Where will the funding come from?

It almost doesn't seem fair that a business can be the victim of it's own success, but it's an undeniable fact - the faster you grow - the tighter cash will get.

If you paid attention to Cash flow Cycle presentation you'd probably remember - there's often a huge gap between when you need to pay your suppliers (so they'll keep supplying you) and the time it takes for your customer to actually pay your invoice for the goods they've purchased.

Depending on how fast your business is growing right now, there are a stack of options out there to help you deal with the vice-like grip or cash flow squeeze.

• Your Bank could lend you the money and you pay it back over an agreed period with interest while giving them asset for security - perhaps your house.
• Your bank could facilitate an Overdraft to help you meet the demands of your growing business - again they'll charge you interest and they'll want indepth financial records to support you claims that your business is viable.
• Friends or Family could lend you the money.
• Take some of your own savings or investments and pour them into your business.
• Low Interest Credit Cards.
• Take on a partner and have them inject capital into the business in return for Equity.
• Venture Capitalists, Angel Investors & Business Incubators - but remember these lot are looking for an Investment with a clear Exit Strategy. Be realistic and understand that you'll need to offer them a way out, as well as a way in.
• Debtor Finance - to cover the short fall in cash flow until your customers pay you.

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