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Raising finance for your business idea

Here’s a quick lowdown on how what you can do to raise money for small to medium business startup.

All banks say that they will lend you money. But they won’t lend on the back of just an idea.
You’ll need to have worked through your idea and how this will generate profits – enough profits to pay back the loan in perhaps a year or so.

You need to therefore prepare a business plan to discuss with your bank before you start raising finance.

Here’s a step by step process for approaching banks:

1) Sketch out a rough idea of your new business onto a couple of pages with rough finances and and idea on how much you’ll need.

2) Put together your own assets and loans you have outstanding

3) Approach your bank and make an initial appointment

4) Discuss the idea with your bank – this is a crucial meeting. You’ll be able to find out if your bank will support you. Also find out what type of information and in what format your bank needs to assess your application – this will include the format of your business plan

5) You’ll need to go back once you have formulated your plan and discuss further.


If you get refused find out why – there may be many reasons.

1) Your sales and profits are to optimistic

2) The bank feels the risk is too high

3) Your idea is not robust

4) The market for your idea is limited

Find out why and you may be able to change your plan (say, to a more realistic plan) and get less finance but for a small business – to start with – you can build it up later but at least you have started.

Write your business plan with