"What if you need to finance your business to grow faster and to compete with bigger competitors?"

How are you going to convince backers to finance your business? You are young in the field and inexperienced but also filled with enthusiasm and ideas. Well you can distribute your idea and vision as long as you have done the substantial planning which you have proof of. It would be much better if you already have customers and started the business even if it is in small scale just so that lenders can monitor its growth and whether it will be substantial for them to invest in your company.

Remember no one is going to invest in your idea if it is created over night; you need to have all aspects covered and be sure that you have a winning formula before introducing it to lenders. You need to have every area covered, meaning that there is no room for any leaks in your business, this can only be insured if you have thought everything through thoroughly thinking about all the negatives along the way and how you will tackle them. Only when you have done this should you approach a lender, showing them your plans and letting them know that it is a project which has been in planning for a long time, and perhaps launched in small scale you can highlight the growth in this time.

Find out about government schemes designed to help new businesses. Often there is a government department, which provides incentives for new businesses, for example giving rent reductions on government land or providing tax breaks for new businesses. You have an advantage in that you are young and ambitious and the government wants you to succeed.

Banks may surprisingly be your friend too. Banks want you to make profits for them. Look out for start up loans from the local banks. If they believe in your product they will be willing to invest in you, as they know that your success is good business for them.

Are there any special business plans with the bank? Does the bank have a special department, which gives advice to new businesses? Remember that the bank wants you as a customer. A happy customer is a loyal customer. Ensure that the bank account that you choose for your business works favourably for you too. Shop around and compare bank account charges and loan repayment rates.

However do not rely on just banks as you must remember that a bank is a business just like yours therefore it has a goal to make profit as well, just by them lending you the money doesn’t mean that they are not making profit of you. Through a bank loan you may be paying a huge amount of interest depending on the loan amount and period before you pay it back. An alternative could be investors; there are many business people out there with so much money that they may be interested in investing some of it. Through this you can have someone who you can negotiate with and create a much better close-knit relationship with. Through this you may also be able to use their own expertise in aiding your business, even if it is a bit of input on ideas you may have, they should be willing to help if there money is involved in the project.

Get a good accountant. You will probably learn about financial schemes and tax breaks that you were unaware of. On the downside you will find out about taxes and social security payments that a business owner and an employer has to make. This may affect the amount of employees you employ. Ask for personal recommendations when looking for an accountant. This person will have a big influence of the financial side of your business.

So, you now have the finance and you need to sign on the dotted line. Check everything CLOSELY and thoroughly before agreeing to any financial agreement. Understand everything that is written down. Check the terms and conditions of the loan or financial advance. Will you be able to payback the set sum every month? What is the penalty for not meeting a payment? Does the financial giver have any input into your running of the company? What happens if anything goes wrong?

From the onset be diligent in filing all financial documents and contracts. You would be surprised about the amount of paperwork you have to produce when arranging tax payments and financial affairs. Don’t throw documents away. It’s better to store them and know that you have them.