Where Can I Raise Money to Grow?

One of the most common questions we get asked by entrepreneurs is “Where can I raise money to grow?”

We regularly meet companies that are profitable and exceeding their business plans but are struggling to raise enough working capital to keep up.  In some instances, our clients have been forced to turn down profitable new contracts because they cannot raise enough funding to fulfil them.  In other cases, we have seen businesses fail because they have grown too quickly without a sustainable funding structure in place.

What many business owners don’t realise is that the funding market today, particularly for small private companies, is completely different to that of 10 years ago.  There are so many more opportunities available for businesses now with finance options ranging from traditional bank debt to alternative lending from challenger banks to peer-to-peer lending, or even private equity.

However, despite there being more options, the fundamental principles of lending are largely unchanged.  In today’s market credit is still relatively cheap but lenders will only extend an amount a company can genuinely afford to pay back, so to have the best chance of success, management need to be well prepared with detailed, stress-tested, business plans and forecasts before seeking to raise new debt.

The lending appetite, typical pricing and security options will depend on the type of debt raised and will vary significantly from lender to lender.  Our job, as specialist advisers to private companies across East Anglia, is to match the right company with the right funding solution.

Please get in touch if you’d like to find out more and discuss the right solution for your business.