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Here are 6 main reasons you may need to raise additional funding:
There are many financial products available to raise money to export. The right financial product will depend on what it’s for and the size and stage of your business. You can either borrow money or get someone to invest in your business (also known as raising equity).
In this knowledge zone, we’ll go through the different options available.
Should decide to borrow money, don’t forget to think about the cost of the money and perhaps even look at insuring that risk. This suits many companies because as long as you can maintain the monthly repayments you will be able to continue with your own strategies and business plans.
Sometimes, if you don’t have a long credit history or you can’t borrow through other means, it makes sense to look at raising equity.
A person or company may invest in your business for a share of the profits. This is called equity finance and can include:
venture capitalists
business angels
an initial public offering (IPO)
Equity investment is usually sought by businesses that want to grow quickly. However, any investor will:
want a share of the business – this is a loss of control and is sometimes hard to do but if you want to grow and you need funding it’s a good option. Do take advice and think about what this means.
want some control or input into the business
but they often bring useful knowledge, contacts and expertise
Your bank or financial advisor should be able to help with questions about finance.
Indeed if you need any help on any of these issues – we’re here to help.
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