Finance for Business Growth

Size: px
Start display at page:

Download "Finance for Business Growth"

Transcription

1 Finance for Business Growth A Presentation by Clive Lewis, Head of Enterprise, Institute of Chartered Accountants in England & Wales (ICAEW)

2 Finance for Growth Businesses Presentation will cover: Do you need finance or better financial management? (slide 3) Key questions before raising finance (slide 4) Conventional finance alternatives (slides 5 9) Newer sources of finance banks (slide 10) On-line sources of finance (slides 11-22) Bank s Appeals Process (slides 23-24) British Business Bank (slide 25) How an accountant can help you access finance (slide 26) ICAEW Business Advice Service (slides 27 to 29)

3 Do you need finance or better financial management? A business should have a continuous focus on cash flow Good practices and clear lines of responsibility are important. Have clear credit agreements with customers and suppliers Have a system for following up late receipts from customers Knowing your current bank balance and how you expect it to change over next 3 months is vital Good financial management not only helps manage cash it will reassure finance providers A growing business can mean increased finance requirements. Plan and control your finances to meet any increased need.

4 Getting the appropriate finance for your business Some key questions to consider before seeking finance: How much are you looking to raise? Are monies needed for short or long term needs? Are monies needed for growth or just to sustain your business? Are you prepared to offer security over a business or personal asset or guarantees? How would you repay a loan? Are you prepared to bring in an outside investor and give up either a minority or majority stake?

5 Equity Finance Shares or equity are issued to owners of a business. The investor wants a steady stream of dividends and capital appreciation i.e. there is no expectation of repayment as with debt finance. In public companies the shares will usually be traded on a recognised stock exchange and so can be sold at any time. In private companies there is no obvious market and shares must often be offered to other shareholders before any sale to outsiders. Growth business require equity finance for expenditure such as research and development or significant marketing expenditure. Alternatively you may wish to acquire another business. In these cases raising equity finance may be a solution.

6 Debt Finance - security A loan will often be accompanied by one of three forms of security - a personal guarantee, a charge across all a company s assets (an all asset security agreement/a debenture), or a security on a specific asset (asset backed security). A personal guarantee is an agreement between an individual and a lender whereby the individual agrees to be responsible for assuming the debts of another person or a business. Business owners or a director of a limited company will want to borrow money in your own name to support the cash flow of the company. If the business runs into financial trouble you will be required to cover any losses of the lender. Consequently your personal assets will be at risk.

7 Getting the appropriate finance for your business Bank and Invoice Finance Loans - Normally secured by a charge over asset(s). Often has conditions attaching to the loan ( covenants ) which can trigger a demand for immediate repayment if they are not met. Overdraft -The lender offers a facility with a limit with an agreed interest rate and probably secured. The business can dip in and out of the facility up to the limit. Debt Factoring To consider factoring the business needs debtors with a good credit record. The factoring company pays a percentage of the debtor book immediately to your business. Factor chases debt Invoice Discounting allows the business to administer the sales ledger and the customer is unaware that the debt has been discounted.

8 Getting the appropriate finance for your business Other Asset Finance Outright Purchase or Deferred Payment -asset(s) can either be purchased outright or paid for by instalments. There are various types of deferred payment - hire, hire purchase or leasing. Mortgage normally be used to finance a property acquisition or to expand an existing business premises. Similar to a bank loan with the mortgage usually being secured over the premises. Loan to value ratios vary but unlikely to exceed 70%

9 Getting the appropriate finance for your business Equity Finance Self funding, friends and family - A business owner with their own funds or those of friends and family, inject monies into the business. This can be by way of a loan or equity finance. Must put agreement in writing Small Scale Equity Finance - businesses sell a share in the business to friends, family, business angels or other private investors. They must be prepared to allow others a say in how the business is run. Business angels bring (up to 2 million) finance to a business and they normally have experience in what makes a successful business Venture Capital - Invest in businesses with potential for high growth based on proven track record. A detailed business plan is essential. Will want a clear strategy for achieving growth. Tax relief Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and Venture Capital Trust Scheme (VCT) offer tax reliefs for investment in unlisted growth companies

10 Newer sources of finance Newer Banks some examples Handelesbanken specialise in providing personalised and bespoke banking services to both corporate and individual customers. Decisions about your banking are made by your local branch.www.handelsbanken.co.uk Metro Bank offers business overdrafts, loans and credit cards. Longer opening hours than high street banks.www.metrobankonline.co.uk/commercial Shawbrook Bank - all lending is done through independent brokers/ strategic partners. Aldermore lends to SMEs through asset finance, business mortgages and invoice finance. For further information do a web search

11 Newer online sources of finance: Debt funding Equity finance Working capital funding factoring & invoice discounting Seeking to match businesses looking for finance with individuals and businesses looking for diversification of risk and yield. Business models vary. Vital to understand how risk of proposition has been assessed. Cost proportionately higher than bank finance but risk often greater. Internet Finance not within the Financial Services Compensation Scheme

12 Debt Funding (or Peer to Peer Lending) through the Internet Applicants fill in on-line application form Acceptance criteria vary but for Funding Circle will include the following: Must be UK based limited company At least two years financial reports Making a profit and a good credit rating May require up-to-date management accounts Details of other loans and commitments Responses are usually quick. Funding Circle says it s credit assessment team will give an answer on the application in 2 days.

