Finance and Funding For Your Business
We Understand How Lenders Think
Often the funding of a business is only considered when a major need or a crisis arises e.g. Cash Flow difficulties or the need to finance the purchase of new Assets or to finance the takeover of another business. For a successful outcome potential lenders or investors will require an understanding of your business, its financial health and growth prospects. Above all those providing finance will need to have confidence in your abilities and will need to be reassured that you have a good understanding of the financial aspects of your business, are committed to the business and are taking good care of their investment in you.
Expertise Based On Experience
The Directors in Focus Business Advisers (FBA) have a thorough understanding of the requirements of lenders and investors acquired during many funding applications for their own businesses and for the businesses of clients. For example banks and investors considering significant investments in your business will often require Due Diligence to be carried out on your business. We have been through this, often demanding, process many times and can act as buffers between you and finance providers, to reduce the stress and demands on your time and to enable you to get on with managing your business. A speedy Due Diligence process can lead to the prompt release of funds to your business.
The Steps Required
The FBA approach is to fully understand your specific funding needs and in addition to understand how your business works, its financial condition and its prospects. Professional finance providers will have a full suite of finance options and products available and will look to meet, not only your present needs, but will look beyond those to meeting all your unspecified present and future needs. Here, your vision for the growth prospects of the business is important. We therefore aim to understand your business fully and to convey those future prospects to providers.
A Tailored Approach
It is not just your prospects that are important but also the financial structure of the business. Most lenders will examine the equity funding (share capital) of the business and the security available against their advances, as part of the evaluation process. All of the key information about the current status and future prospects for the business will be set out in a Financial Plan for the business. As the requirements of finance providers vary, we identify those providers who are most likely to meet your needs and tailor the Financial Plan to the requirements of those finance providers, before presenting the plan to them.
A recent business acquisition programme required that we seek funding for the project. The vendor required that we provide evidence of funding available to the buyer, not alone to complete the deal but also to provide adequate working capital and asset finance facilities. All of this needed to be put in place before the vendor would consider the buyer’s offer. Our knowledge of the business to be acquired and a full understanding of the acquiring company meant that we were able to present the business successfully to three different banks and in addition secure equity and preferential loan finance to meet the current and future growth needs of the business.
The Funding Mix
Here the funding mix successfully negotiated consisted of:
- An Invoice Discount Facility which would meet the present needs but which would expand to meet the target of doubling the business revenues within five years
- An asset financing package to meet the need to re-equip the business and fund a new warehouse and
- Acquisition finance to purchase bolt-on businesses.
The deal required equity financing from the buyers and additional secured, preferred finance. Crucially, no Directors’ personal guarantees were sought or given.
We continue to provide financial and business advice to the buyers and, most important, we helped establish a trusting relationship between the finance providers and the buyers. Additional finance has since been provided to the company for the purpose of expansion in a new area.
An Area of Specialist Expertise
Finance and Funding is a specialty area requiring not only financial expertise but also a real understanding of your business and its financial and operational needs. Our experience in structuring financing arrangements in this area provides us with unique expertise to deal with your financing needs.
If you would like to get assistance to restructure the finances of your business please contact: