- Sarah Gardiner
At British Business Bank, we understand that for many small businesses it can be difficult to understand the different types of financial products on the market and how they can support your business.
They may often not know where to start in the world of finance, which on the surface can seem complex and difficult to navigate.
As a result, many small business owners turn to family and close friends for financial assistance as they begin their fundraising efforts. The reason is that they don't know what other options they have, or even if they do know, how to access them. We were successful in raising funds.
Even if they do apply for external funding, most businesses only approach one provider (usually their existing bank), and a rejection can discourage them from looking for other or alternative financial institutions. There is a gender.
That's why British Business Bank has introduced a new guide for small and medium-sized businesses to help them understand how a range of financial products can support their business at every stage of its development.
guide, “Business finance for you”is available on British Business Bank's online Finance Hub and is designed to help businesses make informed choices about accessing the right type of finance.
This guide highlights seven of the most common challenges businesses can face and the types of finance that can help solve them. These include:
- start a business – Starting a new business often requires capital. This is money used to research business ideas, create prototype products, and purchase equipment and machinery to use in your new business.
- Research and Development – Research and development (R&D) is when a company develops innovative products, services, or processes.
- Import and export of goods and services – Businesses selling goods and services abroad face risks regarding cash flow and receiving payments from buyers.
- Cash flow and working capital protection – Cash flow can be unpredictable, as unexpected costs, seasonal fluctuations, and broader economic challenges all impact business growth.
- Debt consolidation – If your small business has multiple loans or lines of credit, you may decide to consolidate your debt into a single, more manageable loan.
- Purchase of major assets – A capital injection may be required if a small business is looking to acquire another business or invest in large assets such as specialized plant or machinery.
- Expand and grow your business – Growth requires capital, whether it’s opening a new location, expanding your product line, or expanding your production capacity.
A key part of the work I do at the bank as UK Network Director is to strengthen key SMEs' access to financial stakeholders and build relationships. We created this guide after receiving feedback that what businesses really need is simple, unbiased guidance on what's available on the market for their specific purpose.
One of the Bank's key objectives is to ensure that businesses from different countries and regions have access to finance wherever they are, without being limited to the lottery of their postcode. We hope this guide provides a starting point for more small businesses across the UK to access the funding they need to succeed and grow.
Sarah Gardiner is UK Network Insights and Strategy Director at The British Business Bank.
