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raising finance

Most businesses need a little extra help at times, particularly if you want to raise money for business.

The important thing we need to establish is whether additional finance is needed because the business is expanding and requires more working capital, or because things are going badly and your business is running out of money.

If it’s the latter, then it makes sense for us to review your operation’s performance, before introducing more debt into the business.

starting a business

If you are starting a business, finding backers can be a struggle as you have no previous track record. Here you’re likely to raise funds through a variety of different means which may include:

  • personal and family money
  • bank borrowing with guarantees etc
  • invoice financing
  • leasing
  • support from suppliers or trade contacts
  • business angels or private investors.

expanding an existing business

Additional finance needs careful planning. The business must be capable of servicing the debt through growth or expansion and you also need to consider the knock on effect of additional manpower, materials and space.

Before seeking external finance, you should review your operations to see if you can improve your working capital from within by:

  • improving your credit control procedures
  • reducing stock levels and improving stock turnover
  • re-negotiating with your suppliers
  • shortening the timeline between receipt of customer orders and getting paid.

where might the money come from?

Raising money can often be a cocktail of finance from different sources. Those sources can typically include:

  • banks and other lenders
  • your savings
  • family and friends
  • issuing shares
  • hire purchase and leasing
  • using a pension fund
  • government backed schemes
  • venture capitalists
  • high net worth individuals.

tips on raising finance for a business

Raising money isn’t easy, and it’s important to be realistic at the outset. Here’s a few tips for you:

  • don’t expect lenders to support you unless you’re prepared to put in as much as you can
  • be clear on how much you need to borrow
  • don’t use long term debt to service short term working capital needs
  • understand what the lenders are buying into – it’s you and your team
  • plug any gaps you may have in management or experience by using others around you
  • use external evidence to support your case, not opinion and hearsay
  • research your competitors and your market sector
  • be realistic with your forecasts
  • be clear on how far you are prepared to go, and at what point you walk away
  • set yourself key milestones and KPIs to keep you on track.

how we can help you

Over the years we have acted for businesses in Staffordshire, the Midlands and throughout the UK.  We have a great deal of experience in:

We can even attend bank and lender meetings with you and negotiate on your behalf.

If you need to raise money and would like our help, email us on confidential@mittenclarke.co.uk for a confidential discussion!