Posted on 16 July 2013
As a business owner, there are a number of reasons why you may need to raise finance – whether your business is doing well and you’re looking to expand or acquire, purchase new assets or invest in R&D, or because your business isn’t doing as well as expected – a cash injection can help in a lot of ways.
The credit crunch has made it a lot more difficult to raise finance for your business. Five years on from the bottom of the recession and the country has still not even nearly recovered all the output lost. Overall, there is still a huge amount of work needed to be done to get the debt/GDP level falling rather than rising and to get the deficit down to a balanced level.
As a result of the recession, finance has been notably harder to obtain than pre 2007 when 90% of those seeking finance were successful. 21% of SME employers who sought finance in 2010 were unable to obtain any finance from any source – a 13% increase from 2007/2008. Banks are now more risk adverse and are unlikely to provide funding for a number of reasons including certain sectors being no go areas, and the need to store more cash for Capital Adequacy ratios.
Although it may be difficult to raise finance, it is by no means impossible and luckily, banks are not your only option! Dependent upon your reason for raising finance, our experts search the market to identify and evaluate what is the best option for your business.
With our help and working knowledge of who lends what we have been able to get funding for clients that had previously been declined, and with our contacts and reputation in the market place we are best placed to source their funding needs for them. We know the market and know who likes what, and our professional introduction makes an excellent impression to help increase your chances of being approved for funding.
There are various sources of finance available to you, but where to go depends on whether you are a new business or tried and tested. Some examples include:
Family and friends
Peer to peer funding
Your professional advisor
Wherever you do go, it is crucial that you are prepared with robust financial information and to know how to present your case.
Your business doesn’t have to suffer because the economy hasn’t fully recovered!
For further information and to get advice on any issues relating to raising finance please contact Michelle Mackenzie-Cooper here.