Identifying sources of finance
When you add together your start up costs and your working capital requirements for at least six months you will arrive at the capital investment required to get the business up and running.
You can get this investment from a number of sources:
- Promoter/Family
- Existing business - only where surplus is available
- Borrowing
- Banks
- Building societies
- Credit union
- Mutual societies
- Hire purchase company
- Leasing company/finance house company
- Point of sale finance
- Contract hire
- Merchant/auctioneer credit
- Licensed credit broker
- Private loan
- Grant aid
Your Rural Enterprise Adviser will be able to advise you of funding opportunities available for farm diversification projects.
When deciding which is your best source of financing you need to take into account factors such as interest rates and timescales for repayment.
To attract investment for your business from any of the sources named above you need to be able to convince others that it will be a viable enterprise. The best means of doing this is to present a sound business plan.
