The Fundraising Process

PHASE 1: Identify a need for finance and put plans in place

  • Establish or review key objectives of the Business. This may identify the need for external finance be it for working capital, expansion of the Business or purchase of new assets
  • Ensure monthly management accounts are up to date with relevant management information to ensure the Business is ‘investment ready’
  • Seek an advisor, mentor or coach to review strategic options and support through the funding process

PHASE 2: Writing a Business Plan

  • Prepare a detailed report about the Business, both background performance and future plans. This is a helpful business tool to document thoughts and directions, as well as an essential stage of applying for funding
  • This should answer key questions for potential funders namely how much is required, why and when the funding is needed, together with which type of funding e.g. debt funding from a bank or equity investment such as Business Angel
  • The plan should highlight key risk areas and demonstrate how they will be addressed
  • Financial forecasts will be required to demonstrate growth and/ or affordability to repay any loans or generate returns for investors.

PHASE 3: Approach to funders and review of options

  • Selection of funders will depend on a number of criteria including size of business, funding amount, fees and rates, investment term and type, business sector and business location
  • You will need to present a Business Plan and required supporting information such as your latest accounts and your cash-flow forecast
  • The choice may be a mix of finance types and/or providers
  • Please refer to our "Useful Information” page for advice on the completion of Business Plans, example Business Plans for a range of businesses and a suggested Business Plan and cash-flow template.

PHASE 4: Due diligence, secure funding and on-going review

  • Funders are likely to test and review key assumptions of the Business Plan and forecasts to assess risk of repayment.
  • If your application is declined, request feedback, seek advice and review business objectives before returning to Phase 1
  • Once secured, on going review of financial performance is required to ensure compliance with key terms and conditions of the funding

Date last updated: 29/06/2017