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Build a better business – Cash is King – Sources of funds


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 in business 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
• Venture Capital
• Business Angel Funding
• Crowd Funding
• Private equity

Disclaimer:

Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.