You want your business to be the best it can be, and capital raising can help that.
More available cash can help your business to keep growing and growing, but raising this cash the wrong way can end up in set backs and the opposite result.
Raising capital can be a long process and it needs to be done right depending which stage your business is at. Often it it must be done in stages and grow with the bsuiness over time.
So what are your options?
If you’re a small to medium business then you will usually find that angel investors, small private equity groups & venture capiutal groups are out of reach just yet. To accees some of this type of capital you need to bring your turnover passed the $5 Million mark.
Below this $5 Million level debt funding will usually be more suitable to unlock your business growth.
Raising capital through debt facilites can be done is so many ways depending on the type of business you do, your cashflow, your assets & your track record. The funding can be unsecured, secured against Brick & mortar or your creditors/Debtors
Here are some options available to you:
- Small business loan or Line of Credit – this type of loan is the first one that comes to mind for most small business owners. It is can be on a short-term and long-term basis and offer a lump sum of funds to help you start or grow your business. It can be unsecured or secured by various forms of security including residential, commercial or rural property, business assets, or a combination of these.
- Overdraft facility – is either a secured or unsecured line of credit designed to cover short-term cash flow shortfalls.
- Invoice Factoring/Debtor finance – This would be for instance a line of credit linked to and secured by your outstanding accounts receivable. If your business supplies products or services to other businesses on standard trade credit terms, Debtor Finance can help access the cash from your sales immediately rather than wait for your debtors to pay their account.
- Trade Facility – This type fo facility suits import/export businesses and consists in the financing of cross-border, import/export transactions. For an importer it means receiving funding in order to pay a supplier and allow time for the goods to be received, sold and turned into cash. For an exporter it provides working capital until the overseas customer pays for the goods or services that have been delivered.
Which one is best for my business?
Making the right choice is important to help your business grow at the right time and in the right way. And sometimes reviewing your existing arrangements help greatly as well
This is where we come in – if you want help in determining what the best option is; or you want to review your existing arrangements we are happy to meet, have a look at your business and analyse your options