Back To Basics: 5 Tips for Securing Small Business Funding
For many business owners, securing funding is absolutely essential. After all, this is what equips a business with the resources it needs to grow, thrive and succeed - as we found in our research earlier this year, where almost two thirds (62%) of surveyed businesses said they needed funding to help them grow and expand.
Nowadays, it’s important to not only secure funding but also to make sure you’re securing the right kind of funding. To do this you’ll need to consider a range of factors and do your research so that you can secure the best option for your business!
Here are a few tips to get you started:
Assess your situation
Before you even begin looking at funding options, it’s important to assess your situation and the general health of your business. You should be looking at things like your business’ cash flow, your incoming funds, and all of your expenses and outgoings. Once you have this all recorded in one place, you can take stock of your current situation and decide how much funding you need and what exactly you want to achieve.
Manage your credit score
Obviously, you’ll always be on the lookout for the best rates and offers but what about if you or your business doesn’t have the best credit score? Fortunately, there are a few ways you can try and build this up so that you can improve your eligibility for funding - and perhaps get better deals too.
Some of the ways you can work on improving your credit score include checking your credit score regularly and making sure all the information is correct and up to date. You can also do things such as signing up to the electoral roll which shows that you have a stable and verified postal address. If your business uses credit cards or currently has any loans then paying back the right amount on time will also help show potential providers that you’re reliable.
Another thing to bear in mind is that when applying for credit, often a search will be carried out against your business and show up as a mark against your credit score. Therefore try and avoid making lots of applications in a short amount of time and always double check the criteria section to see if you’re likely to be approved.
Know at your funding options
When looking at your options, you’ll want to make sure that you really do your research. This won’t only involve looking at lenders but also looking at your own market and the kind of funding that your competitors are getting. You could also look at what schemes are available to you and whether you’re eligible to apply.
Or how about looking at alternative and more flexible options such as Liberis’ Business Cash Advance? Get in touch for a personalised, no obligation quote that won’t affect your credit score!
There’s no ‘one size fits all’ solution so take your time to ensure you’re choosing an option that’s most beneficial for you and the growth of your business.
Present your case
Many providers will ask you to present your business case which will include things like background information about your business, how you started it, the reasons for starting it, how you built it up and what your plans are for the future. You should be able to present all of this information in a concise and articulate way and be prepared to answer questions along the way. You may also be asked to provide supporting documents and additional information so always make sure you have everything organised and ready to go.
Build your network
Having a network around you is really valuable when you are trying to secure funding. People in your network could include potential investors, mentors and advisors, influential people from your industry, and brand advocates. These are the people that will get to know your business, give you advice, and hopefully invest funds one day. To build your network, you could go to networking events, get involved in your local business community, reach out to connections on LinkedIn, and get introductions from your neighbours!
Whatever your situation right now, there are always a host of options available which means you can watch your business grow from strength to strength - good luck!