Start-Up Finance

When setting up a new business one of the first questions you
must answer is ‘Will I need finance to set up my business?’
This might be to fit out a premises, to pay staff while they are
training or to buy equipment.

Start-Up Finance, Prepare for success

Many businesses start off with ‘owners equity’ – money they put into the business to fund the start-up. But when they get the business going they may need finance.

Do you need finance or better cash
flow management?

A business should have a continuous focus
on cash flow. Many businesses can get by
without raising finance as the cash flow
is well managed. You must commit time
to manage cash flow so that it doesn’t
dictate to you. This means having regular
procedures such as the ones listed below.
• Have clear credit agreements with
customers and suppliers.
• Have a system for keeping the aged
debtor schedule up to date with
payments from customers.
• Regularly chase up late receipts from
customers.
• Chase customers at management
level. Don’t get stuck in their accounts
department; get onto your contacts in
the buyers department.
• It’s vital that you know your current bank
balance and how you expect it to change
over the next three months.
Good financial management not only
helps manage cash, it will reassure finance
providers. If your business is growing it
can mean increased working capital. You
should arrange your finances to meet any
anticipated increased need. Arranging
finance in plenty of time demonstrates to
finance providers that you are in control of
your business.