RAISING FINANCE

If you need to borrow money, your bank will want to see your previous bank statements and you’ll have to make a strong case why they should take a risk on you. Make sure your current account balance matches the opening bank figure in any cash flow forecast you produce. Say exactly what you want the money for, even if its for company tax debt.

Most banks have some sort of advice service, including a 24-hour phone line. If you’ve got any questions, use it. You can also speak to business managers who are there to guide small business owners, and most banks will have a template cash flow forecast form that will help you in your planning. Most banks also provide information on planning for you to complete.

Many accountants, solicitors and other specialists know that new businesses can’t afford to pay large fees, so any first consultation is usually free. This gives you a chance to find out how they can help you and what it will cost. BUT: make it your business to find out how they charge after that, and make sure you agree any proposed fees in advance.

You can also raise finance from venture capitalists, whose business it is to take risks on new companies and new ideas. Again, like banks, they’ll need a lot of convincing, and they’ll always want some sort of stake in your business. The same goes if you get into company tax debt….get adice early.