13 Peer to Peer Lending On acceptance Once accepted for entry loan applicants enter auction in a marketplace. A risk rating is applied to guide lenders Registered lenders start bidding the amount they are prepared to lend and the interest rate they expect to be paid As bidding intensifies the interest rate tends to drop Applicants can accept the loan as soon as it is fully funded. Alternatively the loan can be kept live for 14 days to see if the rate drops further Once loan accepted applicants can expect the money to be in their bank accounts. This varies from same working day to two weeks An arrangement fee either a percentage of the loan or a fixed amount is charged on the loan. The applicant repays the loan to the peer-to-peer lender who is responsible for distributing the repayments to all lenders involved in the loan

14 Peer to Peer Lending Some providers : Funding Circle loans 5,000 to 500,000 www fundingcircle.com Thincats loans 50,000 to 1M Rebuildingsociety - 2,000 to 50,000 to cos with turnover over 200,000. FundingKnight loans 25,000 to 100,000 to well established SMEs. Wonga for business short-term loans to 30,000

15 Peer to Peer Lending Vs Bank Finance Advantages over bank finance: Application process is generally quicker Generally less onerous security requirements Disadvantages over bank finance: Interest rates generally higher particularly where security and guarantees not available Arrangement fees higher For lenders: P2P in early stages so bad debt levels low. Bad debts not tax deductible for lenders But some P2P lenders have central fund to help mitigate bad debts

16 Equity finance (Or Crowd Funding) through the Internet Businesses seeking equity must: Complete a questionnaire specifying how much finance required and the equity on offer The disclosures are reviewed to ensure they are fair, clear and not misleading. Listing is then approved If full amount offered within a specified period, go to closing, if not, investors get money back In closing legal due diligence is conducted and business signs documentation and on-line platform subscribes for shares on behalf of investors

17 Crowd Funding Continued Fee for obtaining finance paid at this point Post-investment online platform holds shares as nominees for investors. Dividends or when business floats or sells out the on-line platform passes the proceeds back to investors Some on-line equity funding: Crowdcube www. Crowdcube.com Raised 11m for 60+cos with 42,000 registered investors Seedrs invests in seed-stage start-ups seeking up to 100,000 of equity-

18 Other Points on Crowd Funding Tax breaks such as Seed Enterprise Investment Scheme (SEIS) can make Crowd funding more attractive Issues with second round funding with so many first time shareholders. Research indicates that around 50% to 70% of business startups fail completely. Investors advised to spread investment to diversify risk. FCA intention is to restrict financial promotions for unlisted shares or debt securities to sophisticated investors, high net worth individuals, investors taking authorised advice and to limit investment in this class to 10% of net investible portfolio

19 Working capital through the Internet Lending usually based on factoring and invoice discounting or selling future credit card income Factors & invoice discounters include Marketinvoice Platform Black Receivables Exchange

20 Working capital through the Internet Credit card companies include Boost - Business supplies evidence of recent card turnover - Boost makes an offer of a cash advance based on turnover - Boost agree to by future credit/ debit card receivables at a discount - Daily repayment made via small fixed percentage of future credit/ debit card sales - Business advises card processor to send settlement funds to escrow account - Funds collected and remitted through a proprietary escrow service using Barclays AMS client account

21 E-Invoicing, debtor management & arranging finance Various packages available. Following is Bilbus Create a sales invoice or upload from a template Invoices can be electronically submitted to customers in a number of ways including by direct from your accounting platform or integrating with accounting platform and sending direct to customer portal Platform sends automated reminders to customers Customer updates to status of invoice in their system can result in automatic update of your collections forecast Platform provides feedback on customers payment performance and cost of outstanding debt Platform can be linked to an application to a finance provider

22 Recent Developments in Internet Finance The Financial Conduct Authority (FCA) assumed responsibility for regulation of the sector on 1 April It has focussed on establishing standards for credit checking procedures and minimum capital requirements Concern that too strict standards will push up costs making conventional forms of finance more attractive.

23 Getting the best from your bank If refused credit by a bank Get a written explanation for the decision Consider requesting an appeal 40% of appeals result in the decision being overturned frequently because business provides additional information. Bank should offer suggested alternative sources/types of finance Review banks feedback and consider applying to another bank or source of finance Ask is equity finance the way forward?

24 Getting the best from your bank All major UK banks have agreed a set of principles if your formal application for finance has been refused and you appeal the decision An independent and external team of reviewers monitor the principles and the banks application of them The appeal is reviewed by a second person from the bank not involved in the original decision The reviewers have 30 days to communicate the result of your appeal to you. 40% of appeals reviewed in the first year resulted in the original refusal being overturned. In a majority of these cases this followed additional information being submitted. For more information ask your bank or look on the Better Business Finance Website

25 British Business Bank The British Business Bank now operates as a Governmentowned financial institution It will control 4 billion of government finance schemes and expects to leverage 10 billion of SME access to finance.. Working with 70 partners, it uses its funds to unlock finance for thousands of smaller UK businesses It operates where a market failure can be demonstrated either on commercial terms or on subsidised, non-market terms

26 Getting finance how might an accountant help? Many accountants offer advice on business finance. An adviser can help with: Reviewing the business to identify its financing status and needs Identifying the most appropriate sources of money Guidance on investor expectations and attitudes Preparation of the business plan and assisting with presentations to finance providers Support through the funding and due diligence process They will make a charge for the work ask for a quote before you ask them to help.

