Securing the right funding is an essential part of business growth. However, with a variety of options available to you, and lenders increasingly mindful of risk, obtaining funding isn’t always straightforward. As such, it’s vital to create a detailed forecast. You must deliver a comprehensive business plan to demonstrate realistic predictions for financial growth.
Funding options: which is best for your business?
There are many different types of funding available to you. These include loans to borrow a fixed amount and grants for start-ups. You might also consider asset finance (to secure the equipment your business needs to grow) and factoring, where accounts receivable are sold to a third party at a discounted rate. It is an important decision selecting which of the different funding options is best suited to your business, and it requires a thorough understanding of your financial forecast.
It’s all in the detail: create an in-depth business plan
It’s a common misconception that a great credit score alone is all you need to obtain funding. Of course, a good credit rating will assure lenders of reduced risk when backing your business. However, you need to demonstrate a credible business model and a detailed forecast to secure funding. A business plan that shows a thorough understanding of your business forecast, with attention to detail and realistic projections, is key.
In fact, many lenders will overlook a poor credit score if you have a sound business plan. Make sure your projections are backed by realistic expectations and delivered in detail, with particular focus on your sales figures.
The application process: a detailed forecast to secure funds
I assess my clients’ businesses objectively and assist with funding applications. Recently, I was approached by a mobile beautician. She wanted to set up a salon, and required funding to help buy the expensive, specialist equipment the salon needed.
Understanding my client’s goals, I created a financial forecast for her business. The forecast included profit and loss projections, a balance sheet and cash flow in addition to a comprehensive business plan. Once I introduced the client to a potential funder, I continued to support her throughout the entire lending process. I explained each stage and the accompanying reports as we went through the process. I made sure each phase was fully understood and provided assurance and analysis every step of the way.
I’m delighted that I’ve been able to help a number of client obtain the funding that was right for their business. There are many varied options available and lenders are increasingly rigorous in their assessment. Therefore, it can be hugely complex for business owners to tackle the funding process alone. I’ve been on-hand to help clients develop a detailed forecast that shows a clear understanding of their business and to create a clear business plan with realistic projections. Supporting the funding application process is highly rewarding, and I’m proud to be helping my clients achieve business success.