Debt Finance
Expert business advice to help you finance your business and find the perfect mix between debt and equity funding and finance over all terms.
Raise capital through means of borrowing
When a company borrows money to be paid back at a future date with interest, it is known as debt financing.
Lenders may want security in the form of property, a charge over assets, book debts (your debtors) or a personal guarantee. Giving a personal guarantee means that if the business cannot pay, then you will.
A business would take out a loan to either finance working capital (cash flow), for growth, or purchases such as machinery, cars, premises or to acquire another business, for example.
The downside to debt finance is that it can be expensive, and it is therefore important that correct thought and planning goes into this, to ensure that you achieve the correct funding structure for you.
It is also important that thought goes into your debt-to-equity ratio – this is sometimes called gearing. In simple terms, the business is not borrowing more than it should.
The upside to debt finance is that the owners or shareholders will still own 100% of the business, while with equity finance, owners would have to relinquish shares in their business.
Footprints can help you to source the correct deal for your business, package the financial reports to support this and introduce you to our extensive panel of lenders.
Depending on what stage your company is currently at, we can assist with:
- Attracting the right funding for your business
- Developing new products and services
- Accessing finance for expansion
- Bringing scale to your business
- Entering new markets
- Accessing finance for acquisitions
We can help your business with debt finance
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