Financing SME Growth

Continuing our series specifically about supporting small business and the challenges of scaling, we take a look at the issue of accessing finance and some of the considerations SMEs may have when choosing a method of finance.


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Accessing finance is a huge issue for Irish SMEs. Managing cash-flow is complicated by delayed payments, unforeseen bills due to capital equipment failures and as we mentioned in article 2 of this series, unexpected taxation pressures, not to mention the capital required to scale.
Every business will have different capital requirements and require specific financial planning. Is the business financing a new premises, acquiring significant new stock or a new business?

Different financial needs require very different sources of financing.

Traditional lending sources such as overdrafts, short term loans and personal loans may not be suitable for these larger financing requirements however there are many newer sources of funding available to SMEs from both state and private equity sources such as Peer to Peer lending, angel funds and venture funds.

However it is critical that a company is clear about the purpose they require funding for and can show a well thought out plan to show an investor which demonstrates where the investor will be getting a return on investment.

Security provided will be the other criteria an investor will use to assess a potential loan.

Our advisors here at Gilroy Gannon suggest that conducting a rigorous internal review will provide the answers on which type of funding source is most suited to your companies capital growth.

Funding from venture funds has become more and more specialised to specific sectors and individual requirements.

And of course there are taxation incentives available to some investors which encourages private investment to compliment the state funding schemes
For example, one of the few remaining tax reliefs available for qualifying investors for investments in certain SME’s is the Employment and Investment Incentive Scheme (EIIS).

This is one of the last sources of total income-tax relief. It is attractive to SMEs as it is a way of raising risk capital without having to give away equity in return.

Financing growth can be simplified by engaging an expert in the most up to date funds.

For tailored capital growth strategies and advice contact us today.

At Gilroy Gannon we blend nearly 50 years of business and accounting experience with the most up to date accounting practices to provide our clients with the best outcomes and concise relevant advice.

We understand how to grow and develop business and our specialist our specialist Audit, Accounting, Tax and Corporate Finance teams work with clients to deliver sustainable growth and strong foundations for businesses.

Make Business Better with advice, support and services from Gilroy Gannon
Call us on +353 71 91 61747 or visit our offices at 25 Stephen Street Sligo

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