital. Unlike fixed repayment loans, with overdrafts, you pay interest solely on the amount overdrawn.
Bank loans – fuelling business growth with financial agility
Explore the benefits of small business loans for expanding your business without waiting for sufficient income. Imagine identifying a market gap and seizing the opportunity instantly, rather than waiting to accumulate funds. Borrowing money can propel business growth by capitalising on timely opportunities.
Grants – a funding oasis without repayment obligations
Enter the world of grants - funding from public sector or private organisations that requires no repayment. Typically tailored to specific business activities, stage, sector, founder demographics, and location, grants provide a financial boost without the burden of returning the funds.
Crowdfunding – empowering ventures through collective support
Unleash the potential of crowdfunding, a method harnessing small amounts of capital from a broad network to finance new ventures. Utilising the accessibility of social media and crowdfunding platforms, this approach brings investors and entrepreneurs together, expanding the pool of backers beyond traditional circles.
Angel finance – elevating start-ups with strategic backing
Meet the angel investor, a specialist in providing financial backing for small-business owners and entrepreneurs, particularly in the start-up stage. Their funding can make the crucial difference between a ground-breaking idea taking flight or remaining grounded.
Leasing assets – a strategic solution for financial efficiency
Explore the financial efficiency of leasing assets instead of making costly equipment purchases. Whether it’s machinery, computers, or vehicles, leasing releases cash for growth, offering flexibility and tax benefits, with the added advantage of upgrading to newer assets at the end of the lease.
Invoice discounting - enhancing cash flow with unpaid invoices
Dive into the world of invoice discounting—a financial service where a provider lends cash to a company based on the value of its outstanding invoices. As the buyer settles the invoice on the due date, the supplier repays the borrowed amount along with a pre-agreed service fee.
Flotation – transforming private companies into public players
Experience the process of flotation, transforming a private company into a public entity by issuing shares for public purchase. This strategic move allows businesses to secure external financing without solely relying on retained earnings for new projects or expansion.
Venture capital – empowering early-stage growth with strategic investment
Delve into the realm of venture capital (VC), a form of private equity funding that supports startups and early-stage companies with substantial growth potential. Beyond financial backing, venture capital provides valuable guidance, resources, and extensive business connections
In the diverse landscape of financing options, each avenue offers a unique set of benefits. Explore, consider, and choose the path that aligns seamlessly with your business’s aspirations for growth and success.
