Determine the amount of funding, term and repayment method that suits your business
Before seeking funding for your business, it is important to carefully assess your needs. This includes determining the amount of funding you actually need, the duration of the funding and the repayment method that best suits your financial situation.
Amount of funding
How much money do you need to cover your immediate expenses, such as salaries, rent and bills, etc.?
How much money do you need to invest in growing your business, such as buying new equipment, expanding your premises, etc.?
How much debt do you already have?
Repayment period
How long do you need to repay the requested capital?
What is your current financial situation?
What are the growth prospects for your business?
Repayment options
What repayment options are available?
Which repayment option best suits your income?
How will different repayment options affect the total cost of finance?
Other factors
What is the interest rate?
What are the terms and conditions?
Once you’ve assessed your needs, you’re ready to compare different finance options. Make sure you match your strengths with the needs of the business, taking into account all the factors listed above.
It is also important to consult a business advisor to help you make the best decision for your business.
Here are some additional tips to help you assess your business funding needs:
Prepare a detailed business plan. This plan will help you identify your funding needs and convince lenders to invest in your business.
Monitor your financials. This will help you understand your current financial position and make informed decisions about funding.
Finding the right funding for your business may seem like a challenge, but with careful planning and research you can find the best option to meet your needs.
It’s true that an available master finance plan can vary or even change during the course of the relationship between borrower and lender. There are several examples to prove this.
In several cases, with our support and proper negotiation, some of our clients have been able to secure a more favourable interest rate and a longer repayment period. This is because business finance is not a standard ‘menu’ and lenders assess each case on its merits.
