View Full Version : a little advice

03-01-2003, 01:02 PM
I have been thinking for a long time about starting my own business, and i now feel i'm ready to take the plunge so to speak.

I have my idea and because i've been thinking about this for a few years i think i pretty much have everything i need for my business plan it's really just a case of pulling everything together.

I was just wondering if anyone had any advice regards funding. I'll be needing complete funding because i have none to put in myself, and i have nothing to secure it against. I'm hoping that my business degree will help me in this area, does anyone have any advice on where i should be looking? so far i've been mainly looking at my bank and the pinces trust, but to be perfectly honest i'm unsure of what my best options are.

If anyone can suggest anywhere i should look or has any other advice they want to share please go ahead!!. thanks

03-01-2003, 02:11 PM
Hi Kelly

Where you go for funding depends on a number of factors, what you need the money for, when you need it, and how much you need.

I would say that the bank would be your best option as they would not be seeking to gain equity in your business or a vast return on their outlay. You also need very high growth potential for a venture capitalist to invest.

The fact that you are unable to secure a loan may make things difficult but they may be able to facilitate an overdraft. This may depend largely on the status of your personal account with them as banks are not typically risk finance orientated, in that they donít tend to lend money without security and assurances.

Remember though that an overdraft should only be used for your short term working capital requirements and since they are repayable on demand should not be seen as a long term solution.

Also remember that your business plan will be heavily scrutinised. You should include a reasonably well qualified revenue forecast or failing that, realistic assumptions.

You may find these usefull

www.bvca.co.uk Ė British Venture Capital Association

Hope its of some help to you,

Good Luck


04-01-2003, 01:49 PM
Can't remember who but someone posted this website.


Not sure if its any good or not because i've never used it but apparently you give them your details and they send you a list of grants that you may be intitled to in your local area.

If you use them let us know if they are any good or not.

04-01-2003, 05:19 PM
Thanks for the advice. I did check out the j4b site and it does seem pretty useful but unfortunatley there were no grants i could apply for although i did find an association that offers loans specifically for women going into business in my area which could be useful.

24-01-2003, 04:32 PM

24-01-2003, 05:08 PM
Sorry - should have noted - thought this might be relevant to the previous thread with regards to funding.


24-01-2003, 05:15 PM
It depends what you're looking for, how you are operating and how much you want. Some of what follows has already been mentioned so apologies.

A general guide for all users of this forum:
Only look at VC funding (equity) if you are a company and require generally £150,000 upwards.
If you are a company and want less equity funding try Business Angels.
If you are not a company or are and don't want to give away equity, try debt and asset financing plus a working capital (overdraft) facility.
There are some other alternatives but if you are new to business then don't worry about them because they are complex and it's highly unlikely you'd get any.

If you want to buy fixed assets, buy them on HP/finance lease or lease them (no need for up-front capital except a deposit). Try banks or asset financiers - there are hundreds out there.

For working capital try to get an overdraft, but security will be required in some form. Banks will take a view on future trading profits and may advance you much more than the security you can offer based on this.

Small firms loan is a possibility depending on what you do and how much you need.

Borrow from friends and families. Try Prince's Trust, Business Link, and try for any grants which may be applicable, which will unfortunately be very few if you are a small new business.

Once you are trading there are methods of debt financing that can free up cash tied up in stock and debtors to enable you to expand.

This is all very general and basic but should give you enough suggestions/ideas to head off in the right direction.

By the way I am a professional adviser and this is what I deal with every day. I am not offering my services but if you want anything explaining further, please feel free to contact me.