There are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business.
The most common funding options are:
Bank loans and overdrafts
Leasing and contract hire
Sales invoice factoring and discounting
Private investment sources
The areas that require funding should be split into short term capital requirements and long term capital requirements. By splitting the required funding in this manner, it will help to identify which source of finance is suitable for which area. Having determined the split, you must then consider the various options available, which will depend upon the nature of your business and the time frame for raising the finance.
The other main issue in obtaining finance is to consider the security that you can offer. This may be, for instance, a loan secured on your home or may be funding advanced for a specific business asset, where the loan is secured on that asset.
Many new businesses suffer from a lack of cash funds and a failure to provide security for loans. To set up the incorrect level or type of funding could be tremendously harmful to the chances of a new business surviving. Therefore, you need to seek professional advice to ensure that all available finance options have been identified and investigated.
Seaman, Herbert & Co has an extensive network of providers of finance, which we can use to match your requirements, prepare robust business plans and cash flow forecasts and help you through the process of raising finance.
If you would like further information regarding this service, please don’t hesitate to contact us.
Speak to an accountant today
Tell us how we can be of service and one of our team members will contact you.