Growing your business, whether through increased sales or improved profitability, often means you need to invest more.
You can do this by:
- investing previous profits back into your business;
- taking out a loan;
- selling shares to outside investors;
- looking for other sources of finance, including government-backed schemes.
Professional advisers such as accountants can help you to work out whether it makes financial sense to take on loans or investment. You should take legal advice before taking on new investment in your business.
You should make sure that your business would be able to pay back the debt before you take out a loan. Repayments are often made in installments over a number of years, and youâ€™ll need to pay off any interest on outstanding debts. If your business fails a loan is still repayable.
If youâ€™re a sole trader looking for a loan, a lender will ask you to provide a personal guarantee or promise to hand over assets like your house or car if you canâ€™t repay the loan.
Growing your business, whether through increased sales or improved profitability, often means you need further funding.
Get your information together
If youâ€™re thinking of bringing in new investors, theyâ€™ll want to know how much your business could increase in value if they buy shares. To work this out, theyâ€™ll need to know how much their investment will increase your sales and profitability.
Youâ€™ll need to provide potential lenders and investors with a financial model showing how your business will spend the extra money to increase sales and profitability. And how initial costs and increased ongoing costs will affect your cash flow.
Increases in sales usually only happen after taking on additional costs like employing more staff, moving to larger premises or putting in bigger orders for raw materials. Youâ€™ll need to take all of these into account in your financial planning.
Sourcing the funds
- Find out which types of finance might work for your business.
- Find public finance using the finance finder tool, or search for private finance.
- Find a chartered accountant on the Institute of Chartered Accountants (ICAEW) website, or a solicitor on the Law Society website.
Who we’ve worked with
- Local Funding
- Solent LEP Funding
- National Funding
- European Funding
- Self Employment
- Venture Capital
- Creativity & Innovation
- Awards & Funding Competitions
- Green Growth & Innovation
- Social Enterprise & Innovation
We can work with your business or organisation and help you find the funding you need.