Whether you are asking your bank manager for an overdraft or loan, or seeking outside investors into your business, you will need to be prepared and anticipate all the information that you could be asked for and understand the implications:
Business Plan
Financial Plan
Due Diligence
Term Sheet
Dilution
Valuation
Legal Documentation
Taxation
Other than in respect of taking out an ordinary bank overdrafts or loans, it is always wise to consult your tax advisor at every stage along the way to try and ensure that the potential/eventual outcome has the most beneficial outcome for you and your fellow shareholders. There are also tax schemes that encourage investment (EIS) and these should be considered whenever possible, not only to secure that investment, but to make for happy investors.
Support
Whatever funding route you take it will involve a lot of preparation, detail, procedure, negotiation, legal jargon and most of all time to achieve a successful outcome. A FinanceHead can not only ease that burden by managing the transaction for you, but explain to you at every step along the way what it all means to you and the effect it may have on your business. Being seen as being in control of your business should enhance an investors’ view of value and give them comfort that their investment will be well managed.
