Financing Your Business
Securing the right funding for your business
Finance is important to any business and access to funding solutions that best suit your needs will help you to invest, grow profitably and fulfil orders. It’s important before you look at funding to be clear on why do you need the money and how much is needed?
Most businesses at some stage, whether start-up or established will need money, either as an initial cash injection or to fund equipment, stock, property, pay the bills and keep the business going. Here you’ll find helpful information to guide you through the steps you need to take.
Establish a solid financial base
Before you look at your funding options, you’ll need to make sure you’re setting off from a solid financial base. This will help you to manage the day-to-day running of your business, overcome any challenges and take advantage of growth opportunities when they arise.
To establish a solid base, you’ll need to put in place a process that delivers strategic reports, budgets and cashflow projections. With this information, you’ll be able to make decisions when it comes to financing expansion plans, buying new equipment or developing in new markets.
Know the amount you need
Before you start applying for funding, you’ll need to understand some specific information that looks at your operations, financial forecasts and financial requirements to help you decide how much money you need. You should carefully think about how much financing you require and when you’ll need it.
It’s also a good idea to plan ahead and not wait until your need for extra funds becomes urgent, as you’ll need time to work through your options and go through the process to secure the money.
Sources of financial support
There are a number of options when it comes to financing your business, whether that’s to fund a one-off purchase, help finance your day-to-day operations, expand or manage seasonal peaks and troughs. There are now alternatives ways to raise funding beyond traditional options and give your business the best solution to fit your needs. To decide which is the best source of finance, consider your short-term cash needs and long-term business plans.
There are a number of funding options that can meet your funding needs:
- An overdraft or loan
- Personal savings or family and friends
- Invoice Finance
- Factoring
- Invoice Discounting
- Export Finance