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Live Forum Q&A – Getting Funded

Discussion in 'Money, Accounts & Finance' started by Lace, May 13, 2013.

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  1. Rob Jones

    Rob Jones

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    We work hard to ensure our clients can afford the repayments and will only proceed if we feel the client's business can support the repayments. While our application process is online, we speak to every seller prior to making a finance offer to find out their plans for any investment. I feel this is highly responsible.
    Dave likes this.
  2. Gary

    Gary

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    Completely agree with this, there are many people who don't get a successful business until in their thirties, sometimes (not always) it takes failed businesses (whether your own experience or researched from the experience of others), to get the experience necessary to be successful
    Lace likes this.
  3. James Day

    James Day

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    A lot less camerawork ;). Interviewed a company called Third Door who were on the last series of Dragons' Den, and they said that over 2 hours of grilling, only 7 minutes made the actual show. I don't think it's really a fair representation.
    Lace likes this.
  4. Gary

    Gary

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    It's great to see responsible lenders such as yourselves which is (in my opinion), what it should be about, working with the lender to better ensure things go as smoothly as possible.
    Lace likes this.
  5. Dave

    Dave

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    Hi Rob,
    I agree 100% , too many companies only offer automated systems with no `human contact`.
  6. Sai Montes

    Sai Montes

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    I'm 100% with you on that! Sometimes, when you realize your options you tend to just "go for it" even if you don't actually need it. It's best to be aware of how much you really need.

    I have some question though. I believe having a business plan is important when getting funds. Do you have any tips on what should be included in my business plan? Shall I make forecasts of my expected ROI from the business? What if I do not meet those targets?
  7. Erik

    Erik

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    I’m sure many want to know, what does it take to get funded? Are business plans a thing of the past? Some of us have seen pitch videos posted on crowdfunding sites, how should each alternative be treated when it comes to making a pitch?
  8. Lace

    Lace Retired Moderator

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    Crowdfunding seems a lot friendlier, what sites have you used James?
  9. Emma Jones

    Emma Jones

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    Re angel investors, a couple of quick tips if this is the route you decide to take:

    • Register your company for SEIS Relief so your investors realise tax benefits. Doug Richard has set up a website to help with this seiswindow.org.uk
    • Then find your Angel! Search for Angel groups in your area or industry sector, check out groups such as Angels Den and Beer& Partners and the British Business Angel Association
    The best Angels are those that contribute cash, contacts and expertise/ mentorship.

    Emma
    Erik and Lace like this.
  10. Anthony

    Anthony

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    Hello everyone, great to see so many of you turn out for our Q&A event! :)
    With the emergence of lending platforms like Funding Circle and Zopa to name just two, I believe capital is a lot easier to get hold of than even 5 years ago when I was just getting started growing my first business. Peer to peer lending is an exciting prospect and making a lot of waves in the industry. The Government obviously think so, as it was announced in March that they would back loans to the tune of £20m through peer to peer lending site, Funding Circle. Not only was this a tactic to directly stimulate the funding of businesses needing the cash to grow, but also a sure sign to the banks that if they aren't going to lend then the Government will support initiatives that do. I think peer to peer lending has its disadvantages, some of the interest rates for example are a great deal higher than conventional means, but if its a case of getting a loan vs. not getting it, I think a lot of businesses are prepared to pay a slight premium.
  11. James Day

    James Day

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    Hi Erik - for an example, here's our crowdfunding pitch: bit.ly/11eoCYu (if it asterisks, use: youtube.com/watch?v=q8afIXD3geo) - we had to think: how can we portray ourselves as vital to both our target market, and those looking to invest? Statistics are a good way to achieve that. I think also, everything's becoming more visual - people's attention spans are lessening, so you need something which will make a lasting impact, both onscreen and in the mind.
    Erik likes this.
  12. Oliver

    Oliver

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    The downside to funding from smaller investment companies (ie anyone smaller than a bank) is that their rates look to be higher than a highstreet bank could lend at. However it's very much 'swings and roundabouts' if your unable to get much funding from a highstreet bank, an investor such as Iwoca could be absolutely ideal to kickstart your business or help bridge a difficult financial time!
  13. paulbrown

    paulbrown

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    I think you need a mixture of the 2, you need to have a good pitch to get an investor interested but also a sound idea of the figures. An investor wants to be able to back someone he believes will be successful financially in the long run.
    Sai Montes and Erik like this.
  14. Anthony

    Anthony

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    Agreed. And I would go so far as saying that in terms of importance, mentorship is more valuable from an Angel than their cash. If you've got a good idea or a stable business looking for growth, attracting capital isn't as hard as many make out, but finding the right people for your business and circumstances to supply that capital and getting the balance right between everything else that they bring is really key.
  15. Oliver

    Oliver

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    Peer to Peer lending I think benefits from business owners wanting to build a trust relationship, something that seems to have vanished from bank borrowing. When I approached the banks a number of years ago (when I was 18) there was very much a 'computer says no' scenario to accessing my business, rather than a real person dealing with you.
    Anthony and Lace like this.
  16. Lace

    Lace Retired Moderator

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    Hi Paul, I remembered you mentioned getting funded externally (if my memory is right) - how did you make your pitch?
  17. Anthony

    Anthony

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    Here's an interesting one. Does anyone think we would see a peer-to-peer lender like Funding Circle on the highstreet?

    Surely the mechanics of the trade suit the Internet, but I wonder whether we might see kiosks where consultancy and lending criteria might be discussed in more of a personable way.
  18. Oliver

    Oliver

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    It would certainly help to get the word out there
    Anthony likes this.
  19. James Day

    James Day

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    Interesting question - did anyone watch the Bank of Dave on Channel 4? I picture it being a bit like that.
  20. Emma Jones

    Emma Jones

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