Strategies For Lumpy Businesses
FINANCE FOR GROWTH
The majority of small and medium-size businesses are at some point, under-capitalised. This lack of long-term financing is often the restricting factor in an entrepreneur's ability to continue to grow and expand a business.
Finance for growth tends to be long-term, typically provided by term loan or a third party equity investment. Before examining the various financing options open to you as an entrepreneur or owner-manager, you need to consider the nature of your requirements and match them to an appropriate source of finance.
Sintassi will help you to identify those sources of finance that are potentially suitable for your business and will help you to address the following:
Does your business have the ability to attract the finance?
In the case of debt finance, does your business have the ability to borrow, secure and service the repayments?
For an equity investment, will your business plan provide a sufficient rate of return to attract an outside investor?
In the case of debt, can you service the interest repayments?
For equity investments, are you prepared to give up an element of control over your business?
Sources of Funding
- Term loans/commercial mortgages
- Asset-based: leasing rental/lease purchase
- Invoice Factoring / discounting
- Trade finance
- Business angels
- Venture capital
Every company needs capital to conduct or expand operations, but understanding how to finance your business effectively can be extremely advantageous – different sources may be appropriate depending on your company’s existing position or its ambitions.
Choosing the right time and the best way to go about obtaining your capital, whether through debt or equity funding, can save you a lot of time and frustration.
For a free and confidential consultation on 0118 947 58 57 or email: info@sintassi.co.uk
