The capitalist landscape is changing, and raising finance for your business is not as straightforward as a decade ago. Maybe the odds are in your favour, or perhaps you will have to work harder to get the funding your business deserves.

So long as you have exciting startup ideas or viable business operations, raising capital on your terms is attainable. Besides, a well-financed business allows you to occupy a more significant position in the competitive market.

Here are some of the most practical options your business can raise capital:

Bank Loans

Sure, several businesses cringe at the mere thought of bank loans. For small and medium-sized enterprises, however, there are quite a few applicable tax exemptions. So long as you are conscientious about taking out bank loans, you can avoid most of the potential repercussions for your business.

Asset-Based Finance

If you are aiming to increase the growth of your business, you might have to make investments to buy new assets. The purchase of new machinery, for instance, can improve operational productivity to a new level. In simple terms, asset financing is ideal for buying a business item for an extended period.

Venture Capital

Often, venture capitalist investors can become the saviour for your business. It is a great way to grow your business and maintain a competitive market position. Sure, you might have to relinquish some percentage of ownership.

However, the added capital and the acquired resources can become vital to the future growth of your business. Furthermore, raising money from VC allows you to have optimal cash flow and gain new assets to fulfil your business aspirations.

Seek Grants

Yes, Government and other federal financial institutes are one of the most sought out options for raising capital. In fact, small businesses often resolve their growing debt situation through government grants.

Although you will have to fill out a lot of documentation, your business can receive the grants to guarantee future growth. The trick is to avail the benefits of grants without paying excessive interest rates that might hamper your business growth.

What Else?

Ultimately, raising finance for your business depends on the two key factors:

Forecasts & Business Plans

To raise capital, you will have to understand forecasting. It can help you evaluate whether or not the capital you need is, at best, minimum or excessive for your needs. In fact, a comprehensive cash flow analysis can enlighten your lenders regarding repayment requirements.

Consequently, it will help you build credibility for business planning. Business plans, for instance, can help you draw investors for your business. It does not necessarily have to be over-the-top or too complicated. Instead, it just needs to illustrate what your business will spend the funds on.

Wrap Up

Considerations that is all it takes to opt for the options that can cater to your needs. From benefits to downfalls, assess the situation with utmost discretion and ask yourself whether the investment aligns with your business goals.

And if it does, you can build a strong business foundation for decades to come. There is always someone out there willing to raise funds for you. It is up to you now to show appreciation and a sense of immediacy to use that raised capital for the betterment of your business that would drive the UK economy.

We can help with all of your business and personal tax and financial planning needs. For a strategic review of your finances, please contact us.

Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our consultants if you need more information. This guide was written specifically for Smart Accounting clients. Some of the information contained in this guide might not be applicable if you do not have a business managed by Smart Accounting. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.


✨Shaking up the accounting profession ✨Business coach ✨Book Author ✨ Multi business-owning mom & wife.

I love to make business fun & have a passion for teaching my clients how to build a life they love while making an income they deserve!

Madeleine Salariu