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How to fund your business

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fundraising failures - mistakes to avoid when raising finance for your business 

Getting funds together to accelerate your venture won’t be a quick task. Choosing the wrong fundraising activities can not only prolong the process, it can even deter investors from backing your business.

So, what are the most common mistakes entrepreneurs make when trying to bring in funding for their companies? Funding expert, John Auckland of TribeFirst, reveals 7 frequent fundraising failures; Continue…

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when to use short term loan or funding

Like many people, you may have always dreamed of starting your own business. Being your own boss, making your own hours and realising your own vision are all common reasons people decide to start a business in the first place.

A lack of funds can hold you back from taking the plunge, but now more than ever, a variety of options exist to help fund your vision and turn it into a reality. Continue…

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Guide to ALternative Funding for BusinessesFinding a business loan used to be a pretty black and white affair. You’d call up your local bank and book an appointment, wait a few weeks (or months) and then sit down with the bank manager, explain why your business needed some money, and hope that you’d caught them after their morning coffee.

Since the birth of Alternative Finance, however, getting your hands on funding to grow your business has become a lot easier, but equally, a whole lot more complicated. This guide will explore the various different types of alternative finance out there, help you decide whether it’s a viable route for you, and how to prepare your business to raise finance. Continue…

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how missed payments affect your credit rating

There may come a point where you end up missing a repayment for a loan or credit card that you have taken out, perhaps as a result of an unexpected financial emergency, or maybe just simply not having kept a track of your finances that month.

One of your first thoughts will be how quickly you can rectify the situation and pay the lender back, but have you also considered that this late payment could affect your credit score negatively? All The Lenders takes a look at how this works, as well as what you can do to also minimise the impact. Continue…

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Equity and Rewards crowdfunding compared

It’s impossible to forget the repercussions of the financial crash, many of which are still felt throughout the global economy today. But, as economic growth flatlined, the opposite happened in the online world.

While the banks cut off their lending to startups, internet technologies were undergoing a key evolution. Web 2.0 was emerging, and technology began connecting individuals, allowing them to bypass many long-established intermediaries.

This was the precursor to both rewards and equity crowdfunding.

Put simply, Rewards Crowdfunding is the practice of giving lower cost or exclusive items as rewards to early adopters in return for their backing, while Equity Crowdfunding involves selling shares in your business.

To help you understand more about the pros and cons of Rewards and Equity Crowdfunding, and the key points for success, we asked crowdfunding expert, John Auckland of TribeFirst to explain more. Continue…

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credit score mythsThere are a number of different myths surrounding credit scores, making it difficult to truly understand what it is you need to know and what you should be doing in order to boost yours.

In this guide we cover the most commonly spoken about myths, and debunk them one by one.

Continue…

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crowdfunding - more power to businessesLook around at the world’s many unpredictable events and it could not be clearer that our political, and social, tectonics plates are shifting.

Fueled by the digital revolution of young technology adoptees who are now reaching adulthood, it is in many ways unsurprising that the connected generation is rejecting old leadership paradigms, and favouring the peer-to-peer model over outdated intermediaries.

As the plates shifted, crowdfunding has been able to blossom, and its societal impact is far more radical than you might realise.

My prediction is that by 2030, all worthwhile ideas will be brought to life via crowdfunding. Continue…

how to solve cash flow problemsCash flow is the lifeblood of any business, and managing it effectively can mean the difference between make or break.

When we refer to cash flow management, we’re talking about making sure there is enough cash available to cover all your outgoing expenses. If your outgoings are more than your sales and you run out of cash to pay staff or suppliers, your business will risk insolvency.

Continue…

what do crowdfunding investors look for in businesses The goal of any equity crowdfunding campaign is to catch the attention of investors and convince them that your business is worth backing.

But how does the mind of an investor work?

With more equity crowdfunding campaigns run each year, it’s crucial to know what motivates potential investors and how they make their crowdfunding investment decisions.

Continue…

Enterprise Investment Scheme - raising funding

The Enterprise Investment Scheme (EIS) is designed to help smaller, risky businesses raise funding to fuel growth.

Early-stage businesses can find it difficult to secure investment, so the EIS was set up to encourage more investors to back fledgling businesses by offering generous tax-breaks.

