Shropshire businesses must prepare carefully for the new tax year in order to ensure they’re operating as efficiently as possible…
Business finance proves tough to find
Many Shropshire companies are finding it difficult to raise finance for expansion as they seek to benefit from the end of the recession.
Dyke Yaxley’s Mark Bramall said: “Businesses had drawn on their cash reserves during the depths of the downturn, and now needed a financial helping hand with expansion.
“This is challenging to say the least,” said Mark. “It requires careful planning, and good professional advice. It is absolutely vital that expanding companies get it right first time, as you often only get one chance of raising money.
“Take a close look at what you think you will need, because it is very difficult to go back a second time and ask for more. If your figures are too conservative, it could make your business proposition unviable.”
Mark added: “It is wise to seek financing from a number of different sources to give you greater prospects of funding, and flexibility in the long term.
“The most common sources include a loan, mortgage, confidential invoice finance, a bank overdraft, selling an interest to a partner, or making a share issue for your company.
“Firms might also want to consider assistance from a Government-backed scheme like the Enterprise Finance Guarantee, start-up loans, venture capital, or investment from business angels.
“It is important to do a comparative study of each possibility, and consider any tax implications before making a final decision about who to approach.
“At Dyke Yaxley, we are seeing a rise in the number of firms seeking our in-house expertise in three key areas – choosing a finance source, securing the finance, and preparing a business plan.
“In some instances, we are able to help companies to refinance their existing commitments, to create significant trading advantages.
“Whatever your expansion plans may be, we would urge companies to take professional advice, and be prepared to provide some form of security if you choose to apply for a loan.”
Dyke Yaxley’s Mark Bramall
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