It’s vitally important to understand the cash peaks and troughs in your business. It can mean the difference between success or becoming insolvent and business closure. Additionally careful injection of capital at the right time can take your business to the next level.
If you are to remember one thing from this report it is ‘CASH IS KING’ and it always will be. You cannot operate even if you are profitable without cash to buy your supplies or pay your staff and you cannot expand without an injection of cash.
Funding falls into two main areas EQUITY FUNDING & DEBT FUNDING
If you have enough of your own capital, convincing others to invest in your business is not an issue. However, when seeking a bank overdraft or loan, applying for certain types of government aid, or when trying to attract new investors or partners, you will need to present a convincing picture of your business’ financial condition and future prospects.
Depending on your current business whether it’s a mature business or start up and depending on what the funding is for will determine which source of funding your require.
The various sources are:
Your own money or that of friends and family?
Bank loans and overdrafts
Government Grants – such as the enterprise investment scheme
Venture Capital
Business Angel Funding
Crowd Funding
Private equity
Regardless of which sources of finance or support you intend to approach, you will need to present a convincing picture of your business’ financial condition and future prospects. We can prepare compelling business plans for debt or equity funding