27 ICAEW Business Advice Service (BAS) ICAEW firms displaying this logo:

28 ICAEW Business Advice Service BAS offers an initial consultation for businesses and start-ups with an ICAEW Chartered Accountant free of charge. An opportunity to discuss your business issues with a finance professional Discussion can cover business issues from record-keeping to managing cashflow

29 ICAEW Business Advice Service Go to: businessadviceservice.com Or To find BAS firms in your area.

30 A world leader of the accountancy and finance profession

Managing Cash Flow & Accessing Finance

Managing Cash Flow & Accessing Finance Managing Cash Flow & Accessing Finance A Presentation by Clive Lewis, Head of Enterprise, Institute of Chartered Accountants in England & Wales (ICAEW) Managing Cash Flow & Accessing Finance Presentation

More information

Business Finance Advice Scheme: FAQs

Business Finance Advice Scheme: FAQs Business Finance Advice Scheme: FAQs Q. Why was the Business Finance Advice Scheme created? The Business Finance Advice kitemark scheme helps businesses find professionally qualified accountants who are

More information

FUNDING SNAPSHOT 2013

FUNDING SNAPSHOT 2013 FUNDING SNAPSHOT 2013 Case Study How do I raise more finance for my business? Until recently the big banks were the first stop for businesses wanting to borrow money, but the marketplace is changing. Alternative

More information

Prepare for business. Prepare for success

Prepare for business. Prepare for success Prepare for business Decisions you take in the early years of your business can be the most difficult as well as the most important, particularly if you are a first-time entrepreneur. Prepare for success

More information

Technical Factsheet 186 Alternative forms of finance

Technical Factsheet 186 Alternative forms of finance Technical Factsheet 186 Alternative forms of finance CONTENTS Page 1 Introduction 1 2 Peer-to-peer and crowdfunding 1 3 Debt platforms 3 4 Working capital platforms 5 5 Equity platforms 8 6 Investors 11

More information

Selecting sources of finance for business

Selecting sources of finance for business Selecting sources of finance for business by Steve Jay 08 Sep 2003 This article considers the practical issues facing a business when selecting appropriate sources of finance. It does not consider the

More information

5 Interesting Facts about the Peer to Peer (P2P) Market

5 Interesting Facts about the Peer to Peer (P2P) Market 5 Interesting Facts about the Peer to Peer (P2P) Market 1 P2P is not crowdfunding PEER TO PEER LENDING CROWDFUNDING The practice of unrelated individuals or companies lending money directly to one another

More information

CIMA F3 Course Notes. Chapter 3. Short term finance

CIMA F3 Course Notes. Chapter 3. Short term finance CIMA F3 Course Notes c Chapter 3 Short term finance Personal use only - not licensed for use on courses 31 1. Conservative, Aggressive and Matching strategies There are three over-riding approaches to

More information

ICAEW Business Advice Service. Prepare for success. Managing cash flow

ICAEW Business Advice Service. Prepare for success. Managing cash flow ICAEW Business Advice Service Prepare for success Managing cash flow Managing cash flow When running your own business, planning and managing your own cash flow is extremely important. Ensure you take

More information

Access to Finance Guide: 1. Bank Finance Options

Access to Finance Guide: 1. Bank Finance Options Access to Finance Guide: 1. Bank Finance Options Overdrafts An overdraft is a flexible way for you to manage short-term borrowing requirements. Business overdrafts are traditionally easy to arrange and

More information

KEY GUIDE. Setting up a new business

KEY GUIDE. Setting up a new business KEY GUIDE Setting up a new business The business idea You have a business idea, but can you turn it into a viable enterprise? Is there a market for the goods you will produce or the services you will supply?

More information

Your bid for growth funds. Supporting your business with financing decisions

Your bid for growth funds. Supporting your business with financing decisions Your bid for growth funds Supporting your business with financing decisions Contents 3 Introduction 4 Preparing your application 6 Assessing applications 8 What Barclays considers 9 Funding solutions 10

More information

Funding for Growth. Introduction & brief outline of the format for today

Funding for Growth. Introduction & brief outline of the format for today Funding for Growth Funding for Growth: Does your business need working capital to grow? Introduction & brief outline of the format for today Attendees to introduce themselves & advise what they hope to

More information

5. Funding Available for IP-Rich Businesses

5. Funding Available for IP-Rich Businesses 20 IP Finance Toolkit 5. Funding Available for IP-Rich Businesses Introduction As the Banking on IP? report notes; SMEs first port of call for finance is often a bank. Figures quoted in the report show

More information

Getting started as an investor

Getting started as an investor Getting started as an investor A guide to investing with GO2 Welcome to GO2 BusinessLoans Thank you for considering the Go2 money market. We are confident that you will find some exciting businesses in

More information

GUIDE TO BUSINESS FINANCE & BUSINESS FUNDING

GUIDE TO BUSINESS FINANCE & BUSINESS FUNDING GUIDE TO BUSINESS FINANCE & BUSINESS FUNDING M3 Corporate Finance M3 Corporate Finance is an independent corporate finance house focused exclusively on mid-market transactions. M3 offers specialist corporate

More information

Investment required: up to 400,000 (EIS pending)

Investment required: up to 400,000 (EIS pending) Web Brief New Peer-to-Peer Crowd Funding Business BFS Ref.: PF/394/045 Investment required: up to 400,000 (EIS pending) Summary Our client is a new start company, and will enter the rapidly expanding UK

More information

Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development.

Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development. Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development. A Funding Whitepaper from HCBA www.hcba.co.uk 01932 244810 Pegasus Funding

More information

Guidance on investment business regulation for Funding Advisers for Small and Medium Enterprises (SMEs)

Guidance on investment business regulation for Funding Advisers for Small and Medium Enterprises (SMEs) Guidance on investment business regulation for Funding Advisers for Small and Medium Enterprises (SMEs) The SME Funding Adviser Scheme highlights a number of specialisms that firms may be offering to their

More information

Better Business Finance

Better Business Finance Better Business Finance Alternative sources of finance There are a wide range of financial products now available to help businesses access the investment needed to grow and thrive. This factsheet explains

More information

Lecture 18 SOURCES OF FINANCE AND GOVERNMENT POLICIES

Lecture 18 SOURCES OF FINANCE AND GOVERNMENT POLICIES Lecture 18 SOURCES OF FINANCE AND GOVERNMENT POLICIES Learning Objectives Sources of finance for small and medium-sized businesses. Types of financial assistance Finance is needed throughout a company

More information

Business Plans. Why does a business need a plan?

Business Plans. Why does a business need a plan? Business Plans Every new business should have a business plan. It is the key to success. If you need finance, no bank manager will lend money without a considered plan. It is one of the most important

More information

Incisive Business Guide to Factoring

Incisive Business Guide to Factoring Incisive Guide to Factoring Factoring Guide Summary This guide from Incisive outlines the features and benefits for your business from using factoring and invoice discounting services. Factoring is commonly

More information

The Young Entrepreneur's guide to starting a business (Part 5)

The Young Entrepreneur's guide to starting a business (Part 5) Page 1 The Young Entrepreneur's guide to starting a business (Part 5) Richard Belsey & Fergal McLoughlin May 2013 A whistle stop tour of alternative funding options for start-ups As part of our Young Entrepreneur

More information

FINANCING A BUSINESS. Copyright MBM Commercial LLP. All rights reserved.

FINANCING A BUSINESS. Copyright MBM Commercial LLP. All rights reserved. FINANCING A BUSINESS Introduction Businesses are either net generators or net expenders of cash. Any business which expends cash long enough will not survive. Many profitable businesses which generate

More information

B R I E F I N G N O T E

B R I E F I N G N O T E B R I E F I N G N O T E FINANCING A BUSINESS CHOOSING THE RIGHT OPTION Background A small number of businesses are in the fortunate position of operating in a cash surplus with money in the bank. For the

More information

The high street banks' base rate changes following the Bank of England's signals through its daily money market operations.

The high street banks' base rate changes following the Bank of England's signals through its daily money market operations. Base Rate The base rate, sometimes referred to as the repo rate, is the minimum rate at which banks are prepared to lend money - it acts as the benchmark for other interest rates, including personal loans

More information

Long-term sources - those repayable beyond 1 year. No guaranteed return, but potential is unlimited. High risks require a high rate of return.

Long-term sources - those repayable beyond 1 year. No guaranteed return, but potential is unlimited. High risks require a high rate of return. Sources of Finance Ord Shares Total Finance Long Short Term Term Pref Shares Loans & Debens Bank O/D Leases Debt Factoring Long-term sources - those repayable beyond 1 year. Ordinary Shares The risk capital

More information

KEY GUIDE. Setting up a new business

KEY GUIDE. Setting up a new business KEY GUIDE Setting up a new business The business idea Some of the decisions and actions that you take when starting a business can have significant effects for some time. The foundations you put in place

More information

Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development.

Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development. Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development. A Funding Whitepaper from SWBA. www.swba.co.uk 01225 580103 01932 244810 Table

More information

for Analysing Listed Private Equity Companies

for Analysing Listed Private Equity Companies 8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.

More information

Interest is only paid on the amount of the overdraft drawn down.

