Starting a business has many risks involved. From securing your initial funding to ensuring your finances stay afloat, there are many monetary aspects to juggle. While 30% of new businesses fail within the first two years of starting up, there are certain things you can do to ensure yours won’t be one of them. Here are some key financial things to consider before starting a business.

1. Risk & Return

Risk & return is a phrase most used by lenders rather than businesses. However, it pays to understand your company’s risk and return in order to find the best kind of finance and start your business plan on the right foot.

The risk attached to an investment is a way of describing how likely it is to lose money. Buying shares in a new company may be considered very high risk: there is a possibility that the firm’s products or services may not succeed, which could lead to losses for shareholders. However, the potential returns for low-risk investments can be lower than for high-risk investment. It’s up to lenders to decide whether they take that risk in order to gain a potentially great return on investment.

Similarly, you will need to figure out your own attitude to risk and return when deciding how much funding to apply for in the beginning. Risk is often boiled down to your current financial situation. The hardest part of starting a business is usually raising the money to get going. The entrepreneur might have a great idea and clear plan of how to turn it into a successful business. However, if sufficient finance can’t be raised, it is unlikely that the business will get off the ground.

Thus, when you are making business investment decisions, you need to establish your attitude to risk. Often, by taking on more risk can you give your money the opportunity to grow over the long term and really make a success of your company now and into the future.

2. Cash flow management

A startup business may spend more than it earns for two or three years. The amount of financing you need may continue to increase long after you reach breakeven.

Establishing a budget should be a priority and it’s important to ensure you stick to it. As long as you factor in all possible expenses in your startup business plan, you should have enough finance to cover the costs until you start making a profit.

If you’re thinking of starting up a seasonal business, you will also have to account for the predictability of cash flow peaks and troughs. It might be an idea to show your forecasts for sales and expenditure, and what your cash position will be each month – including capital costs, such as purchasing equipment.

One way to ensure you stay on top of your cash flow management is by tracking and monitoring all your spending. Include everything from small stationery orders to equipment hire – it all adds up. If you’re in a position where you can afford to hire a professional to do this for you, then do. This will be a huge help when it comes to managing your taxes at the end of the year.

3. Fixed expenses

Fixed expenses are outgoing expenses which cannot be avoided and won’t change based on the success of your business. These include premises costs, insurance, staffing and other professional costs, as well as stock, marketing and finance expenses (such as interest).

Paying your fixed expenses is obviously very important as it will ensure the success and longevity of your business. However, there are ways in which you can limit spending to help you succeed in those first few years.

While a fancy office or premises may seem like a priority, focusing on substance over style is extremely important when it comes to startups. After all, the fancy office will become empty if your business fails within the first year. Reducing your spending on these things in the beginning means you can focus on growth and generating revenue.

4. Preparing for every outcome

Optimism is half the battle when it comes to setting up your new company, but you never know what’s around the corner and there are bound to be roadblocks along the way. Preparing yourself for small failures by having savings or extra financial security means your business won’t fail entirely. It also means you won’t be left with lots of debt, as you’ll be more likely to recover from the difficulty than go into liquidation.

Unsurprisingly, it’s much easier to obtain business funding when you’re in a good financial position. Most important of all, don’t wait until your need for extra funds becomes urgent. At this point, you’ll have left yourself with limited options and may make hasty decisions out of apprehension. Ensuring you have enough money aside for these eventualities will give you peace of mind but also act as a buffer and potentially save your business financially.

5. Which type of finance is right for you?

There are many business finance solutions and startup loans – the problem is often choosing the one which is most suitable for you and your business needs. The alternative funding approach is proving particularly popular with startups. Businesses under five years old are as likely to select alternative finance methods to secure capital as approaching banks. This is key for direct investment in businesses, including stock purchase, expansion & refurbishment funds and equipment purchases. Not only that, but alternative funding is potentially accessible at a faster rate than your traditional loans.

Some of the best types of alternative funding to consider for startup businesses are:

No Trading History

• Secured business loans – this type of loan uses assets such as property, equipment or vehicles to secure the loan against. If you have not yet built up a trading history, lenders may feel more comfortable offering this type of loan which ensures they can make their money back in the unlikely outcome of missed repayments.
• Asset based lending – like secured loans, asset finance uses business assets to secure a loan. These can be things like outstanding invoices as well as equipment, property and vehicles.
• Start Up Loans – specifically designed to help new businesses, startup loans is a government-backed scheme which helps individuals start or grow their business in the UK. Visit the Start Up Loans website for more information.

4 months trading history

All the loans stated above would still be suitable, but you could also consider the following options if you have a few months’ trading history behind you.

• Unsecured business loans – these types of loans don’t require assets to secure a loan against, but they will usually request a guarantor. Decisions are usually made within 48 hours and the applications are simple, making the process really easy.
• PDQ cash advance – a PDQ or business cash advance secures lending against your business’s card terminal. Seasonal businesses can benefit greatly from this type of funding as the repayments will alter based on the amount of turnover.
• Invoice finance – having capital tied up in unpaid invoices can be particularly hard for new businesses. Invoice finance enables you to unlock these funds and continue trading without stress.

