The main types of business funding are:
- Trade Finance
- Property Finance
- Working Capital Finance
- Asset Finance
- Merchant Cash Advance
- Invoice Finance
How to get funding for a business
The CAMPARI acronym forms the basis of how many finance lenders assess business funding applications. This is almost like a health check to assess the level of funding the lender can supply.
CAMPARI stands for:
- Character
- Ability
- Means
- Purpose
- Amount
- Repayment
- Insurance
Providing security in order to obtain funding is also an essential part of the lending process, this shows the lender you have the ability to repay the finance.
The main types of security are:
- Personal guarantees
- Debenture
- Debtor Book
- Legal charge
- Security assignment
How to get funding for a new business
Whilst loans are often difficult to obtain for newer or smaller businesses there are two schemes that can be used to successfully access funding more easily:
The Government backed British Business Bank supports entrepreneurs with Start Up Loans. These can be used for purchasing an existing business, provided you have been trading for less than three years.
The programme offers loans (from £500 to £25,000 per director, at 6% interest) alongside free mentoring and support. In addition, the latest version Government Recovery Loan Scheme can be used to access finance that wouldn’t be otherwise been available commercially.
Can I get funding for my business?
Understanding the CAMPARI terms will ensure you are better prepared when applying for funding. Lenders are more likely to grant funding to businesses with a good credit history.
Lenders have different criteria and appetites to lend and is best to approach more than just one.
The sooner you start the process the best options in terms of price and conditions you will have. Jacobs Allen treats each business as an individual, tailoring our approach to the needs of the business. Taking away the pressure and strain of making applications and finding the best solution.
Our team has a history of successfully completing corporate finance deals (22 with a combined consideration of over £16 million) means we have the expertise and proven track record of helping with your business funding needs.
Either call 01284 704260 or email chris@jacobsallen.co.uk
Book a FREE no obligation meeting.
Latest Video: Raising Finance
Chris Kelly of Jacobs Allen talks about important considerations when you are thinking about raising finance for your business.
Want to know more? Watch our video and find out what to consider when raising finance for your business!
FAQs
How can I get funding for my small business?
It is difficult to secure funding for a small business. It is always useful to start by creating a comprehensive business plan that outlines your business goals, target market and revenue/cost projections. The government start-up loan scheme provides funding where no other sources are available. Also various government grants are available and worth investigating.
What are the methods of raising funds/capital?
There are several methods to raise funds for your business. Equity financing involves selling ownership stakes to investors in exchange for capital. Debt financing involves borrowing money that you repay with interest over time.
What is the importance of raising funds?
Raising funds is important for businesses as it fuels growth, innovation, and sustainability. Adequate funding provides the resources needed to seize opportunities, weather economic downturns, and navigate unforeseen challenges.
What are the major challenges in raising funds?
Raising funds for a business can present several challenges. Securing investor interest requires a compelling proposition and a well-defined business plan. Demonstrating a solid track record, especially for startups can be challenging.