Interest is only paid on the amount of the overdraft drawn down. Overdraft By enabling you to overdraw from your cheque account, an overdraft is particularly useful at times when income is temporarily insufficient to meet payments that are due. Overdrafts do not require

More information

RUN A SUCCESSFUL BUSINESS HELPFUL INFORMATION AT EVERY STAGE OF YOUR BUSINESS

RUN A SUCCESSFUL BUSINESS HELPFUL INFORMATION AT EVERY STAGE OF YOUR BUSINESS RUN A SUCCESSFUL BUSINESS HELPFUL INFORMATION AT EVERY STAGE OF YOUR BUSINESS BUSINESS WITH CONFIDENCE icaew.com/runasuccessfulbusiness RUN A SUCCESSFUL BUSINESS ICAEW 2013 Dissemination of the contents

More information

RELEVANT TO ACCA QUALIFICATION PAPER F9. Studying Paper F9? Performance objectives 15 and 16 are relevant to this exam

RELEVANT TO ACCA QUALIFICATION PAPER F9. Studying Paper F9? Performance objectives 15 and 16 are relevant to this exam RELEVANT TO ACCA QUALIFICATION PAPER F9 Studying Paper F9? Performance objectives 15 and 16 are relevant to this exam Business finance Section E of the Paper F9, Financial Management syllabus deals with

More information

Paper FFM. Foundations in Financial Management FOUNDATIONS IN ACCOUNTANCY. Pilot Paper. The Association of Chartered Certified Accountants

Paper FFM. Foundations in Financial Management FOUNDATIONS IN ACCOUNTANCY. Pilot Paper. The Association of Chartered Certified Accountants FOUNDATIONS IN ACCOUNTANCY Foundations in Financial Management Pilot Paper Time allowed: 2 hours This paper is divided into two sections: Section A ALL TEN questions are compulsory and MUST be attempted

More information

Dealing With Your Banker &

Dealing With Your Banker & Dealing With Your Banker & Other Lenders Your financing The success or failure of your business will depend on whether or not you have enough capital to: buy the equipment and inventory you need; pay overhead

More information

Getting started as an investor. Welcome pack for investors

Getting started as an investor. Welcome pack for investors Getting started as an investor Welcome pack for investors Welcome to Funding Circle You ve just joined thousands of other investors who are earning a great return by lending to businesses across the UK.

More information

YOUR GUIDE TO BUSINESS FINANCE

YOUR GUIDE TO BUSINESS FINANCE YOUR GUIDE TO BUSINESS FINANCE GIBSON HEWITT MAKES BUSINESS FINANCE EASY We put you at an advantage. Gibson Hewitt has knowledge of a wide range of business finance options from business lenders across

More information

how to finance the business

how to finance the business A DV I C E B O O K L E T how to finance the business HOW TO FINANCE THE BUSINESS Getting enough of the right funding is one of the more difficult tasks that you will face as a new entrepreneur. Typically,

More information

Accounting and Reporting Policy FRS 102. Staff Education Note 16 Financing transactions

Accounting and Reporting Policy FRS 102. Staff Education Note 16 Financing transactions Accounting and Reporting Policy FRS 102 Staff Education Note 16 Financing transactions Disclaimer This Education Note has been prepared by FRC staff for the convenience of users of FRS 102 The Financial

More information

Funding Solutions for the local SME. Community. beyond accounts. Introduction. Attendees introduction & what do you want to get from today s Workshop?

Funding Solutions for the local SME. Community. beyond accounts. Introduction. Attendees introduction & what do you want to get from today s Workshop? Funding Solutions for the local SME Introduction Community Attendees introduction & what do you want to get from today s Workshop? beyond accounts Funding for Growth - Alternative Finance & Peer-to-Peer

More information

INTEREST FREE NON REPAYABLE BUSINESS FUNDING. Charles Brooks Comprehensive BusinessManagement Ltd www.cbmgroup.co.uk

INTEREST FREE NON REPAYABLE BUSINESS FUNDING. Charles Brooks Comprehensive BusinessManagement Ltd www.cbmgroup.co.uk INTEREST FREE NON REPAYABLE BUSINESS FUNDING Charles Brooks Comprehensive BusinessManagement Ltd www.cbmgroup.co.uk 1 INTRODUCTION If you ve ever been involved in a start up venture you can probably remember

More information

TURNAROUND OF SMALL AND MEDIUM SIZED ENTERPRISES

TURNAROUND OF SMALL AND MEDIUM SIZED ENTERPRISES TURNAROUND OF SMALL AND MEDIUM SIZED ENTERPRISES Definition of a Small and Medium Sized Enterprise (SME) Turnover Not more than Balance Sheet Not more than Employees Not more than Small 6.5 million 3.26

More information

best-practice guideline

best-practice guideline best-practice guideline SME Finance Author: Marc Mullen November 2012 Issue 58 BUSINESS WITH confidence icaew.com/cff contents 02 Introduction 03 Investment readiness 05 The right type of finance 06 Debt

More information

MJS Business Finance Ltd 2nd Floor, 31 Waterloo Road, Wolverhampton WV1 4DJ

MJS Business Finance Ltd 2nd Floor, 31 Waterloo Road, Wolverhampton WV1 4DJ Introduction MJS specialise in advising small to medium size enterprises (SME s) in all areas concerning Business Funding. We are appointed by a number of accountancy firms to work with and advise their

More information

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes:

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes: Business Studies - Financial Planning and Management Study Notes Financial Planning and Management Study Notes: The Role of Financial Planning: The strategic role of financial management: Organisational

More information

tutor2u Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005

tutor2u Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005 Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005 Importance of Cash (1) A business can exist for a while without making profits but

More information

Geoff Miller CEO. GLI Finance. February 2014

Geoff Miller CEO. GLI Finance. February 2014 Geoff Miller CEO GLI Finance February 2014 1 Disclaimer IMPORTANT NOTICE These presentation materials (the "Presentation Materials") are being solely issued to and directed at persons who are qualified

