How to raise finance for a small business

How to raise finance for a small business image

In the early years of starting a business, raising finance can be a tough job especially if you are a start-up enterprise. Government business grants are now often difficult to come by as financial cut backs by some local Councils have significantly reduced the help available.

It is also true that over the last ten to fifteen years the high street banks have also tightened their funding criteria for a large proportion of UK business owners seeking to raise finance. You can find in many cases after lengthy business plan modelling and long winded meetings and lengthy paperwork you end up back to square one with a lot of valuable time wasted in the process.

The good news, however, is that there are other options available from other alternative business funding options on the market. The trick is knowing where to look.

If you are a start-up business then a good place to start is with a crowdfunding platform. There are many to choose from but you may want to look at the UK dedicated platforms to attract the volume of interest which your strategy requires.

Crowdfunding sites are a great way to launch a business or a product within a business. If you have a cool invention, an app, a service or even a project within the creative arts, crowdfunding cold be your best plan.

The slight downside to crowdfunding is that it can take the time to raise the finance for your campaign and the process can be a little slow for some businesses.

If you are an existing business and you are looking for immediate cashflow or funding for business growth then there are unsecured business loans available to your business.

Invoice finance is a great way to release monies locked up in unpaid invoices. Up to 90% of-of the invoice cos can be released as and when you raise an invoice to your business customer meaning you are able to pay your own suppliers quicker enabling you to perhaps negotiate better deals with them in the future.

Invoice Factoring and Invoice discounting are also alternative products that can work well for different businesses.

If you are a business that sells good and services to consumers and you take sales from those customers via credit and debit card transactions there is a great product called a business cash advance.

Funds to the value of your monthly card takings turnover are usually raised with the payback method of a percentage of each future card sale being repaid o the loan as and when your business makes sales.

This is great for cashflow and relieves your business of the pressure of repaying a monthly lump sum regardless of how well your business has been performing over that period.

It’s unsecured which means you are not securing a personal or business asset such as your home or business property against the loan. If you’d like to know more and are interested then don’t hesitate to contact us through the form provided.

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