Every business, from its inception to ongoing development, requires funding at various stages. Choosing the right funding solution and source can significantly impact your business’s success. At Horsfield and Smith, trusted North West accountants, we provide expert advice to help you secure the most suitable funding for your unique business needs. In this guide, we explore key considerations for accessing business funding solutions and how our accountancy and tax services can support you.
Who needs business funding?
The need for funding spans the entire lifecycle of a business. From launching a new venture to expanding operations or navigating challenges, accessing the right type of finance is essential. Effective financial planning, including tax considerations, ensures your funding strategy supports long-term success.
As experienced accountants in the North West, we help businesses identify their financial needs and match them with the best funding solutions, ensuring a strategic approach to sustainable growth.
Planning for growth: Is funding essential?
Securing additional funding often involves new commitments, such as capital repayments and interest. Before seeking external financing, it’s essential to evaluate:
- Your business’s ability to manage new obligations.
- The potential impact on resources like staff, materials, and facilities.
Our team can work with you to create a financial strategy that ensures your growth plans align with your business’s financial capacity, supporting confident and informed decisions.
Unlocking internal resources
Before exploring external funding, consider whether your business can optimise internal resources to improve cash flow. Actions like streamlining stock management, expediting invoicing, and reducing payment collection times can release working capital for reinvestment.
Additionally, short-term deposits for surplus cash can generate additional income. Horsfield and Smith’s accountancy and tax services can help you identify these opportunities, enabling you to maximise your internal resources before seeking external funding.
Creating a solid business plan
When approaching lenders or investors, a robust business plan is non-negotiable. It demonstrates your preparedness and provides the clarity lenders need. Key elements include:
- Business objectives and funding purpose.
- Ownership structure and history.
- Financial position, including cash flow forecasts and accounts.
Our North West accountants are experienced in creating detailed and persuasive business plans, helping you present a professional and compelling case for funding.
Exploring business funding solutions
Businesses have access to a range of funding solutions, including:
- Traditional options: Bank overdrafts, medium- to long-term loans and mortgages.
- Asset-based options: Leasing, hire purchase, debt factoring and invoice discounting.
Each option has distinct benefits and tax implications. At Horsfield and Smith, we provide guidance on selecting the most advantageous financing option for your business while ensuring compliance with tax regulations.
Government and alternative funding sources
Beyond traditional methods, government-backed funding programs like grants, loan guarantees and enterprise capital funds are valuable resources. Local funding schemes may also offer competitive opportunities.
Additionally, businesses can consider raising funds through share issuance. However, this requires careful consideration of potential implications, such as diluted ownership.
With our deep networks and expertise, Horsfield and Smith can help you explore alternative funding sources to support your growth.
Security and funding commitments
Lenders typically require security to mitigate risks. Common forms include:
- Fixed charges on assets like property.
- Floating charges on stock or debtors.
- Personal guarantees, which should be carefully evaluated.
We advise caution with personal guarantees, especially those that are unlimited. Our advisors can help you understand your obligations and negotiate terms that align with your financial strategy.
Why Choose Horsfield and Smith?
Securing business funding solutions is complex, requiring strategic planning and industry expertise. As trusted North West accountants, Horsfield and Smith offer:
- Business plan preparation.
- Advice on funding sources.
- Tax planning and risk management.
- Access to a network of lenders and government programs.
We are committed to helping you find the right funding solution to drive your business forward.
Get in touch for expert guidance
Whether you’re seeking short-term cash flow support or long-term growth capital, our team is here to help. Horsfield and Smith specialise in business funding solutions that empower businesses across the North West.
Contact us today for tailored advice and expert support. Call us on 0161 761 5231 or email theteam@horsfield-smith.co.uk to connect with our expert team at Horsfield & Smith. Let us help your business thrive.
