Funding
What type of businesses does a funder like to back ?
A funder is most keen when the business in question has a decent length of trading history, steady or strong profit growth, healthy cash generation and a positive balance sheet. In terms of the balance sheet, businesses with a range of assets which can be leveraged against are always of interest. Land and buildings, stocks, debtors, plant and machinery are all good asset classes which will assist a funder when considering a funding package however, that is not to say that a business without land and buildings and/or plant and machinery will not be of interest. It is very much a case of looking at the business as a whole and how it sits in it’s market/sector and also, the potential for future growth.
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