Minister launches guides to small business funding

The Minister for Small Business and Enterprise, Nigel Griffiths, has unveiled two guides designed to help small and growing firms improve their chances of raising the right funding for their business.

The 'No-Nonsense Guide To Small Business Funding' and the 'No-Nonsense Guide To Finance For High-Growth Companies' are free guides produced by Business Link, the Government's business advice service.

Available online at www.sbs.gov.uk or by calling 0845 6009006, the two jargon-free guides feature case studies outlining the experiences of small firms, backed up with the inside track from industry experts.

The No-Nonsense Guide To Small Business Funding, aimed at start-ups and small firms in need of finance, offers advice on working out what finance is needed, what the best potential sources are and how best to approach them.

The guide offers advice on:

• The importance of seeking advice from accountants and banks;
• The value of a strong business plan;
• Self-funding your business;
• Obtaining loans and overdrafts from the bank;
• Accepting finance from family and friends;
• Government grants, and who may be eligible;
• When and how to seek small scale equity investment;
• Dealing with cash flow issues.

For established businesses that are looking to expand, there are a range of potential finance options. The second guide, the No-Nonsense Guide To Finance For High Growth Companies aims to help SMEs make the most of expert advice, locate the most appropriate funding, and advise on the best way to secure it.

This guide covers:

• The importance of right funding mix;
• How to best utilise traditional finance such as loans, factoring and invoice discounting;
• Investment from business angels and venture capitalists;
• Deciding whether to float your company;
• Making a pitch, and negotiating terms;
• Managing investor relations.

Launching the guides, Small Business Minister Nigel Griffiths said: "The UK is already one of the best market places for small business finance but people are often unaware of how to access it and what's right for them and their company. The No-Nonsense Guides provide entrepreneurs with a single reference point for the information they need, plus signposts to help and advice on a wide range of funding issues."

The free guides, can be also be ordered from www.businesslink.gov.uk or by calling 0845 600 9006.

(SP)