More information

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows

Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows Sri Lanka Accounting Standard-LKAS 7 Statement of Cash Flows CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 7 STATEMENT OF CASH FLOWS paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS

More information

The business finance guide. A journey from start-up to growth New edition

The business finance guide. A journey from start-up to growth New edition The business finance guide A journey from start-up to growth New edition In partnership with The business finance guide (new edition) ICAEW and British Business Bank 2016 Typographical in the design and

More information

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF

More information

Foot Anstey - Comment on equity crowdfunding 2015. Equity Crowdfunding. April 2015

Foot Anstey - Comment on equity crowdfunding 2015. Equity Crowdfunding. April 2015 Foot Anstey - Comment on equity crowdfunding 2015 April Equity Crowdfunding April 2015 1 Foot Anstey - Comment on equity crowdfunding April 2015 Contents Comment on equity crowdfunding: speed read The

More information

GUIDE FOR INVESTORS. The investment market is evolving. Get involved.

GUIDE FOR INVESTORS. The investment market is evolving. Get involved. GUIDE FOR INVESTORS The investment market is evolving. Get involved. I What is InvestingZone? InvestingZone is a web-based platform for buying shares in early stage, unlisted companies often known as equity

More information

Sources of finance (Or where can we get money from?)

Sources of finance (Or where can we get money from?) Sources of finance (Or where can we get money from?) Why do we need finance? 1. Setting up a business 2. Need to finance our day-to-day activities 3. Expansion 4. Research into new products 5. Special

More information

INVOICE FINANCE. Cash flow solutions that support business growth

INVOICE FINANCE. Cash flow solutions that support business growth INVOICE FINANCE Cash flow solutions that support business growth 1 Contents Invoice Finance 3 Invoice Discounting 5 Factoring 6 How Factoring works 7 Payroll Finance 8 How Payroll Finance works 9 Additional

More information

Introduction to Platform Black September 2013

Introduction to Platform Black September 2013 Introduction to Platform Black September 2013 Transaction Summary GLI Finance is investing 2m in Platform Black Limited ( Platform Black ), the fastest growing online platform for crowd-funding invoice

More information

R A I S I N G F U N D S I N UNITED KINGDOM

R A I S I N G F U N D S I N UNITED KINGDOM R A I S I N G F U N D S I N UNITED KINGDOM INTRODUCTION There are many ways to raise finance in the UK and there are no barriers for investors outside the UK who are interested in investing in UK companies,

More information

NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS

NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS NAS 03 NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS CONTENTS Paragraphs OBJECTIVE SCOPE 1-3 BENEFITS OF CASH FLOWS INFORMATION 4-5 DEFINITIONS 6-9 Cash and cash equivalents 7-9 PRESENTATION OF A

More information

Information Booklet for Small and Medium Enterprises in Financial Difficulty

Information Booklet for Small and Medium Enterprises in Financial Difficulty Information Booklet for Small and Medium Enterprises in Financial Difficulty This Information Booklet applies to Finance Ireland Credit Solutions Ltd t/a Finance Ireland Commercial Mortgages and Finance

More information

RELEVANT TO ACCA QUALIFICATION PAPER F9

RELEVANT TO ACCA QUALIFICATION PAPER F9 RELEVANT TO ACCA QUALIFICATION PAPER F9 Analysing the suitability of financing alternatives The requirement to analyse suitable financing alternatives for a company has been common in Paper F9 over the

More information

Resource 4.5. A Summary of Sources of Finance for Starting a Business

Resource 4.5. A Summary of Sources of Finance for Starting a Business A Summary of Sources of Finance for Starting a Business Resource 4.5 Many new businesses fail because the owner does not have enough cash to last them through the first few months of trading, while their

More information

Online Accounting Software FUNDING OPTIONS GUIDE

Online Accounting Software FUNDING OPTIONS GUIDE Online Accounting Software FUNDING OPTIONS GUIDE Why you need to think about funding Every business needs money. Starting a business presents new challenges, many of which will require some financial outlay.

More information

Funding business expansion. Asset Finance and Asset-Based Lending as alternative approaches to Debt Finance

Funding business expansion. Asset Finance and Asset-Based Lending as alternative approaches to Debt Finance Funding business expansion Asset Finance and Asset-Based Lending as alternative approaches to Debt Finance Targeting growth If there was any doubt whether the UK economy remains on the path to growth,

More information

Financing Your Business. 27 th May 2015 John Irwin Head of AIB SME Strategy & Enablement

Financing Your Business. 27 th May 2015 John Irwin Head of AIB SME Strategy & Enablement Financing Your Business 27 th May 2015 John Irwin Head of AIB SME Strategy & Enablement TARGET RETURNS Funding Provider Returns VS. Risk Private Equity c.25% Venture Capital c.25% Property c.10% - 12%

More information

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

More information

Chapter 8 Financing a Business 1: Sources of Funds

Chapter 8 Financing a Business 1: Sources of Funds Financing a Business 1: Sources of Funds Solutions to Even-Numbered Problems and Cases 8.2 Coté Biologique Limitée (CBL) Data: Annual credit sales $10,000,000 Average collection period 50 days Industry

