What happens if I need some finance for my business?

If your business needs finance, it can be difficult to know which option is the correct one for you.

Being able to access the right sort of finance can help your business grow, develop and thrive. There is a range of options to choose from, including bank loans, equity investment and debt finance.

Bank loans are an obvious one, but equity investment and debt finance are more specific to the type of business. If it is considered a ‘riskier’ venture, then equity investment could be a more suitable option, while business angels are prepared to back new businesses with equity finance.

There is also the advantage of the Government allowing tax relief to investors in new businesses.

For a business that is considered lower risk, debt finance is a potential option.

Start-up loans are also available for new businesses, whilst peer-to-peer lending and crowdfunding are alternatives to high street bank lending.

When you want to grow your business, there is a range of options, and it’s important to know what your goals are. Financing options include;

  • Seed Financing
  • Venture capitalists
  • Bond
  • Peer-to-Peer lending/loan
  • Equity crowdfunding
  • Trade finance
  • Export finance
  • Private finance
  • IPO/public offering
  • Corporate venture finance

Knowing which is the correct option for your business can be difficult, but considerations about how much financing you need, what it is for, how long the period of borrowing will be, what the shareholder’s positions are and what tax implications there are can all inform the decision.

SME’s represent over 60 per cent the private sector workforce, and at J W Hinks, we know that corporate finance advice and transaction support is pivotal, so if you need support with financing your business, contact us today.