Methods
of Finance
In our
latest blog, we talk about the best methods of finance for your business.
Sometimes it’s great to have that extra push to take your business to the next
level. To attract the best funding for your business, you will need a business
plan. We are experts in the field of preparing a cashflow and a business plan
and can assist you in achieving the best method of finance for your business.
Finance
Wales
Finance
Wales are set up to aid in funding. They offer bespoke debt and equity
investment packages designed to boost your business and accelerate growth. They
offer three types of packages, micro loans under £10,000 have an easy two-day
process. Have a look at their website,
http://financewales.co.uk/business-finance-/growing-a-business/micro-loans-under-%C2%A35,000.aspx
for more information.
Bank
Loans
Bank loans
are probably the most common types of finance for you and I. These types of
finance are an amount of money borrowed for a set period with an agreed
repayment schedule. The repayment amount will depend upon the size and duration
of the loan and rate of interest. The terms and price will vary between bank
providers. There isn’t just one type of loan, there are many different types,
which I will look in to and describe the differences.
·
Working Capital Loan – This type of loan
is usually required at short notice or emergency situations. This will usually
incur the highest percentage of interest.
·
Fixed Asset Loan – For buying assets,
where the asset itself is used as a security for repayment.
·
Factoring Loans – This type of loan is
based on money owed to your business by customers or clients.
·
Hire Purchase Loans – For long term
purchase of assets such as vehicles or machinery.
It’s best to
talk to your bank or bank manager, as they will let you know the exact amount
you can get for finance. The bank managers love an excellent business plan and
cashflow, so make sure yours is current and polished to get in the good books
of your bank manager!
Overdraft
This method
of finance is a sum of money extended to you as credit by your bank, set at a
pre-arranged limit when your account balance drops below zero. Usually charged
interest on any amount of overdraft you use. The terms and price, like the
loans, vary between providers. This is a good source to manage cashflow, but it
is probably not suitable if you’re looking for long term financing.
Crowdfunding
Crowdfunding,
also known as crowd financing or crowd sourced capital is usually carried out online.
This allows several investors to individually invest smaller amounts of money
in to a business. The individual investments are then combined to help a
business reach its funding target. Crowdfunding is an excellent option for
businesses that struggle to raise finance through loans or the conventional
funding methods. Since crowdfunding is conducted online, you should make sure
your idea is protected. In return of the funding, investors usually get a
percentage of share of the business.
You can find
more information by visiting http://www.crowdfunder.co.uk/help/what-is-crowdfunding
Government
Offers
Governments
usually offer support to businesses in all different shapes and sizes. https://www.gov.uk/business-finance-support
here you can find from funding and finance, to grants and to mentoring for your
business.
Caerphilly
council are offering a business development grant. This grant can provide up to
45% of eligible expenditure to a maximum of £2,000. Business must be based in
Caerphilly and be in the manufacturing or service to the manufacturing sector,
or have a minimum of 60% business to business. For businesses in the Caerphilly
area, please look at this link http://www.caerphilly.gov.uk/Business/Business-grants-and-funding/Business-development-grant
to get more information.
Remember the
key to accelerating your business in the positive forward thinking way to get
that extra push is to have a business plan and cashflow in place. We offer a
one hour no obligation consultation, where we can sit down with a cup of coffee
and discuss your business.
Visit our website on www.crossaccountingservice.co.uk
or call us on 029 20 653 995 to see how we can assist you.
