Top 10 tips for getting Business Finance

Getting all the finance for the business just involves some careful planning, a detailed powerful presentation and a clear mind as to how much is required and from what sources. Here are certain tips that may help you to arrange the funds that you require for your business. But you should always consult an expert in the field so that your business benefits from all those funding.

1. Make a plan as to how much you require and from what sources. There are different sources in the financial market- loans, leasing, hire purchase, government grants and shareholders.
2. Find out the nature of all the sources and the benefit that different sources can give to your business. Say for example leasing is better option than purchasing the equipment as you get the advantage of using latest technology at low cost and also have the option of purchasing the equipment at the end of term. It also provides you with tax benefits. Term loans can be beneficial for short term and long term cash need and the payment can be spread over the years.
3. Plan the sources and their combination from which you will be raising the money. Say for example you need $20,000. Then you can plan to raise about half of the fund from short term loan and remaining from venture financing.
4. Next make a plan as to how you will be using this amount. Find out all the cash inflows that your business will be generating for you so that you manage to repay the loan installments timely.
5. Lay down an effective plan and presentation mentioning all your expenses of the amount and the profits that the business will generate when it is fueled with the funds.
6. Find out all the investment companies giving different loans. If you are looking for leasing or hire deals then find out if the companies are offering any discounting terms to make their deal attractive.
7. There are suppliers who give credit discounts and offers to their customers. Find out any such discount periods and credit terms that can benefit your business.
8. There are different monetary instruments, forward and future contracts that can help you transact short term and long term deal with your overseas and local clients.
9. Overdrafts also prove to be an efficient short term source of finance. Besides this there are factoring options where you can raise finance on outstanding invoices.
10. Invoice discounting can also be opted when you don't want your client to know that you are using the service. The interest rates lie between 1.5-3% and the method gives rapid cash flow for your business.