Are You Getting The Right Finance?
By Roger Browne, MD Futurology Limited
Many businesses assume that their bank is the only source of finance. This is unlikely to be true, and spending time thinking about why and indeed whether you need the money, and exploring all the funding options will almost certainly be time well spent. In this, part one of a two part series, we look at financing your company.
1. Not just one and not necessarily the first you try.
There are many different sources of finance, and the ideal is to get the right mix to suit your business. This could be a combination of, for...
...instance, your own money, family money, an overdraft, a Bank loan and perhaps some risk finance from a third party to fund a new venture. Understanding the right mix for your business is an important first step.
Money is the life-blood of business - you get blood from a [blood] bank so why not money? Well that may be possible but the bank isn’t always the best option and it is rarely the only option. Even if your Bank has turned you down, another financier with a different appetite for, or attitude to risk, may welcome your proposal!
2. Think and get advice
The old Department of Trade and Industry described raising finance as an art form and not a science. Given this, and the fact that the future of your business could be at stake, means that it really is sensible to take time to think about what you plan, the attendant risks, and ALL your options. It is also well worth taking professional advice from for instance, your independent business advisor or your accountant.
3. What for?
Businesses need money for a number of things – critically to buy capital equipment, to market the businesses products or services or to develop... continued on page two >