We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA

Understand the right type of finance for your business with this new guide

We all know that starting a business doesn’t come with a set of instructions.

Understanding the many different types of financial product in the marketplace and how they could support a business can be a real challenge.

The Making business finance work for you guide from the British Business Bank is designed to help your clients make an informed choice about accessing the right type of finance for their business.

The guide highlights the seven most common challenges a business might face, and the types of finance that your clients could utilise to meet them.

Making business finance work for your client

The Making business finance work for you guide contains chapters that focus on the most common challenges a smaller business might face and gives an impartial look at the different financial products that can support them at all stages of their development.

Chapters include topics such as:

  • Starting a business – starting a new business often requires capital – money that is used to help research your business idea, create a prototype product, or purchase equipment or machinery that your new business will use. This chapter covers subjects as varied as pre-seed investment, debt finance, start-up loans and more
  • Research and development – research and development (R&D) is when a business develops innovative products, services or processes. Topics covered in this chapter include R&D tax relief, grants and more
  • Importing and exporting goods and services – businesses selling goods or services overseas face risks when it comes to cash flow and receiving payment from buyers. This chapter discusses the different types of export finance alongside support offered by UK Export Finance
  • Protecting cash flow and working capital – cash flow can be unpredictable with unforeseen costs, seasonal fluctuations, and wider economic challenges all affecting business growth. Inventory financing, asset financing and late payments are just some of the topics covered in this chapter
  • Debt consolidation – if you have multiple loans or lines of credit, your client may decide to consolidate the debts into a single, more manageable loan. This chapter talks about the types of loans that can be consolidated and the pros and cons of doing so
  • Purchasing a major asset – if a small business is looking to acquire another business or invest in a large asset, such as specialist plant or machinery, an injection of capital may be required. Bridging loans, commercial fleet finance, and leasing and hire purchase are just some of the finance types covered in this chapter
  • Scaling and growing a business – whether it’s opening a new location, expanding product lines, or increasing production capacity, growth requires capital. This chapter covers everything from overdrafts and loans to IPO and equity series A, B and C to give you a quick look at the finance that can support business growth.

As well as via the direct links in this article, the guide is also available: