Many small businesses waste their precious time and money trying to grow their business without sufficient funding.
Sightpath helps you work out exactly how much you need and the best way to access it.
We have 2 funding aims:
- Funding Options – To help businesses select the most appropriate funding option and help you get it. See below.
- Investor Matching – To match investors to businesses requiring funds
We help you choose the most appropriate option to fund your business plan.
Free e-book: The 5 essentials to secure a loan for your business
Typically, there are 3 main options for Business Finance:
Overdrafts and loans. Overdrafts are provided by banks usually for up to 12 months. They are normally renewable as long as you haven’t exceeded the overdraft limits. With good planning it is sometimes possible to kick start your growth with a simple overdraft.
Loans are often for larger amounts and for fixed periods. Lenders will expect you to provide a good business plan showing how the money is to be spent with cash flow projections to confirm that you will be able to keep up repayments for the life of the loan. Regular business performance updates will also be expected. Lenders usually require security, e.g. your home. Where you don't have sufficient security we can help you access the Government's Enterprise Finance Guarantee Scheme.
Often banks give poor feedback on why a business has been refused a loan. It’s usually because the banks are quite conservative and risk averse. If your plan doesn’t fit their prescribed criteria they simply decline to lend. Sightpath has good relations with the banks and a Sightpath business plan has a better chance of acceptance.
Investment is made in return for shares in the business. Investors will expect you to provide a good business plan to show good growth and clear ‘exit’ options. They require regular business performance updates. The ongoing Sightpath service can make it easier to attract an investor. See Investor Matching below.
Leasing or hire purchase and Factoring or Invoice Discounting.
Leasing or hire purchase is an option for assets with identifiable resale potential.
Factoring and Invoice Discounting recognise your invoices as assets. Funds are released immediately against invoices minus charges. Factoring companies tend to take charge of the sales ledger and attempt to collect payment directly from customers as invoices fall due; an invoice discounting arrangement enables you to retain control. Whilst these options may help with cash flow, they usually have ‘recourse’ meaning that any customers that default must still be covered by you.
These are the most common options, but there are less-well known options, which we can discuss depending on your circumstances.