Finance of £25,000 to £750,000 can be surprisingly difficult to obtain. Banks generally require security and many venture capital firms are not interested in financing these amounts. A business angel might be the solution for your business.
Are you considering using asset finance to replace equipment or IT services? If so, you’re among an increasing number of firms exploring this versatile funding option – and with an application approval rate of 96%, it’s easy to see why it’s so popular with SMEs. Asset finance refers to either hire purchase or leasing, and both products can be used to acquire a wide range of assets in return for regular monthly payments. This puts the latest equipment or IT within reach of firms on even the tightest budgets.
Overdrafts and bank loans are the most common form of external financing available to businesses. Used properly, they provide a simple and effective way of financing the growth of your business.
Using the right mix reduces the risks to your business and helps you minimise the cost of financing. You may be required to provide the bank with security.
As the owner-manager of a small or medium enterprise, your own financial affairs are likely to be closely entwined with the way you run your business.
You should think about how the business will affect your own finances from the moment you start up and continue to keep this in mind throughout its lifecycle.
ACCA guide to... getting a grant for your business
Securing grant funding could really help your business develop and grow. But even experts can find it difficult to keep track of the hundreds of different grant schemes that keep appearing and then disappearing.
You need to identify relevant grant schemes and understand whether your business is likely to qualify. You also have to understand the application process and decide whether it is worth applying.