Following on from our article about ‘Where to go for small business support’, we also wanted to highlight the funding opportunities available to manufacturing businesses. While running a manufacturing business comes with its own unique challenges, like any business a steady stream of cash is necessary to keep it afloat.
As a result, it’s essential to have a tight grip on your operations, especially when it comes to financial planning as it will help highlight when your business may need more funds. One of the keys to success when planning is understanding the Working Capital Cycle – the length of time it takes to convert net working capital (assets and liabilities) into cash in the bank – and maintaining a healthy cash flow by choosing the correct source of funding.
Whether you need to fund a manufacturing startup, are planning on expanding or are out of pocket due to late payments, there are plenty of funding options to choose from. These fall under the following two categories; Debt Finance and Equity Finance.
- Government grants and regional agencies
- Leasing and hire purchase
- Start-up loans
- Bank business loan
- Bank overdrafts
- Asset finance
- Invoice financing
- Venture capital (VC)
- Private equity (PE)
- Angel investment
- Expansion capital
If you’re still unsure about the best choice of funding for your manufacturing business, then there’s plenty of advice out there including Sage’s in-depth Guide to Funding for Manufacturing