Often in the small/medium business world, the alternative funding option is a viable route that potentially carries success. Aurora Capital eradicate the risk and maximise the potential for success by assisting UK businesses raise the capital they require as well as a suitable product for their organisation.

If you would like to get in touch and find out more information on alternative funding, please call the team on 01371 870 815 or email info@auroracapital.co.uk.

Christmas Day is only around the corner, in the blink of an eye the presents will be discovered under the tree for all to open, festive food and drink consumed, spending time with loved ones and the EastEnders Christmas Special, if that’s what you’re into. Nonetheless, this time of year signifies an end to the working proceedings for another calendar year of alternative investment at Aurora Capital.

With the office fully decorated in festive attire and everyone excited for Father Christmas to get stuck in the chimney (again), we thought it would be a good time to look back over what we have offered you and our clients throughout 2018.

As you know by now, Aurora Capital are funding consultants, assisting UK businesses and ensuring they raise the necessary capital that is required to facilitate future plans in their company.

With access to a whole host of different lenders in a range of diverse lending markets, we are able to help you source the most competitive solutions for your business.

Aurora Capital have been working hard bring our clients the very best investment capital on the market. We thoroughly and diligently research client requirement. Thus, the alternative funding approach has helped to fund and expand many SME businesses from a wide range of industries.

The Aurora Capital alternative funding approach has proved particularly popular with startups. We have been key into gaining direct investment for businesses, including stock purchase, expansion & refurbishment funds and equipment purchases – not only that, the alternative funding process has been accessible at a faster rate than your traditional loan routes – this efficient and effective approach of finance has been unique and tailored to many businesses this year.

In addition, we have kept our finger on the pulse throughout the funding industry, from personal guarantees to lenders reducing their rates. This has been professionally handled by your dedicated account manager, he/she looks after your application process from start to finish, as well as providing the additional support you require.

New and existing clients of Aurora Capital are important to us. We want to be able to give them regular updates and advice, assess their alternative investment regularly and help them manage their wealth wisely. In 2019 we strive to improve on our already excellent service and providing a solution to your financial requirements.

We have only ever worked with SME’s, and only ever will, so we understand the business needs better than other commercial brokers. The alternative funding approach is one that is a forward thinking tactic that can help your business prosper now and into the future.

If you would like to get in touch and find out more information on alternative funding, please call the team on 01371 870 815 or email info@auroracapital.co.uk– we’re more than happy to help you start the new calendar year on top!

On behalf of the fantastic, hard-working team at Aurora Capital, we would like to take the opportunity to say thanks to all our new and existing investors for their loyalty and business over 2018 and we also wish you a very Merry Christmas and a prosperous New Year ahead – we look forward to working with you again soon!

November is upon us. As the nights draw darker before long, thoughts of Christmas will be your company’s main focus (if it isn’t already) as well as your consumers alike. As the business landscape gets more and more competitive, it is essential to make sure you get it right and plan your festive operation sooner rather than later, from stock management to marketing and beyond. After all, it’s the most wonderful time of year!

This time of year is where many businesses enter their most busiest period, where customers will experience a greater interest in your company’s product, service or organisation as a whole. Thus, it’s worth being prepared early in terms of sales, employees and equipment that’s needed.

As we know through previous years, with Christmas comes the festive feel good vibes, not to mention the colder weather! Christmas decorations for your shop or premises shows that you’re in the spirit of bringing joy to your customers – there’s no room for a scrooge in Christmas business marketing and preparation!

From decorations to stock, heating to marketing, retail to hospitality – your winter business funding is essential. Having this in place with a good system in place to handle this extra demand and manage purchasing requirements on the back of this. With this in mind, the process of planning needs to be thought about relatively quickly, as you can bet your bottom dollar your competitors will leap in front of you if you fail to activate these plans early.

In addition, you need to be clear about how much money you are going to need and where to find it. You also need to make sure you’re matching, if not beating your competitors within your industry throughout this lucrative period of business operation.

You also need to work out how much financing you require and when you will need it. While a bit of healthy competition is good for any business improvements, you don’t want them having/using a great idea before you’ve even started singing the first verse of Jingle Bells!

Most importantly of all, don’t wait until your need for extra festive funds becomes urgent. This is the time where you need to assess which funding you may need and what is suitable for you and your business.

It can be helpful to understand the benefits of alternative funding, which can ultimately be worthwhile for the future of your company and the type of service you offer. Thus, here at Aurora Capital, we are funding consultants, assisting UK businesses raise the necessary capital they require to facilitate future plans in your company.

We have access to many different lenders in a range of diverse lending markets, enabling us to source the most competitive solutions for your business. Not only will we strive to source the most competitive offers, but we can advise you on the best product for your business moving forward.

So, make sure you activate your business budgets in good time and reap the benefits that Santa has in his financial sack this year!

