Raising Finance
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Raising Finance
Raising finance is a process that most businesses will go through a number of times. Finance will have to be raised whether the business is just starting up, growing rapidly, expanding generally, developing its activities or changing ownership. Our Partners Finance team is involved in raising finance in the majority of the transactions that we undertake. This can include: Asset backed finance (which tends to inter-relate with working capital) - loans, factoring or invoice discounting, HP, leasing Unsecured finance - SFLGS, mezzanine finance, overdraft, cash flow lending
New equity- Business Angels - private individuals who seek to contribute funds and experience to specific companies,- Venture Capitalists providing further share capital of various types or long term loans,- Finance provided by the business owners or friends of the owners Grants, including Objective One and Two funding Of the above most businesses are familiar with the straight forward forms of debt such as overdrafts and loans. However, becoming more common is the ability to borrow money secured by the future cash flows of the business. This requires a different approach to the overall concept of fund raising, impacting on the business plan and projections, as well as the potential funder.
Equity remains a difficult concept for most businesses, with many myths and misconceptions surrounding it. The region has seen an influx of new sources of equity recently, which has helped availability. However, you will need to fully understand the upside and downside of this new source of funds before including it in your plans.
Finance is one of the most important areas for any business to get to grips with whether its raising finance to start your venture or making sure you get paid when the business is up and running. Raising finance can be done by two ways debt or equity. If you go down the equity route we can introducer you to relevant business angel services, likewise if you require debt finance , whether it be on purchasing a property or assets for your business we can help.
Business Angels are wealthy individuals who either wish to invest on there own or though a syndicate, in high growth businesses. Not only do they put in money but they also bring to the table expertise and can open many doors which you as an individual may find difficult. There will usually have experience of the related industry, and offer ideas and direction. Business Angels will look for great ideas , and will also consider factors such as management track record, the industry , the growth potential, exit strategy and also how much equity that is on offer and at what price. Before presenting your project you will require a lawyer a financial professional and a comprehensive business plan. The basic information they will require will be such things as Management: key personnel, knowledge of the industry, their experience. Product or Service: details of the product or service on offer. Markets: description of the market and its size, customers, competitors. Sales forecasts should be supported by hard evidence and research .The Business: when started, results to date, borrowing history, existing ommitments.Objectives and Strategy: business objectives, assumptions, longer term plans etc .Financial Projection: projections of at least one year's future performance together with supporting assumptions and evidence (order books). Projections should include profit and loss account, monthly cash flow projections. Finance Required: details of funding provided to date, total funding required based on projections.. Purpose of finance , detailing capital expenditure. Security Available: what assets are available as security (personal assets as well as business assets. Management Information Systems: accounting systems used by the business, ability to produce regular management accounts. You will be expected to pitch your idea to a group of business angels, which have shown interest in your project, this is usually arranged by the business angel network which will coordinate matters. One of the advantages of the
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