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Raising finance to fund business growth
 

Raising finance to fund business growth

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    Raising finance to fund business growth Raising finance to fund business growth Presentation Transcript

    • Raising finance to fund business growth Dan Roberts Head of Debt Products Barclays Commercial Bank
      • Types of finance available for small business growth
      • Where to source your finance
      • How to choose the right finance option for your business
      • Steps to undertake when sourcing finance
      • Types of finance available for small business growth
      • Where to source your finance
      • How to choose the right finance option for your business
      • Steps to undertake when sourcing finance
    • Types of finance available for growth
      • Personal savings and assets
      • Grants & awards
        • Bank overdrafts
        • Bank loans & commercial mortgages
        • Credit cards – personal or business
        • Sales ledger finance (factoring & invoice discounting)
        • Leasing
        • Business Angels
    • Using personal finance
      • All businesses will have an element of personal wealth invested in them. Often this happens a start-up stage
      • Most business owners have used personal finance at some point to fund their business
      “ At the start I needed the funds but I couldn’t get a loan because I had no credit history” “ It was easier and less complicated than taking out a loan ” “ The bank turned me down for a loan last year, so I used personal funds instead”
    • Using grants and awards
          • Grants are usually project specific
          • Awards …
          • Check out what your Local Enterprise Agency can offer
    • Using overdrafts
      • The majority of respondents said that they would primarily consider an overdraft facility for cash flow purposes
      • Other reasons included:
        • ‘As a back up if a bit low on funds one month’
        • ‘Only if really desperate as its so expensive’
        • ‘Short term investment’
        • ‘To buy materials’
      • Several respondents said
      • that they wouldn’t consider an
      • overdraft
      “ I wouldn’t use it for psychological reasons. You would always feel that you were paying off debt”
    • Using bank loans
      • Secured or unsecured
      • The majority of respondents would consider a bank loan for the purchase or rental of bigger business premises to expand the business
      “ Yes, I have one, which has helped me expand” “ To buy our specialist vans and vehicles” The other significant consideration for a business loan was the purchase of equipment to help with the business, including vehicles
    • Using credit cards – personal or business
    • Using sales ledger finance Insert QT Care case study
    • Using leasing Insert Mavericks case study Brimur case study
    • Using business angels/ equity
    • Types of finance available for growth
      • Personal savings and assets
      • Grants & awards
        • Bank overdrafts
        • Bank loans & commercial mortgages
        • Credit cards – personal or business
        • Sales ledger finance (factoring & invoice discounting)
        • Leasing
        • Business Angels
    • Most businesses use a mix of finance Insert Flowflex case study
      • Types of finance available for small business growth
      • Where to source your finance
      • How to choose the right finance option for your business
      • Steps to undertake when sourcing finance
    •  
      • Types of finance available for small business growth
      • Where to source your finance
      • How to choose the right finance option for your business
      • Steps to undertake when sourcing finance
    • So you need finance, do you?
      • What do you want finance for?
          • Buying an asset
          • Improving cash flow/ working capital
          • Funding growth
            • UK
            • Overseas
      • How much do you need?
          • Have you budgeted for all costs & contingencies
        • When will you be able to repay it?
      • Other considerations
          • Pension planning (SIPPs and SSASs)
          • Tax planning
    • Each of you will have different needs
      • Get expert advice
      • Use online tools such as Barclays’ Borrowing Solutions Finder
      http://www.barclays.co.uk/lending/home_step1.html
    •  
    • Find out if you qualify for any grants
      • Use online tools like Business Link in particular to find out about grants
      http://www.businesslink.gov.uk
    • What factors influence whether you decide to take a loan?
      • Affordability is the primary reason
      • Closely followed by flexible repayment terms
    • Lending products considered vs. used
      • Loans and overdrafts remain the most popular products
      • Nearly half those who considered a business loan did not actually take one
      • Types of finance available for small business growth
      • Where to source your finance
      • How to choose the right finance option for your business
      • Steps to undertake when sourcing finance
    • Top tips
      • Get expert advice at every stage of the process
      • Check your business plan
      • Try and put yourself in the shoes of your potential investors and lenders: what will they want to see? What are their expectations?
      • If you need to raise 3 rd party funds, what is your “skin in the game”?
      • Minimise your financing requirements by making your existing cash work harder, eg keep on top of your accounts receivable.
      • Some common pitfalls
    • planning
      • What are your goals & ambitions? Are these supported by a realistic written business plan?
      • Have you worked out what is the necessary cash flow for your business? How much funding you need? How much do you already have?
      • What are you going to do with the money? How will it help your business grow?
      • If you are purchasing an asset, have you taken into account all the upfront and ongoing costs to see how much you need to buy your business premises.
      • Think about the future.
    • Online resources e.g. Clearlybusiness
      • Tools and services
      • Advice and guidance to help you succeed.
      • Whether you are just starting out or you are looking to grow your established business
      http:// www.clearlybusiness.com
      • Types of finance available for small business growth
      • Where to source your finance
      • How to choose the right finance option for your business
      • Steps to undertake when sourcing finance
      • Questions?