Raising Finance for a start up business or securing expansion finance for an established business can be an overwhelming experience.
There are various sources of external finance available such as relatively simple overdraft facilities or European Grant funding programs which require detailed applications. Although taking on an additional financial commitment can be daunting, the rewards for the growth of your business can be substantial.
This article details all of the various options open to you should you want to raise finance for the growth of your business.
OVERDRAFTS
Overdrafts are one of the most common short-term sources of finance available. They provide a simple and effective way of financing the growth of your business. If your business has a good credit history, your bank will require little information from you to secure a short-term overdraft. Once they have the confidence that you are able to pay it back, the additional borrowing can be instant. It is important that you use the overdraft facility wisely to minimize the cost. Charges for exceeding overdraft limits can be substantial. Use it for seasonal fluctuations in sales, not long term financing.
Why overdrafts?
They are simple and relatively easy to set up.
You only pay interest on the amount you use.
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