How to fund your plans for your business

Did you know there are an increasing range of ways to fund plans to grow your business or to exit your business.  At the moment Elephants Child are working with over 30 companies on some form of funding. The amounts range from £50,000 up to £9,000,000.  We’re also talking to over 50 companies and business owners about plans to exit their business. Valuations for those range from £200,000 to £100,000,000. We’re working with an increasing number of business owners on partial exits too. Perhaps someone who wants to release some of the money in their business to pay off their mortgage or cover school fees. They may want to sell a certain percentage of their business, use that money now, and then spend time developing the business for another few years to maximise the value of their remaining stake. Our Chief Revenue Officer Crawford Walker explains more.

The options available to businesses include:

  • Banks
  • Debt
  • Private Equity/Investment
  • Corporate Finance
  • Venture Capital
  • Business Recovery
  • Angels

Each business is individual and so the funding solution needs to be bespoke to each company.  Sometimes a combination of options is needed to achieve the desired result. Using our experience and the combined connections of the herd we can offer businesses a wide range of options and ideas to help them to get to where they need to be

 

Here are just a few recent examples we’ve been working on:

A company we’ve been working with for a few years now received notice from their original funder that they were withdrawing from the funding market. Traditional funders were unable to assist because of the company’s highly concentrated ledger and high levels of export. We worked with an invoice finance firm and secured a £2,000,000 invoice finance facility, a £200,000 cashflow loan to fully repay their existing funder and completed the funding package with a £150,000 trade finance facility from another provider. This funded goods ordered from China until they reached UK for the new invoice finance facility to take over.

In another example, we helped a company valued at around £12million with two 50% shareholders. One shareholder wanted to exit the business and we’re currently working with a Corporate Finance firm to help make that happen. Our client is now deciding between two offers for debt enabling the shareholder that wants to exit now to do so.  We expect this to complete in April.

We’ve also helped a fast-growing company who were struggling with cashflow using short term loans to plug working capital gap. We’ve been able to secure them a £200,000 invoice finance facility and worked on credit control and bad debt protection.

If you are looking to grow, exit, or partially exit your business and need help putting together a funding package to achieve this please get in touch.