Raising Finance

Raising finance can help immensely to boost a company and help it grow. More often than not, it can feel like your business is hitting a brick wall trying to find access to finance when it matters most.

The team at Hillcrest Finance have experience helping businesses across the country find appropriate forms of finance relevant to your industry. Whether you’re considering some form of asset-based lending for the first time or feel that your company is in a position to access equity capital markets, we can see what options are out there.

If you would like to talk with an advisor about raising finance, click the buttons below.

Is raising finance a good idea?

Many businesses are often trepidatious when considering finance options. It can feel like a stab in the dark, trying to gauge interest from the right parties and ensure that finance sources fall in line with your business aims. Raising finance when a company is growing rapidly is incredibly common, and it helps to have experts at hand to advise on the best approach.

When would a business be raising finance?

Typical scenarios for UK businesses looking to raise finance would include:

  • Increasing cash flow
  • Acquisition
  • Asset purchase
  • Restructuring debts
  • Change in operations

If you feel as though your company needs advice across the board, visit our Business Advisory page for more information on how Hillcrest Finance can help you.

Understanding risks from raising finance

Most creditors will not provide a business with funding unless they know it is a suitable arrangement for both parties. Investors may ask for specific information on what returns they could expect to see, or where your business feels it will get to from their investment.

We can advise on how to best present key information for any business finance plan, and hopefully help place you in a position to show that risk is minimal.

Understanding the sources of business finance

How a business secures finance will depend on the source most likely to help aims. Some of the common business finance options available include:

  • Asset-based lending (ABL)
  • Mezzanine Debt
  • Leasing
  • Bootstrapping
  • Bank loans
  • Bridging loans
  • Invoice financing
  • Peer to peer lending

The type of funding a business opts for will vary wildly based on business aims. For example, a large business looking to raise finance via Mezzanine Debt will typically do so as they can afford to use stocks. Compare that to something like Bootstrapping, which much smaller companies would use to raise finances at the start-up level.

What recommendations would Hillcrest provide for raising finance?

It is important to have a business finance advisor at hand who will understand where your  company currently sits and what options are out there. No two companies raise finance in the same way.

Our advisors will look at the types of business finance which are common in your industry, which type of equity funding will work in your favour, and help build the plans which companies will want to see before making commitments.

Will raising finance create more risk than reward?

It will depend on how finance is secured and how a company uses it. For example, banks are typically the first port of call for raising finance as they’re more likely to provide a loan. Simple steps like this still need reviewing to ensure that interest on a loan is fair, and the company knows what right to repayment a bank has, as it can affect assets and operations if things go wrong.

Advantages of raising finance

Depending on how finance is raised, advantages can include:

  • The freedom to choose investors
  • The option to choose a specific type of funding
  • Investors provide faster access to money
  • More favourable terms when going directly to a bank

Disadvantages of raising finance

Disadvantages of raising finance can include:

  • Your current credit rating
  • Your industry restricting your options
  • Managing expectations of investors
  • Set dates to make repayments

Are there alternatives to raising finance?

Depending on your business type and current finances, options like administration and restructuring may help your business raise funds without outside help. To understand how we recommend visiting our Business Advisory page.

Get help raising finance for your business

Hillcrest Finance’s business advisors are here to answer any questions you have about securing finance, be that to grow your company or to get a business off the ground.

Call us today on 0141 478 0862. Lines open every weekday from 8 am.

Get in touch with us about Raising Finance today