Funding requirements

If your business is new or you are looking to scale up, you might need external funding to achieve your goals.

If you have already read our section on financial information, you should be aware of your projected finances and understand what extra funding you need and how long you need it for. However, you need to be honest and realistic with your funding requirements.

It might be worthwhile talking to a financial adviser to check your plans and explore what option might be best for your business:

  • Do you want a loan or an investment in your business in return for equity?
  • Do you want to buy machinery and are looking for a leasing package?
  • What is the right term length for your business?

It is always good to compare the costs of finance before you go ahead.

When assessing your funding requirements, it is good to undertake a sensitivity analysis to understand the impacts on your business as prices fluctuate (see the section on forecasting).

The British Business Bank is a UK government-owned business development bank. It increases the supply of finance available to growing smaller and medium-sized businesses, and has a range of resources to help with finance options.

Your Local Enterprise Partnership will also be able to advise about local grants, start-up funding and alternative sources of finance.  


Getting a step ahead by using farm business analysis tools

This webinar focuses on how you can prepare for a visit from your from your bank manager, and how you can make your business an attractive proposition to lenders:

Encouraging the green shoots of recovery – managing the cash flow in your business

This webinar has information about budgeting, extending overdrafts, negotiating terms and managing loans:

What is your starting point? 

It is worth reviewing your current business performance and understanding what a bank or finance provider is looking for. 

Understanding your finances and farm business accounts