The Funding Issue

The business plan is going well, your idea seems to have feet but you face a major problem: You need money to get it off the ground!

 

Securing funding is one of the most common business problems. There are various ways to raise finance these days, which is a good thing but people are unaware of all of the options available to them,  or are unsure about how it works. Do your research to find out how you can raise the funds you need in a way that best suits your business.

Methods of fund raising from large to small:

Solution:          Retail Corporate bonds

Amounts:         Any amount

What is this:    The company issues bonds (debt) which can be traded on the stock exchange

Pros:             Most of the time the terms and conditions are more favourable than loans, and your investors have limited control over your business.

Cons:              Usually used by well known/ established businesses and for larger sums of finance.    Also requires a lot of admin, higher fees and adherence to listing regulations

Examples:        HBOS, Safeway, and vodaphone.... people you have heard of

Tax incentives: No