If your business needs additional funding then you need to think carefully about where the best source is likely to be. A good start is to research the various funding opportunities and assess which will be right for you and your business.
When you approach any potential funders, as well as asking you to fill out their application form, they will want other information from you and it’s as well to have it ready prepared. That’s likely to include historic annual accounts, your current year management accounts, some financial forecasts including a cash flow, and dependant on the amount you are looking for a business plan.
The financial forecasts are key, not only do they determine the amount of funding you need, they also demonstrate your ability to repay the loan, if it’s an equity investment demonstrate the likely return, or if its grant funding the need for the grant.
Whatever funding option you look at, you also need to think about some of the other factors that funders will look at when assessing your application. These will include the quality of the proposal, the viability and level of risk, the business acumen and track record of you and your management team, and if a personal guarantee is required your personal financial position and your assets. All funders will look at the business and your own credit rating, so you should be aware of any adverse credit information and consider how you will manage potential issues.
We have lots of help and advice available on our website, really useful guides on the different types of funding available, making a funding pitch and preparing a business plan. We also have downloadable templates for preparing the all-important financial forecasts, all accessible online here.
We also deliver a series of fully funded Business Finance workshops to help you. And at the end of the month, we are teaming up with the North East Fund to deliver our Investor Readiness workshop.
If you need more information on how we can help speak to us at Business Northumberland.
The great bard himself, William Wordsworth, once said “In modern business it is not the crook who is to be feared most, it is the honest man who doesn't know what he is doing.”
The whole point of every funders application process is for you to demonstrate to them you do know what you are doing.
Good luck with your application!