Whether you need help with growing your business or advice on optimising your personal or family finances, we are here to help you get the best results.

Raising finance for your business

Raising finance for businesses can be challenging to say the least. If you are thinking of expanding your business, or starting a new one, you will probably need to raise finance. This requires careful planning and good professional advice. It is generally wise to seek financing from a number of finance sources. This will give you greater prospects of funding and flexibility in the long term. Some of the more common sources are:

  • Overdraft
  • Loan
  • Mortgage
  • Selling an interest to a partner
  • Share issue for your company
  • Hire purchase
  • Leasing
  • Debt factoring
  • Assistance from government-backed schemes
  • Venture capital
  • Business angels

It is important to do a comparative study of the costs of each possibility, and also consider any tax implications before making a final decision about who to approach. This is an area where we have considerable experience, networks and expertise.

Most lenders will require some form of security. No amount of security will make a bad plan good, but it does demonstrate commitment from your side and provide insurance for the lender. As one banker recently said 'If they're not prepared to take a risk, why should we?' Generally acceptable forms of security include:

  • Charge over a specific asset or class of assets e.g. car / debtors
  • Fixed or floating charge over your business assets
  • Second mortgage on your home
  • Personal guarantees

Again, you might consider using more than one form of security. If the lender requires personal guarantees you should proceed with great caution. Try to ensure that any such guarantees are limited in amount, if not in time. You will almost certainly be required to present a comprehensive and convincing business plan to show how you are going to service the loan. In essence, this must demonstrate that you will be able to meet the new commitment through sustained growth in your business.

In all three areas - choosing a finance source, securing the finance, and preparing a business plan - you will benefit greatly from our professional advice. Why not arrange to meet with us and take advantage of our in-house expertise and extensive network of contacts? We might even be able to help you refinance your existing commitments to your advantage.

The majority of businesses will need to take out a loan at some stage. Borrowing can help pay for new equipment or plant; or it can fund the expansion of development of a business.
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Equity finance is a way of funding a business or a business project. The funding is provided by an external investor who receives a share of the profits, usually a share in the ownership of the business and often a share in the running of the business.
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