Finance

Business planning, accounts and cash flow

Planning ahead is essential for any business. As we have seen with the Covid pandemic, the unexpected can happen at any time, so you must be fully prepared. Our business planning services include help writing your business plan, marketing advice, getting your accounts in order and ensuring you have the cash flow you need to fund your ambitions and keep your business growing.

Writing a business plan that can survive the test of time and impress potential investors is critical to success. But it’s far more complex than you may think. Everything from the executive summary, to how you detail your company structure and objectives, its finances, anticipated revenues, target markets and projected return on investment needs careful consideration.

To avoid errors, ensure that you are in the best position to manage your business and attract investors, it’s critical to consult with experts in the field.

As part of your business planning, you need to ensure your accounts are fit for scrutiny. Keeping your finances in order is essential for any thriving enterprise. But preparing your financial information can be a tough and arduous task. Unless you are adept with figures and financial forecasting, gross and net margins and the details of your bottom line, then it is best left to accounting specialists. After all, if the unexpected were to happen and you urgently needed to raise finance, the first thing any lender would look at is at least three years’ worth of a firm’s accounts.

Cash flow can make or break a business. So, you need to keep tabs on money coming in against money going out. Poor cash flow means you may not be able to pay for new orders, settle tax commitments on time, take advantage of volume discounts, launch new products or pay salaries.

In the worst cases, cash flow problems lead to insolvency. Having a cashflow forecast is critical to every business, regardless of its size.

If you notice that you are up to your overdraft limits and payments are being declined, or you fall behind in settling rent or loan repayments, then you need to seek out a solution fast.

UKBA’s nationwide network of consultants has experts in all aspects of business planning. So, whatever you are facing, pick up the phone for a free consultation.

Grants

Securing grants for your business can be a challenge. With 100s of grants available to SMEs in the UK, you need to know how to identify the right one for you. Then there’s the process of applying for it, which in many cases is far from easy.

We are specialists in navigating the maze of grants available, including R&D Tax Credits, Patent Box and various other schemes. Plus, there’s a gamut of local grants available from Local Authorities across the UK.

UKBA’s unique nationwide coverage means we have a Business Advisor who can assist you wherever you are based in the UK. Your advisor will help match you with the best grant for your business and guide you through the entire application process, so you get exactly what you need to make your business a success.

Turnaround and restructuring

Running a business can be lonely, especially when you run into problems. Having access to good quality advice is therefore a must.

If you are suffering from falling sales, reduced profits and uncertain cash flow, you will need a turnaround strategy or even a restructuring. To avoid insolvency or even bankruptcy you must address the problems as soon as you notice them. By tapping into UKBA’s vast skill set, you will be matched with an advisor who can help you get your business back on its feet.

We will work with you to turn things around, either with the existing structures in place – or if these are not working – we will help you restructure to bring your business back to profitability. You will then be well placed to grow your market share and benefit from increasing sales.

Your initial meeting with a UKBA consultant is free of charge, so don’t delay until it’s too late. Instead, get in touch now so that we can help you make difficult decisions more easily.

Debt and commercial finance

For many SMEs the first place to go for finance is their existing bank. This may also be the best place to go as your bank knows your track record and may be able to offer a cheap deal.

But what if the bank says no or are too slow?

Then, you’ll need to look at sources of external funding. Debt and commercial finance are not just for struggling businesses; external finance can provide a handy cash injection for any entrepreneur who wants to ease cash flow pressures or step up their growth plans.

Debt finance is when you borrow money that will be repaid over an agreed time period – so you are indebted to the lender. This type of commercial finance comes in many forms including bank loans, mortgages, trade finance, stock finance and invoice finance.

Our consultants know the intricacies of all the different kinds of commercial financing options. Understanding what you need and finding the right solution for your unique business is often the key to success. That’s where UKBA’s advisors can help. We will use our deep knowledge of the debt and commercial finance market to ensure you get what you need, when you want it so that your business is healthy and fit for growth.

Credit management and credit control

Effective credit management is a prerequisite for any business that wants to ensure it is paid on time. By having the right processes in place, it is possible to create a culture that clearly indicates to your customers what is expected regarding payment terms.

You must set up super-efficient credit control systems so that you know what is owed to you, when and by whom – at all times. Then, you need to ensure you have the means to collect the payments.

It’s not simply a matter of sending out invoices and hoping they will be paid. While it is understandable that smaller businesses generally don’t have the capacity to hire an internal credit controller, it is vital to invest time in implementing some good credit management practices as part of your overall strategy for long term cash flow control.

If you are experiencing problems staying on top of your invoices and collecting what’s owed, then we can provide you with invaluable advice that will keep your credit control and credit management on track.

Equity funding

Many businesses seek to take out loans, or debt finance, when they need a cash injection. But for other entrepreneurs this is not an option as they may be a stage in their business where equity funding could provide the answer – this could apply to companies at an early stage, in need of turnaround or restructuring, or scaling up.

Equity funding is when you give away a portion of your business in return for outside investment. There are several alternative sources of equity, such as high net worth individuals, angel investors, regional funds, crowdfunding and venture capital.

There are pluses and minuses to each. The main thing to remember with equity funding is that you cede ownership of part of your business in return for the external investment. While this means you won’t have to repay investors or worry about debt, it does mean that the investor/s may want a say in the running of the business. In some cases, they may demand a seat on the board and insist that they ratify significant decisions before you can proceed.

On the other hand, if you attract investment from someone with experience in your sector, they may also offer you invaluable insights to help you succeed.

With equity funding, investors receive dividends from surplus profits and benefit from appreciation in share value. How long they will remain invested in a business will vary, and it may be possible to buy back their shares further down the line.

Given the risks and complexities of equity finance, it is crucial that any business owner considering this option obtains the advice of an expert. UKBA consultants deal with all aspects of equity funding, from preparing a business so that it is investment-ready to finding the right kind of investor for your business and negotiating how much of your business to give away in return for their cash.

Our local Business Advisors are here to provide you with tailored financial and business planning advice. So, wherever you are, and whatever you need, please contact us here or call 0333 444 8522 to find out more. Remember, your first consultation will be entirely free of charge.