Corporate finance – or, in our words, “raising the cash”

We act for small companies who talk about “raising the cash” rather than “corporate finance”.

John was a bank manager 20 years ago before it became term of abuse (and before the bonus culture). He has worked for “both sides”, and is therefore in a position to warn about the pitfalls.

Here are a couple of points he regularly makes.

  • It is always cheapest to use your own money
  • Most start-up businesses use their credit cards to finance their business. Not the cheapest, but certainly the quickest and simplest route.

Sometimes, there are obvious ways of raising the cash which are not considered. However, most of them revolve around “confidence”. A few examples will suffice.

  • Suppliers – if a supplier has confidence that you will be able to sell his products he may be prepared to give you extended credit.
  • Family – often close family members are prepared to support new starts. Take care with this as divorces are expensive!
  • Internet loans – Zopa is one of a number of Internet sites which offer funding to small businesses.

Finally we will tell you if we think you are not going to be successful, but if you are likely to be successful we will also often advise you to ask for more.

There is nothing worse than having costs overrun and trying to go back to the bank for more, having given them all your security and guarantees.

So email us admin@johnegriffiths.co.uk or give us a call on 0141 636 6400.

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