There are a lot of questions from small and medium-sized companies that are looking for debt financing of one kind or another. Lost valuable time by SME stakeholders trying to source the right to deal from the right people and the right price for the right reason. Can be minefields, which might not be as desperate lead to the fall of the company, but a shortage of funds is not available within a reasonable period of time and could mark the beginning of missed opportunities, months of struggle and insolvency ultimately to a catastrophe waiting happen.
what is funded?
be clear on what it wants for your money. If you are looking at:
work capital
expansion - skills, diversification or perhaps acquisition
ideas
developed for use in actual product or service
prove market
prove product
or the other things in this context, and then go for it.
if you are looking for funds for:
losses
cover pay your debts
pay your salary
then general, and forget it!
have you seen a dragon & 39; s den on BBC2? What happens when that allows structured finance looking for is going to pay? Yep, even if you do not consider this offer you can probably guess. Structured walk away empty-handed. If you just try to repay the debt, then perhaps it is time to talk to the professionals and get some sound advice.
types Finance (UK)
consider all funding options available. Look around your area, and talk to the Chambers of Commerce, to find out the domestic investment trusts. In the end, make sure you pitch to the right type of taxpayers to suit your borrowing requirement.
as rough guide, and consider:
financial debt / small firms loan guarantee (smflg) (+ 5 K)
friends and family (up to 80k)
business angels (typically up to 50 KB 500k)
specialist funds / wealthy business angels sometimes in small markets (up to u)
venture capital firms) 1.5m +) or
outside together with the above you can also do well to consider assets and financing companies (assuming that you have assets in your business), as well as invoice discounting / factoring (assuming that you have the debtor book and strong contracts and conditions of work).
some major funding issues
the you closer to the companies that will look at other issues surrounding your business. To be a little rough, and they will want you to show them & 39; color your underwear & 39;. What would they want to know?
- financials
- How figures relate Your plan?
- figures are consistent?
- Can you remember the confidence of key figures and understand how they relate to your business?
- Team
management - in the right mix of skills to see through the goal?
- focused centrally?
- right in the product with a team error is generally less attractive than wrong product with the right team!
- the ability to deliver despite setbacks
- Product / service
- Do you have a unique selling point (USP) that makes you stand out from the competition?
- Is protect your interests in the product or service provided by?
- the marketplace
- how big your market?
- WHO S & 39; your competitors? Tip: never say that we have no competition & 39;. You may have USP but there is always competition even if an alternative solution for your presentation. Make sure you come across as you know how the taxi against competition.
- How will you get right into your market?
really understanding of these key issues. Corporate finance check you for the greatest figures related to deal.
don & 39; t ask Lao a few very, very much
if you really understand your business to a level of funding that the company would like to request you get money to correct the first time you ask. It is embarrassing if you get figures wrong.
write a Cashflow forecasting for your proposition.
remember that the greatest gap between revenues and expenditures may not be 1 or 2 months, it may be from 8 months to the bottom of line.
a stereotypical role in fundraising may take from 2 to 18 months. If you run out of cash in the month and 9 are from 5 months to come injection of funding then you may not survive the year. Additional costs associated with bridging the gap Cashflow may also Squeeze your margins to the point you are working on many loss.
too funding equally embarrassing. You have to pay for the company to finance additional cash in the business and likely at a later date to request more funding say if you hit when needed expansion plan. How will the perception that the request for funding from a company who lashed out at the figures last time around?
summary
there There are a number of options available in the UK for business told funding.
asking right amount of funding, because right with the right lending source will provide you time and costs. Make sure you do the work and demonstrate your ability to operate and manage your business.
as footnote, and if you still can not obtain financing and facing insolvency / personal debt and want some help and advice and then you get professional help as soon as possible.
ed Pearson also is a religion Dr. HE can be reached in confidence on 07970 659266 or e-mail ep@debtdr.co.uk.
http: / / www.debtdr.co.uk & 39; described life without religion & 39;
this article does not constitute regulated advice. Please remember that any action on the financial advice should always be taken only after considering the specifics of yourself situation.
ed Pearson is a religion of Dr. debt assistance and advice to individuals and small companies across uk.
whilst you can write like material, and must only once from any ever action you considered yourself a set of financial circumstances with a professional. This article does not constitute financial advice.
please e-mail if you want to chat further on any area of your debt financing.
jan haydee
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