At Horsfield & Smith, we’ve supported small businesses for over 100 years through every stage of their development. Whether you’re refining a business idea or scaling up an established enterprise, raising finance is often essential. Knowing how, when and where to raise funds – and which route to take – can make all the difference. Read on for our strategic funding insights.
From equity financing and bank loans to government grants and seed funding, our specialist advisory team is here to guide you through the complex financial landscape.
Do you need to raise finance? Start with strategy
Before exploring external options, step back and assess the bigger picture. Will raising finance help you unlock growth, or introduce long-term financial strain? The right financial support can empower a business.
However, debt financing or equity arrangements come with commitments. They should be matched to your goals and risk appetite.
We help clients assess the wider impact of new funding, including effects on staffing, operations, and infrastructure, to ensure any growth is sustainable.
Start by improving internal cash flow
Before you approach lenders, venture capitalists or angel investors, it’s important to ensure your business is operating as efficiently as possible. You may be able to raise money from within by:
- Reducing debtor days – Speeding up your billing and collection cycles.
- Optimising inventory levels – Freeing up cash from slow-moving stock.
- Using surplus cash – Temporarily investing in short-term deposits to improve cash flow.
We work with many early stage and growing companies to strengthen their financial footing before they seek external backing.
Effective business planning to secure funding
If external funding is necessary, your ability to raise funds will depend on the strength of your business planning. Any lender or investor – including banks, venture capital firms and angel investors – will expect a comprehensive business plan outlining:
- Your business idea, ownership and management structure.
- The amount of finance needed and how it will be used.
- Market opportunity and sales strategy.
- Financial health, including past accounts and cash flow forecasts.
This planning process is also critical for your internal decision-making, helping you stay focused and grounded when engaging with funders.
Choosing the right route to raise finance
There are various funding options available depending on your business stage, sector and ambition. At Horsfield & Smith, we help our clients match funding types to their specific needs.
Traditional finance options
- Bank loans and overdrafts – Suitable for working capital or medium to long-term projects, though interest rates and terms vary.
- Mortgages – Often used to purchase premises or equipment.
Asset and cash flow finance
- Hire purchase and leasing – Helps preserve cash while acquiring assets.
- Invoice discounting and debt factoring – Useful for freeing up working capital tied up in receivables.
Equity finance and external investment
- Selling shares – Brings in capital without adding debt, though it dilutes ownership.
- Angel investors and venture capitalists – Often an ideal route for high-growth or early stage businesses with scalable potential.
- Seed funding – Used to fund a start-up’s initial product development or market entry.
- Initial public offering (IPO) – A long-term goal for some companies, but requires rigorous preparation.
Government grants and support
- Government grants – Can provide essential financial support, particularly in regional development or innovation sectors.
- British Business Bank schemes – Offer funding via loan guarantees and equity finance partnerships with high street lenders and venture capital firms.
Security and personal guarantees: Know the risks
Most lenders will require some form of security — such as fixed charges on property or floating charges on assets like stock and debtors. In some cases, they may request personal guarantees. These can be particularly risky if unlimited, so we recommend seeking advice before agreeing.
Other sources of collateral may include life insurance policies or a second charge on your home. Our advisory team will help you evaluate your options carefully.
How Horsfield & Smith can help your business raise finance
Raising finance isn’t just about accessing capital — it’s about finding the right strategy for sustainable growth. Factors such as the amount needed, type of funding, risk to the lender, and duration all play a role.
We provide strategic business planning support, access to our trusted network of lenders and investors, and tailored guidance across debt financing, equity funding, and alternative finance options. Our goal is to position you for success — not just to raise money, but to raise it wisely.
Looking to raise finance for your business?
Visit our Raising Finance advisory page or get in touch to speak with our business advisers.
