Virtually all new businesses need to raise funds. Amongst the most common sources of business finance are:
- Using your own money - whether savings, selling assets or re-mortgaging your home
- Bank overdrafts - this may be a good way to finance a temporary cash shortage
- Venture capital and business angels
- Borrowing from family and friends - it is sensible to draw up a written loan agreement
- Issuing shares for your company
- Hire purchase
- Selling an interest to a partner
- Bank loans - typically this is a longer term commitment, so is more suitable than an overdraft for a growth strategy
- Debt factoring
Most lenders will require some form of security from you. Typical forms of security include:
- personal guarantees.
- fixed or floating charge over your business assets
- second mortgage on your home
You will almost certainly be required to present a comprehensive and convincing business plan to show how you are going to service the loan.
From choosing a financier, to securing the loan and compiling a business plan, our experienced team can offer expert support and advice.
Our Kingston upon Thames team has the expertise to help you decide the best method of funding your business. We will examine your particular circumstances and do a comparative study of the costs of each possibility, as well as considering any tax implications.
We also have the necessary experience in making presentations to banks, venture capitalists and other sources of corporate finance, to ensure that your chances of success in raising finance are maximised.