Welcome to Business Finance Guide

One needs business finance advice while starting up a new venture, managing it and in the growth phase. The range of options includes borrowing money from banks and investors. The best way to increase cash flow would be to take help from family and friends at lesser or nil interests. In some cases, grants or government aids may also turn out to be vital options. Sometimes, a combination of all these will prove to be the best financial solution.

Draw a business plan that will outline the costs and forecast the funding requirements. It will also outline your needs clearly to the creditors and investors. The financial options in detail:

Business Finance Advice – Borrowing

• • Savings: This is a preferred option especially by entrepreneurs as they will not have to depend on others for their funds. Business finance advice suggests that you must ensure that the savings are wisely used.

• • Family and Friends: It could prove to be a good business finance advice at no interest amount if you can pay back in time. A formal agreement could help solve misunderstandings that arise in due course.

• • Banks: Building societies and banks provide loans for funding your business. Compare interest rates and negotiate with the bank manager for good rates. For information related to Business finance advice   and interest rates in particular, refer to the website’ British Banker’s Association’. Alternatively, a finance broker will help you get the best deal.

• • There are special support organizations for making funds available for specific groups according to business finance advice:  Prowess funds women entrepreneurs of London; Asian Business Development Network and Ethnic Minority Enterprise Network provides Business finance advice to Asian and minority businesses in London; The Black Business Initiative supports blacks in London.

• • Small and medium sized businesses offer loans up to £50, 000 according to Solutions for Business portfolio, England. They also help enterprises to receive equity and flexible business finance advice   .

• • There are ‘Specialist Lenders’ in London offering business finance advice to specific communities: The Islamic Bank of Britain for providing Business finance advice to Muslims and offers sharia-compliant lending. PRIME assists people over 50 years in London with funding requirements. In England, young entrepreneurs are encouraged and given Business finance advice by Prince’s Trust. Co-operatives and businesses with good prospects can avail finance solutions at Industrial Common Ownership Finance Fund.

• Commercial mortgages and lenders also offer business finance advice for those who want to take a mortgage. You can use the service of a mortgage broker to assist you. They are listed on the website ‘National Association of commercial Finance Brokers’.

Remember to avoid loan sharks and unauthorised moneylenders as business finance advice. UK Cards Association, Building Societies Association and the British Banker’s Association together ensure that the sanctity is maintained when providing funds. If, by any chance, you have failed to receive loans in London, then avail Business Link Financial Intermediary Service for business finance advice and guidance.  

In case you can’t provide collateral as security for loans in London, then the government will provide guarantee and business finance advice. The Enterprise Finance Guarantee is a scheme that will cover 75% of lender’s exposure on individual loans especially if your annual turnover exceeds £ 25 million. A similar ‘Small Firms Loan Guarantee Scheme’ is available for firms with an annual turnover of less than £6 million. Seek business finance advice as part of the Business Solutions portfolio. The European Investment Bank offers business finance advice to avail lower cost and long-term loans.

For detailed information on business finance advice, find the local Business Link office details at the government website ‘businesslink’. Discuss regarding the financial alternatives with them for a cost-effective option and receive tips on business finance advice.

Capital Allowances: Claim tax benefits on certain purchases or investments according to business finance advice.  These allowances are available on plant and machinery, research and development and on buildings. All businesses in England avail first-year allowances where proprietary concerns can claim an annual investment allowance for expenditure up to £50,000.  Online transactions with Government Authorities of England can save time and money. Register in the website ‘Government Gateway’ to allow easy registrations with most of the authorities. These benefits are options of business finance advice to increase cash flow.

Shares and Equity: This option is availed by those who raise large sums of money as capital from external investors upon business finance advice. Business Angles are wealthy individuals who have a growing share portfolio in sound companies and offer business finance advice by utilizing their knowledge and skills. The British Business Angels Association lists the network of business angels.

Venture Capitalists invest even a minimum of £2 million and above and also offer business finance advice. The product must have a unique selling point, a large earning potential, top management experts and a proven record of accomplishment. There are two established venture capital associations providing sound business finance advice: The British Private Equity and Venture Capital Association lists all the venture capitalists in London. The European Private Equity and Venture Capital Association is more comprehensive and offers business finance advice related to equity issues.     

Grants:  If you are starting business in a deprived area, avail grants or avail funds and business finance advice from Community Development Finance Institution (CDFI). The CDFI does not take the credit history into account and considers each application on an individual basis for business finance advice. Location, size and sector are key aspects while evaluating an application for a grant. There are special R&D grants for research and development for technological innovations. You can get zero-interest loans at ‘The Carbon Trust’ by using energy-efficient equipment. 

Joint Ventures: This is another alternative of business finance advice for pooling resources and capital for a higher growth. The joint venture could be ‘Limited’ which is sharing certain resources like a distribution channel or ‘Separate Joint Venture’ where a new company is set up. Though complex and risky, business finance advice is that it is beneficial, if carried out after research and thorough communication.   

Conclusion

Receive business finance advice from internet, financial institutions and internet before making the financial option that is cost-effective and provides maximum returns.  Internet has also resulted in proliferation of angel investor networking sites.