Raising capital for your business

Whether you're starting a new business or you're a fully incorporated company, it may be necessary to secure some funding and finance. Start-ups will most likely have start-up costs to either secure work premises, purchase stock or equipment, hiring staff or even paying for legal costs to make sure everything runs smoothly. Whilst a fully incorporated company might need to secure funding to expand their business, expand into different markets or launch a new product.

Loans are the most simple type of funding. This is usually in the form of cash which is repaid over an agreed length of time with interest. A Loan agreement can be used if you want to borrow money or intend to lend money which helps ensure all obligations and restrictions are set out and made clear from the start. Use a Term sheet when you want to set out key financial terms of a proposed investment. A Promissory note can be used when you want to create a legally binding promise to have all debts repaid.

You can also secure funding through equity by issuing new shares to shareholders in return for investment. Use a Shareholders agreement if you want to maximise the value of investment from shareholders and ensure stability in your company in return for their investment.