More information

State of Small Business Lending: US and UK

State of Small Business Lending: US and UK State of Small Business Lending: US and UK Karen Gordon Mills Senior Fellow, Harvard Business School & Harvard Kennedy School Former Administrator of the U.S. Small Business Administration and Member of

More information

A BUSINESS JARGON GUIDE FOR UK SMALL AND MEDIUM SIZED BUSINESSES

A BUSINESS JARGON GUIDE FOR UK SMALL AND MEDIUM SIZED BUSINESSES A BUSINESS JARGON GUIDE FOR UK SMALL AND MEDIUM SIZED BUSINESSES Contents 03 INTRODUCTION 04 BUSINESS JARGON: EXPLAINED 27 INDEX 2 Business Jargon Buster Introduction The world of business finance is notorious

More information

Know o ing Y o Y ur r Options s & How to Access Them

Know o ing Y o Y ur r Options s & How to Access Them Knowing Your Options & How to Access Them Funding Choices in Edinburgh & Scotland Type of Finance Investment Grants Loans Type of Finance Invoice Financing Owners Capital Cash From Profits Asset Finance

More information

Welcome to Finditinworcestershire Breakfast Event. How to be investment ready; funding your business growth Tuesday, May 17

Welcome to Finditinworcestershire Breakfast Event. How to be investment ready; funding your business growth Tuesday, May 17 Welcome to Finditinworcestershire Breakfast Event How to be investment ready; funding your business growth Tuesday, May 17 Introduction Kathryn Wagstaff Economic Development and Sustainability Unit Worcestershire

More information

Glossary of Finance & Startup Terms

Glossary of Finance & Startup Terms A B Glossary of Finance & Startup Terms Accounts payable - a record of all short-term (less than 12 months) invoices, bills and other liabilities yet to be paid. Examples of accounts payable include invoices

More information

Measures to support access to finance for SMEs. Funding for Lending... 2. The National Loan Guarantee Scheme (NLGS)... 2

Measures to support access to finance for SMEs. Funding for Lending... 2. The National Loan Guarantee Scheme (NLGS)... 2 Measures to support access to finance for SMEs Contents Funding for Lending... 2 The National Loan Guarantee Scheme (NLGS)... 2 Enterprise Finance Guarantee (EFG)... 3 Business Finance Partnership (BFP)...

More information

International Accounting Standard 7 Statement of cash flows *

International Accounting Standard 7 Statement of cash flows * International Accounting Standard 7 Statement of cash flows * Objective Information about the cash flows of an entity is useful in providing users of financial statements with a basis to assess the ability

More information

Enterprise Ireland. Finance 4 Growth Sourcing External Funding. June 2012

Enterprise Ireland. Finance 4 Growth Sourcing External Funding. June 2012 Enterprise Ireland Finance 4 Growth Sourcing External Funding June 2012 Cormac Mohan FM Accountants & Business Advisers cmohan@fmaccountants.ie www.fmaccountants.ie Agenda / Contents : Introduction Cash

More information

Cash Flow. Summary. Cash Flow. Louise Söderberg, 2010-10-15

Cash Flow. Summary. Cash Flow. Louise Söderberg, 2010-10-15 Cash Flow Louise Söderberg, 2010-10-15 Summary The statement of cash flow reports the cash generated and used during the time interval specified in its headings. A cash flow analysis is a method of checking

More information

FINANCING FOR BUSINESS

FINANCING FOR BUSINESS FINANCING FOR BUSINESS The Swale Business Conference 2015 Gavin Coleman - Handelsbanken www.handelsbanken.co.uk/chatham Introduction Gavin Coleman Branch Manager Handelsbanken (Swale & Medway) 17 years

More information

Simple Financial Records for a Small Business

Simple Financial Records for a Small Business Simple Financial Records for a Small Business December 2014 March 2015 A GUIDE TO SIMPLE FINANCIAL RECORDS FOR A SMALL BUSINESS CAVEAT This guide aims to help you set up simple financial records for your

More information

Let s work together. Intermediary product guide.

Let s work together. Intermediary product guide. Let s work together Intermediary product guide. Launched in 2009, Aldermore champions Britain s businesses. We offer straightforward banking products and services to small and medium-sized businesses and

More information

Helping businesses source finance

Helping businesses source finance SUPPORTING BUSINESS - SOURCING FINANCE Helping businesses source finance Helping businesses source finance These are challenging times for every business. The economic environment has changed and many

More information

Gary Trueman Regional Director. Birmingham, Coventry and Warwickshire

Gary Trueman Regional Director. Birmingham, Coventry and Warwickshire Gary Trueman Regional Director Birmingham, Coventry and Warwickshire 1 Funding Funding What sources are available? How can we support you to get acce What can you do to support yourselv What can an SME

More information

Topic 3: Accounts and finance

Topic 3: Accounts and finance Topic 3: Accounts and finance 3.1 Sources of Finance LO1: Evaluate advantages & disadvantages of each form of finance. LO2: Evaluate appropriateness of source of finance for given situation. Short, Medium,

More information

Small Business Funding in Australia

Small Business Funding in Australia Small Business Funding in Australia Mihovil Matic, Adam Gorajek and Chris Stewart Smaller businesses typically access funding on less favourable terms than larger businesses. The reasons mostly relate