To help you see whether the EIS could help you raise funding for your business, we asked award-winning chartered tax adviser, Jonathan Amponsah CTA FCCA to explain how it works. Continue…

Crowdfunding new HMRC EIS GuidelinesWhen it comes to start-up investment, the UK has some of the best tax relief schemes anywhere in the world.

The Enterprise Investment Scheme (EIS), along with its earlier-stage sibling the Seed Enterprise Investment Scheme (SEIS), offer protection of investments in UK start-ups. If the business fails, investors can claim up to 80% of the investment as tax relief against their income tax bill. Continue…

bridgning loan explainedA form of finance which is rapidly gaining popularity in the UK business market is bridging finance. Around £750 million was borrowed through the means of bridging in the year 2011, since then it has only gone up where in 2016, this number went up by £4 billion.

The way bridging loans work is that they allow a business (or an individual) to access large sums of money within around 2 to 4 weeks. Continue…

asset finance to help you start and grow your businessWhether you’re starting a business, or taking it to the next level, the right finance can be a significant factor in driving growth.

Perhaps the growth of your business depends upon the purchase of new equipment to enable you to increase capacity, provide additional services, or win a particular new contract. In that case, asset finance could be the key to unlocking your growth potential.

Continue…

Nationwide Corporate FinancePROMOTED GUIDE – This is a promoted guide from Nationwide Corporate Finance. Nationwide Corporate Finance offer rates from just 3.6% per year, and we specialise in business finance of all kinds. We have lent over £3 billon to businesses just like yours.

 

There are several ways to finance a business. These include bank loans, finance from independent lenders, and crowdfunding. Your capability of financing your business depends on convincing somebody else to invest in your idea and you.

Continue…

Raising finance for your busienss through crowdfundingCrowdfunding is often seen as an easy route to raising money, but a major factor often overlooked is that it only works for certain types of businesses.

This article explores what those businesses that suit crowdfunding typically look like, and for companies that don’t fit the mould, suggests some steps you can take to make your venture more attractive to crowdfunding investors.

Continue…

open banking affects small businessOpen Banking is here and is about to transform competition in the banking and funding arenas.

Since 13 January 2018 nine of the largest banks in the UK are governed by the new regulations introduced by the Competition and Markets Authority (CMA).

But what exactly is Open Banking, and how does it affect businesses across the UK? Here are five key facts you need to know about Open Banking: Continue…

Finding investors to support fledgling businessOne of the biggest obstacles to growth for start-up businesses is investment. Investors are often reluctant to commit their money to a new business with a promising idea but no track record of success.

Fortunately the Government lent a helping hand in 2012, and introduced the Seed Enterprise Investment Scheme (SEIS) to help smaller, riskier companies attract investors willing to take a punt on a bright idea becoming a successful business. Continue…

How to get the right business finance Any time is a good time to start a company, so said renowned American angel investor Ron Conway.

That may be true, but how easy is it to find the necessary funding?

The answer largely depends on your understanding of how fundraising should be done.

Continue…

pros and cons of funding your business with credit cardThere’s a huge variety of finance solutions available to small businesses these days, and each have their own pros and cons.

What works for one business may not work for another, and you may use a number of different products to finance your cashflow, short-term projects, or long-term growth plans.

Many companies find business credit cards useful for the short-term end of the spectrum, and while you wouldn’t necessarily use one to pay for larger purchases, they can be a good tool for day-to-day spending, expense tracking, and perhaps emergency cashflow needs. Continue…

fnding options for businesses
PROMOTED GUIDE – This is a promoted guide from Funding Options – the free marketplace for business finance. Find the right finance for your situation, from dozens of the UK’s best lenders.

They might not have the catchiest name — but revolving credit facilities are one of the most useful types of business finance available.

Here’s everything you need to know about revolving credit facilities, and how they could help you fund your business. Continue…

5 Types of finance to help Christmas cash flow

November 30, 2017

Christmas can be a challenging time for many businesses, whether it’s your busiest time of year or a seasonal slump in trading. Either way, lots of small businesses find that short-term finance can provide the boost needed to cover short term cash flow issues. Here are 5 funding options that can do this for you;

Invoice Finance – What is it and how can it help my business?

