Financing the business

Transforming a good business idea into business requires adequate financing. Projects often fail not for lack of management commitment and enthusiasm but due to the inability to get the project off the ground with proper financing. Most ventures require some form of initial cash outlay and have to endure through difficult times when the business is not generating sufficient cash to pay for normal commitments.

A good financing package is one that strikes a balance between acquiring the right amount of funds without exposing the business to undue risks and obligations. When we help our clients procure finance, this is the rationale we keep constantly in mind. We take responsibility for our advice; so before helping you obtain the financing that you need, we make sure that your business can generate enough cash to repay it. That is why we take a holistic view of your project, looking not only at financial aspects, but we also assess your business strategy, sources of competitive advantage and marketing capabilities.

Almost invariably bank mangers and other providers of finance will want to see a business plan before advancing finance. Not to have a business plan will be regarded as a bad sign. The plan must be used to run the business and there must be a means for checking progress against the plan. An information system must be in place to provide regular details of progress against plan. Bank managers are particularly wary of businesses that are slow in producing internal performance figures.

Lenders will want to guard against risk. In particular they will need assurance that the business has the means of generating sufficient cash to cover the regular repayments on the loan, and that, if everything goes wrong, they can still get their money back.

Grant Thornton has helped clients of every size to acquire financing for their business. By carefully evaluating your requirements and exploring the financing options available, from bank loans and overdrafts to raising funds on the stock exchange, we can help you secure the financing package that best suits your needs. We also make sure that you take full advantage of any special incentives that may apply, such as state-subsidised loans or loan-guarantee schemes.