Raising Money

5 Reasons Why You Should Crowdfund in 2019 (and How to Get Started)

how to get started with crowdfunding

There’s never been a better time to start or grow a business in the UK, with more funding options and tax incentives (for companies and investors) than ever before.

Crowdfunding is an option that more businesses are turning to, so if you’re looking to turn a great entrepreneurial idea into a reality, or to scale your business to the next level, here are five reasons why you should consider equity crowdfunding, plus some practical advice on how to succeed with your campaign; (more…)

5 Ways to Unlock Finance for Your Start-Up Business

How to get funding for your startup business

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 sources of finance is a vitally important step along the way towards sustainability and success.

Here’s a look at some of the most commonplace and most viable routes to finance currently available to startup businesses. (more…)

How to Get Funding Fast: The Quickest Routes to Finance for SMEs

Finding business funding fast

When you need to find business funding fast, what are your options and what are the quickest ways for you to secure more finance?

We talk you through the most viable fast funding options for SMEs who need finance in a hurry, and include practical tips on how to ensure your funding application goes as swiftly and smoothly as possible. (more…)

How to Build the Perfect Pitch Deck for Raising Funds

How to create a great pitch deck to raise funding

Most entrepreneurs really struggle to bring in investment without the proper tools to bolster their proposition. An engaging pitch deck is a key part of any successful fundraising strategy, so it’s vital to get it right.

With no clear consensus on what a great pitch deck for raising funds looks like, we asked funding expert, John Auckland to share the insight he has gleaned from a series of successful fundraisings. (more…)

How Late Payments Affect Your Credit Score

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. (more…)

Equity v Rewards Crowdfunding: Which is Best for Me?

Equity and Rewards crowdfunding compared

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. (more…)

Why Crowdfunding Heralds a New Power, & What this Means for Small Businesses

crowdfunding - more power to businesses

Look 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 unsurprising that the connected generation is favouring the peer-to-peer model over outdated intermediaries. (more…)

How the Enterprise Investment Scheme (EIS) Can Help You Raise Funding for Growth

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. (more…)

How the new EIS Guidelines impact crowdfunding

Crowdfunding new HMRC EIS Guidelines

When 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. (more…)

A Start-Up’s Guide to the Seed Enterprise Investment Scheme (SEIS)

Finding investors to support fledgling business

One 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. (more…)

How to Attract Investors to Your Tech Start-Up

ow to attract investors to back your tech business

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 slice of this funding for your technology venture? (more…)

Asset Finance – A Guide for Small Business Owners

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 it’s easier than ever to find funding that fits your business – if you know where to look.

Asset finance is one such funding solution, but what exactly is asset finance and is it a good option for your business? (more…)

Business Funding – What to Do When the Bank Says “NO”

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 requests from some smaller businesses.

Banks’ lending decisions have very little to do with you or the prospects of your business. And their outdated processes and high costs of capital make it difficult for them to lend to smaller businesses.

Business owners are also being frustrated by the inability of banks to provide flexible forms of credit to businesses. This is highlighted by the fact that the availability of business overdrafts, long a favorite tool for businesses to smooth cash flow, has shrunk by more than 30%.

So where else can you get funding for your business?

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How to Choose the Right Business Loan

choose best business loan

 

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 sector. With a wide range of business loans available it’s important to understand the different options you have when it comes to borrowing money to fund your business.

Here are some of the key considerations you need to bear in mind when sourcing a business loan for your business. (more…)

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

raise funding through alternative finance

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 innovative and flexible ways to fund their business growth.

But before blindly assuming alternative finance is the answer to all your financial woes, there are six things you need to understand before you approach an alternative finance provider looking for funding. (more…)

The Secrets of Getting a Business Bank Loan

how to get approved for a business loan

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 as a result of the credit crunch. (more…)

How to Finance Your New Business – Funding Advice for Start-Ups

startup funding options

 

If you are looking to start a new business, there is a good chance that you will need some funding to get it off the ground.

Most businesses will have start-up costs, whether it’s securing premises, stock, equipment or hiring people, and they will all need paying for, so what options are there to fund a new business? (more…)

A Guide to ‘Alternative Finance’ – the new funding options for startups and small businesses

Young businesses and start-ups that are looking to raise funding have a dizzying array of choices nowadays. In fact, there has probably never been a bigger range of places to go for early-stage finance, from crowdfunding and angel investors through to government-backed start-up loans and P2P lenders.

But before we take a look at the options in more detail, it’s important to think about what sort of funding you’re after for your business, and what you’re prepared to offer in return. The basic division here is between equity and debt. (more…)

What’s My Business Worth? How to Value a Small Business

When it comes to selling a business, the most important question you need to ask is – how much is it worth?

