Finance for your business
FINANCE FOR YOUR BUSINESS
A number of businesses (many would say the vast majority) are finding it increasingly difficult to obtain finance for their business, whether from banks, venture capitalists, business angels or otherwise. This funding has not run out completely but in the current climate banks in particular are extremely nervous in their approach and, in most cases, the cost of borrowing, both in terms of the initial down-payment, interest rates and percentages of equity, are higher than a number of the borrowers would have wished or anticipated. When finance is obtained however it is not just a question of accepting the same - if the borrower does so, it is done at its peril. Banks are not in business for altruistic purposes and will want to see as much security and as big as possible a return on their money.
When a borrower receives an offer letter there are a number of legal and other issues to be considered. Often this is also the appropriate time to revise the Articles of Association and other documentation to deal with aspects of The Companies Act 2006. The necessary processes are not simple but must often be enacted quickly in terms of the need for the financial injection. In such circumstances, businesses must work closely with their advisors to devise a way for the matter to be dealt with as speedily and efficiently as possible, whilst ensuring that fees for the work are kept to a minimum.