Growth

Raising finance

Help preparing the numbers and the case to secure funding for your next step, whether that is working capital, equipment, property or growth.

2 pages

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Match the finance to the need

Need	Typical options
Working capital and seasonal peaks	Overdraft, revolving credit facility, invoice finance
Vehicles, equipment and machinery	Asset finance, hire purchase, leasing
Growth, acquisitions and premises	Term loan, commercial mortgage
Early-stage and high-growth companies	Equity from angel investors or venture capital, often under SEIS or EIS
Research and development	R&D tax relief, innovation grants

Government-backed schemes

Growth Guarantee Scheme. Lenders receive a 70% government guarantee on loans of up to £2m to businesses with turnover up to £54m. The guarantee protects the lender, not you: the business remains fully liable.
Start Up Loans. Government-backed personal loans for founders of businesses trading for less than three years, with mentoring support.
SEIS and EIS. Investors get income tax relief of 50% (SEIS) or 30% (EIS). From April 2026, companies can raise up to £10m a year and £24m in total under EIS (£20m and £40m for knowledge-intensive companies).

Building the case

Define the need. How much, what for and when, with a margin for the unexpected.
Build the forecast, with clear assumptions and a downside scenario.
Write the proposal: the business, the market, the team, the use of funds and repayment.
Approach the right funders, usually two or three, to compare terms.
Negotiate rate, fees, covenants, security and guarantees.
Keep your promises: report on time and stay within the covenants.

Terms to understand

Term	What it means
Covenant	A financial test in the loan agreement, such as minimum profit cover for interest. Breaching one can let the lender demand repayment
Personal guarantee	Your personal promise to repay if the business cannot
Debenture	Security over the company’s assets in favour of the lender
Advance rate	In invoice finance, the percentage of each invoice you receive up front
Dilution	The reduction in your ownership percentage when new shares are issued to investors
Advance assurance	HMRC’s confirmation that a company is likely to qualify for SEIS or EIS before it raises money

Planning point Funders lend against evidence. A realistic forecast backed by up-to-date management accounts will do more for your application than any pitch.

How King Street can help

Preparing to raise finance?

We prepare the forecasts and funding proposal, help you choose the right funder and review the terms. You deal directly with Doug Murphy or Stephen Thompson, not a rotating account team.

Email us about this guide 0161 835 23233rd Floor, 82 King Street, Manchester M2 4WQ

This guide is general information, not advice on your circumstances. Please speak to us before acting.

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