Monday 1st Feb 2021
As many successful business owners will testify, securing financial investment is one of the primary concerns when establishing your start-up, whether it’s drumming up the first sum of money to get you moving, or establishing a line of credit to keep it going as you continue to build a reputable name for the business.
Selecting the right investor for your business isn’t always a straightforward decision, so to get you started, here are our top tips to make your funding mission a little bit easier.
Knowledge of your industry
It helps to find a natural fit with a lender who has experience and understanding of the industry you work in. Not only will this allow them to provide expert advice that is tailored to your organisation, but it also makes you feel like you have a strong support system to share some of the load with.
As a customer, it is important to constantly feel like you’re getting the best out of any service. Try to align your business with people whose judgement you trust and who are able to alleviate your cashflow concerns quickly, responsibly, and professionally.
If your investor is able to provide financial backing, but none of the additional support needed to meet the demands of running a business, perhaps they’re simply not the right fit for you.
A strong reputation
An impressive portfolio of success stories is absolutely vital. Anyone can ‘talk the talk’, but make sure that your backer can actually ‘walk the walk’. Ask about their experience with previous investments – similar to your field of expertise – and request access to case studies so you can ensure you’re putting your trust in a reputable service.
Belief in your vision
Put simply, an investor needs to have faith in you and your business model. Of course, it’s important for them to be able to step in and offer advice when needed, but also put their trust in your ability to drive the company forward.
When exploring trusted services, organisations need to fully research the options and understand why they’re the best fit for them. Take the time to know exactly what the business arrangement will be, and carefully discuss it with a trusted finance provider.
We’ve funded over £5billion to UK businesses and supported over 800 SMEs with their cashflow in over 50 industries. For more of our expert advice, head to the Invoice Finance page to find out how we can help you and your enterprise today.