Cash injection sources you may not have considered

Finance is a fundamental aspect of business, regardless of whatever sector a company is in and funding expansion can be difficult.


With the economy on the slow road to recovery, there are several means of funding that may otherwise have been forgotten or ignored.


Where start-up companies and SMEs are concerned, this injection of finance can be vital to getting the company up and running and to ensuring its future.


Venture capitalists are a great source of investment but are likely to want something in return – often a share of the business.


However, if this funding is required it can help a company to do whatever it chooses – from revamping its marketing and advertising, to shifting location or seeking the services of a business restructuring service for something more long-term.


Untapped potential


These companies are often deemed to be high-risk as the future of the company is uncertain or it is relatively new. Therefore its potential impact on the market remains unexplored


The government’s Funding for Lending scheme launched in the summer of 2012 means many businesses can have greater access to finance.


Under the scheme, banks and building societies can borrow from the Bank of England at a much reduced rate for up to four years.


This means they can increase business lending by lowering interest rates and increasing access to credit, making the scheme a viable place to look for those in need of borrowing.


The Enterprise Finance Guarantee can also help small businesses who do not have the security or track record to get a normal commercial loan.


Under the scheme, the government provides a 75% guarantee on each loan issued under the scheme and the risk of the loan defaulting is then shared between the three parties involved – the business, the lender and the government.


It is due to run until the end of the 2014/15 financial year and could provide up to £2 billion worth of additional lending.


Alternatively, crowd funding is a great way to raise business funds provided it is supported by a well-run campaign of marketing and advertising.


Small donations from many people can quickly add up and there is no reason why a small business should miss out on what is available.


By Phil Smith


If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.


View all Business Insights