If you would like to contact us further about activating your business plans or have any questions for our team as we head into the final months of the year, please give Aurora Capital a call on 01371 870 815. Alternatively, you can email us via info@auroracapital.co.uk.

Often many businesses venture down the traditional route of seeking finance such as banks when seeking funding for growth/expand their businesses. Since the dawn of the traditional banking era, the development of banking online has grown to a new level – benefiting the alternative funding avenue.

The beauty of our modern 21st century world gives Internet banking or E-banking a whole new meaning, allowing customers of financial institutions to carry financial transactions on a secure website. Through requirements such as passwords and customer authentication, a customer can access his/her account any time they want over e-banking. Thus, e-banking has given birth to 24/7 banking, which earlier was just restricted to normal in-house banking hours – today each and every bank is providing this facility to its customers making it an easy transition for those not quite up to modern times.

While personable card machines or ledger posting machines may still be in operation, the online banking storm has opened its doors for all the customers to operate beyond their boundaries. It essentially allows business professionals to carry out their banking transactions, including alternative funding options. Through convenience banking, the bank is carried to the doorstep of the customer.

From traditional to modern ways of banking thinking, you may have also heard of cloud-based lending platforms that simplifies the borrowing experience, helping lenders close loans faster and reduce operational inefficiencies – all through automation and configuration in a quick and efficient manner.

Online banking without some previous knowledge or know-how of how it operates can appear daunting to the older generation, what with hacking and data always a concern in the online world. However, in terms of young Business Owners looking to make their mark, they can sometimes be guilty of focusing on the money being spent rather than the benefit it brings. Nevertheless, this still doesn’t change the fact that in the case of alternative funding, as with many of business activities, it really can save you time and money.

It can be helpful to understand the benefits of alternative funding, which can ultimately be worthwhile for the future of your company and the type of service you offer. As well as working in tandem with many of your modern processes such as online banking.

The alternative funding markets are ever growing, with more lenders emerging with new funding products and all offering bespoke funding solutions that differ from one another.

The alternative funding method can be unique and tailored to your needs, through it’s flexible and fast nature – much like the online banking method.

Aurora Capital are funding consultants, assisting UK businesses raise the necessary capital they require to facilitate future plans in the company.

We have access to many different lenders in a range of diverse lending markets, enabling us to source the most competitive solutions for your business. Not only will we strive to source the most competitive offers, but we can advise you on the best product for your business moving forward.

If you would like to get in touch and find out more information on alternative funding, please call the team on 01371 870 815 or email info@auroracapital.co.uk– we’re more than happy to help!

“Everybody has a summer holiday, doin’ things they always wanted to. So we’re going on a summer holiday, to make our dreams come true – for me and you.” Whatever they say about Sir Cliff Richard, he certainly knows how to get you in the holiday mood – if only he came up with a song that defeated the holiday blues…

Let’s face it, after our summer get away has come to an end we have a touch of the holiday blues, in addition to many of us even experiencing challenges when we return home – due to spending more than we can afford, coupled with what we actually come back to when it’s time to go back to work.

With the summer holiday period well into its peak time, British tourists looking to escape the mundane routine of work life are likely to spend an average of £1,175 per person on their getaway plus an additional £118 on pre-trip purchases such as holiday clothes and toiletries.

Many of which are in the mindset of ‘spend now worry later’ with a simple but costly credit card payment, but this raises the question of; how you’re going to pay off the eventual bill?

After all, everyone is entitled to free time outside the confines of the office or working environment for a few weeks, holidays are something people find very hard to give up and that’s understandable – for some its what is anticipated the most throughout the calendar year.

Thus, to enjoy your summer and keep your business performing to the best of its capabilities why not consider savings/cutbacks or better still, the alternative funding option for business is one that start-up businesses can benefit from.

While every successful business has an Accountant and Solicitor representing them in their time of need, another component to have in your business armoury is a Funding Specialist – the question is do you have one? If not, why not?!

Funding specialists such as us at Aurora Capital assist clients with procuring funding support for the organisation. We’re able to collaborate with your internal services and ensure your needs and expectations are met fully – not just this summer, but all year round!

This is key for direct investment in businesses, including stock purchase, expansion & refurbishment funds and equipment purchases – not only that, alternative funding is potentially accessible at a faster rate than other traditional loans you be accustomed to.

This method can be unique and tailored to your needs, through its efficient processes, it has the potential to help not only you and your business, but so many more that may be experiencing the same situation as you.

Aurora Capital are funding consultants, assisting UK businesses raise the necessary capital they require to facilitate future plans in the company. We have access to 15+ different lenders in a range of different lending markets, enabling us to source the most competitive solutions for your business.

Enhancing this funding opportunity, enables us to advise you on the best product for your organisation, as well as prioritising our collaboration to successfully secure the livelihoods of all small UK businesses including yours.

This in turn ensures that you may have time and money to enjoy your personal life with family and friends, if that means venturing on holiday for a week or two, then why not!

If you would like to get in touch and find out more information on alternative funding, please call the team on 01371 870 815 or email info@auroracapital.co.uk– we’re more than happy to help!