As a Scot myself, the allure of financial independence is very attractive! However, if it means your business is missing the opportunity to grow, then I would question the strategy.
The good news is that choice is increasing. The market is increasingly crowded with providers of invoice discounting, asset based lending, peer-to-peer lending (which is still more popular in the USA), angel investment, private equity investment and the government's new Business Growth Fund. All of these are competing with the traditional bank overdraft and loan. However, greater choice has not brought with it relaxation of lending criteria.
So, how can a growing business best secure the funds it wants to continue that growth? My advice would be to stand in the shoes of the finance provider and do the following:
- always prepare a professional document: it does not need to be long, however it does need to tell the story of why you need the funds; how you will repay them and what security you can give; as well as the financial projections for the business
- be realistic with your projections - build in some sensitivities
- talk and engage, it needs to be seen as a courtship between the finance provider and you.
There are many great businesses in Gloucestershire. It would be a shame if opportunities for growth were missed because the funding question was never asked. To discuss your own situation, please contact me on 01242 234421 or david.anderson@crowecw.co.uk.
