Rasing captail

[Jodimyatt]

In order to expand and get more work and set up all projects, equiperment to enable me to do this, i am looking for around 20k max.

Though 5k+ owuld help any ideas how to raise this.

 

[Ian J]

I wonder whether factoring would be appropriate as a method of raising working capital. If you don't know how it operates there is a brief description here and if you feel that it may be of use please feel free to contact me.

 

[BMS]

Jodimyatt

With regard to Ian J's reply outlining invoice finanacing ( no offence to you personally Ian ), I have had positive and negative experiences of factoring companies, but should you think that this may be the route for you, I would suggest that you investigate a significant number of factoring organisations to enable you to find the best deal for you.

Most major banks offer this service as well as a number of independants and although they will create positive cashflow as your invoices are prefunded by upto 80% normally, the charges that are applied sometimes outway the benefits of the positive cashflow funding.

There are also sometimes issues with the credit control function be removed from your control and in my experience some factoring companies are not entirely enthusiastic about chasing debts.

It appears to me that raising capital from another source may be as appropriate and you may find, if you can find the right lender, that the interest rates could be less that the charges imposed by a factoring company.

 

[Alpha]

In respect of Jodis current position I'm afraid that factoring is not an option for the capital investment that he requires.

Jodi, if you have already exhausted the possibility of friends or family investing then I would suggest that you approach someone such as Paul Shepard on this board(I'm sure that there are a couple of others also on the forums but I cannot recollect them at the moment sorry )

You will need to have at least a written business plan so that you can demonstrate that you are fully aware just how much capital you require and what the risks are, and also information about your personal circumstances eg whether you are a home owner and have available security or whther the Small Firms Loan Guarantee is applicable in your circumstances)

All the best

 

[Rob Holmes]

In order to expand and get more work and set up all projects, equiperment to enable me to do this, i am looking for around 20k max.

Though 5k+ owuld help any ideas how to raise this.

No-ones actually mentioned your bank yet?

Thats where I would probably try when I need that sort of money - I'm sure there are downsides that you must look into but an up-side for me is that there is no partner involved and business decisions remain with you.

Remember a silent partner is a myth - they are never silent!

Rob

 

[Ian J]

With regard to Ian J's reply outlining invoice finanacing ( no offence to you personally Ian ), I have had positive and negative experiences of factoring companies, but should you think that this may be the route for you, I would suggest that you investigate a significant number of factoring organisations to enable you to find the best deal for you.

Most newcomers to factoring won't know what to look for which is why using a specialist broker can save so many problems in the future as we should know which factors are competent and which just make up the numbers and should be avoided with the proverbial bargepole

 

[Strategist]

Unless you are having difficulty chasing debtors and your turnover is a minimumof £50k, factoring would not be the way forward. Your bank should be the initial port of call but you will as mentioned need a business plan. If the bank says no, either try others or try a lender of last resort. These are normally based within Enterprise Agencies and you should be able to find one local to you through your local Business Link. You seem unsure as to the actual amount that you need. This needs to be clarified. You may also like to consider (if it is for equipment) asset financing. Your bank will have an asset finance division, although there are many companies around. The supplier of the equipment will probably also be able to offer it on some form of leasing deal. I hope this helps.

 

[finstar]

In response to what Strategist has said, in our experience, the bank can be far from the best option. Usually the 'Asset Finance' division is an old leasing company that the bank has acquired at one way or another, and thus like all large financial instituions, slow to react and generally unable to meet most enquiries other than straight down the line prime customers.

The best course of action would be to talk to an entirely independent commerical broker who can not only source the products of your bank, but who can also use other firms (including ones who market only through intermediaries, and not direct to the public), but who could also advise you on the best course of action for raising the £20,000, leasing finance may be the way forward, then again it might not, it really is hard to say without more information.

 

[philjeffs]

I'm going to be unpopular here, but this forum is about giving honest, straightforward advice right?

You have already found that you will need to be approaching a financial institution or commercial broker for your capital requirements. To do so requires a suitable business plan and a well written proposal that they can take seriously.

Can I please suggest that the first thing you do is switch on your spell checker? Any formal submission written in the same manner as the opening to this post would be thrown out without a second glance. I wouldn't have even got beyond the opening line.

I know the modern world is less bothered in older values, but show you are serious in your request?

 

[MartinC1970]

You could always consider a Small Business Loan.

It is possible to arrange this finance without having to do a business plan and/or cash forecast for your business.

Each customer is different, and the information required will vary. A phone call to your Bank will only take ten minutes of your time and at worst will eliminate this as an option.

 

[Jose]

Jodi,

Completely agree with Philjeffs.

We have helped many individuals and companies obtain funding by helping them to produce funding proposals.

Please let me know if you require help.


Jose