Funding & Financing
Raising the right type of finance as you grow is crucial. Through our corporate finance team's detailed understanding of your business we focus on the key growth issues, and finding the appropriate funding.
Our award winning corporate finance team works closely with numerous financial institutions and we know exactly how to source the best type of finance. When raising finance, we also assist you to negotiate terms and conditions with the financiers and help with completion of the detailed contractual paperwork.
In 2013, MHA carried out a Funding and Finance survey of SMEs, unveiling the different options of funding available.
Some of the key findings from the survey were:
- There is a real optimism for growth in 2014, with 40% of our respondents saying they expect growth over 10%
- 58% of respondents found fundraising “very easy”, “easy” or “average”
- Over a third of funding in 2013 was for investment in property and plant
- 30% of respondents sought advice from their accountants and 29% from their bank
- The infamous 'equity gap' still appears to exist - typically between £500,000 and £5m
- Bank's debt and asset-backed debt accounted for over half of the funding.
With a wide mix of funding sources, the key is to ensure that you fully understand the requirements of the particular funder you are approaching. If it is intended to approach more than one funder and put a syndicated package together, the business plan needs to be carefully drafted so that all of the potential funders’ requirements are met.
As well as the traditional forms of finance, new forms of investment are developing and our advisors are there to guide you through those often using a combination of grants, equity and debt solutions to suit your strategy. One developing area of note is crowdfunding:
Crowdfunding is anticipated to continue growing. Providers such as Crowd Cube, Funding Circle, and Kickstarter, are bringing together large groups of small investors who are prepared to invest in SMEs through these collective schemes.
For those considering crowd funding, The Federation of Small Businesses (FSB) and the UK Crowdfunding Association have released advice on how to access finance through crowdfunding. The advice includes:
- Proper preparation prevents poor performance - Having a clear business plan will demonstrate the business’ potential to the crowd by showing them you’ve done your homework and researched the market and competitors
- Make your pitch compelling - Keep the pitch simple and avoid using jargon. This will help potential investors understand who and what they are backing. Consider using visual media rather than just a written pitch
- Market potential, the entrepreneurs and the idea - Investors will want to see you have a good idea that will give them a good return, but also that you have a team that will deliver the end product
- Promote you and your venture today - Begin warming up the crowd with the idea so they are eager to invest when the pitch goes live.
- Be realistic - Don’t be overly ambitious with the funding target and don’t over-value the business.
Technology Strategy Board funding
We can assist with applications for funding from the Technology Strategy Board as well as acting as accountants providing the Accountant’s reports required over the course of a project.
With the right structuring of your Research and Development projects, you may receive funding from the Technology Strategy Board on specific projects and where appropriate claim Research and Development tax credits on other projects ensuring that you maximise funding opportunities and tax reliefs available.
The investors in technology start ups may also be able to take advantage of the SEIS or EIS tax reliefs available.
Join the conversation at our MHA MacIntyre Hudson Tech Sector LinkedIn Group.