Additionally, as your company grows and share prices increase, you could lose valuable capital as the business grows. Short Term Overdrafts Short term lending is probably the commonest form of raising short term capital. A small over draft with you bank can quickly be agreed and can be quite effective to cover short term needs. There are drawbacks to this method as your bank can demand immediate repayment to any overdraft. If you need a longer term form of finance, then a long term loan might be suitable.
Many banks have a variety of loans with a variety of payment terms.
Your bank manager will probably assist you in deciding which of the most suitable choice for your circumstances. This means that a good business plan and cash flow forecast is essential. These schemes are designed with the small business in mind. A business which had been trading for two years or more is eligible to apply for this particular for of financial assistance. There are a variety of schemes all made to measure to your individual needs and can be up to L25,000, and can have a repayment period from two to seven years.