Get Support from a CFO with Experience of Source Funding

 You may choose never to borrow money, preferring to rely upon your own resources. This may yield a slower growth trajectory but will give you more control.

You could seek investment from the people closest to you – people who trust your motivation and commitment to your project. This is particularly true in the early stages of business development.

These are often high net worth individuals who seek to get involved early on in a project, investing their own money in return for equity.

Pooled investment funds that use investors’ money to go in search of equity stakes in early or mid-stage businesses.

These tend to invest in more established companies, streamlining operations for rapid growth.

This is usually a big step for companies with ambitious plans. Your company will be publicly listed and shares can be bought and traded by the public.

This takes many forms. Most commonly it involves a large number of private investors taking an equity stake in your business, or small-scale investors who do not necessarily expect a commercial return.

EIS and SEIS are UK schemes designed to help smaller, high risk trading companies raise finance by offering tax relief to investors who purchase new shares.

A ‘traditional’ option for many businesses. Fees and interest can be higher than other options and you may be limited in terms of your capacity to borrow.

A very common form of lending requiring repayments over a fixed period with an agreed rate of interest. Lenders invariably require security over the company’s assets, as well as personal guarantees.

Usually used for funding fixed assets such as machinery, vehicles and equipment. The asset usually acts as security, protecting the lender.

Here, money is advanced to allow companies to purchase goods before they are sold. The lender uses the goods purchased as security.

Peer to Peer enables numerous small investors to loan money directly to a business for an agreed interest rate over a fixed term.

You effectively sell your outstanding business invoices to a third party in exchange for expedited cash flow.