Guide to finance for small business

Two comprehensive new guides designed to help small and growing firms improve their chances of raising the right funding for their business have been launched by Nigel Griffiths, Minister for Small Business and Enterprise.

The No-Nonsense guide to Small Business Funding and the No-Nonsense Guide to Finance for High-Growth companies are free guides produced by Business Link, the Government's business advice service.

Available online at http://www.sbs.gov.uk or by calling 0845 6009006, the two jargon-free guides feature case studies outlining the experiences of small firms, backed up with the inside track from industry experts.

The No-Nonsense Guide to Small Business Funding will help start ups and small firms in need of finance. It offers advice on working out what finance is needed, what the best potential sources are and how best to approach them.

The guide also offers advice on:

• The importance of seeking advice from accountants and banks
• The value of a strong business plan
• Self-funding your business
• Obtaining loans and overdrafts from the bank
• Accepting finance from family and friends
• Government grants, and who may be eligible
• When and how to seek small scale equity investment
• Dealing with cash flow issues

For established businesses that are looking to expand, there are a range of potential finance options. The second guide, the No-Nonsense Guide to Finance for High Growth Companies can help SMEs make the most of expert advice, locate the most appropriate funding for them, and advises on the best way to secure it.
This guide covers issues such as:

• The importance of right funding mix
• How to best utilise traditional fiance such as loans, factoring and invoice discounting
• Investment from business angels and venture capitalists
• Deciding whether to float your company
• Making a pitch, and negotiating terms
• Managing investor relations

Launching the guides, Small Business Minister Nigel Griffiths said:

"The UK is already one of the best market places for small business finance but people are often unaware of how to access it and what's right for them and their company."