When you launch a new business, there will be a period of time where you will have to finance your venture before it becomes profitable. Here, we look at 10 funding methods used by small business owners, and we consider the pros and cons of each one. Personal savings Most small businesses rely on personal
Limited Company Finance
There may be times when you need additional funding to run your business, or get it off the ground. Here, we look at the finance options available to small firms.
- Banking – how to choose and set up a limited company bank account.
- 10 Business Funding Methods – commonly used ways to get started.
- Business Valuation – commonly-used techniques used to value a company.
- Business Loans – what go get in place to secure the trust of a loan provider.
- Business Angels – why, in real life, they’re not all like Theo and Peter.
- Cashflow Forecast – what they are used for, includin templates.
- Late Payers – how to deal with a perennial problem for business owners.
There are four main venture capital schemes backed by the government in the UK: The Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS), Social Investment Tax Relief (SITR), and Venture Capital Trust (VCT). Each of the schemes has different features but they all are designed to help raise funding for small to medium sized
Grants come in all shapes and sizes and can be especially beneficial to small businesses or start-ups. Not only can a grant help you save money, lower costs and help grow your business, grants are often non-returnable or come in the form of a soft loan with low interest rates, or are interest-free. Other types
Keeping a grip on cashflow can be the difference between thriving and surviving for a small business. While having a supportive bank can help bridge the cashflow gap, another type of small business finance definitely worth considering is invoice financing. This is the collective term for factoring and invoice discounting, two services which facilitate the
Crowdfunding is an alternative funding solution that bypasses the bank and appeals directly to would-be investors in your venture. Using the internet, entrepreneurs, start-ups and anyone else with a hot business idea or community project, can talk to thousands of potential investors with just a few clicks. It’s still a relatively new concept, so how
Late payments can cause small businesses a serious cash flow headache and in some cases, lead to the company going out of business altogether. Recent research showed that by the end of 2014, SMEs in the UK were owed some £39bn collectively and in a recent poll of 1,100 businesses carried out by YouGov, 85%
One of the difficulties you can face when trying to raise finance for your business is knowing which type of product to choose. Ideally, you want a funding package that fits your business and gives you the level of finance you’re comfortable with servicing. Of all the funding solutions on the market today, asset finance
You may have considered a range of funding options to help grow your start-up, one of them being venture capital. But what exactly is venture capital, how do you access it, what are the pros and cons of going down this particular route, and is it even suitable for your type of business?
A cashflow forecast will enable your company to predict its future financial health. By capturing expected expenditure alongside predicted sales, this tool can provide a guide to your company’s cash fluidity over the coming weeks or months.