Do you need to raise money?
Do you need to raise capital for your company or for a specific project?
You could go to your bank, but in these economic times they are less willing to lend. Even if your bank does agree, they will often require founders and directors to put up personal assets as a guarantee.
This is why issuing shares in your company can be a great alternative source of funding.
Unlike banks, equity investors are willing to take greater risk and won’t require guarantees. What’s more, tax breaks offered by schemes like the SEIS and EIS have made investing in private companies even more appealing, ensuring there is a pool of potential investors who are ready to invest in your business.
At metric, we can help you raise the necessary funds to help fuel your business’ growth.
What’s on this page
- How does SEIS, EIS and VCT work?
- How can Crowdfunding help and is it right for you?
- 4 Reasons Why You Need An Expert
- How You Can Access Valuable, Specialist Advice For Free
How does SEIS, EIS and VCT work?
Statistics show that smaller companies struggle to attract outside investment because most venture capital firms prefer to invest larger amounts of cash in a select few businesses due to the time and money involved in assessing and monitoring each investment.
The purpose of the Seed Enterprise Investment Scheme (SEIS) and its “big brothers”, the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) scheme, is to help small businesses overcome this problem and get access to equity finance at an earlier stage of the business’ life cycle.
These are among the most talked about government-backed schemes ever created.
The EIS, VCT and – more recently – the SEIS offer attractive tax reliefs to potential investors (including Angel investors). Investors can reduce their income tax and capital gains tax liabilities by making a qualifying investment in a small company. This reduces the risk for investors and makes it easier for small companies to raise funds.
It’s a win-win situation
How can Crowdfunding help and is it right for you?
Until recently, trying to get funding for a business involved a relentless search to find a few organisations willing to invest relatively large sums of money.
Crowdfunding is changing all that by using the internet to help founders and directors talk to many potential funders simultaneously who are individually able to contribute a smaller sum.
And so, for the first time small businesses are able to reach thousands of potential investors, who find the lower risk of investing more attractive and affordable.
Crowdfunding is an exciting prospect and gives small businesses access to funding opportunities like never before.
However, it can be a confusing arena for most people because it is presented in such a wide spectrum of ways, which is why it’s sensible to talk to an expert.
4 Reasons Why You Need An Expert
Here’s why your company needs an expert to assist with Raising Finance, rather than a “high street” accountant:
- The tax rules are complicated.
In order for an investor to qualify for SEIS, EIS or similar schemes (such as the Venture Capital Trust Scheme) and enjoy the significant tax advantages, both the company and the investor must meet various criteria. If you fail on a technicality your investors will not be impressed.
- Understand the deal.
Whenever a business raises finance it is entering into a long-term commitment. But what exactly have both parties committed to undertake and for how long? These are questions that need to be fully answered by a professional who understands your business and its needs.
- It’s not just about the cash.
Are you hoping that the investor will also bring their strategic knowledge and business acumen as well as their cash? Does your investor want to be consulted (or vote) on management’s decisions? These are points that need to be thought through carefully to avoid problems later down the line.
- Is equity finance the right option?
Whilst raising funds by issuing shares has many benefits compared to alternative sources of finance, it may not be best for your business. This will very much depend on your ambitions and requirements. A specialist will be able to talk you through the options and help identify what’s right for your business.
How You Can Access Valuable, Specialist Advice For Free
Unlike many accountancy firms, we have the specialist knowledge to advise whether raising equity finance would be possible and, if it is, assess whether it would make financial sense for you to do so.
We’re confident that our experience of helping London’s Award Winning companies will eliminate much of the pain – and costs – associated with raising finance.
In order to find out how your business can benefit from the scheme, book your free 45 minute consultation contact us on 0203 542 4990 or by email at firstname.lastname@example.org.
As our 45 minute consultation is free, this makes it completely risk free for you to meet with us and discuss your company’s position.
So, to have a free 45 minute consultation, contact us on 0203 542 4990.