Choosing the right business finance for your company

By Sue Barnard, senior relationship manager, British Business Bank and Northern Powerhouse Investment Fund

Sue Barnard British Business Bank

Here are some tips on choosing a funding solution that’s right for your business.

Create a robust business plan

Make an assessment of where the company is, what the opportunities are, how achievable they are and what new challenges there may be.

This plan will be vital in helping you secure funding as it helps potential lenders or investors understand the vision and goals of the business.

Research your options

Growing a business into a successful enterprise is not always a smooth, linear process. While there are various funding options, availability will depend on your circumstances.

Debt finance

Otherwise known as loans.  At any stage of its development your business is likely to need a mix of different forms of debt, all of which have their advantages for business growth.

Debt finance is appropriate if you’re looking to hire staff, purchase machinery, move premises or finance a big order.

Equity finance

Whether you’re starting out or experiencing a high-growth phase, equity can be an important resource of funding and broader expertise, if you’re looking to grow at a rate that cannot be supported through borrowing then equity could be an option.

Seek quality advice

Don’t always go for the first offer on the table, look for alternatives before you commit. Seek good, independent advice from accountants, lawyers, government sources, business mentors, or national and local accelerators or incubators.


If you are not successful, don’t give up! Always look for alternatives. You can explore your options in the Business Finance Guide we produced in partnership with the ICAEW and others.