FINANCIAL & LEGAL If the start-up is fortunate enough to be able
to go it alone, then they can be up and running quickly and retain control. However, this route generally requires signifi cant independent wealth, and initial borrowing may be infl exible and restrictive.
Crowdfunding and investment angels The rise of private venture capital (VC) funding has been huge in the UK. Investment in UK start-ups reached £938m in the fi rst quarter of 2017, according to investment tracking platform Beauhurst, with high growth small businesses (HGSBs) contributing to a fi fth of UK economic growth.
Ask yourself whether the business can reach a certain level of traction before securing funding.
The prevalence of organisations that
connect start-ups with investors is testament to this thriving sector. However, entrepreneur Massie-Taylor warns start-ups to investigate the lending market thoroughly. She
said: U
Ferratum We understand that your business moves fast and conventional bank fi nancing is often complicated. Luckily, Ferratum Business provide small business owners the working capital they need when they need it. Using highly trained loan specialists, you’re able to get your business loans approved faster.
ferratumbusiness.uk
“Angel
investors, early stage VCs, crowdfunding, loans; all of these have their own pros and cons. A spreadsheet outlining why these would be good, bad, or even possible for you is a great place to start.” Angel investors are individuals, or a small
Approaching angel
Crowdfunding has been one of the major
group of like-minded investors, looking to swap money for a stake in the start-up. The market has grown thanks to the introduction of government tax incentives, such as the seed enterprise investment scheme, which
off ers a 50% reduction on investment of up to £100,000, subject to some stipulations.
Square the Circle Say hello to fl exible business finance
Promotional Feature Limited business or small company owner in need of capital? If you're looking for a £2k – £50k loan, try a
business loan from a lender that is run by business owners just like you. Cubefunder lends its own cash as fast as 24
hours after an application is approved, and can put in place a repayment plan that suits your business. The service is fl exible, and as it is run by business
owners, they understand your business. Say you hit a period when cashfl ow gets tight,
which in the real world can happen to any small business, at Cubefunder will always endeavour to work with you without interest penalties. Cubefunder can also help with fi xed repayment
costs, and there are no penalties – just simply talk to them to be guided through the options. Their repayment models react to how and when
you receive payments from your customers and adapt so that repaying your business loan is as easy as possible. The application process is very simple and only
requires a few pieces of basic information about your business. Once completed, an expert will be able to help you through the next steps. Then you're truly on your way to fl exible fi nance that works for you.
What Cubefunder is not • They don’t interfere with your card payment arrangements in any way – it is not a merchant cash advance business
• This isn't crowdfunding platform like most of the other online SME lenders – you have one lender
What Cubefunder is • A new UK business fi nance lender that lends its own money
• A small, experienced team based in the UK • Fast and nimble. As they lend their own money, there's no waiting for others to invest in your company
success stories
investors means only having to convince one or two investors of the business’ potential. Plus, these investors will likely give entrepreneurs time and space to grow the business, since they are in it for the mid to long term. However, business owners are relinquishing control in the form of equity share and they will need to work towards the angel’s expectations for
an exit strategy. GrantTree’s Wigley also warns us: “VC
funding can be a long process – it can take anything up to six months to go through due diligence – and you need to fi nd people who are sympathetic to the business. It can also be all-consuming, so people may not be able to raise funding while simultaneously focusing on the business.”
Page 31 ! Research the
funding sources Be able to
prove yourself and the team; investors want personalities they can believe in
Top Tips to Secure Funding
Have a watertight business plan Be able to sell your idea
to investors not just consumers
Ensure you have time; no funding appears overnight
GET IN TOUCH!
If you are a limited company looking for funding, then apply on your phone or PC at
cubefunder.com, or simply call 020 3137 2417.
28 Be Your Own Boss distributed with
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