More information

CPD Spotlight Quiz September 2012. Working Capital

CPD Spotlight Quiz September 2012. Working Capital CPD Spotlight Quiz September 2012 Working Capital 1 What is working capital? This is a topic that has been the subject of debate for many years and will, no doubt, continue to be so. One response to the

More information

Chapter 7: Financing Community Interest Companies

Chapter 7: Financing Community Interest Companies Office of the Regulator of Community Interest Companies: Information and guidance notes Chapter 7: Financing Community Interest Companies OCTOBER 2014 Contents 7.1. Financing: Companies limited by guarantee

More information

Large Company Limited. Report and Accounts. 31 December 2009

Large Company Limited. Report and Accounts. 31 December 2009 Registered number 123456 Large Company Limited Report and Accounts 31 December 2009 Report and accounts Contents Page Company information 1 Directors' report 2 Statement of directors' responsibilities

More information

Fundamentals Level Skills Module, Paper F9

Fundamentals Level Skills Module, Paper F9 Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2008 Answers 1 (a) Calculation of weighted average cost of capital (WACC) Cost of equity Cost of equity using capital asset

More information

Invoice finance made simple

Invoice finance made simple Invoice finance made simple All you need to keep the cash flowing Your Invoice Finance Experts Your Invoice Finance Experts Contents This informative, easy-to-use guide has been put together to explain

More information

Financial Advice Guide for your Business

Financial Advice Guide for your Business Financial Advice Guide for your Business Contents Section 1: Section 2: Section 3: Section 4: Section 5: Section 6: Talk to your bank Reviewing your business for the future Managing your business today

More information

Contents. Cash flow Management 4-7

Contents. Cash flow Management 4-7 Business Finance 1 Contents Cash flow Management 4-7 1.1 Difference between cash and profit 1.2 Cash inflows and cash outflows 1.3 Cash inflows 1.4 Cash outflows 1.5 The principles of cash flow forecasting

More information

Perriam & Partners Ltd Chartered Accountants & Business Advisors

Perriam & Partners Ltd Chartered Accountants & Business Advisors Perriam & Partners Ltd Chartered Accountants & Business Advisors 2014 BUSINESS QUESTIONNAIRE BUSINESS NAME: E-MAIL ADDRESS: CONTACT PERSON: HOME PHONE NUMBER: CELLPHONE NUMBER: ADDRESS: AUTHORITY AND TERMS

More information

Statement of Cash Flows

Statement of Cash Flows STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 7 Statement of Cash Flows This version of SB-FRS 7 does not include amendments that are effective for annual periods beginning after 1 January 2014.

More information

Cashflow Management. What is cashflow

Cashflow Management. What is cashflow Cashflow Management This Fact File Information Sheet looks at the key elements of cashflow, and how effective cashflow management will help protect the financial security of a business. It outlines the

More information

Contribution 787 1,368 1,813 983. Taxable cash flow 682 1,253 1,688 858 Tax liabilities (205) (376) (506) (257)

Contribution 787 1,368 1,813 983. Taxable cash flow 682 1,253 1,688 858 Tax liabilities (205) (376) (506) (257) Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2012 Answers 1 (a) Calculation of net present value (NPV) As nominal after-tax cash flows are to be discounted, the nominal

More information

R A I S I N G F U N D S I N SWEDEN

R A I S I N G F U N D S I N SWEDEN R A I S I N G F U N D S I N SWEDEN Raising funds in Sweden Sweden can offer good opportunities and many ways to raise finance for businesses. The costs of establishing a Swedish limited company are low

More information

!!!!!!!!!!!!!!!!!! How new funding models can help small businesses beat the banks

!!!!!!!!!!!!!!!!!! How new funding models can help small businesses beat the banks How new funding models can help small businesses beat the banks contents Why banks won't lend to small businesses 3 An equitable solution 4 The peer-to-peer funding model 4 Funding Short term Cashflow

More information

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management Cost of Credit How much is customer credit REALLY costing your business? Tips & advice for effective credit management Group UK The best advice any business can follow to ensure they do not experience

More information

Capital Market Glossary of Terms Apple Capital Group, Inc

Capital Market Glossary of Terms Apple Capital Group, Inc GLOSSARY OF TERMS -A- Accredited Investor The SEC designation for an individual or entity meeting any of the following criteria: Any director, executive officer, or general partner of the issuer of the

More information

Terms and conditions of the New Generation Personal Pension SIPP Option execution-only stock broking and fund supermarket. Reference MPEN8/D 09.

Terms and conditions of the New Generation Personal Pension SIPP Option execution-only stock broking and fund supermarket. Reference MPEN8/D 09. Terms and conditions of the New Generation Personal Pension SIPP Option execution-only stock broking and fund supermarket Reference MPEN8/D 09.14 Contents Page Our appointed stockbroker 3 Responsibility

More information

Sources of, and raising short-term finance

Sources of, and raising short-term finance E. BUSINESS FINANCE 1. Sources of, and raising short-term finance 2. Sources of, and raising long-term finance 3. Internal sources of finance and dividend policy 4. Gearing and capital structure considerations

More information