November 28, 2017

Invoice finance is an umbrella term for two distinct forms of business funding called invoice discounting and invoice factoring. It’s likely you’ll have heard of these alternative types of business finance before, but without knowing exactly how they work, you might dismiss them as just another financial product that you and your business don’t need. […]

How to attract investors to your tech start-up

October 26, 2017

Venture capital money going into technology companies in the UK is at an all-time high. A year post-Brexit referendum, British tech firms attracted £2.4bn in funding. To date this year, UK fintech companies alone have seen £825m of VC investment. So, what do investors look for in tech start-ups and how do you get a […]

Asset Finance – A Guide for small business owners

October 23, 2017

Getting finance for your business is no longer just a case of approaching your high street bank manager and asking for a loan. The market is now much more varied, and boasts a huge range of products which have been tailored for more specific purposes. This means that depending on your requirements, it’s easier than […]

5 Ways to unlock finance for your startup business

October 16, 2017

Everybody understands that starting up a business from scratch is not a simple process or an easy challenge to take on. Regardless of how lofty your ambitions are or whether you’re aiming to establish yourself as a sole trader or as a the boss of a burgeoning new enterprise, finding access to initial and early-stage […]

The way to get paid – 12-Step Action Plan to stop customers from paying you late

August 7, 2017

Dealing with late payment can be tricky for small and medium sized businesses. Handle it wrong and a customer could be lost, ignore the issue and it can stifle business growth, have a huge impact on cash flow and even cause a company to go bust. Staggering figures published in a government paper, revealed that […]

Business Funding – What to do when the bank says “NO”

July 31, 2017

PROMOTED GUIDE – This is a promoted guide from Funding Xchange – the business funding marketplace where lenders compete to fund your business. Get Funding Now! If you have approached your bank and found it difficult to secure the funds your business requires, you’re in good company. Banks are declining up to 50% of loan […]

How to choose the right business loan

April 28, 2017

There are lots of things to think about if you’re considering taking out a business loan. The UK’s business lending market includes a wide range of providers offering subtly different types of business loans. Some are aimed at a particular type of business, or companies of a certain size or those operating in a specific […]

6 Things you need to know before trying to raise funding through Alternative Finance

April 20, 2017

Since the recession of 2008/2009, there has been a significant reduction in the ability of banks to lend to British SMEs. Whilst mainstream finance is still great for some businesses, many banks now have lending criteria that small businesses are unable to fulfill. Fortunately, ‘alternative finance’ can offer a viable substitute for entrepreneurs looking for […]

The 3 most important financial measures & tools to drive your business forward

April 4, 2017

You may have heard the expression: ‘Revenue is vanity, profit is sanity and cash is reality’. If ever there was a philosophy which I passionately believe in, it is this. However, there are three important financial measures, which we need to unpack in this expression. Let’s look at each of them in turn;

What are the dangers of overtrading?

April 2, 2017

Business is a complicated old game sometimes. Just when you think you’ve got your head round one thing, you realise there’s another rule you didn’t know about! Here’s a good example. Did you know it’s possible to get your business into serious financial trouble by selling too much?

Due diligence – A Jargon free guide on what it is, and how to do it properly

March 13, 2017

Due diligence is a term bandied around quite a lot. However, not many people understand what it means or how it’s can be used to help. If you ever consider buying or selling a business, or investing in a business, then you’ll need to know precisely what due diligence means, what the process involves and […]

7 Steps to starting your business on firm financial foundations

March 7, 2017

When you are starting out in business, you need to quickly grasp that the three key factors that determine a company’s financial success, or failure, are: Sales Control of costs Cash management Two out of three simply won’t work – you need to have complete control over these three crucial aspects, otherwise your chances of […]

The 10 Steps you need to take to turn around a struggling business

February 20, 2017

Most companies will face some kind of cash flow problem at some point. Temporary cash flow problems or financial squeezes usually arise out of matters that are outside of the immediate control of the directors, but when problems like this happen it’s vital you take the right steps and move quickly to ensure the issue […]

The secrets of getting a business bank loan

February 16, 2017

Borrowing money from a bank to finance your business is a lot harder than getting a loan to buy a new car or to improve your home. Banks have a number of tough rules that you need to know before you approach them for a business loan, and these rules have become even more stringent […]