How to raise $100,000 for your small business

Starting or expanding a business usually means you need some cash. So unless you have just won the lottery, here are some ways to generate 100,000

USE YOUR OWN CASH

Most new businesses are run by their owners. And with interest rates still the lowest in living memory now could be the chance to remortgage your property.

Be careful though, because these are your debts. If things go wrong, you will lose personally.

FAMILY AND FRIENDS

A lot of people use help from people they know. Not only will you generate some cash but you may also get excellent advice.

Be careful though. You may not be friends for long if opinions differ on how your business is being run - especially if it gets into difficulties.

Remember to get everything down in writing in some form of agreement - no matter how long you have known someone.

BANK LOANS

All the major banks will want to lend you money.

All banks want a business plan (of course you should have a business plan in any case -- but this may get you to finalise yours)

Completed industry specific business plans can be found online at:

completed business plans online

It's best to shop around and find out how the bank will secure their loan - is it on the business or on your house?

GRANTS OR BUSINESS ANGELS

Various government departments do provide some grants. Specialist agencies like the Prince's Trust aim at certain sectors (the Prince's Trust is for younger people.)

Don't believe there are no grants for you. Search the internet and see what their requirements are.

LEASING AND FACTORING

You can start by leasing all your assets. This way you don't have to spend the whole amount in one go.

Factoring lets you have a large % of cash for your sales up front and someone else collects the debt. This can be invaluable when starting up to keep the cashflow moving.

That is a summary of where you can obtain finance.

Teneric.co.uk financial advice does not constitute regulated financial advice and this information is provided as general information. You should seek financial advice.

I hope this gives you a flavour.

Now go and build a better business,

Regards,

Peter Hale
Owner, Teneric Business Plans Ltd

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