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FINANCE & INVESTMENT
Finance and investment are key aspects of starting, running and growing a business.
FINANCE & INVESTMENT
We can help you navigate the range of financial support you may seek for your business during different phases of your business journey. We have access to a range of Finance and Investment contacts including;
BANKS
One of the first things you will do when you start your business will be to open a business banking account. You can do this at most banks and its worth looking at the different offers banks have, to decide what best suits your needs.
When you have established your business you may decide your bank no longer offers what you need. We can help with introductions to other banks.
ASSET FINANCERS
Asset Finance is a type of lending that gives you access to business assets such as equipment, machinery or vehicles, or enables you to release cash from the value of the assets you already own. In the latter case the value of your assets will reflect the finance you can raise. Assets like debtors, stock, equipment, machinery and property can all be used as security for asset-based lending.
There are hundreds of asset based lenders in the UK, ranging from specialist lenders to high street banks.
INVOICE FINANCE
Invoice finance allows a business to use its invoices and accounts receivable to secure funding. Generally invoice finance is for businesses who; have a trading history, are looking for less than £1m, normally receive payments within 90 days, have detailed & accurate financial statements and trade B2B.
There are many companies providing invoice finance from specialist lenders to high street banks
GROWTH FUNDERS
Growth funders or direct lending are funds which provide mainly loans to SMEs which are repaid with interest along with any agreed fees and charges over a set period. They are similar to bank loans. A direct lending fund is a fund where investors combine their capital together in a professionally managed fund which is then used to provide debt instruments to businesses.
Direct Lending Funds lending criteria are set by the Fund Manager so it varies by fund and the nature of your business
VENTURE CAPITALISTS
Venture Capital is a form of private equity and a type of financing that investors offer to start ups, scale ups, high growth businesses. Venture capital generally comes from wealthy individuals, investment banks and other finance institutions. A VC will typically take a minority equity stake in your company, may want a seat on the board and will want to agree and exit strategy (return on investment) with the founder.
There will typically be a few rounds of funding, Series A, B, C etc where investors will reinvest or new investors join.
ANGEL INVESTORS
Angel Investors are high net worth individuals, who in exchange for equity,will provide funding and often mentoring to founders. They will usually want to spend 1-2 days a week in your business to see how they may help the business to grow (and protect their investment). Angel investment is known as ‘active’ investment (hands-on). Angels are often well connected and can make valuable introductions for founders. Their functional specialisms can be of real value to founders.
They are early stage funders for start ups and high growth potential businesses. They invest in most sectors and look for growth potential.
CROWD FUNDING
Using an online platform to manage the process, crowdfunding involves large numbers of people (a crowd) investing small amounts of money to provide the funding founders need to fuel growth. Typically crowdfunding is Investment/Loan/Reward or Donation based. The online platform will give investors an overview of the business, the amount of funding needed, what the money will be used for and what the reward will be for investors.
The funding opportunity is usually time-bound.
STOCK MARKETS
A stock market listing is another way to find funding or liquidity and new investors or shareholders in your business. Often people think of the FTSE when a stock market is mentioned and assume that a business must have a very high turnover to qualify for a listing. However, we have established a link to a stock market specifically for SMEs.