Every business requires money to function properly. If your business is not making money, despite your best efforts, raising finance for your business could be the solution to this problem. We understand that generating a profit is an important marker for your success and there are several steps you must take in order to confidently ask for a business loan from banks, angel investors and alternative funders.
Raising finance for buinsess
We are experienced in helping start-ups, micro and small businesses raise private equity and/or debt finance to support growth, release value or refinance.
We help you explore the numerous options open to you in terms of raising finance, along with the advantages and disadvantages of each method.
Raising capital for buinsess the right way
Our aim is to help you get the right business finance, at the right rate and the right time. The following factors must be considered:
We will guide you into showing the lender that you have a viable business idea and if backed, they will receive a mutually agreed return on investment (ROI).
Because every business is different, the finance and requirements will vary for each business. If you have good credit, liquid assets and collateral, banks have viable options for entrepreneurs. If you don’t have a near perfect credit score and collateral or security, then perhaps our alternative funders, angels, venture capital firms or crowd-funding would be a better path for you to take.
Lenders will expect to see a business plan and together, we can develop one that includes all the elements required to succeed:
Raising finance for start-ups and existing businesses
There are various alternative sources of finance available for both start-ups and existing firms that we can introduce you to. Our experienced Business Consultants work with these funders all the time and have a thorough understanding of what they require.
We are accustomed to picking up the phone in awkward and less straightforward situations and speaking directly to decision makers. Once you consult with us, we will be able to determine which finance source is the best option for you.
One of the more innovative, modern day forms of raising funds is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. This method is preferable for more established businesses trading for at least two years and gives them an opportunity to raise funds from private investors. RBSS works independently with a number of these P2P lenders and can help you access finance with more certainty of success.
This is a source of cash available to your business based on bringing forward your future credit and debit card sales. You can raise up to 150% of your future credit and debit card sales. The amount you have to repay will fluctuate depending on how much you process through your terminal. This means that on a slow day you will pay back less and on a busy day you will pay back slightly more. It is finance that works with the dynamics of your business.
An angel investor is any person who makes a financial contribution to a start-up, micro or small business. This is also known as equity funding. An angel investor may like your idea so much that they request a stake in your business. They may stipulate that they want to be a silent partner or receive a percentage of the profits over a specified period of time. Business angels usually have excellent knowledge in running a business and you may be able to benefit from their experience and their networks. If you’re not sure about this option, get in touch so that we can advise you.
Venture capital firms love to work with start-ups that have long term growth potential. They are looking for young businesses that stand to generate large amounts of revenue and higher than average profit margins. If your business is a good candidate for a venture capital firm, we will present your plan to venture capitalists around the world.
We live in a global society and, as a result, there is no point in limiting your financial growth to local investors. These firms are more lenient in terms of ignoring any personal financial shortcomings and they are more interested in:
We find that crowdfunding or crowdsourcing is a viable option for inventors. If you have an amazing new product that is non-existent on today’s market or will have a tremendous impact on humanity, crowdsourcing campaigns are successful for such businesses.
Service based businesses don’t generally do well on crowdsourcing websites. Creative projects like films and visual art have a great opportunity with crowdsourcing. If you have a revolutionary product or visual art project you’d like to launch, RBSS works closely with some of the top crowdfunding platforms and can assist you in preparing your crowdsourcing page.
We have access to videographers and marketing experts that will make sure your page is shared with as many people as possible.
Bank loans are the most traditional sources of financing available. The drawback of requesting funding from banks is that they require you to jump through what can seem like endless hoops. Traditional banking institutions will request collateral, assets and near perfect credit, before they will even consider your request. The same stringent process will apply to individuals seeking start-up loans.
Start Up Loans are for businesses between the ages 0 to 3yrs old. There are few and far between start up loans with banks being reluctant unless you tick all their stringent boxes. However we are able to access other sources of finance for start ups depending on your circumstances, sector, innovation the business brings and timing. We are also affiliates of the Governments Start Up Loans and work directly with providers to help you achieve your aim of raising finance for your business.
Flexible overdrafts and Revolving Credit Facilities; many banks are reducing or removing overdrafts from small business or offering them at unfavourable rates. Business overdrafts can be a really useful way of accessing a working capital buffer when you need the cash quickly. For other businesses, they are more like a safety net that is used rarely, but invaluable in times of need.
We can help you access overdraft facilities where you are only paying for what you use. Revolving credit facilities are similar to an overdraft. You get a pre-approved limit that is ready to go at any time. This translates to giving you the flexibility of dipping into it at any time and only paying for what is used.
An unsecured business loan is a funding solution which requires no personal or business asset as collateral. They are supported only by the borrower's creditworthiness. In most, but not in all cases a personal guarantee may be required. The terms of such business loans, including approval and receipt, are therefore most often contingent on the business owner or director’s credit score and the credit score of the business.
Unsecured business loans usually have fixed repayments over a period of between one and five years, with a higher interest rate for shorter-term loans. However, you must still meet income and credit requirements. Unsecured business loans can range from £1,000 to more than £500,000, depending on the size of the business and its credit rating. Some lenders may also offer businesses a revolving line of unsecured credit. You can be a sole trader or a limited company to access unsecured business loans.
Do you have a friend or family member in mind that has access to copious amounts of capital? Do you think they’d be open to considering a proposal from you? Would this person(s) make a good business partner? These are queries we will pose while assisting you in securing start-up capital.