Focus on funding

The current downturn in the UK economy is impacting the growth plans of companies large and small, which makes choosing the right funding package to enhance your business even more important.

Finding the finances to purchase or enhance business can be tricky at the best of times even when sales are healthy however, the current fragile state of the UK economy makes this search increasingly significant. If you are a would-be pub owner, a licensees looking to expand your estate or to enhance you current sites the need to gain advice on the state of the lending market has never been more necessary.

The "credit crunch" is impacting companies large and small, it has also affected the confidence of banks, with those still looking to lend, becoming more stringent in their lending especially to first time buyers and non-established operators.

The present downturn increases the need to seek advice from financial experts, such as our sister company Christie Finance, which have the experience of dealing with financial institutions and comprehensive knowledge of the lending sector, plus have the experience of similar negative market conditions.

The first step for those looking for funds to grow, as it should be in every case, is to access the viability of the purchase/enhancements against the investment they are willing to make. When that is defined the process can move forward to an independent valuation of the business or improvements wanting to be made. This valuation should be independent from the company giving the financial advice in order that an unbiased valuation can be given and that at the same time those seeking the funds can have piece of mind regarding the process.

After a valuation is agreed, detailed proposal should be put together with input from both the financial expert and those seeking the funding regarding the potential and viability of the proposed purchase/changes to the business in question. The majority of financial experts are not restricted in who they can approach when it comes to lending institutions and therefore the proposal should be put to a number of different lenders to allow for a selection of different funding options to be generated.

Once the appropriate funding solution has been agreed, you should be able to proceed with an acquisition, expansion or changes to your business. Now more than ever those wishing to do this, especially in the current climate, need to cut down on the risks they face trying to grow their business. Getting the proper funding advice is a significant step in negating that risk.

Top tips

* Shop around - search for the funding solution that best suits your needs and your potential business.

* Independent view - obtain an independent valuation and appraisal of the business for your own peace of mind.

* Think long term - Make sure the funding package you want will support your business going forward rather than as a short-term facility.