There is no single formula that can be used to precisely value every private business. The seller will want to drive the price up, and potential buyers will want the opposite.

Although there are relatively easy ways to value certain parts of the business – such as stock, fixed assets (land, machinery, equipment etc.), there will very probably be a sizeable intangible element to the value of a business.
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How to Maximise your Chances of Securing a Small Business Loan

One of the biggest challenges start-ups and fledgling businesses face is securing the funding they need to realise their potential.

A majority of business owners feel that finding finance is difficult in the current climate, and in particular, that banks are reluctant to provide business loans at competitive rates.

So to help you maximise your chances of getting that all-important business loan, we asked Rishi Khosla, the CEO and co-founder of OakNorth Bank – a bank that specialises in lending to entrepreneurs and growth businesses – to share his valuable insight and personal experiences with ByteStart readers;
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How peer-to-peer lending offers start-ups and small businesses a new funding option

If you need more finance to grow your business, there are a number of options which you might wish to consider. You could turn to your own personal savings, ask family members for help, get a bank loan, issue shares, or speak to some business angels or venture capitalists.

Or you could consider peer-to-peer (P2P) lending.

P2P lending is fast becoming the norm for businesses needing finance to get an idea off the ground or raise the capital necessary to expand and take projects to the next level.

But whilst it’s become a more common financial avenue for SMEs to pursue, it’s still not as well-known as it could be. According to a 2014 Nesta Report, only 44% of UK small businesses have heard of P2P lending.

So what exactly is peer-to-peer lending and how can small and growing businesses use it to finance growth?
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10 Top tips to ensure your crowdfunding efforts are rewarded

Business owners that are exploring some of the newer business funding options, commonly referred to as ‘Alternative Finance’, can sometimes struggle to distinguish between ‘crowdlending’ and ‘crowdfunding’, not least because they sound remarkably similar.

Both describe ways of raising business finance, but there are huge differences between the two which need to be clearly understood to avoid any tears at a later stage.

So how do crowdlending and crowdfunding differ, and what opportunities do they offer start-ups and small businesses? (more…)

Business angels or dragons – who do you trust to invest in your company?

Looking for an investor to help fund your business? You’d better make sure they’re an angel, not a dragon!

Most businesses require outside investment at some point in their development. Whether you are a new business needing a cash injection to get started, or an established company looking to launch a new product or move into new markets, attracting investment will be essential to your venture’s success.
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How to get your customers to fund your business start-up

While “entrepreneur” may occasionally be a euphemism for “out of work”, there are more and more individuals working in earnest to start a business of their own. Indeed, statistics show no fewer than 400 million such individuals globally, with over 2 million in the UK and 20 million in the US.

Sadly, many of these ventures will never get off the ground at all. Of those that do, the majority will fail. Of those who submit business plans to venture capital investors, less than one percent will get the funding they seek.

Those elite few who do raise finance have to give away large portions of their company and control in return. Worse still, many business founders who do receive venture capital money get fired within a year of the investment.

Despite the challenge of raising money, and the serious potential downsides, there is a widespread notion that if you are an entrepreneur looking to build a successful, growing business, you need to write a business plan and raise a few million pounds. But this vision is essentially wrong.
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Raising finance for your business

To raise money to grow your business, you have to convince likely lenders that your idea is profitable, or at least has the potential to be.

Here, we take a look at two the two key elements that should drive your search for funding;

  1. The different types of finance available
  2. What lenders and investors look for in businesses

This guide helps you to understand more about the main types of business finance available, and also highlights what investors and lenders look for in a business before they lend it money.

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How to get your business ready to sell – 10 things to do before you put up the for sale sign

So you want to sell your business? The place where you’ve spent more time than with your family; invested money which you’ve sometimes had to borrow in order to expand or buy new equipment; given your heart and torn out your guts; worked anywhere from 60 – 80 hours a week, maybe more; tackled a recession and seen a chink of light at the other end.

Now think of decorating a room. Any professional will tell you it’s 80% preparation and 20% finish. I wouldn’t go quite that far, but the planning is all important when it comes to selling. (more…)

5 things you should know if you want to attract business angels

Angel investors can be a lifesaver for a small enterprise – not only can they supply capital investment, but they often have years of valuable experience to offer a fledgling business.

As viewers of Dragons’ Den will know, securing angel investment is no easy task. Although much of the BBC show is put on for our entertainment, many of the business owners who appear on the show make the same fundamental mistakes.

Here are five things you must consider if you are seeking investment from a business angel; (more…)