Whether you need more inventory, new machinery to make new products, an increase in factory or retail space, or simply increasing the number of employees, access Digital Prämie Berlin to additional finance can give your business the boost it needs. But aside from applying to win an investment in The Vault on TV, what are the key steps to successfully obtaining funding?
BEFORE YOU FILL AND FILL LOTS OF APPLICATION FORMS, YOU NEED TO CONSIDER WHAT YOUR LENDER NEEDS TO KNOW? WILL THE INVESTMENT INCREASE THE VALUE OF YOUR COMPANY IN THE LONG TERM?
Do you have a viable offer and how much risk is involved in your investment? It is therefore advisable to plan and organize yourself:
Create a cash flow forecast
. This should last at least 12 months and two to three years for larger loan applications. It is advisable to get assistance from your accountant or a business adviser. They will help you review your calculations and understand the implications for your future cash flow. They also help create clear projections to support your credit requirements.
Create a Business Plan It
‘s good practice to create a three to five year business plan. This supports your application and also shows the lender that you have done your homework – you have researched the market and can demonstrate the long-term future prospects and growth of your business i.e. you have a plan to support you and linked to financial prediction .
Be clear about what you use your funds for and when you need them
. For example, is it just to buy more stock or expand your products or services? It is also prudent to highlight the timeframe for availing the finance , as this in turn can affect loan terms and overall interest payments. Also research financing partners; as there are many types of financing – some for larger loans and others when you just need a short-term liquidity facility. Also note that some grants may be available for specific economic sectors. To reiterate, it is important to know how you are going to use your funding and therefore get in touch with the most appropriate type of funder. Make sure you seek advice from a trusted associate such as a business coach, bank manager, or your accountant before making a decision or wasting your time filling out numerous applications.
Packages That Keep Cash Flow Going
From bank overdrafts to loans, banks have traditionally offered a range of packages that give you quick access to finance to improve your cash flow or build your business wealth. For example, increasing your bank overdraft can help fund short-term needs such as B. an increase in share purchases for quick settlement or to accommodate business growth in general. Larger business bank loans and independent asset finance lenders can help you purchase equipment, machinery, new office equipment, or infrastructure investments. Alternatively, I know people who have successfully used their business credit card to get additional or discounted stocks or to make quick deposits. But remember to pay attention to the interest terms if you cannot repay the entire amount within the free period. Invoice discounts are also worth considering if cash flow is your real barrier to growth. However, it’s a good idea to speak to your bank manager or your business advisor for more information on this facility, as it may not be for everyone.
Important things to remember
Do your research and know your market. A lender needs to know that your business is a viable and sustainable business that can be funded. It is therefore important to take the time to prepare before applying. It’s not just about knowing your finances. You should understand your market sector, identify all opportunities and also understand your main competitors.
Get support and advice. It is advisable to get several trusted advisors to assist you through the funding application process e.g. B. An accountant to advise you on the financial side and a business consultant to help you know how best to create the support plan to add strength and depth to your funding request. A consultant can help you define your company’s core values, Digital Prämie Berlin purpose and competitive advantage in relation to your future opportunities and will ensure you support an application with market research. One of the main reasons companies fail when applying for funding is that they don’t provide enough research and substance to their application. Advisors can also put you in touch with the most suitable lenders willing to invest in your business, saving you time.
