What sort of finance is right for you
I think there’s just a number of questions that SMEs need to ask themselves when they’re thinking about financing their growth.
The first question is really how much do I want to raise and what’s it for? That gives you an answer about whether it’s working capital your after or whether it’s growth capital.
And then you need to ask yourselves questions like what assets do I have to secure against a loan, for example, or is it ideas that I’m financing?
Am I willing to give away an equity stake in my business to finance the type of thing that I want to do?
And there’s a real kind of checklist of questions that a small business can go through, and actually the CBI has developed a tool called ‘Find My Finance’ which has a lot of those questions on it. Hopefully small businesses find that useful to actually go through that process.
What sort of finance is right for you? Tom Thackray, head of Enterprise Policy at the CBI discusses the various options…
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