You need to consider carefully every aspect before applying for finance. The funding requires a commitment in terms of capital and interest payments.
The business must be capable of sustaining further growth or expansion. You need to consider the effects of expansion on manpower, materials and space too.
Utilising better the existing resources
First a business must consider whether it could improve its working capital from within. You should try to keep stock and debtors to a minimum. For this you should look at your billing and debts collection and consider different ways to reduce this time.
Many businesses have surpluses of cash at certain periods of time. Rather than leave them on your current account, you should ensure that they are being used to generate income by investing on temporary short term deposit accounts.
If additional external funding is necessary, it is important to plan in advance. You need to make up your mind on the nature of the project and the timing and the amount of the required finance. Creating a well-drawn up business plan is vital to any lending institution. It is not likely they will provide any assistance without a proper business plan.
The business plan will include details of:
- the objectives and aims of the business
- the purpose of the required funding
- sales plan and strategy
- the financial position of the business with detailed cash flow forecasts and past accounts
- the business ownership and history
- management and responsibilities
- products and market share
If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, can help you in raising the finance. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.