1. BEDFORD BUSINESS CLUB WEDNESDAY 10 TH FEBRUARY 2016 FINANCIAL SOUNDBITES - FUNDING JOHN LANDERS – OPUS BUSINESS FINANCE

2. ‘LOOKING FOR FINANCE WITHOUT A PLAN IS LIKE A JOURNEY WITHOUT A MAP [ OR NOWADAYS SAT NAV!!]’  When looking for finance understand what it is you are looking to raise the finance for  WORKING CAPITAL  GROWTH  ASSET ACQUISTION  DEVELOP NEW PRODUCTS  TAKE ON NEW STAFF  WIDEN PRODUCT/SERVICE BASE  ACQUISITION  INVESTMENT  I have identified over 30 different types of business funding – how many can you identify

3. SOME TYPES OF BUSINESS FINANCE 1. Own money 2. Friends and Family 3. Bank overdraft 4. Bank loan 5. Bank Enterprise Finance Guarantee loan 6. Hire Purchase 7. Leasing 8. Invoice Factoring 9. Invoice Discounting 10. Selective invoice finance 11. Spot Factoring 12. Commercial Mortgage 13. Bridging Loans

4. SOME TYPES OF BUSINESS FINANCE [CONTINUED] 1. Buy to let Mortgage 2. Trade Finance 3. Stock Finance 4. Supplier Finance 5. Credit card receipt finance- merchant cash express 6. Crowdfunding/Peer to Peer 7. Pension led funding 8. Start up loans 9. Micro loans [ eg Princess Trust] 10. Regional Enterprise loans 11. Supplier/Revenue credit 12. Pawnbroking 13. Venture Capital

5. SOME TYPES OF BUSINESS FINANCE [CONTINUED 2] 1. Business Angels 2. EIS investments 3. Mezzanine Finance 4. Export Finance- Letters of Credit- Bills of Exchange 5. Supplier credit

6. ‘THE BEST PLACE TO HOLIDAY IS SOMEWHERE NEAR YOUR BUDGET’  Cost should always be a driver when looking at finance but not to the detriment of getting the most appropriate finance  Understand the benefits you are looking to derive from the finance and the costs you can bear to pay for it  Always better to apply for funding with the support of projected P&L and Cash flow forecasts  Don’t overlook the benefit of speaking to your accountant, business finance broker or other professional – remember the internet is a great source of information but funders tell you what they want you to know rather than what you should know

7. ‘FUNDING IS A PRIVILEGE TO BE PROTECTED NOT A RIGHT TO BE EXPECTED’  It is important to understand that lenders lend money in order to earn income or make a capital gain  They have a responsibility when they lend money to know that they will at some time get it back  Where they invest money although the risks are higher their rewards are potentially higher  Do not expect the funders to take all the risk – they will want to know what the business owners commitment is  Be realistic in terms of security requirements  Understand that if you are not prepared to back the funding it does beg the question why should they

8. ‘MOST BUSINESS OWNERS WOULD RATHER HAVE PIECE OF MIND THAN A FLASH CAR’  Just because a funder is prepared to lend you money should not be a reason to borrow it  Make sure that you have identified how the money is to be used to the benefit of the business  ‘THE BENTLEY IS VANITY, PROFIT IS SANITY, CASHFLOW IS REALITY’

9. ‘YOU CAN’T BORROW YOUR WAY OUT OF DEBT’  Thinking cash flow difficulties can always be remedied by borrowing more money is very dangerous  If a business has insufficient sales, inadequate margins, poor management and many other contributing factors to poor performance and in turn cash flow pressures, then borrowing more money will not necessarily resolve such issues  Be honest with yourself if facing cash flow pressures and don’t shy away from taking professional advice  ‘THE COST OF PROFESSIONAL ADVICE IS RARELY MORE THAN THE COST OF NOT HAVING PROFESSIONAL ADVICE’

10. QUESTIONS?  DOES ANYONE HAVE ANY QUESTIONS FOR MY ANSWERS  [HENRY KISSINGER]